financially and in transportation and food-supplies. Indeed, Kitchener
at one time fed two French army corps, or 80,000 troops, for eleven
days without a hitch.

Although England had not the trained men, she had the fundamental
military organization, transportation, food, and finance.




CHAPTER VII

FRENCH FINANCE

Delayed Budgets--The Caillaux Position--Outgeneralled in Finance--Gold
Reserves Undiminished--Allied Finance--No Financial Legislation--The
National Defense Loans.


The spectacle of England loaning money to rich France--20,000,000
pounds sterling, or $100,000,000--was something most surprising.

The French have been considered among the best financiers and
economists of Europe. The whole world has been envious of the saving
ability of France, and has invited the overflow of her accumulations
into their local enterprises. For many years France has had the lowest
interest rates and a considerable 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