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Statement About Signing the Reconstruction Finance Corporation Act.

January 22, 1932

THE PRESIDENT said:

"I have signed the Reconstruction Finance Corporation Act.

"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 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. It should give opportunity to mobilize the gigantic strength of our country for recovery.

"In attaching my signature to this extremely important legislation,. I wish to pay tribute to the patriotism of the men in both Houses of Congress who have given proof of their devotion to the welfare of their country irrespective of political affiliation."

Note: As enacted, the Reconstruction Finance Corporation Act (H.R. 7360), approved January 22, 1932, is Public, No. 2 (47 Stat. 5).

Herbert Hoover, Statement About Signing the Reconstruction Finance Corporation Act. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/207407

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