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During the [[New Deal]] era, the Reconstruction Finance Corporation was given a blank check appropriation by Congress and authority to borrow money. It borrowed twenty or more billions. The RFC would buy the stock of a new corporation and lend it money, as much as­ ten, fifty or a hundred million dollars, billions in some cases. Thus the Executive branch was able to bypass the Constitutional power afforded to Congress. <ref>''The Roosevelt Myth'', Book 3, Ch. 4, [http://www.rooseveltmyth.com/cgi-bin/framed/2767/book/fdrmyth_Chapter_Four___Toward_the_Precip.htm ''Toward the Precipice''], John T. Flynn, Fox and Wilkes, 1948.</ref>

During the [[New Deal]] era, the Reconstruction Finance Corporation was given a blank check appropriation by Congress and authority to borrow money. It borrowed twenty or more billions. The RFC would buy the stock of a new corporation and lend it money, as much as­ ten, fifty or a hundred million dollars, billions in some cases. Thus the Executive branch was able to bypass the Constitutional power afforded to Congress. <ref>''The Roosevelt Myth'', Book 3, Ch. 4, [http://www.rooseveltmyth.com/cgi-bin/framed/2767/book/fdrmyth_Chapter_Four___Toward_the_Precip.htm ''Toward the Precipice''], John T. Flynn, Fox and Wilkes, 1948.</ref>

===World War II===

==World War II==

President Roosevelt merged the RFC, [[Board of Economic Warfare]] (BEW), and the [[Lend-Lease]] Office together under the direction of Leo Crowley, former head of the [[Federal Deposit Insurance Corporation]] (FDIC), which was one of the landmarks of the New Deal.  Oscar Cox, a prime author of the [[Lend-Lease Act]], general counsel of the [[Foreign Economic Administration]] joined as well. [[Lauchlin Currie]], formerly of the [[Federal Reserve]] Board staff, was the deputy administrator to Crowley.  

President Roosevelt merged the RFC, [[Board of Economic Warfare]] (BEW), and the [[Lend-Lease]] Office together under the direction of Leo Crowley, former head of the [[Federal Deposit Insurance Corporation]] (FDIC), which was one of the landmarks of the New Deal.  Oscar Cox, a prime author of the [[Lend-Lease Act]], general counsel of the [[Foreign Economic Administration]] joined as well. [[Lauchlin Currie]], formerly of the [[Federal Reserve]] Board staff, was the deputy administrator to Crowley.  

The RFC established seven new corporations, and purchased an existing corporation.  The eight RFC wartime subsidiaries are Metals Reserve Company, [[Rubber Reserve Company]], Defense Plant Corporation, Defense Supplies Corporation, War Damage Corporation, U.S. Commercial Company,  

The RFC established seven new corporations, and purchased an existing corporation.  The eight RFC wartime subsidiaries are Metals Reserve Company, [[Rubber Reserve Company]], Defense Plant Corporation, Defense Supplies Corporation, War Damage Corporation, U.S. Commercial Company, Rubber Development Corporation, [[Petroleum Reserve Corporation]].  These corporations were involved in funding the development of synthetic rubber, construction and operation of a tin smelter, and establishment of abaca (Manila hemp) plantations in Central America.  Both natural rubber and abaca (used to produce rope products) were produced primarily in south Asia, which came under Japanese control.  Thus, these programs encouraged the development of alternative sources of supply of these essential materials.  Synthetic rubber, which was not produced in the United States prior to the war, quickly became the primary source of rubber in the post-war years.

Rubber Development Corporation, [[Petroleum Reserve Corporation]].  These corporations were involved in funding the development of synthetic rubber, construction and operation of a tin smelter, and establishment of abaca (Manila hemp) plantations in Central America.  Both natural rubber and abaca (used to produce rope products) were produced primarily in south Asia, which came under Japanese control.  Thus, these programs encouraged the development of alternative sources of supply of these essential materials.  Synthetic rubber, which was not produced in the United States prior to the war, quickly became the primary source of rubber in the post-war years.

From 1941 through 1945, the RFC authorized over $2 billion of loans and investments each year, with a peak of over $6 billion authorized in 1943.  The magnitude of RFC lending had increased substantially during the war.  Most lending to wartime subsidiaries ended in 1945, and all such lending ended in 1948.

From 1941 through 1945, the RFC authorized over $2 billion of loans and investments each year, with a peak of over $6 billion authorized in 1943.  The magnitude of RFC lending had increased substantially during the war.  Most lending to wartime subsidiaries ended in 1945, and all such lending ended in 1948.

