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