Year Passed: 1932
Established: During the Hoover
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.
l In order to lend money, the RFC borrowed money from
l Congress provided the agency with a starting amount of
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.
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
Considering the information you
heard about the banks, do you think
that the RFC was a successful New
l Despite the initial success, the RFC never had it's
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
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.
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.
Operated from: 1932-1942
l The CCC was a public work relief program for
unemployed men from relief families aging
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
l Range: elimination of predatory animals;
l Wildlife: fish stocking, food and cover planting;
l Miscellaneous: emergency work, surveys and mosquito control.
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.
What war do you think ended the
World War II
l With World War II underway, the Great
Depression ended and the CCC folded in July
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