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They saw the loaning by the Product Credit Corporation and the Electric Home and Farm Authority, along with reports from members of Congress, as proof that there was dissatisfied company loan demand. TABLE 1 Year Bank Loans and Investments in Millions of Dollars Bank Loans in Millions of Dollars Bank Net Deposits in Millions of Dollars Loans as a Portion of Loans and Investments Loans as a Portion of Net Deposits 1921 39895 28927 30129 73% 96% 1922 39837 27627 31803 69% 87% 1923 43613 30272 34359 69% 88% 1924 45067 31409 36660 70% 86% 1925 48709 33729 40349 69% 84% 1926 51474 36035 42114 70% 86% 1927 53645 37208 43489 69% 86% 1928 57683 39507 44911 68% 88% 1929 58899 41581 45058 71% 92% 1930 58556 40497 45586 69% 89% 1931 55267 35285 41841 64% 84% 1932 46310 27888 32166 60% 87% 1933 40305 22243 28468 55% 78% 1934 42552 21306 32184 50% 66% 1935 44347 20213 35662 46% 57% 1936 48412 20636 41027 43% 50% 1937 49565 22410 42765 45% 52% 1938 47212 20982 41752 44% 50% 1939 49616 21320 45557 43% 47% 1940 51336 22340 49951 44% 45% Source: Banking and Monetary Stats, 1914 1941.

All data are for the last company day of June in each year. How old of an rv can you finance. Due to the failure of bank lending to go back to pre-Depression levels, the role of the RFC broadened to include the provision of credit to service. RFC support was deemed as important for the success of the National Recovery Administration, the New Offer program developed to promote commercial recovery. To support the NRA, legislation passed in 1934 authorized the cancelling a timeshare contract in florida RFC and the Federal Reserve System to make working capital loans to services. Nevertheless, direct lending to services did not become an important RFC activity till 1938, when President Roosevelt motivated broadening service loaning in reaction to the economic crisis of 1937-38.

Another New Deal goal was to supply more funding for home mortgages, to avoid the displacement of house owners. In June 1934, the National Real estate Act provided for the establishment of the Federal Housing Administration (FHA). The FHA would insure mortgage loan providers against loss, and FHA home loans needed a smaller sized percentage deposit than was popular at that time, hence making it much easier to buy a house. In 1935, the RFC Home mortgage Company was established to purchase and offer FHA-insured home loans. Financial institutions hesitated to buy FHA home mortgages, so in 1938 the President asked for that the RFC establish a national home loan association, the Federal National Home Loan Association, or Fannie Mae.

The RFC Mortgage Company was absorbed by the RFC in 1947. When the RFC was closed, its remaining mortgage possessions were moved to Fannie Mae. Fannie Mae evolved into a private corporation. During its existence, the RFC offered $1. 8 billion of loans and capital to its mortgage subsidiaries. President Roosevelt sought to motivate trade with the Soviet Union. To promote this trade, the Export-Import Bank was developed in 1934. The RFC offered capital, and later loans to the Ex-Im Bank. Interest in loans to support trade was so strong that a second Ex-Im bank was developed to money trade with other foreign nations a month after the very first bank was produced.

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The RFC offered $201 countless capital and loans to the Ex-Im Banks. Other RFC activities throughout this period included providing to federal government agencies supplying remedy for the anxiety consisting of the Public Works Administration and the Works Progress Administration, catastrophe loans, and loans to state and regional federal governments. Evidence of the flexibility afforded through the RFC was President Roosevelt's use of the RFC to impact the market rate of gold. The President wanted to minimize the gold worth of the dollar from $20. 67 per ounce of gold. As the dollar rate of gold increased, the dollar currency exchange rate would fall relative to currencies that had a repaired gold price.


In an economy with high levels of unemployment, a decrease in imports and increase in exports would increase domestic work. The objective of the RFC purchases was to increase the market price of gold. During October 1933 the RFC started buying gold at a cost of $31. 36 per ounce. The price was gradually increased to over $34 per ounce. The RFC cost set a flooring for the cost of gold. In January 1934, the brand-new official dollar price of gold was fixed at $35. 00 per ounce, a 59% devaluation of the dollar. Two times President Roosevelt advised Jesse Jones, the president of the RFC, to stop providing, as he meant to close the RFC.

The economic downturn of 1937-38 caused Roosevelt to authorize the resumption of RFC lending in early 1938. The German intrusion of France and the Low Nations gave the RFC new life on the second event. In 1940 the scope of RFC activities increased substantially, as the United States began preparing to help its allies, and for possible direct participation in the war. The RFC's wartime activities were performed in cooperation with other government firms involved in the war effort. For its part, the RFC developed 7 new corporations, and acquired an existing corporation. The 8 RFC wartime subsidiaries are listed in Table 2, below.

Business Business, Rubber Development Corporation, Petroleum Reserve Corporation (later on War Assets Corporation) Source: Final Report of the Restoration Financing Corporation The RFC subsidiary corporations assisted the war effort as required. These corporations were involved in funding the advancement of synthetic rubber, building and construction and operation of a tin smelter, and facility of abaca (Manila hemp) plantations in Central America. Both natural rubber and abaca (used to produce rope items) were produced mostly in south Asia, which came under Japanese control. Hence, these programs motivated the development of alternative sources of supply of these essential products. 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.

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Throughout its presence, RFC management made discretionary loans and investments of $38. 5 billion, of which $33. 3 billion was really disbursed. Of this total, $20. 9 billion was paid out to the RFC's wartime subsidiaries. From 1941 through 1945, the RFC authorized over $2 billion of loans and financial investments each year, with a peak of over $6 billion licensed in 1943. The magnitude of RFC lending had increased significantly during the war. How to finance a car from a private seller. Most loaning to wartime subsidiaries ended in 1945, and all such financing ended in 1948. After the war, RFC financing decreased drastically. In the postwar years, just in 1949 was over $1 billion authorized.

On September 7, 1950, Fannie Mae was transferred to the Real estate and Home Financing Firm. Throughout its last three years, almost all RFC loans were to companies, consisting of loans licensed under the Defense Production Act. President Eisenhower was inaugurated in 1953, and soon afterwards legislation was passed ending the RFC. The original RFC legislation licensed operations for one year of a possible ten-year existence, providing the President the option of extending its operation for a second year without Congressional approval. The RFC survived much longer, continuing to provide credit for both the New Deal and World War II. Now, the RFC would finally be closed.