February 3

Economic depression cannot be cured by legislative action or executive pronouncement. Economic wounds must be healed by action of the cells of the economic body-the producers and consumers themselves.

Herbert Hoover, 31^st President, 1929-1933

From his Annual Message to the Congress on the State of the Union. December 2, 1930Hoover, who attended Stanford University, was by profession was international mining engineer. He gained national and international praise and recognition with his leadership for food relief and distribution in Belgium after World War I. He also served as Secretary of Commerce under Presidents Harding and Coolidge in the 1920's. Here Hoover speaks to congress about one year after the great stock market crash of November 1929. He analyzes the causes of the depression, which was not solely felt in the United States, but which was a world wide depression:"To the Senate and House of Representatives:...During the past 12 months we have suffered with other Nations from economic depression. The origins of this depression lie to some extent within our own borders through a speculative period which diverted capital and energy into speculation rather than constructive enterprise. Had overspeculation in securities been the only force operating, we should have seen recovery many months ago, as these particular dislocations have generally readjusted themselves. Other deep-seated causes have been in action, however, chiefly the world-wide overproduction ...of such important basic commodities as wheat, rubber, coffee, sugar, copper, silver, zinc, to some extent cotton, and other raw materials. The cumulative effects of demoralizing price falls of these important commodities in the process of adjustment of production to world consumption have produced financial crises in many countries and have diminished the buying power of these countries (and)extended the difficulties farther afield by creating unemployment in all the industrial nations... The political agitation in Asia; revolutions in South America and political unrest in some European States; and our own drought--have all contributed to prolong and deepen the depression.He finds reason for optimism and gives encouragement and advice as to how we might progress out of that situation:"We should remember that these occasions have been met many times before, that they are but temporary, that our country is to-day stronger and richer in resources, in equipment, in skill, than ever in its history. We are in an extraordinary degree self-sustaining, we will overcome world influences and will lead the march of prosperity as we have always done hitherto. Economic depression can not be cured by legislative action or executive pronouncement. Economic wounds must be healed by the action of the cells of the economic body--the producers and consumers themselves. Recovery can be expedited and its effects mitigated by cooperative action. That cooperation requires that every individual should sustain faith and courage; that each should maintain his self-reliance; that each and every one should search for methods of improving his business or service; that the vast majority whose income is unimpaired should not hoard out of fear but should pursue their normal living and recreations; that each should seek to assist his neighbors who may be less fortunate; that each industry should assist its own employees; that each community and each State should assume its full responsibilities for organization of employment and relief of distress with that sturdiness and independence which built a great Nation. Hoover did institute public works projects, such as constructing the Hoover Dam, but his efforts were not enough and he was replaced by Franklin Delano Roosevelt in 1932.