POLICY: Reviving the Old RFC?

In fashioning their own program to restore the faltering economy, Democrats have embraced an old concept that originated with a much-maligned Republican Administration. At their mini-convention in Kansas City, Mo., last month, they proposed a revival of the Reconstruction Finance Corporation, which was created by President Herbert Hoover and played a pivotal role in the Depression-era economy. Its purpose: to lend federal money to troubled companies, stave off bankruptcies and curb unemployment.

To many politicians and even some businessmen, the RFC is an idea whose time is coming back. In Congress there is more talk about reviving the RFC than at...

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