In the 1930’s the Reconstruction Finance Corporation was created by the Federal Government to finance the development and operation of gold, silver and tin mines. The funds were to come from the “Silver Purchase Act” which purchased silver from the miners for 71 cents per ounce and produced coins valued at $1.29. In previous years the loans were only available to gold, silver and tin mines but the law was amended in 1941 making the funds available to operators of all metal mines. The RFC contacted the Department asking it to provide an analysis and review of applications from Arizona for preliminary development loans. The Board meeting of 7/11/42 authorized the Department to enter into an agreement with the Reconstruction Finance Corporation to review the applications and make recommendations for loans.
The mine owner made an application to the Federal Government for a loan. This application with the accompanying information was sent to the Department and was reviewed with the field engineers in that particular area. The field engineers visited the mines, talked to the owners, discussed plans, and advised owners when necessary if plans were not detailed enough. They also made recommendations as to whether or not the loan should be granted. These files are the result of their investigations.
