And it worked. Aerospace, which absorbed three-fifths of all DPC loans, went from making a few thousand planes in to nearlyplanes by Certain New Deal laws were declared unconstitutional by the U.
As the bank run progressed, it generated a self-fulfilling prophecy: as more people withdrew their deposits, the likelihood of default increased and this encouraged further withdrawals. Installment lenders stepped in to provide new services, and even the electrical utility companies began to string lines out into the country.
These men, and one woman, positioned the DPC as an intermediary between investors and borrowers, providing capital for planes and munitions in two ways: the first as a lender, and the second through tax benefits. Markets immediately responded well to the suspension in the hope that the decline in prices would finally end.
Instead of paying farmers for letting fields lie barren, this program subsidized them for planting soil-enriching crops such as alfalfa that would not be sold on the market.