The Reconstruction Finance Corporation, 1932–1935
Created by an act of Congress approved by President Hoover on January 22, 1932, the Reconstruction Finance Corporation was conceived as an organization which not only would provide an additional credit resource to banks, other financial institutions, and railroads—and indirectly through them to business, industry, and agriculture—but would by its mere existence foster the return of confidence necessary to set in motion the natural forces of recovery. By providing assistance to weakened financial structures, it was hoped to check the course of deflation then still in. progress and to lay a solid basis for a forward movement along the whole economic front. President Hoover said upon signing the act:
It brings into being a powerful organization with adequate resources, able to ...