Accomplishments of the RFC Mining Loan Activities

FOR many years the developers or owners of worthy mining ventures in need of financing have found it almost impossible to obtain such financing under the conditions existing in most other lines of business. High rates of interest and unfair participation in profits have robbed the developers of much of their holdings, and have resulted in over-capitalization and many other like evils. When the general financial condition of the country is bad, this difficulty increases to a point where many operations must cease and hen are thrown out of employment. In 1.934 this situation had developed to such a point that Congress attempted to aid the mining industry. It first authorized the RFC to make loans to recognized and established corporations, individuals, and partnerships engaged in the business of mining, milling, or smelting of ores in June, 1934, limiting such authority to loans adequately secured, the security to consist of mineral acreage. The requirements of the law were stringent and of the 252 requests for loans received up to June 1, 1935, 35 were authorized.