Evening star., 1940-06-30
Millions Earmarked
In Big Drive TO Buy
Strategic Supplies
important Negotiations
Started by R. F. c. to
Build Up Stocks
By OLIVER MCKEE.

With the start of new fiscal
year the Federal Government is
ready to launch its largest peace
time drive for the acquisition of
strategic materials. Congress al
ready has earmarked SAT 900 900 for
the purchase by the Treasury of
such supplies and additional sums
may be voted. President Roosevelt
a few days ago signed bill author
izing the Reconstruction Finance
Corp. to finance the acquisition of
these materials by the Government.
Jesse F. Jones, Federal loan ad-
ministrator, is losing no time in
exercising his authority under the
act to finance additions to the Ma
tons stock of strategic materials.
Important negotiations are now
under way. The r. F. c., he said
yesterday, may spend as much as
S250,000,000 in purchasing rubber,
tin. manganese, quinine, tungsten
and other materials vital to ma
tional defense and industry on
which the United States is either
wholly or in large part dependent
on imports from foreign countries.
After these purchases are made
materials will be stored here and
the R. F. c. will be reimbursed by
the Army and Navy as these
agencies need materials to replen-
ism their own stocks.
Rubber Stocks Being Increased.
Lack of certain strategic materials
has been major weakness in our
year now ending Congress appro-
priated sl00o0,O00 for the purchase
of these materials. Later it author
lied the expenditure of several
more millions before July l. With
national defense holding the spot
light, Congress has appropriated
vastly greater sums for the coming
fiscal year. These appropriations,
supplemented by R. F. c. purchases,
will go far, in the opinion of Fed
eral experts, to remedy our def
ciencies in such materials as rub
Der, tin, manganese, tungsten and
chromium.
%AV UAlC CiIu VI May IlDDSI SUOCkS
In the United States aggregated
about $4,000 tons. On the basis of
present consumption, this would
only last American industry from
three to four months. In Nav
nearly $4,000 tons of rubber were
shipped from British Malaya, the
largest monthly shipment on record.
Three reasons are given for this
record high shipment-first, the de-
mands created by the war; second,
the desire of consuming markets to
accumulate rubber stocks, and third,
the higher prices which prevail
In the world markets. Some of the
rubber shipped from British Malaga
in May will come to the United
States. Consumption per month is
about equal to the volume of i'm
ports.
Cotton Exchanged for Rubber.
Under a barter agreement with
Great Britain, the United States will
exchange 100000 bales of cotton for
$1,000 tons of rubber. On June
the Government had acquired about
10000 tons under this agreement.
June acquisitions probably will add
another 10000 tons. 1t will be some
months yet, however, before the
$1,000 tons will be in the United
States. 1t is believed likely that the
State Department later will make
another barter agreement to trade
United States cotton for rubber.
At a pinch, the United States
could step up its production of re-
claimed rubber. On the basis of
operations "a hours day, and six
days week, it was officially esti-
mated on January l, 1888, this coun-
try could produce $4,000 tons of
reclaimed rubber annually. Capacity
has been fully maintained since
then. and, on the basis of a seven
day week, the United States could
now produce about 305 900 tons of
reclaimed rubber annually-perhaps
more.
Last year only 1,700 tons of syn
thetic rubber we're manufactured in
the United States. Recently great
progress has been made in this field
According to Government experts,
large-scale production of synthetic
rubber depends on national rather
than commercial considerations.
With adequate plant facilities and
financing, production of synthetic
rubber should greatly increase.
Latin America Is Source.
Last year the United States i'm