Letter from Secretary of Commerce Robert P. Lamont Urging President Hoover to Rally Industry Leaders to Calm Stock Market Panic

DIPARTMENT OF COMMERCE is * THE SECRETARY OF COMMERCE UNITED STATES OF AMERICA WASHINGTON 3 November 14, 1929. Kile My dear Mr. President: I have thought it advisable to call to your attention the reactions on commerce and industry of the disastrous collapse in the stock market, as they are recorded in this Department. While no doubt many of the rumors are exaggerated and much of the fear throughout the country is unwarranted, nevertheless the situation is fraught with danger. Telephone messages this morning from the Middle West are to the effect that all sorts of stories are in circulation and there is fear of runs on the banks. Substantial and conserva- tive business men suggest that a statement from you is needed at this time to reassure the people as to the soundness of our banking and business institutions and to prevent an already critical condition from becoming disastrous. It is perhaps too early yet to estimate the final effect on general business, but there can be no doubt that the pur- chasing power of many of our people has been reduced. Plant operations in some lines will be affected, and unemployment will result. To offset this as far as possible, it will be helpful if some sort of cooperation among the leaders of industry could be organized for the purpose of assuring the public of their belief in the underlying soundness of our institutions--of their purpose to go forward, not only with their usual pro- grams but, where possible, to increase them, to the end that there shall be as full employment during the coming year as there has been on the average in recent years. The immediate need is to change fear and panic in the public mind to confidence. Sincerely yours, The President of the United States, Washington, D. C.