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WAR FINANCE CORPORATION

WAR FINANCE CORPORATION. The War Finance Corporation was created by Congress on 5 April 1918 to facilitate the extension of credit to vital war industries during World War I, primarily by making loans to financial institutions. During its six months of wartime existence, the corporation advanced $71,387,222. In 1919 it greatly assisted the director general of railroads and railroad companies, and until 1920 it served as the chief agency through which the Treasury purchased government obligations. With the return of peace, amendments to the corporation's charter greatly expanded its activities. After 1919 it actively financed the American agricultural and livestock industries until the Agricultural Credits Act terminated the corporation in 1924, after it had lent $700 million.

BIBLIOGRAPHY

Gilbert, Charles. American Financing of World War I. Westport, Conn.: Greenwood Press, 1970.

Leuchtenburg, William E. The Perils of Prosperity, 1914–1932. Chicago: University of Chicago Press, 1993.

Charles C. Abbott/C. W.

See also Credit; Livestock Industry; World War I, Economic Mobilization for.