With the jobless rate on the rise, and increasing bank failures (e.g., 158 in August, 305 in September and 522 in October), Hoover was forced to take action. In December 1931, he called on Congress to establish the Reconstruction Finance Corporation. The corporation was authorized to loan money to banks, railroads and other institutions.
The R.F.C. was unsuccessful in reversing the depression. Its actions were on too small a scale to have any effect..