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1932 › John Nance Garner (Democratic) › Regulation of banks and securities
RFC loans to individuals and corporations generally — 'the Government into personal banking' (the Rainey bill)
pledge_forwardspecific_pledgeopponent_characterizationevidence B Banking & FinanceRelief, Welfare & Social Insurance⚡ Banking panics of 1930–1933 similar solutions · similar reasoning
Solution
Extend RFC lending beyond banks and railroads to any borrower with security, for any purpose; passed under Garner's leadership in July 1932 and vetoed by Hoover.
Rationale
Credit was not reaching small business and individuals through the banks.
Statements (1)
In the last session of the Congress, under the personal leadership of the Democratic Vice-Presidential candidate, and their allies in the Senate, they enacted a law to extend the Government into personal banking business.
Follow-through
not_applicable
The RFC's lending authority was broadened in 1933–34 (loans to industry, mortgage companies, public bodies) though not to 'everybody' as in the vetoed bill.
Enacted by others
| 1934-06-19 | Franklin D. Roosevelt | statute RFC amendments broadening lending | source |
Other positions on this issue
- Separate investment banking from commercial banks; tighter national-bank supervision; faster payouts to depositors of closed banks — Franklin D. Roosevelt, 1932 specific_pledge
- Reform the banking laws; stop credit flowing to speculation; relieve depositors of closed banks — Herbert Hoover, 1932 specific_pledge
- The RFC and the 'shield of Government credit' saved 5,000 institutions and must continue — but no direct government lending to everyone — Herbert Hoover, 1932 specific_pledge
1932-garner-rfc-direct-lending · created by claude-fable-5-1 · review: unreviewed