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Well did President Hoover know that if Germany went under, her fall would submerge the rest of the world in a new flood of hard times. Between conferences and telephone calls, he wearily observed to a secretary: "I now know why the World War wasn't prevented." To still wild rumors about his plans, President Hoover first announced that he was considering "certain steps we might take to assist in economic recovery here and abroad," spoke of "strengthening the situation in Germany." In response, the New York stockmarket bounced up an average of eight points in the strongest single advance since the 1929 crash. At 4:30 on a dull Saturday afternoon, with the temperature 102° in the Washington streets, the Press was informed that the President would receive at 6 o'clock. At that hour the White House lobby was jammed with 100 excited correspondents. Five minutes passed—ten—15. Was there some mistake? Had the President changed his mind? Finally at 6:20 the President's door was swung open and in rushed the correspondents. The President's air-conditioned office was delightfully cool (70°) compared to the heat outside. Behind his desk stood Mr. Hoover in blue coat, white flannels, canvas shoes. Beside him stood Messrs. Stimson and Mills. The newsmen were so wrought up at the prospect of a big story that the President advised them to "relax and take it easy" because what he had to say to them was not for release until the next day when the country could ponder his words at its Sunday leisure. When all was quiet in the circular, greenish room. President Hoover slowly read aloud a clear, articulate statement in which he proposed a one-year moratorium on all War debts to the U. S. and on all Reparations from Germany. The President's plan was simple: The U. S. would forego one year's principal and interest payments, totaling $245.000,000, from Britain, France, Italy and the lesser Allied powers, plus $15,000,000 from Germany (for expenses of the Army of Occupation), provided the Allies would collectively forego a total of $385,000,000 in Reparations from Germany under the Young Plan for a like period. By implication the Allies were also to suspend debt payments among themselves. Declared President Hoover: "The purpose of this action is to give the forthcoming year to the economic recovery of the world and to help free the recuperative forces already in motion in the U. S. from retarding influences from abroad. The worldwide Depression has affected the countries of Europe more severely than our own. Some of these countries are feeling to a serious extent the drain on national economy. . . . There is an abnormal movement of gold into the U. S.— which is lowering the credit stability of many foreign countries. These and other difficulties abroad diminish buying power for our exports and in a measure are the cause of our continued unemployment and continued lower prices to our farmers. . . . "The essence of this proposition is to give time to permit debtor governments to recover their national prosperity. I am suggesting to the American people that they be wise creditors and good neighbors. . . ." President Hoover concluded with a broad hint that "inasmuch as the burden of competitive armaments has contributed to bring about this Depression," the other powers had better give thought to arms