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Statement on Domestic Credit Conditions.

October 30, 1931

THE PRESIDENT said:

"I am happy to note the very great change which is evident in the credit situation since the announcement of financial plans on October 7.

"Following the abandonment of the gold standard in England a wave of great apprehension spread over the country. Hoarding of currency rose to the high point of $200 million a week between that time and the announcement of the credit pool and other credit measures. Country bank failures had risen to nearly 25 a day during this period. At the same time the drain of gold abroad due to the alarm of foreign holders of American credits had in this period risen to as high as over $200 million a week.

"Evidence over the last week indicates that not only has hoarding ceased, but actually $24 million of hoarded money has returned to the banks. The small bank failures have almost ceased--the last report showing only 7 out of 20,000 total. Foreign exchanges are returned to a basis at which it is no longer advantageous to ship gold abroad.

"The practical effect of this recovery is shown in an increase in the price of wheat by 10 cents or 12 cents a bushel and cotton by $15 to $20 a bale."

Herbert Hoover, Statement on Domestic Credit Conditions. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/206777

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