On June 20, Hoover officially announced his proposal for a moratorium on Germany’s debts for one year. Under his proposal, the US would forgo $245 million in debt service payments due over the next year from Britain, France, and other European powers. However, in order to receive these concessions, the allies had to suspend $385 million in reparations due from Germany.110 In what became known as the “moratorium rally,” the Dow rallied 12 percent in the two days following Hoover’s announcement
