Defense Plant Corporation
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The Defense Plant Corporation,(DPC), was subsidiary of the Reconstruction Finance Corporation, a government corporation run by the United States federal government between 1940 and 1945. To win World War II the United States and its Allied Nations needed massive war production. Many private companies did not have the capital funds to meet the wartime demand for buildings and equipment. Defense Plant Corporation provided financial support to state and local governments.[1] Defense Plant Corporation also made loans to banks, railroads, mortgage associations, and other businesses supporting the war efforts.[2]
History[edit]
The Reconstruction Finance Corporation (RFC) was founded in 1932 by Herbert Hoover to help with the Great Depression, with the outbreak of World War II, it became a war department. Fund requests usually started with the United States Navy, United States Army, War Shipping Administration, Office of Production Management, the War Production Board, Maritime Commission or other war departments. The Reconstruction Finance Corporation had eight subsidiaries. Most requests for new factories and new mills were given to the Defense Plant Corporation.[3] The head of the Defense Plant Corporation was Jesse H. Jones, with Emil Schram and Sam Husbands. It would also offer oversight that factories were constructed, equipped, and operated. By the time it closed in 1945 it had funded over $9 billion into the wartime factories. The funds went to over 2,300 projects in 46 US states and in foreign countries. In most projects, the government owned factories and leased them to private companies. Major factories built were aircraft manufacturing (50% of funds), tanks plants, nonferrous metals, machine tools, synthetic rubber, shipyards and boat yards. The largest project was $176 million for Dodge's Chicago aircraft engine plant. The Dodge Chicago plant manufactured engines for the Boeing B-29 Superfortress and Consolidated B-32 Dominator. The Dodge Chicago 1,545 acres with a steel forge and aluminum foundry. With the end of the war, the DPC ceased operations on July 1, 1945.[2]
Funded[edit]
Some companies funded:
- Ben's Original
- Citgo to funded synthetic rubber
- Willow Run
- Sangamon Ordnance Plant
- EMD Model 40 plant
- Homestead Steel Works
- Southwest Power Pool
- Wright's Automatic Machinery Company
- Contract Flying School Airfields
- General Motors's Central Foundry Division and other plants
- Big Inch
- Baldwin Locomotive Works
- Holston Army Ammunition Plant
- U.S. Steel Duquesne Works
- Sangamon Ordnance Plant
See also[edit]
- Resolution Trust Corporation
- Federal Emergency Management Agency
- Emergency Relief and Construction Act
External links[edit]
References[edit]
- ^ Vossmeyer, Angela (May 2014). "Treatment Effects and Informative Missingness with an Application to Bank Recapitalization Programs". The American Economic Review. 104 (5): 212–217. doi:10.1257/aer.104.5.212.
- ^ a b Olson, James S. (2017) [1988]. Saving Capitalism: The Reconstruction Finance Corporation and the New Deal, 1933–1940. Princeton University Press. ISBN 978-0-691-62952-0.
- ^ Sprinkel, Beryl Wayne (October 1952). "Economic Consequences of the Operations of the Reconstruction Finance Corporation". The Journal of Business of the University of Chicago. 25 (4): 211–224. doi:10.1086/233060. JSTOR 2350206.
- Reconstruction Finance Corporation
- 1945 disestablishments in the United States
- Agencies of the United States government during World War II
- Corporations chartered by the United States Congress
- Defunct agencies of the United States government
- Government agencies established in 1940
- United States government-sponsored enterprises
- Herbert Hoover
- 1940 establishments in the United States
- Government agencies disestablished in 1945