[[Nathan Gregory Silvermaster]], who headed an extremely large group of Soviet agents working in the U.S. Government during World War II, was transferred, along with the rest of the division from the Treasury Department's War Asset's Administration into to the Reconstruction Finance Corporation, where it became the War Assets Corporation.

[[Nathan Gregory Silvermaster]], who headed an extremely large group of Soviet agents working in the U.S. Government during World War II, was transferred, along with the rest of the division from the Treasury Department's War Asset's Administration into to the Reconstruction Finance Corporation, where it became the War Assets Corporation.

On May 29, 1946, FBI Director j. Edgar JHoover sent George E. Allen, a confidant of the President and head of the Reconstruction Finance Corporation, a four-page letter marked Personal and Condifential by special messenger. Hoover reported that a reliable source, which was the [[Venona project]], revealed “an enormous Soviet espionage ring in Washington.” Of some fourteen names listed which included [[Alger Hiss]] and [[Nathan Gregory Silvermaster]], Hoover addedd at the top of the list Undersecretary of State Dean Acheson,  and others who were not Venona suspects.  Hoover's action here was one source of much confusion regarding the Soviet penetetration of the US Government during [[World War II]] which become public knowledge later.  

On May 29, 1946, FBI Director J. Edgar Hoover sent George E. Allen, a confidant of the President and head of the Reconstruction Finance Corporation, a four-page letter marked Personal and Condifential by special messenger. Hoover reported that a reliable source, which was the [[Venona project]], revealed “an enormous Soviet espionage ring in Washington.” <ref>*[http://www.fas.org/sgp/library/moynihan/hoovlet.html Hoover to Allen Letter, May 29, 1946].</ref> Of some fourteen names listed which included [[Alger Hiss]] and [[Nathan Gregory Silvermaster]], Hoover addedd at the top of the list Undersecretary of State Dean Acheson,  and others who were not Venona suspects.  Hoover's action here was one source of much confusion regarding the Soviet penetetration of the US Government during [[World War II]] which become public knowledge later. <ref>Robert J. Hanyok, [http://www.nsa.gov/publications/publi00044.cfm  ''Eavesdropping on Hell'']: Historical Guide to Western Communications Intelligence and the Holocaust, 1939-1945. Ft. Meade, MD: [[National Security Agency]], Center for Cryptologic History, 2005; "Currie, known as PAZh (Page) and [[Harry Dexter White|White]], whose cover names were YuRIST (Jurist) and changed later to LAJER (Lawyer), had been Soviet agents since the 1930s. They had been identified as Soviet agents in [[Venona]] translations and by other agents turned witnesses or informants for the FBI and [[Justice Department]]. From the Venona translations, both were known to pass intelligence to their handlers, notably the [[Greg Silvermaster#Silvermaster group|Silvermaster network]]."</ref><ref>*United States. National Counterintelligence Center. [http://www.nacic.gov/history/CIReaderPlain/Vol3Chap1.pdf ''A Counterintelligence Reader'']. NACIC, no date. vol. 3, chap. 1, pg. 31.</ref>

The Petroleum Reserves Corporation was transferred to the Office of Economic Warfare, which was consolidated into the [[Foreign Economic Administration]], which was transferred to the Reconstruction Finance Corporation and changed to the War Assets Corporation. The War Assets Corporation was dissolved as soon as practicable after March 25, 1946. Presidential aide and Soviet spy, Lauchlin Currie headed the office during this time.

The Petroleum Reserves Corporation was transferred to the Office of Economic Warfare, which was consolidated into the [[Foreign Economic Administration]], which was transferred to the Reconstruction Finance Corporation and changed to the War Assets Corporation. The War Assets Corporation was dissolved as soon as practicable after March 25, 1946. Presidential aide and Soviet spy, Lauchlin Currie headed the office during this time.

==References==

==References==

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<references/>

===External link===

==External link==

 

*[http://www.trumanlibrary.org/oralhist/havlik.htm Oral History Interview with Hubert F. Havlik], Truman Presidential Library, June 20, 1973.

*[http://www.trumanlibrary.org/oralhist/havlik.htm Oral History Interview with Hubert F. Havlik], Truman Presidential Library, June 20, 1973.

[[Category:New Deal]]

[[Category:New Deal]]

[[Category:Espionage]]

[[Category:Espionage]]