Reconstruction Finance Corporation

The Reconstruction Finance Corporation was a federal lending agency created by the U.S. government under President Herbert Hoover to rescue banks on the brink of failure and restore Americans faith in the financial system while minimizing the crises of the Great Depression in the early 1930s. The Reconstruction Finance Corporation eventually grew in scope to finance agricultural, commercial and industrial endeavors through billions of dollars in loans until it was disbanded in 1957. It played a significant role in funding New Deal programs under President Franklin Delano Roosevelt to help the United States recover from its worst financial crisis. Key Takeaways: Reconstruction Finance Corporation The Reconstruction Finance Corporation was created by Congress on Jan. 22, 1932, amid the Great Depression to provide emergency capital to financial institutions. The support provided to those banks has been likened to the bailouts provided in modern times.The Reconstruction Finance Corporation helped minimize bank failures and improve monetary conditions prior to the banking crisis of 1933 by financing agriculture, commerce and industry.Under President Franklin Delano Roosevelts New Deal, the Reconstruction Finance Corporation became the largest investor in the economy, representing a relocation of Americans economic power from Wall Street to Washington, D.C., according to historians. Creation of the Reconstruction Finance Corporation Signed into law by Hoover on Jan. 22, 1932, the Reconstruction Finance Act created the federal lending agency with $500 million in capital from the U.S. Treasury to provide emergency financing facilities for financial institutions, to aid in financing agriculture, commerce, and industry.   Hoover, describing the agencys role at the White House signing ceremony that day, said: It brings into being a powerful organization with adequate resources, able to strengthen weaknesses that may develop in our credit, banking, and railway structure, in order to permit business and industry to carry on normal activities free from the fear of unexpected shocks and retarding influences. Its purpose is to stop deflation in agriculture and industry and thus to increase employment by the restoration of men to their normal jobs. †¦ It should give opportunity to mobilize the gigantic strength of our country for recovery. The agency was modeled after the War Finance Corporation, the federal governments effort to centralize, coordinate, and fund the procurement and supply operations that accompanied formal U.S. entry into World War I in April 1917, according to Federal Reserve Bank of Cleveland research officer Walker F. Todd. The Reconstruction Finance Corporation distributed nearly $2 billion a year in loans in its first three years of existence, though the money was not enough to lift the country out of its economic woes. The money did, however, provide liquidity to the financial system and prevent many banks from failing by allowing Americans to remove their savings. Criticism of the Reconstruction Finance Corporation The Reconstruction Finance Corporation endured criticism for bailing out some banks and railroads and not others—particularly larger institutions instead of smaller, community-based ones. For example, the Reconstruction Finance Corporation was hit for lending $65 million in the early years to Bank of America and $264 million to railroads controlled by some of the wealthiest families and corporations in the nation. The original plan for the agency was to help rescue small banks in rural parts of the United States that typically did not have access to Federal Reserve loans. According to Hoover: It is not created for the aid of big industries or big banks. Such institutions are amply able to take care of themselves. It is created for the support of the smaller banks and financial institutions and, through rendering their resources liquid, to give renewed support to business, industry, and agriculture.† Jesse Jones, chairman of the Reconstruction Finance Corporation, pictured at the hearing of the Senate banking and currency committee. Bettmann Archive / Getty Images The agency was also subject to scrutiny because of its secretive nature, at least at first, and because it was seen as corrupt under Chairman Jesse Jones, a Houston businessman, in the final stages of its existence. It was revealed, for example, that the Reconstruction Finance Corporation had loaned $90 million to a Chicago bank whose chairman had served as president of the agency. Eventually the agency was forced to disclose the name of all of its borrowers under the Emergency Relief and Construction Act. The agency revealed that many of the borrowers were, in fact, large banks not intended to benefit from the corporation. The agency stopped lending money in 1953 and ceased operations in 1957. Impact of the Reconstruction Finance Corporation The creation of the Reconstruction Finance Corporation is credited with saving many banks and it also provided an alternative to the controversial plan of making the Federal Reserve the so-called lender of last resort to failing financial institutions during this crisis. (A lender of last resort is a term used to describe the central bank of a nation that works to rescue troubled institutions. The Federal Reserve acts in that capacity in the United States.) Critics of the Federal Reserve plan worried it would lead to inflation and even deepen the nations depression. The agency also served to strengthen the capital structure of the banking system and eventually morphed into a convenient agency through which to extend government credit to many additional groups which the Roosevelt administration sought to aid, wrote B.W. Patch in the 1935 CQ Press publication The R.F.C. under Hoover and Roosevelt. As supporters of the Reconstruction Finance Corporation noted at the time of its creation, the agencys mission was not merely saving the banks but to provide relief to millions of Americans who had deposited their money in them. Allowing the banks to fail, in other words, would have led to hardship beyond which the Depression had already inflicted. Sources â€Å"Records of the Reconstruction Finance Corporation.†Ã‚  National Archives and Records Administration, National Archives and Records Administration, www.archives.gov/research/guide-fed-records/groups/234.html#234.1.Patch, B.W. â€Å"The R.F.C. Under Hoover and Roosevelt.†Ã‚  CQ Researcher by CQ Press, Congressional Quarterly Press, 17 July 1935, library.cqpress.com/cqresearcher/document.php?idcqresrre1935071700.Saving Capitalism: The Reconstruction Finance Corporation and the New Deal, 1933-1940. Olson, James Stuart, Princeton University Press, Mar 14, 2017.

