BENJAMIN STRONG

This is an oft quoted statement because of the Great Depression which occurred the following year after Strong had passed away. The Federal Reserve followed the lead of President Hoover and did nothing while they watched the nation’s money supply shrink a third over the next 3 years, making a business comeback very difficult. If Strong had lived longer, he might have persuaded the others to increase the money supply and act as the nation’s safety valve. As the President of the New York Bank, he was the first among equals.

He foresaw the stock market problems of the Great Depression and was pushing the Federal Reserve Bank to act as the Hoover Administration was philosophically opposed to any government involvement. Strong died before the Fed could do anything and the last chance to stave off the Depression died with him.

This is an oft quoted statement because of the Great Depression which occurred the following year after Strong had passed away. The Federal Reserve followed the lead of President Hoover and did nothing while they watched the nation’s money supply shrink a third over the next 3 years, making a business comeback very difficult. If Strong had lived longer, he might have persuaded the others to increase the money supply and act as the nation’s safety valve. As the President of the New York Bank, he was the first among equals.

He foresaw the stock market problems of the Great Depression and was pushing the Federal Reserve Bank to act as the Hoover Administration was philosophically opposed to any government involvement. Strong died before the Fed could do anything and the last chance to stave off the Depression died with him.