The Hoover administration's initial response to the Great Depression was characterized by a belief in limited government intervention and a focus on voluntary cooperation between businesses and labor. One example of this was the creation of the National Credit Corporation in 1931, which aimed to alleviate the banking crisis by allowing banks to pool their resources and provide loans to troubled banks. Another example was the establishment of the Reconstruction Finance Corporation in 1932, which provided emergency loans to banks, railroads, and other businesses in order to encourage economic stability. However, these measures were largely insufficient to address the scale of the crisis and did not have the desired impact on the economy.
