SMOOT HEARINGS Meaning and
Definition
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The Smoot hearings refer to a series of congressional hearings that took place in the United States during the early 1930s. These hearings were named after Reed Smoot, a Republican senator from Utah who served as the chairperson of the Senate Finance Committee. The purpose of the hearings was to investigate allegations of impropriety and corruption among Wall Street executives and major bankers.
The Smoot hearings were carried out in response to the financial crisis that engulfed the nation during the Great Depression. The investigations aimed to shed light on the role of key financial figures in contributing to the economic collapse. During the hearings, various witnesses were called upon to testify, including banking officials, stockbrokers, and business leaders.
The hearings provided a platform to uncover fraudulent practices, market manipulation, insider trading, and other financial wrongdoings that had contributed to the crash. They also sought to establish whether these individuals had purposely misled investors and the public about the true state of the economy.
The Smoot hearings were significant as they exposed the widespread corruption and questionable practices within the financial sector. They played a crucial role in shaping public opinion towards stricter regulation and oversight of the banking industry. As a result, they ultimately paved the way for the enactment of significant financial reforms and the establishment of regulatory bodies, such as the Securities and Exchange Commission (SEC), to prevent future financial crises.
Etymology of SMOOT HEARINGS
The term "Smoot hearings" refers to a series of Senate Finance Committee hearings held in the United States between 1930 and 1931. The hearings were conducted to investigate and discuss the impact of the 1930 Smoot-Hawley Tariff Act, which significantly increased tariffs on imported goods.
The word "Smoot" in "Smoot hearings" comes from the name of the Republican Senator Reed Smoot from Utah. Smoot was the chairman of the Senate Finance Committee and played a crucial role in the passage of the Smoot-Hawley Tariff Act. He was a staunch advocate of protectionist trade policies and spearheaded the effort to enact higher tariffs.
The term "Smoot hearings" itself originated due to the significant attention and media coverage that the hearings received. They were extensively covered by newspapers, radio, and other media outlets at the time.
