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FED ER A L R ESER V E BANK O F D A LLAS
F IS C A L A G E N T O F TH E U N ITE D ST A T E S

Dallas, Texas, September 19,1944

To the Managing Officer
of the Bank Addressed:
On September 12, we forwarded to all financing institutions in this dis­
trict detailed information regarding the program of guaranteed loans and
commitments authorized under the Contract Settlement Act of 1944. This
program, commonly called the T loan program, is one phase of the Con­
gressional commitment to provide contractors with adequate interim financ­
ing, pending the settlement of claims involving terminated war contracts.
The Director of Contract Settlement and the Services are placing great
reliance upon the T loan program. This new program affords the com­
mercial banks of the country and the Federal Reserve System a two-fold
opportunity. First, it will permit both to serve the national interest by
assisting in the orderly transition from war to peace. Second, it should gen­
erate commercial loans for the private banking system and to that extent
reduce the volume of direct financing through Government lending agencies.
The T loan program, in comparison with the V and VT loan programs,
has been simplified and liberalized, so that contractors may promptly “ un­
freeze” their working capital, pending the settlement of claims, and com­
mercial banks may supply them the credit needed for that purpose. I feel
sure the commercial banks and the Federal Reserve banks, working as a
team, can and will do this important job successfully.
Yours very truly,

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)