History demonstrates what good could be done with a National Infrastructure Bank
It's likely you still drive on, picnic in, or visit an infrastructure gem built by the Reconstruction Finance Corporation in the 1930s
We originally wrote this article in 2021, but it’s still relevant today. Our infrastructure needs far outstrip the $500 billion allotted in the Bipartisan Infrastructure Law (BIL) passed in 2021. That bill will expire in two and a half years, and there is no Plan B. Recent case in point from PBI Co-Chair Ellen Brown’s recent article, By the Dawn’s Early Light: On the Fall of the Francis Scott Key Bridge:
According to the American Society of Civil Engineers (ASCE) and the federal government, 46,000 U.S. bridges have aging structures and are in ‘poor’ condition.
The proposed National Infrastructure Bank (NIB) now before Congress as HR 4052 (originally HR 3339) is modeled after the Reconstruction Finance Corporation (RFC), which was instrumental in pulling the U.S. out of the Great Depression in the 1930s. Set up during the administration of Pres. Herbert Hoover and greatly expanded under Franklin D. Roosevelt, the RFC funded tens of thousands of projects over 80 years ago that still benefit us today.
Low-cost RFC loans were often augmented with complimentary New Deal relief programs such as the Works Progress Administration (WPA), the Public Works Administration (PWA), and the Civilian Conservation Corps (CCC). Reconnecting with the scale and utility of these historic projects can give us perspective on the potential of a national infrastructure bank in responding to the needs of the real economy and the environment of our local communities.
View several examples below and explore this map to find more New Deal projects throughout the country. (Map may not work in the Chrome browser.)
You can also listen to / watch an episode of our podcast It’s Our Money with Ellen Brown on the subject, embedded below.
Pennsylvania
THE TURNPIKE
Photo 1, left: The original PA Turnpike construction project gathered thousands of workers to Pennsylvania’s southern tier. By the spring of 1940, 15,000 workers were on the job with contracts awarded to 155 companies or subcontractors from 18 different states. With the country in the depths of the Great Depression, the small surge in employment was a great boost to Pennsylvania’s economy. Photo 2, right: Today, sign colors and verbiage are dictated by state and federal guidelines. But, when the PA Turnpike first opened, engineers had to create a new informative art form. The original, black and white highway signs seen along the Turnpike – this one photographed in 1941 one mile from the New Stanton Interchange – used reflective glass beads imbedded in the letters for better nighttime visibility.
Photo 3, left: Enthusiastic travelers line up their cars for opening day on the Pennsylvania Turnpike, October 1, 1940. Nearly 27,000 autos crowded the Pennsylvania Turnpike on its first weekend. The toll of one cent per mile didn't discourage traffic, and neither did the speed limit: initially, the Turnpike had no posted limit. Credit: Courtesy Pennsylvania State Archives Photo 4, right: Credit: Photo by Ann Rosener, public domain
Photo 5, left: Tunnels through the moutains were originally two lanes. Photo 6, right: Tuscadora Mountain Tunnel. Credit: Formulanone
Photo 7: The Turnpike remains the major east/west traffic corridor in Pennsylvania today. Credit: Suzanne O'Keeffe.
Via ExplorePAhistory.com:
“When it opened in 1940, the Pennsylvania Turnpike made history as the first limited access superhighway in the nation. Constructed across and through 160 miles of rugged ridges and narrow valleys, the Turnpike was both an engineering marvel and precursor of the national interstate highway system. …
“The Turnpike Commission and Washington adopted a plan in which the RFC would purchase $40.8 million of the state’s Turnpike bonds, and the PWA would provide a grant of $29 million. With financing from New Deal funds, the state contracted private companies to do the work, and agreed to repay the debt with tolls paid by Turnpike motorists.
“From the standpoint of New Deal programs, the Pennsylvania Turnpike was an overwhelming success on two counts. It provided jobs to thousands of unemployed Pennsylvanians during the Depression. It also provided Pennsylvania the nation’s first modern, limited access superhighway, and served as a blueprint for the national interstate highway system.”
Explore more history on the Turnpike and its financing via the links below:
ExplorePAHistory.com
Turnpike timeline
Living New Deal
Georgetown, Maryland
C&O CANAL NATIONAL HISTORICAL PARK
Photo 1, left: Park visitors gather around Lock 4 in Georgetown. Credit: Bob Rives, NPS 2017. Photo 2, right: Towpath along urban stretch of C&O Canal. Credit: Shae Corey, Creative Commons 2021
Via Living New Deal:
“Under the New Deal, the defunct Chesapeake & Ohio (C&O) Canal was acquired by the federal government and restored from Georgetown in the District of Columbia (where it enters the Potomac River) to Seneca MD, a distance of 22 miles. This laid the basis for the future C&O Canal National Historical Park.