What Is Stace s Position On The Problem Of Free Will And...

In this paper I will defend W.T. Stace’s position of compatibilism in respect to the problem of free will, as presented in Religion and the Modern Mind. I will explain Stace’s position on how free will and casual determinism are compatible. I will consider the following two objections against Stace’s position of free will: compatibilism is too weak a notion of free will that it conflicts with determinism, and there is no real difference between free and constrained action. Compatibilism, also known as soft determinism, is the position or view that causal determinism is true, but we still act as free, morally responsible agents. In the absence of external constraints, our actions are caused by our desires. W.T Stace, wanted to prove that the hard determinist definition of â€Å"free† was incorrect. He posed that free does not mean random, but that our acts are casually determined in a particular fashion. There must be a deterministic or causal connection between our will and our actions. This allows us to take responsibility for our actions, including credit for the good and blame for the bad. First, Stace presents is that if there is no free will then there is no morality. If a person is not free to choose what they will do then there is not a point in instructing them on what is right and what is wrong. So, if a person does not have control of their actions, how are they to be held morally accountable? Second, Stace presents that the dispute of free will is merely a semantic

Essay on Robert Nozick´s Happiness and the Experience Machine

Robert Nozicks Happiness Many theorist believe that happiness is the only important in peoples life, and all that should matter to a person is being happy. The standard of assessing a good life is how much or quantity of happiness it contains. This openness of happiness, its generosity of spirit and width of appreciation, gets warped and constricted by the claim pretending to be its greatest friend—that only happiness matters, nothing else. Robert Nozick does not on the side of hedonistic utilitarianism, he gives several examples to show that there are other elements of reality we may strive for, even at the expense of pleasure. In this essay, I will focus on Nozicks opinion of the direction of happiness and the experience†¦show more content†¦Nozick briefly discusses the nature of pleasure, as it is clearly an important element of happiness. There are pleasures of the body and mind, as well as pleasures of the emotion. They are all valued for their felt quality that what they have in common That is what a pleasure is, and is different from something like Equality, which is not valued for good feelings , but pleasure is something valued for its felt qualities. The experience machine is one of Nozick’s best-known arguments . The experience machine is a thought experiment which posits the existence of a device that can give its user any experience desired. When one placed in an experience machine, it can program any experience, such as traveling to the moon. The experience machine is supposed to allow someone to have all and any of the pleasures in the world. However, Nozick states that even though if such machine exits no one would use it, which shows that there are more important things than pleasure. What Nozick suggests is that we would not use such a machine. Here are some arguments from Nozick. 1) if the only thing that mattered to us was pleasure, then we would plug ourselves into a machine that could any simulate experiences we desired. 2) Even if the machine existed, we would not plug ourselves into it for three reasons: ï  ¬ What we want not just experience them, but actually do certain things ï  ¬ We want toShow MoreRelatedHappiness By Robert Nozick1500 Words   |  6 PagesLife, philosopher Robert Nozick lists three conceptions of happiness, which he calls the ‘three forms of happiness’ (Nozick, p. 108). The third form of happiness is defined satisfaction with life as a whole--being able to look back on one s life and be satisfied with what one has done/experienced (Nozick, p. 110). He argues it is easy to understand why people long for this type of happiness, as it is pleasurable to experience in itself. 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Pathak, portrays the scenario on the importance of Nepali women’s lives within the country. This article shows the idealistic lives of Nepali women living in the country. In a philosophical book, Anarchy, State, and Utopia, written by Robert Nozick, exemplifies theRead MoreEssay about What Is Distributive Justice?5286 Words   |  22 Pagesis generally referred to as fairness regarding the pattern of distribution among individuals. In order for distributive justice to be met, i t is necessary for goods to be distributed fairly or justly. Goods are anything that holds value to any person(s); if something does not have any value then it is not a good. Value is the main requirement for something to be considered a good; therefore, not only physical goods hold value. Thus, such things as labor and medical insurance can be considered a goodRead MoreExplain the Difference Between Narrow and Preference Hedonism. 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One begins with a description of a state of nature and an initial premise about land belonging to nobody in particular. And then one tells a story about why it would be sensible for individuals to appropriate land and other resources for their

