MAINTAINING A STRONG AIRCRAFT INDUSTRY.

The article discusses the aircraft industry in the United States and readjustment during the postwar period. Changes in the war economy that can produce mass unemployment are sudden termination of government contracts and reduced valuation of existing inventories. The aircraft manufacturing industry could be challenged by bankruptcy and liquidation during the peacetime conversion. However, a study by investment firms suggests that reduced war production will not affect net working capital. Topics are the testimony of Ralph Damon before a House subcommittee, the loss-carry-back provision in tax law that could offset financial losses from contract cancellations, five reasons why companies are vulnerable to shrinkage, and seven ideas to strengthen the industry.