Eugene Robert Black was the Chairman of the Federal Reserve

Chairman of the Federal Reserve

The Chairman of the Board of Governors of the Federal Reserve System is the head of the central banking system of the United States. Known colloquially as "Chairman of the Fed," or in market circles "Fed Chairman" or "Fed Chief"...

 from May 9, 1933 to August 15, 1934. His namesake, Eugene "Gene" Robert Black, Sr.

Eugene R. Black, Sr.

Eugene "Gene" Robert Black, Sr. was President of the World Bank from 1949 to 1963. His father, a 1930s Chairman of the Federal Reserve, also named Eugene Robert Black, did not use the "Sr." suffix; Gene's son became Eugene Robert Black, Jr.Black was born in Atlanta, Georgia in 1898...

, was the first in the family to use the "Sr." designation; Gene's son became Eugene Robert Black, Jr.

Biography

He was born in Atlanta, Georgia

Atlanta, Georgia

Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...

, and attended the University of Georgia

University of Georgia

The University of Georgia is a public research university located in Athens, Georgia, United States. Founded in 1785, it is the oldest and largest of the state's institutions of higher learning and is one of multiple schools to claim the title of the oldest public university in the United States...

, where he was a member of the Chi Phi Fraternity and the Phi Kappa Literary Society

Phi Kappa Literary Society

The Phi Kappa Literary Society is a college literary society, located at the University of Georgia in Athens, Georgia.The Society was founded in 1820 by Joseph Henry Lumpkin, later to become the first Chief Justice of the Supreme Court of Georgia and eponym for the , and by William Crabbe, Edwin...

. In 1897, he married the daughter of Henry W. Grady

Henry W. Grady

Henry Woodfin Grady was a journalist and orator who helped reintegrate the states of the former Confederacy into the Union after the American Civil War....

, the famous Atlanta journalist and orator.

Black practiced law for 28 years until he became president of the Atlanta Trust Company in 1921, and in 1928, he became Governor of the Federal Reserve Bank of Atlanta

Federal Reserve Bank of Atlanta

The Federal Reserve Bank of Atlanta is responsible for the sixth district, which covers the states of Alabama, Florida, and Georgia, 74 counties in the eastern two-thirds of...

. He succeeded the long time governor, Max Wellborn

Max Wellborn

Maximilian Bethune Wellborn was the first chairman of the board and a governor of the Federal Reserve Bank of Atlanta. He also served as a county commissioner and state senator from Calhoun County, Alabama...

, who was also his daughter's father-in-law. When the Wall Street Crash of 1929

Wall Street Crash of 1929

The Wall Street Crash of 1929 , also known as the Great Crash, and the Stock Market Crash of 1929, was the most devastating stock market crash in the history of the United States, taking into consideration the full extent and duration of its fallout...

 happened, he and two cashiers rushed to Nashville, Tennessee

Nashville, Tennessee

Nashville is the capital of the U.S. state of Tennessee and the county seat of Davidson County. It is located on the Cumberland River in Davidson County, in the north-central part of the state. The city is a center for the health care, publishing, banking and transportation industries, and is home...

 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

Bank run

A bank run occurs when a large number of bank customers withdraw their deposits because they believe the bank is, or might become, insolvent...

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

Great Depression

The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...

 into 1933. He, along with George L. Harrison

George L. Harrison

George Leslie Harrison was an American banker, insurance executive and advisor to Secretary of War Henry L. Stimson during World War II....

, the Governor of the Federal Reserve Bank of New York

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 located at 33 Liberty Street, New York, NY. It is responsible for the Second District of the Federal Reserve System, which encompasses New York state, the 12 northern counties of New Jersey,...

, recommended open market

Open market

The term open market is used generally to refer to a situation close to free trade and in a more specific technical sense to interbank trade in securities.-Use of the term in economic theory:...

 purchases to increase reserves. His insistence on expansionist policies led to the President appointing Black as chairman of the Federal Reserve Board of Governors

Federal Reserve Board of Governors

The Federal Reserve Board of Governors is the main governing body of the Federal Reserve System. It is charged with overseeing the 12 District Reserve Banks and with helping implement national monetary policy. Governors are appointed by the President of the United States and confirmed by the Senate...

in 1933.