Last week President Hoover was aware of another quiver of economic hysteria running through the nation. The Michigan bank moratorium had jolted the country badly, stripped the R. F. C. of most of its psychological assets. Manhattan bankers had rarely looked more worried. Financiers put unofficial observers at the doors of the Federal Reserve Bank to watch the outflow of gold. There was widespread agreement with Bernard Mannes Baruch's dictum before a Senate committee that the U. S. was confronted with a condition "worse than war".

Yet one fact steadied the country—the...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!