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
The chair of the Board of Governors of the Federal Reserve System is the head of the Federal Reserve, and is the active executive officer of the Board of Governors of the Federal Reserve System. The chairman presides at meetings of the Board.
...
from 1933 to 1934. Before and after his term as chairman, Black also served as the governor of the
Federal Reserve Bank of Atlanta
The Federal Reserve Bank of Atlanta (informally the Atlanta Fed and the Bank), is the sixth district of the 12 Federal Reserve Banks of the United States and is headquartered in midtown Atlanta, Georgia.
The Atlanta Fed covers the U.S. state ...
from 1928 to 1933 and again from August 1934 until his death in December of the same year.
[
His eldest son, Eugene R. Black Sr., became the third ]president of the World Bank Group
The president of the World Bank Group is the head of World Bank Group. The president is responsible for chairing the meetings of the boards of directors and for overall management of the World Bank Group.
The nominee is subject to confirmation ...
, serving from 1949 to 1962.
Early life
He was born in Atlanta, Georgia
Atlanta ( ) is the List of capitals in the United States, capital and List of municipalities in Georgia (U.S. state), most populous city in the U.S. state of Georgia (U.S. state), Georgia. It is the county seat, seat of Fulton County, Georg ...
, on January 7, 1873. He attended the University of Georgia
The University of Georgia (UGA or Georgia) is a Public university, public Land-grant university, land-grant research university with its main campus in Athens, Georgia, United States. Chartered in 1785, it is the oldest public university in th ...
, where he was a member of Chi Phi fraternity 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
The Federal Reserve Bank of Atlanta (informally the Atlanta Fed and the Bank), is the sixth district of the 12 Federal Reserve Banks of the United States and is headquartered in midtown Atlanta, Georgia.
The Atlanta Fed covers the U.S. state ...
. He succeeded the longtime governor, Max Wellborn, 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
Nashville, often known as Music City, is the capital and List of municipalities in Tennessee, most populous city in the U.S. state of Tennessee. It is the county seat, seat of Davidson County, Tennessee, Davidson County in Middle Tennessee, locat ...
, 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 Client (business), clients withdraw their money from a bank, because they believe Bank failure, the bank may fail in the near future. In other words, it is when, in a fractional-reserve banking sys ...
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 was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and ...
into 1933. He, along with George L. Harrison, 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 New York (state), State of New York, the 12 norther ...
, recommended open market
The term open market is used generally to refer to an economic situation close to free trade. In a more specific, technical sense, the term refers to interbank trade in securities.
In economic theory
Economists judge the "openness" of markets a ...
purchases to increase reserves. His insistence on expansionist policies led to the President appointing Black to the Federal Reserve Board
The Board of Governors of the Federal Reserve System, commonly known as the Federal Reserve Board, is the main governing body of the Federal Reserve System. It is charged with overseeing the Federal Reserve Banks and with helping implement the mo ...
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 (American Civil War), Confederacy into the Union (American Civil War), Union after the American C ...
, 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
A myocardial infarction (MI), commonly known as a heart attack, occurs when Ischemia, blood flow decreases or stops in one of the coronary arteries of the heart, causing infarction (tissue death) to the heart muscle. The most common symptom ...
on December 19, 1934, in Atlanta, Georgia
Atlanta ( ) is the List of capitals in the United States, capital and List of municipalities in Georgia (U.S. state), most populous city in the U.S. state of Georgia (U.S. state), Georgia. It is the county seat, seat of Fulton County, Georg ...
.
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