“The canal ceased commercial operation in 1924, following a major Potomac River flood, and the C&O company went into receivership. In 1938, the property was purchased for $2 million by the National Park Service (NPS), using funds provided by the Public Works Administration (PWA). The PWA had raised the money through the sale of its bonds by the Reconstruction Finance Corporation (RFC). The largest shareholder in the canal, the B&O railroad, was encouraged to sell in exchange for a loan from the RFC while the sale was pending in the courts handling the bankruptcy.
“Another $500,000 in PWA money went toward the canal’s rehabilitation by the Civilian Conservation Corps (CCC).”
San Pedro, California
POINT FERMIN PARK
Credit: Atomic Hot Links
Via Living New Deal:
“Point Fermin Park is located in the San Pedro district, on the bluff overlooking the Pacific Ocean. With the addition of the Wilder tract to this Park, we were able to use a great many R.F.C. [Reconstruction Finance Corporation] and Country Welfare men on improvements for the benefit of residents in San Pedro as well as visitors from Los Angeles. …
“Twenty one hundred and thirty lineal feet of new walks were built and lined with redwood curbing. In putting in these walks we had to move 2,882 cubic yards of dirt and 984 cubic yards was moved in general grading over approximately three acres. Seventy-seven hundred and fifty lineal feet of new water system were installed, and 1,739 lineal feet of stone wall built using rocks on the property.
“We were also able to do considerable landscaping such as moving 587 trees. We also planted 587 trees, 6,682 shrubs, and 11,133 flowering plants. New lawn area planted was 4 1/2 acres. Twenty three hundred and 8 feet of fencing were also built with the help of the unemployed labor.”
Boulder, Colorado
SUNRISE CIRCLE AMPHITHEATER, FLAGSTAFF MOUNTAIN
Credit: Aidan Grey
Via Living New Deal:
“The Sunrise Circle amphitheater was built between September 1933 and March 1934. It was constructed in a ‘natural amphitheater’ at the top of Flagstaff Mountain, which had been cleared of debris during the spring of 1933 as part of the Reconstruction Finance Corporation (RFC) work relief program. The CCC work features beautiful stone terracing and a small stage. It remains a popular attraction used regularly for events. It lies within the City of Boulder Open Space and Mountain Parks.”
Fort Worth, Texas
FORT WORTH BOTANIC GARDEN
Credit: Susan Kline © Creative Commons BY-NC-ND 2010
Credit: Jessica Tan
Via Living New Deal:
“The park board agreed to the use of RFC labor for the construction of the garden and work commenced in February 1933. … Over 450 men worked on the construction of the garden. Most were unskilled laborers. Experienced stonemasons and carpenters were enlisted to train them. The garden was dedicated on October 15, 1933. It would be several months before the garden was planted with thousands of roses, most of which were donated.
“The next major project was the construction of a Horticulture Building in the northwest corner of the park. CWA labor was used to construct the stone building and greenhouse. In December 1934, the park board voted to allow the Fort Worth Garden Club to operate a garden center at the building. It also voted to change the park’s name to the Fort Worth Botanic Garden.
“In 1935, a cactus garden was constructed north of the rose garden (now a perennial garden). WPA labor was also used for road construction. Women employed through the NYA provided tours of the garden. Through the WPA and NYA, women created scrapbooks and reference materials on garden-related topics that were used in the garden center.
“The Fort Worth Botanic Garden has grown from its original 37.5 acres to encompass 109 acres of numerous theme gardens, greenhouses, and a large garden center with a conservatory. The original Horticulture Building is now known as the Rock Springs Building. It has been enlarged several times and houses offices for garden staff, a library, and a restaurant. The original section of the garden retains much of its historic integrity and was listed on the National Register of Historic Places in 2009.”
This episode of our It’s Our Money podcast examines the enormous impact of Jesse H. Jones, the man FDR put in charge of the Reconstruction Finance Corporation:
View a short clip of this longer podcast here. And another short clip here.
PBI’s Open Letter to Congress: Why We Need a National Infrastructure Bank
According to the American Society of Civil Engineers, nearly $6 trillion is needed to bring America’s crumbling infrastructure into good repair. The National Infrastructure Bank bill, HR 4052, can fill the infrastructure gap without requiring new federal spending or federal taxes. Modeled on the Reconstruction Finance Corporation that pulled America out of the Great Depression, it will be capitalized at $500 billion (leveraged to $5 trillion in loans) with debt-for-equity swaps (existing Treasury debt for non-voting shares with a 2% dividend).
We urge Congress to pass HR 4052 now.