BANKING: The Virtue of V-Loans

Word leaked out last week that huge Consolidated Vultee Aircraft Corp. had arranged with 125 banks for a $200,000,000 V-loan, 90% secured by the U.S. Government, 10% by Consolidated's receivables and inventories. This was the largest wholly secured V-loan yet made to any U.S. war producer. But its real interest lay in: 1) its terms, which showed the unhealthy cash position of the U.S. aircraft industry; 2) the peculiar virtues of the Government V-loan for companies whose war business is too big for their own eventual good.

Consolidated's production has zoomed from...

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