19 November to 5 December 1929 · Diasporaspan
Hoover asks employers not to cut wages and they agree
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Beginning on 19 November 1929 Hoover summoned the heads of the banks, railroads, manufacturing industries and utilities to the White House, and for nearly two weeks they came out of daily meetings repeating that the economy was sound. On 5 December he reported the results to four hundred business leaders. The Federal Reserve had eased credit through open market purchases and a lower discount rate and was refusing to discount for banks making stock market call loans. The industrialists had agreed to hold wage rates where they were, on his argument that the first shock should fall on profits. Railway and utility executives had agreed to expand building and maintenance, and he had wired governors and mayors to speed up road and public building work. No president had previously believed that the federal government carried a responsibility in a slump. Hoover believed it and said so.