Reflective Journal on Entrepreneurship and Innovation for Knowledge

Question: Write about theReflective Journal on Entrepreneurship and Innovation for Knowledge. Answer: Key issues and insights learned After going through the entire course, I have gained in depth knowledge about entrepreneurship and innovation. The sources possess enough flexibility for enhancing my preconceived knowledge regarding the aspects of innovation and entrepreneurship. Provision of in-depth information about the entrepreneurship and its types has altered my mindset regarding these issues. Consideration of extra readings have exposed to various avenues of making noticeable advances in the field of entrepreneurship. I think the transformations in entrepreneurship are like the phases of my life cycle. Reviewing the different implications of entrepreneurship, I felt elated in terms of its widespread presence in the field of business. Out of the widespread application of entrepreneurship, I think creativity is the most important aspect. This is because creativity helps people to come up with innovative ideas. Multi-faceted nature of entrepreneurship has invoked me to study the behavior of the people around me. Within this, studying the characteristic traits of the people I know reflects my counseling mentality towards approaching the events in a creative manner. Along with this, I have also gained an insight into the comparative studies between entrepreneurship and the other related aspects. Herein, I can relate the aspect of social entrepreneurship. Delving deep into the aspect, I got to know the real nature of entrepreneurship. As a matter of specification, my experience regarding entrepreneurship was enhanced. Earlier, I used to think that it is just a mere term in business. Now, I know that entrepreneurship is the rational application of the corporate minds to discover creative and innovative ways for approaching the issues. Here, the true essence of rationality lies in assessment of the risks after the application of a certain method or solution. An insight into the viewpoints of the national bodies like World Economic Forum has improved my knowledge regarding the factors, which heavily influences entrepreneurship. The action plans published by them makes me awestruck about their cautious approach towards assisting the companies and organizations to achieve sustainable growth. Here, I feel evaluation is important for assessing the applied solution. This evaluation would bring to the forefront the major drawbacks in my dealing with the tasks related to entrepreneurship. Maintenance of consistency in the execution of evaluation would help me to conduct self-observational skills. This exercise would make me aware of the differences between creativity and the effective ways and means to generate innovative ideas. Change in the thinking of these issues The aspect of self-observation has altered my perspective on entrepreneurship and innovation. Earlier, I used to simply apply one technique to a problem, which most of the times yielded negative results. After going through different sources on entrepreneurship, the scope and arena of my knowledge has enhanced. Now, after gathering the solutions, I evaluate their effectiveness, appropriateness and feasibility in terms of the tasks, which I have been assigned. Maintenance of consistency in the execution of this step has improved my expertise as an entrepreneur. Now I have emerged successful in delving deep into the matter for performing the allocated duties and responsibilities. I do not feel satisfied until and unless I have not referred to all the possible sources relevant for executing the entrepreneurship tasks. I think there has been a lot of improvement in my skills. I can say this, as I have exposed better performance for a consecutive period. I am now eager to gain my knowledge by consulting with my parents, peers and other relatives. This was not the story earlier. I used to be my own master. I did what I felt was right. I did not listen to others. Now, I have learned that evaluation of the undertaken decisions is important in terms of averting unwanted instances. Self-observation has provided me with the opportunity to think rationally to the issues, which I need to handle. Now, before taking a task, I assess its benefits in terms of the goals and objectives in my workplace. This assessment is a conglomeration of the ideas, which I have gathered from all the possible sources. Earlier, I used to conduct this assessment merely based on the type of the sources I have received. Now, I make assessments regarding how I can use the ideas gathered for bringing creativity in my performance. Along with this assessment, I also ensure that this creativity is in