Reconstruction Finance Corporation _RFC_ - Ning

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					Reconstruction Finance
     Corporation (RFC)
                 Year Passed: 1932
    Established: During the Hoover
                   administration
Basic Definition:
l   The RFC was established in desire to lend money
    to banks, railroads, and other key economic
    institutions to make sure these institutions
    would remain in business.
The RFC
l   In order to lend money, the RFC borrowed money from
    Treasury funds.
l   Congress provided the agency with a starting amount of
    $500 million.
l   Although, the RFC was allowed to borrow up to $2 billion.
l   The Emergency Relief and Construction Act of July 21,
    1932, enlarged the RFC’s power to allow for loans to state
    government and to farm agencies.
Banks
l   During the first few months of the establishment of the
    RFC, many loans were given out to banks.
l   This soon aroused for in July of 1932 for all banks
    receiving loans from the RFC to report it to Congress.
l   The publication of the loaning from the RFC reduced the
    effectiveness of lending to banks.
l   Bankers became reluctant to borrow money from the RFC
    in fear that depositors would panic in fear that their bank
    was failing.
Question:
 Considering the information you
 heard about the banks, do you think
 that the RFC was a successful New
 Deal program?
Success
l   Despite the initial success, the RFC never had it's
    intended impact.
l   Considering the law required full transparency;
    the amounts of loans and the names of the
    companies were made public.
l   The requirement had the effect of lowering
    confidence in the institutions that sought out
    loans.
The RFC
l Despite what I stated in the last slide, the RFC did
  help financially in many areas though.
l The RFC also had a division where it gave states
  loans in emercency relief needs.
-There was a case study they did on Mississippi.
The RFC
l   After a Senate investigation (1951) and amid
    charges of political favoritism, the RFC was
    abolished as an independent agency by the act of
    Congress in 1953.
l   It ended up being totally disbanded in 1957.
l   The RFC was only established to stay in operation
    for ten years, but lasted until 1957.
Civilian Conservation
          Corporation
            Established:1932
     Operated from: 1932-1942
Basic Definition:
l   The CCC was a public work relief program for
    unemployed men from relief families aging
    from18-25.
The CCC
l   Provided unskilled manual labor jobs related to
    the conservation and development of natural
    resources in rural lands owned by federal, state
    and local governments.
The CCC Jobs
l   The CCC is performed supplied a possible of 300 jobs.
l   Structural Improvements: bridges and service buildings;
l   Transportation: truck trails, minor roads, and foot trails.
l   Erosion Control: check dams and vegetable covering;
l   Flood Control: irrigation, drainage and dams.
l   Forest Culture: planting trees and shrubs.
l   Forest Protection: fire fighting, insect and disease control;
l   Landscape and Recreation: public camp and picnic ground
    development.
l   Range: elimination of predatory animals;
l   Wildlife: fish stocking, food and cover planting;
l   Miscellaneous: emergency work, surveys and mosquito control.

        http://en.wikipedia.org/wiki/Civilian_Conservation_Corps
Success
l The CCC was the most successful program of the
  New Deal programs.
l The reasons:

- provided financial relief.

- provided conservation projects.

Many families were grateful for the CCC.
Question:

What war do you think ended the
CCC?
World War II
l   With World War II underway, the Great
    Depression ended and the CCC folded in July
    1942.
l   Many of the men in the CCC were transferred over
    to military assignments for World War II.
l   “The CCC may be dead but the whole country is
    covered with lasting monuments to its timely
    service.“

http://historytogo.utah.gov/utah_chapters/from_war_to_war/thecivilianconservatio
ncorps.html
Sources:
l   http://eh.net/encyclopedia/article/butkiewicz.fi
    nance.corp.reconstruction
l   http://www.answers.com/topic/reconstruction-
    finance-corporation
l   http://en.wikipedia.org/wiki/Reconstruction_Fi
    nance_Corporation

				
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