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The '''Reconstruction Finance Corporation''' (RFC) was an independent agency of the U.S. government, chartered during the administration of [[Herbert Hoover]] in 1932.  The agency advanced $2 billion in loans to  state and local governments and to banks, railroads, farm  mortgage  associations, and other businesses, funding, for example, the construction of the original Hayden Planetarium. [[Thomas G. Corcoran]] received a placement in the Reconstruction Finance Corporation when Hoover was President.  

The '''Reconstruction Finance Corporation''' (RFC) was an independent agency of the U.S. government, chartered during the administration of [[Herbert Hoover]] in 1932.  It played a major role in the [[New Deal]] and [[World War II]] in restoring the U.S. economy from the [[Great Depression]].

The RFC was Hoover's most important attempt to deal with the depression. It was proposed by Hoover and created by Congress in January 1932. The collapse in the value of  assets combined with demands from panicky depositors to get their money out meant that many banks that were otherwise solvent, hoarded their money and refused to make loans.  It was much like the [[Financial Crisis of 2008]]. The RFC could make loans to banks, insurance companies and railroads. The Emergency Relief and Construction Act of  July 21, 1932, enlarged its power to allow for loans to state government and to farm agencies. The immediate aim was to restore confidence in  financial institutions generally and encourage them to start lending again, prevent ruinous bankruptcies that would further destabilize the shaky economy, and--hopefully-- revive the economy  through the restoration of credit.  The RFC was capitalized at $500 million (comparable in size to $75 billion in 2009), provided by the  federal government, and it was empowered to sell $3.3 billion (comparable to $500 billion in 2009) of debentures. Through  the end of the Hoover administration $2.2 billion was actually loaned to authorized  borrowers (comparable to $350 billion). The RFC saved many railroads, banks, and insurance companies. Democrats limited its effectiveness by overly stringent security requirements for loans and by the decision of Congress to require public disclosure of borrowers, which virtually forced a bank to admit publicly it was in trouble.

The RFC advanced $2 billion in loans to  state and local governments and to banks, railroads, farm  mortgage  associations, and other businesses, funding, for example, the construction of the original Hayden Planetarium. [[Thomas G. Corcoran]] received a placement in the Reconstruction Finance Corporation when Hoover was President.  

The RFC also had a division that would give the states loans for emergency relief needs.

The RFC also had a division that would give the states loans for emergency relief needs.

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.

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 alleged Soviet spy, Lauchlin Currie headed the office during this time.

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 added 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 penetration 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.ncix.gov/issues/CI_Reader/Vol3/Vol3Chap1.pdf ''A Counterintelligence Reader'']. NACIC, no date. vol. 3, chap. 1, pg. 31.</ref>

[[Nathan Gregory Silvermaster]], who headed a 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.

==See also==

==See also==

*[[War Assets Administration]]

*[[War Assets Administration]]

==References==

==References==

[[Category:New Deal]]

[[Category:New Deal]]

[[Category:Espionage]]

[[Category:Espionage]]