And a khaki uniform snapped forth a sovereign on the same table, and cried, “Waiter, give this officer some champagne.”

Bank statements are queer contraptions nowadays.  While the United States, with less gold in the country and less reserve in the banks than formerly, is showing the most enormous surplus—­and a legitimate and better-protected surplus by reason of the new bank act—­and the Bank of England is counting $100,000,000 of gold in Canada as a London bank reserve, and Russia has counted, as gold in her reserve, money on deposit which has been loaned out on time; while Belgium is doing a banking business 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 to bank-depositors, although legally the moratorium stands to March 1, 1915.