Reconstruction Finance Corporation

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Reconstruction Finance Corporation

(RFC), former U.S. government agency, created in 1932 by the administration of Herbert Hoover. Its purpose was to facilitate economic activity by lending money in the depression. At first it lent money only to financial, industrial, and agricultural institutions, but the scope of its operations was greatly widened by the New Deal administrations of Franklin Delano Roosevelt. It financed the construction and operation of war plants, made loans to foreign governments, provided protection against war and disaster damages, and engaged in numerous other activities. In 1939 the RFC merged with other agencies to form the Federal Loan Agency, and Jesse JonesJones, Jesse Holman,
1874–1956, U.S. Secretary of Commerce (1940–45), b. Robertson co., Tenn. A lumber magnate, banker, and millionaire of Houston, Tex., Jones was appointed (1932) by President Hoover as a member of the Reconstruction Finance Corporation (RFC).
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, who had long headed the RFC, was appointed federal loan administrator. After Jones became (1940) Secretary of Commerce, Congress transferred (1942) the RFC to his department. When Henry Wallace succeeded (1945) Jones, Congress removed the agency from Dept. of Commerce control and returned it to the Federal Loan Agency. When the Federal Loan Agency was abolished (1947), the RFC assumed its many functions. After a Senate investigation (1951) and amid charges of political favoritism, the RFC was abolished as an independent agency by act of Congress (1953) and was transferred to the Dept. of the Treasury to wind up its affairs, effective June, 1954. It was totally disbanded in 1957. RFC had made loans of approximately $50 billion since its creation in 1932.


See J. H. Jones, Fifty Billion Dollars (1951).

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References in periodicals archive ?
In practice, the Reconstruction Finance Corporation was the sole emergency lender for institutions other than member banks.
First, documents and data from the archives of the Reconstruction Finance Corporation show how that agency crucially influenced the finances of railways and their large institutional creditors in the 1930s.
The Reconstruction Finance Corporation issues no bulletins, manuals, nor instructions on appraisal methods.
Bean argues that between 1946 and the Korean War the Reconstruction Finance Corporation picked up some of the funding of small businesses.
On October 22, with the price of gold at $29 an ounce, Roosevelt, hoping that the program would raise commodity prices, authorized the Reconstruction Finance Corporation to purchase gold newly mined in the United States and, if necessary, to buy gold in the world market.
FDR also used the Reconstruction Finance Corporation to drive interest rates down and pump money to those who needed it.
Hoover, an advocate of self - help, was reluctant to use the power of the federal government to revive the economy, though he supported the Reconstruction Finance Corporation (1932) to extend loans to banks and other business enterprises.
Caption: Harvey Couch served a number of public service roles, including director of the Reconstruction Finance Corporation during the Franklin Roosevelt administration.
Targeted bank recapitalizations were also implemented via the Reconstruction Finance Corporation, in an innovative program that proved quite successful at little cost to taxpayers.
He devotes Chapter Five to small firms during the 1920s and 1930s, and writes how several of them were supported by the New Deal's Reconstruction Finance Corporation. All of which makes this book more useful because many nineteenth and early twentieth century mining firms disposed of their files.
In 1932, Cotton and Franklin loaned Corcoranto the Reconstruction Finance Corporation, an agency set up by Herbert Hoover to fight the Depression through loans to businesses and banks.

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