In the Board's view, the appropriate emergency lender for those institutions was the Reconstruction Finance Corporation.
"Herbert Hoover and the Origins of the Reconstruction Finance Corporation." MISSISSIPPI VALLEY HISTORICAL REVIEW 46, no.
"Creation of a Reconstruction Finance Corporation." Hearings before the Committee on Banking and Currency on S.1., a Bill to Provide Emergency Financing Facilities for Banks and Other Financial Institutions and Other Purposes, U.S.
(132) Reconstruction Finance Corporation Act of January 22, 1932, 47 Stat.
(133) Section 9 of the Reconstruction Finance Corporation Act read: "In the event that the corporation shall be unable to pay upon demand, when due, the principal of or interest on notes, debentures, bonds, or other such obligations issued by it, the Secretary of the Treasury shall pay the amount thereof, which is hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated."
Thus, the discounted loans provided by the Reconstruction Finance Corporation to railways were crucial for avoiding wholesale bankruptcy within the rail sector during the Great Depression.
(74) Roosevelt was similarly cautious in terms of using the powers of the Reconstruction Finance Corporation to bring about change.
The withdrawal of private capital from railway finance was facilitated by the Reconstruction Finance Corporation, a powerful new public financial intermediary created during the Great Depression to restore liquidity to frozen American credit markets.
I am grateful for assistance provided by archivists and librarians at John Jay College, The City University of New York (CUNY), and at the Reconstruction Finance Corporation, National Archive II, College Park, Maryland.
Olson, Saving Capitalism: The Reconstruction Finance Corporation and the New Deal, 1933-1940 (Princeton, NJ, Princeton University Press, 1988).
He has written articles on banking history and the economics of the 1920s and 1930s and is currently working on an examination of Reconstruction Finance Corporation
lending through February 1933.