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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.
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