Eugene Robert Black I (January 7, 1873 – December 19, 1934) was an American attorney and businessman who served as the 6th
chairman of the Federal Reserve from 1933 to 1934. Before and after his term as chairman, Black also served as the governor of the
Federal Reserve Bank of Atlanta from 1928 to 1933 and again from August 1934 until his death in December of that year.
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Early life
He was born in Atlanta, Georgia on January 7, 1873. He attended the University of Georgia, where he was a member of the Chi Phi Fraternity
Chi Phi () is considered by some as the oldest American men's college social fraternity that was established as the result of the merger of three separate organizations that were each known as Chi Phi. The earliest of these organizations was for ...
and the Phi Kappa Literary Society. Black practiced law for 28 years until he became president of the Atlanta Trust Company in 1921.
Career
In 1928, he became Governor of the Federal Reserve Bank of Atlanta. He succeeded the longtime governor, Max Wellborn
Maximilian Bethune Wellborn (January 22, 1862, in Lewisville, Arkansas – November 28, 1957, in Anniston, Alabama) was the first chairman of the board and a governor of the Federal Reserve Bank of Atlanta. He also served as a county commissione ...
, who was also his daughter's father-in-law. When the Wall Street Crash of 1929 happened, 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 run
A bank run or run on the bank occurs when many clients withdraw their money from a bank, because they believe the bank may cease to function in the near future. In other words, it is when, in a fractional-reserve banking system (where banks no ...
s.
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
The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
into 1933. He, along with George L. Harrison
George Leslie Harrison (January 26, 1887 – March 5, 1958) was an American banker, insurance executive and advisor to Secretary of War Henry L. Stimson during World War II.
Early life and education
Harrison was born in San Francisco, California o ...
, the Governor of the Federal Reserve Bank of New York
The Federal Reserve Bank of New York is one of the 12 Federal Reserve Banks of the United States. It is responsible for the Second District of the Federal Reserve System, which encompasses the State of New York, the 12 northern counties of New ...
, 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 in 1933.
Personal life
In 1897, he married Gussie Grady, the daughter of Henry W. Grady
Henry Woodfin Grady (May 24, 1850 – December 23, 1889) was an American journalist and orator who helped reintegrate the states of the Confederacy into the Union after the American Civil War. Grady encouraged the industrialization of the Sout ...
, the Atlanta journalist and orator.[ Eugene "Gene" Robert Black, Sr., was the first in the family to use the "Sr." designation; his son was known as Eugene Robert Black, Jr. or Eugene Robert Black III.] Black died of a heart attack on December 19, 1934 in Atlanta, Georgia.
References
Further reading
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External links
Statements and Speeches of Eugene R. Black
{{DEFAULTSORT:Black, Eugene
1873 births
1934 deaths
Economists from Georgia (U.S. state)
Businesspeople from Atlanta
Chairs of the Federal Reserve
University of Georgia alumni
Franklin D. Roosevelt administration personnel
Federal Reserve Bank of Atlanta presidents