Eugene R. Black
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- This page is about Eugene R. Black, the banker. For the U.S. Congressman and judge, see Eugene Black.
Eugene Robert Black, Jr. (May 1, 1898–1992) was the Chairman of the Federal Reserve from May 9, 1933 to August 15, 1934 and President of the World Bank from 1949 to 1963.
Black was born in Atlanta, Georgia in 1898. He attended the University of Georgia where he was a member of the Chi Phi Fraternity and, upon graduating with an A.B. in 1917, enlisted in the United States Navy. During World War I he was assigned to convoy duty in the North Atlantic.[1]
Upon leaving the Navy after the War, he joined the investment firm of Harris, Forbes, & Co. He worked as a travelling salesperson for the firm selling bonds and meeting with bankers and investors. He opened the firm's first southern office in Atalanta and later became a partner in the firm.[1]
When the Wall Street Crash of 1929 happened, Black was the Governor of the Federal Reserve Bank of Atlanta. He and two cashiers rushed to Nashville, Tennessee to supply currency and credit to banks in the city and surrounding region. The situation worsened with other cities in the region experiencing bank runs. Black kept his district afloat by rushing large quantities of cash to banks that were experiencing runs and extending credit to any bank that could offer any asset of value. He kept this policy active through the Great Depression into 1933. He, along with George L. Harrison, the Governor of the Federal Reserve Bank of New York, recommended open market purchases to increase reserves. His insistence on expansionist policies led to the President appointing Black as chairman of the Federal Reserve Board of Governors in 1933. [2]
In 1933, he was hired by the Chase National Bank to be their vice-president. He went on to become the senior vice-president of Chase National's investment portfolio.[1]
He became the executive director of the World Bank in 1947. When the Bank's President, John J. McCloy, resigned, Black, against his will, became the President of the Bank.[1]
While not joining in the anti-communist fervor following World War II, Black was concerned about the spread of communism and its impact on the spread of global capitalism. He believed the economic prosperity was an essential prerequisite for political freedom. Black had wanted to return to work for Chase National but his personal commitment to the objectives of the World Bank overrode that desire and he remained as the President of the Bank.[1]
In 1963, the United States was considering pursuing a program to create a supersonic transport (SST) to rival the British and French Concorde. President Kennedy commissioned an outside review of the feasibility of a Federally funded SST program. The commission was headed by Black and Stanley Osborne, chairman of Olin Mathieson Chemical Corporation. The review was completed in December of 1963 and was given to President Lyndon B. Johnson. The report recommended not pursuing a race against the Concorde and instead the effort should focus initially on building a test aircraft for research.[3]
From 1962 to 1968, Black was chairman of the Brookings Institution.[4]
President Johnson selected Black in 1966 to be Special Adviser to the President on Southeast Asian Social and Economic Development. In this position, Black attend the inaugural meeting of the Asian Development Bank in Tokyo.[5]
Black also served on a number of boards for corporations and foundations. The University of Georgia Foundation named a fellowship in honor of him and his achievements.[6] Princeton University awarded him an honorary Doctor of Laws degree in 1960.[7]
[edit] References
- ^ a b c d e Eugene Robert Black. Archives. The World Bank. Retrieved on August 23, 2006.
- ^ Richardson, Gary; Troost, William (May 2005). Monetary Intervention Mitigated Banking PanicsDuring the Great Depression (PDF). Retrieved on August 23, 2006.
- ^ Chapter 7 - Aerospace Recession. The Space Shuttle Decision. NASA History Division. Retrieved on August 23, 2006.
- ^ Principal Officers, 1916-1985. The Brookings Institution. Retrieved on August 23, 2006.
- ^ Remarks to the Press Following a Meeting With Eugene R. Black Relating to the Asian Development Bank. The American Presidency Project. Retrieved on August 23, 2006.
- ^ Our benefactors. University of Georgia Foundation. Retrieved on August 23, 2006.
- ^ Honorary degrees Awarded by Princeton University. Princeton University. Retrieved on August 23, 2006.
| Preceded by Eugene Meyer |
Chairman of the Federal Reserve 1933–1934 |
Succeeded by Marriner S. Eccles |
| Preceded by John J. McCloy |
President of the World Bank 1949–1963 |
Succeeded by George D. Woods |
Eugene Meyer · John J. McCloy · Eugene R. Black · George David Woods · Robert McNamara · Alden W. Clausen · Barber Conable · Lewis Thompson Preston · James Wolfensohn · Paul Wolfowitz
| Chairmen of the Federal Reserve |  |
|---|---|
| Hamlin • Harding • Crissinger • Young • Meyer • Black • Eccles • McCabe • Martin • Burns • Miller • Volcker • Greenspan • Bernanke |
