fair and the trial of Madame
Caillaux, and all this record now stands forth most threateningly in
the French blood.

I may perhaps be permitted to say that M. Caillaux has been under
arrest, and that the police of Paris have declared they would not be
responsible for his safety. It has, therefore, been diplomatically
arranged by the government that he should be now in Brazil upon a
semi-diplomatic and trade mission.

The French loan just before the war was not a popular success. The
reason is now obvious. It was sold short from other European capitals
where it was better known that war was in the air.

When a famous "bear" operator reappeared upon the Paris Bourse after
his return from Vienna, whence he had conducted his attack on the
French loan, he was greeted 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 planned for the end of
September, even before the assassination of the Austrian Crown Prince
at Serajevo June 28. This event hastened but did not make the war.

Nevertheless, instead of permitting the French banks to bring out the
Balkan loans thereafter, the French authorities allowed Turkey to come
into the French market with a loan for 25,000,000 pounds, or
625,000,000 francs.

Some people pleaded with them that this money would be used against
France, and that every franc would go to repay the German loans; and
they were right.

In this financial situation France was suddenly plunged into war, and
while Germany and England have been raising money by the billion, the
marvelous thing is that France has made no public issue beyond one-year
notes, but continues to pay her bills in gold and has the exchanges all
in her favor. Money is flowing in, and not out.

It was most marvelous to find in France, in the fifth month of the war,
prompt payment, no distrust of the government paper issues, gold and
paper circulating side by side, and no strain for gold as in Germany.

Nevertheless, the war has been fought thus far for the most part on the
paper issues of the Bank of France and with the gold reserve of that
bank undiminished.

This is most remarkable.

The first reason I can assign for it is that the French soldier gets
twenty-five centimes, or five cents a day, or one fifth the pay of an
English soldier. Kitchener's army is to-day costing far more than the
entire French army. French food is l