As the contractors were making 15 per cent and 20 per cent on their
mercantile overturn, they could afford to discount 5 per cent and more
in the sale of the government notes, and while the government was
passing out these notes at par to the patriotic subscribers, the
contractors were negotiating liberal discounts to bankers and others.

Nevertheless, the stupendous fact remains that France, caught in a
European war most unaware, with impaired budget and a floating
indebtedness, has carried the greatest war of her history 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 from the Bank of France; has
maintained her gold basis unimpaired; and has kept the international
exchanges steadily in her favor; and all this without any special
financial legislation.

Nor could I find any evidence of a French disposition to sell the
American copper shares, railroad bonds, or industrial shares into which
the French have been putting some money of late years. But I did learn
that short-term American railroad notes may this year be renewed abroad
only in part.




CHAPTER VIII

THE BELGIAN SACRIFICE