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Thesis (M.A.)—University of Nebraska—Lincoln, 1949. Department of Economics.


Copyright 1949, the author. Used by permission.


It is the purpose of this thesis to describe and evaluate the loans made to financial instructions by the Reconstruction Finance Corporation from the date of its conception, February 2, 1932, to December 31, 1947.

Chapter I deals with the economic conditions that led to the establishment of the Reconstruction Finance Corporation.It presents the background material in the fields of banking, agriculture, industry and employment which led to the consideration of such an agency as this Corporation. Chapter II describes the legislative history of the Act and the law in its original form as passed on January 22, 1932.

Chapter III presents the method the applicant uses to obtain funds from the RFC. Chapter IV begins the study of the loans made to financial institutions from February 2, 1932, to March 21, 1933.This period was chosen for two reasons: First, the banking moratorium forced the closing of the banks throughout the country, thereby enabling a static view of the situation; and secondly, the period before the banking holiday in the policy of this Corporation was one of prevention, while afterwards it was one of recovery and reconstruction.

Chapter V analyzes the operations from March 31, 1933, to December 31, 1941.The first part of this period was one of heavy work by the Corporation, and over this seven year period a broader view of the operations can be observed.The United States entered the second World War in December 1941, and mainly for this reason a break was made at this point.

Chapter VI presents the loaning operations from December 21, 1941, to December 31, 1947.It shows the loans made not only to financial institutions but also the method the Corporation used in making war loans.At the end of the chapter a brief survey is made of the Act of Jun 30, 1947, which revised the lending operations of the Corporation.

Chapter VII presents the conclusions drawn from this study and also the reasons the Reconstruction Finance Corporation is being continued today.

Advisor: K.M. Arndt