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FED ERAL RESER VE BANK
OF NEW YORK
F is ca l A g e n t o f the U n ite d States

["Circular N o. 3 8 2 9 1
L March 7, 1952
J

REGULATION V

LOAN GUARANTEES FOR DEFENSE PRODUCTION

To All Banks, Other Financing Institutions, and
Others Concerned, in the Second Federal Reserve D istrict:

W e quote below from a letter to the Board o f Governors o f the Federal Reserve
System from Mr.

Jess

L arson ,

Administrator, Defense Materials Procurement

Agency, Washington, D. C., dated February 28, 1952:
The Defense Materials Procurement Agency is prepared to lend all possible financial
assistance in the form of V Loan guarantees to those producers participating in the DMPA
program for expansion of productive capacity and supply of strategic minerals and metals.
The attached list, A v h ile not all inclusive, i s generally illustrative of these expansion programs.
It is apparent that Government guarantee of private loans can materially assist in
the financing of expanded production in these fields, while lessening both the need and
the pressure for direct Government financing.
Certain producers are offered contracts providing for the purchase of production,
and often other forms of Government aid are available in order to encourage development
and mining. The contracts and related incentives should facilitate private financing. The
Agency is prepared to consider applications A v h ich cover working capital needs as well
as facilities expansion in order to expedite production essential to the national defense.
The producers applying to the Defense Materials Procurement Agency for Government
assistance are advised of the Y Loan Program and encouraged to privately finance their
operations through such medium.

The list o f strategic and critical metals and minerals referred to in the letter
is reprinted on the reverse o f this circular.
Additional copies o f this circular will be furnished upon request.




A

llan

S

peoul,

President.

( over)




ILLUSTRATIVE LIST OF
STRATEGIC AND CRITICAL METALS AND MINERALS

1. Antimony
2# Asbestos

23.

Lead

24.

Magnesium

3.

Barium

25.

Manganese

4.

Beryllium

26.

Mercury

5.

Cadmium

27.

Mica

6.

Chromite

28.

Molybdenum

7.

Cobalt

29.

Monazite

S.

Columbium

30.

Nickel

9.

Cryolite

31.

Platinum

10.

Copper

32.

Potash

11.

Diamond

33.

Quartz Crystals

12.

Dolomite

34.

Radium

13.

Ferro Alloys

35.

Rutile

14.

Feldspar

36.

Scheelite

15.

Fluorspar

37.

Thorium -

16.

Garnet

38.

Tin

17.

Gem Stones

39.

Titanium

18.

Germanium

40.

Tungsten

19.

Graphite

41.

Uranium

20.

Ilmenite

42.

Vanadium

21.

Iron Ore

43.

Zinc

22.

Kvanite

44.

Zirconium

N ote:

Generally, “ production” includes the mining, concentrating and
smelting up to the first point o f use by manufacturing industries.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102