alignment with the needs and requirements of the workplace, to which I am engaged. Apart from this, I now involve my colleagues for taking decisions about completion of the tasks, which have been allocated to me. This is one of the other sources, which have broadened my perspectives regarding the allocated tasks. Even in terms of taking the suggestions of my colleagues, I apply rational thinking, which helps in picking out the innovative and creative decision for enhancing my personality as an entrepreneur. Relationship between the knowledge gained and professional practice My learning is valued if I emerge successful in establishing linkages between the knowledge, which I have gained and the behavior that I am exposing in the workplace. Countering this, my personality is enhanced if I am successful in making practical application of the learned skills in carrying out the tasks, which I have been allocated. Referring to various sources on entrpreneurship and innovation has made me aware of the fact that delving deep into the aspect before initiating the process of initiating the tasks. In-depth speculation of the relevance of the sources helps me in assessing its relevance in my usage in the workplace. Here, I can cite one example. When I was assigned a task or a project, I just thought about its submission. Now I conduct in-depth research about the subject matter, which includes the identification and specification of aims, objectives and questions. Most importantly, I conduct evaluation of the undertaken decisions. This is to ensure whether I have bee n able to abide by the created aims and objectives. Now I attend various courses and training for improvement of the preconceived skills, expertise and knowledge. Attending these courses have proved beneficial for me in terms of approaching the tasks from broader perspective. I think these courses are important for all the employees in terms of judging their position within the workplace. Here, I can attach the concept of judgment, as judging and placing the steps creates a positive image in the minds of the managers. This positivity has encouraged me to perform better performance consistently. The result is reflected in the performance appraisals, which I get the exposure of this type of performance. I think the performance appraisals need to be judgmental, as it is the matter of self-respect for entrepreneurs like us. Handing over the incentives or bonus to someone, who has worked on a project beyond the shift hours one day before the submission of the deadline, reflects an error of judgment. On the other hand, privileging the employee, who has worked hard from the first day of allocation of the projects is rationally and ethically correct in terms of valuing the efforts put in by entrepreneurs like us. I feel this is important as we all have put our best efforts for fulfilling the identified and the specified objectives. Usefulness of new information All the information, which I have gained would be effective if it helps me in making practical utilization of the skills, which I have learnt in the training. I can take trainings of the candidates aspiring to become entrepreneurs like me. Within this, referring to the sources, which I have used would help me when I get stuck in giving lectures to the candidates. This would result in the transfer of skills from me to the candidates wishing to pursue their employment in the field of entrepreneurship. Apart from this, I can use the gained information in conducting further research on entrepreneurship and innovation. I can submit this research to the publishing house, which would enhance my writing skills. The outcome of this submission would be the utilization of my writings by the young and the aspirant entrepreneurships. Apart from this, books can be published regarding my research on entrepreneurship and innovation. If this is done in the form of a ceremony, it would be expose me to a lot of audience. Herein lays the effectiveness of the personality development courses, which I attended. Development of personality is fruitful for me in terms of enhancing my presentability in the workplace. If celebrities are invited in the book publishing ceremony, then I would get a chance to meet different kinds of people. Moreover, these types of ceremonies would act as an opportunity for me to enhance my preconceived knowledge, skills and expertise on entrepreneurship and innovation. I can indulge in meetings with them for knowing their journey till this point. Following the footsteps of these famous personalities would help to shine in my life. Evaluation needs to be done on a regular basis for searching out the innovative avenues open before me for enhancing my professional life in future.