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Document 87659 HERBERT HOOVER Nine months after leaving office, Hoover tries to prove that the Democratic Congress's decision to publish government loans to banks in early 1933 led to "runs on a great number of banks...which contributed to build up the panic". TLS: "Herbert Hoover", 2p, 7¼x10¼. (Palo Alto, California), 1933 December 7. To his White House secretary, Lawrence Richey. In full: "I find in looking over our material in respect to the RFC that I only have here the detailed names of banks and insurance companies that received loans from the RFC for November and December, 1932. These were printed as House documents No. 515 and No. 531. As I recollect, after the passage of the amendment to the RFC Act in the previous July the Board was required to publish the names of banks each month, and therefore there ought to be publications prior to November. Then, as I recollect, Congress passed a resolution demanding publications of retrospect loans from February 2 to July 21. These were published on January 26, 1933. I do not have the RFC publication. I would like to have these documents. I am preparing some material in which I want to show the effect of the publication of RFC loans in its relation to the banking crisis. There were runs on a great number of banks immediately after the publication of the loans which contributed to build up the panic. I would like to be able to prove this and I think in our files are the names of all of the banks that failed up to the end of the Administration which were reported regularly by the Comptroller of the Currency. I would like to have these loans made to banks from say the first of December on to March 4th. Possibly Miss McGrath could take the list of failed banks, check them up with the dates of publication of their loans if they had any, and make up a statement showing the name of the bank, the date which it received a loan, the date when the loan was published, and the date when the bank was closed, and also showing the amount of deposits in the bank. Also I would like to know what major banking crises occurred after the 8th of November. I have a recollection that we had to rescue Baltimore, New Orleans, St. Louis, and Kansas City in this period before the failure began in Detroit. I would like to know the dates when these crises developed. I expect to be leaving here for the East after January 1st but will communicate with you later as to the details of the journey. But I would like to have this material before I leave here." In the spring of 1931, Europe exploded in an economic crisis. The American banking system was so involved with Europe through war debts, bonds, loans and bank deposits abroad and European deposits in America that whatever happened on one side of the ocean affected the other as well. President Hoover presented programs to reform the banking program, to expand the public works across the country and to create the Reconstruction Finance Corporation (RFC), which would make government loans to save banks, farmers, railways and businesses from bankruptcy. Congress passed his RFC legislation but rejected his banking legislation. The RFC performed impressively. This agency was Hoover's chief contribution to recovery and in establishing it he put the Federal Government into the business of business regulation, something he had been entirely opposed to when he had taken office in 1929. Creased at corners. Staple holes in upper left blank corners, 2 file holes in blank left margin. Overall, fine condition. SEE IF DOCUMENT 87659 IS FOR SALE RIGHT NOW!!
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