The Audacious War

illaux Position-Outgen

-Allied Finance-No Fi

l Defen

rich France-20,000,000 pounds sterling, or

iderable surplus to invest in outside countries. It is upon France that Russia has mainly relied for funds for her expanding industrial development. In the Baring crisis she sent her gold to London to fortify the situation, and in the American crisis of 1907 she extended her hand across the sea.

the "fire test," that two years of building recession and of expandin

outh America, and disorganized finance. I did and found it all true. I also found that France was fully able to take care of

course, Russia and France helped the Balkan States and Germany helped Turkey. The money of France came from the French ban

hough French bankers were permitted to float a $50,000,000 Servian loan. With the increasing cost of labor and supplies the French railways had

its financial house in order, by an issue of long-term securities; but Caillaux opposed the p

his connections and sympathy with Germany were too close. The German press took his side in the famous Calmette shooti

is have declared they would not be responsible for his safety. It has, therefore, been diplomaticall

The reason is now obvious. It was sold short from other Europ

eted with a storm of hisses. The French Bourse is a government institution and must support the credit of France and her allies. In Vienna they knew war was p

kan loans thereafter, the French authorities allowed Turkey to come into

be used against France, and that every franc would

ing money by the billion, the marvelous thing is that France has made no public issue beyond one-year notes, b

, prompt payment, no distrust of the government paper issues, gold and

e most part on the paper issues of the Bank of France

most rem

ay costing far more than the entire French army. French food is locally abundant and cheap, notwithstanding the octroi, or French local tax of one eighth. The main need of the Fren

e wealthiest families in the country life of England. There are more than 300,000 of them on French soil, and as they come and go in France, they are spending not less than four shillings a day each, or nearly four

the Channel,-a channel infested with mines and submarines. It is no uncommon thing for boats crossi

arge investments and credit resources outs

in the life of Paris. Their khaki unifor

ficer entered a restaurant where a group of English soldiers in khaki uniforms were enjoying their cigarett

ereign on the same table, and cried, "W

the new bank act-and the Bank of England is counting $100,000,000 of gold in Canada as a London bank reserve, and Russia has counted, as gold in her reserve, money on deposit which has been loaned out on time; while Belgium is doing a banking bu

to the government December 10, and this showed $880,000,000 metal base, or 4,500,000,000 francs. Upon this her note issue, which wa

nder the backing of the government. Each country took on $600,000,000 of mercantile credits, and both countries are now finding this item receding. In France the mercanti

advanced 8,000,000,000 francs o

for the Allies' supplies were established around the world, shipments from North America going both east and west into the Europea

ve months conducted a successful defensive warfare, with 1,5

ncluding the war. A moratorium was set up by decree, but authorization for this already existed under the general laws. Under this moratorium payments were permitted at first of 5 per cent, then 25 per cent. Later depositors were

ambers of commerce in the south of France of small pieces of paper,-as low

hen the mobilization orders were issued, and all over Paris the banks are closed from twelve to two because of the limitations

0th of December there were 1,000,000,000 francs of the new national-defense loan outstanding, but it was being subscribed for all over France daily. This national-defense loan consists of three, six, nine, and twelve months' government bill

to Belgium, the loan of 20,000,000 pounds, or $100,

pening of the war, but these loans I was assured were all merged in the 5

ll advance in limited amounts 80 per cent of the face value, b

of France is to keep liquid. I

ls of the stress of the military position when Paris was abandoned, her mobilizing of the reserves still

redit was at one time endangered by the way the treasury, or the militar

tors, the French government made many contracts under which it paid contractors, and purveyors, with

count 5 per cent and more in the sale of the government notes, and while the government was passing out these not

for six months without a long-term national loan and by the issue of less than $200,000,000 5 per cent short-term notes for not exceeding one year, and credits for less than $800,000,000

bonds, or industrial shares into which the French have been putting some money of late years. But