s from an English base, and Germany is inviting gold
from the jewelry of her inhabitants and boasting her gold strength, the
Bank of France refuses to publish any statement, makes no boast, but
holds more gold than ever before in her history.

Only a few weeks before the war was her metal base put above
$800,000,000. Then she suspended official statements until one was
made 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 was
formerly 5,800,000,000 has been expanded to nearly 10,000,000,000. She
is authorized to issue up to 12,000,000,000 francs in paper.

From this metallic base she increased her bills receivable by
3,000,000,000 francs, or about the same amount that the Bank of England
discounted in pre-moratorium bills under 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 mercantile
credits have been considerably reduced--the increase reduced nearly a
half--because the men are at the front and business is not calling for
the credits formerly in use.

The Bank of France also promptly advanced 8,000,000,000 francs or
$400,000,000 to the government.

In the last few weeks of 1914 the finances of Russia, France, and
Belgium became interlaced with those of England, and gold credits for
the Allies' supplies were established around the world, shipments from
North America going both east and west into the European war.
Government credit with the Bank of France was then extended, but should
not early in January have been more than $800,000,000.

This is the main financial assistance on which France for five months
conducted a successful defensive warfare, with 1,500,000 men at the
front and nearly 3,000,000 men behind them.

The next most remarkable financial feature in respect to France is that
there has been no special financial legislation, in fact no financial
legislation whatsoever, except the December budget vote to cover
government expenses, including 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 permitted to draw from
the banks 40 per cent, and 40 per cent payments became the rule. Then
50 per cent for December, and in January, 1915, full payment