Four-fifths of the outstanding orders for 5,250,000,000 rounds of rifle and pistol cartridges were terminated after the armistice. The policy adopted was to permit the small-arms ammunition factories to operate until September 1, 1919, if they so elected; but their production in that time could not exceed a quantity equal to what they might have produced if they had operated twenty-four hours a day from the armistice to February 1, 1919. This policy enabled the factories to dispense with their war labor slowly. About 1,600,000,000 rounds of small-arms ammunition were stored as a future reserve. The War Department had purchased machinery with a total producing capacity of about 3,000,000 rounds of ammunition in an 8-hour day. All the single-purpose special machinery and all special tools, jigs, and fixtures were retained, and with them the Frankford Arsenal was built up as a great center for the manufacture of small-arms ammunition. Before 1917 the annual productive capacity of the arsenal was not more than 100,000,000 rounds of rifle and pistol ammunition. The Ordnance Department has increased this capacity to 750,000 rounds in an 8-hour day. Immense quantities of bandoleers, cartridge clips, cartridge cases, metal, and other ammunition components acquired in the liquidation have been stored for future use. CHAPTER XIII AIRCRAFT Next to the manufacture of ordnance, the production of airplanes and balloons and their accessories was the largest war enterprise of American industry. A hundred thousand workmen toiled in the aircraft factories, the business of which was represented by over 5,000 war contracts with a face value of several hundred million dollars. For the airplanes themselves, the contracts involved the War Department in the sum of $196,000,000, but this branch of the industry was but a small part of the entire air program. Merely for motor trucks the Air Service entered upon commitments reaching a value of $45,000,000. The investment in flying fields, balloon schools, and other physical installations erected during the war in the United States was, on November 11, 1918, approximately $75,000,000. Nearly 20,000 men had been trained to fly, and the Air Service numbered all its officers and men at 175,000--an organization larger than the regular army establishment in 1916. On Armistice Day the Air Service had spent $43,000,000 in the production of spruce for our own airplane factories and those of the Allies. For this investment it had to show a great logging equipment, including sawmills, three railroad systems (with 130 miles of trackage), hotels, and the housing for thousands of woodsmen. It was heavily involved also in plans for the production of other raw materials used in the manufacture of airplanes--$30,000,000 invested or obligated in the development of a chain of chemical plants for producing “dope,” the varnish that stretches and waterproofs the fabric