THE FRENCH LOAN.

Taranaki Daily News, 29 November 1915, Page 4

THE FRENCH LOAN.

It has been said with much truth, on more than one occasion, that the nations with the longest purse must ultimately win the war. No expert Knowledge is required to thoroughly understand that the process of pouring out millions of pounds like water cannot continue indefinitely without exhausting the supply. Those nations who can borrow freely will naturally stand the strain for the greatest length of time, and it is in this respect that Germany, and those acting with her, must necessarily suffer, and are actually already in the toils. The splendid success of Britain's war loan is still fresh in our minds, as is also the fact that she was able to raise one hundred million sterling in America for the purpose of adjusting the rates of exchange. France has always been well supplied with funds, and this was clearly demonstrated by the comparative ease with which she paid the German indemnity in the previous Franco-German war. The strength of her present financial position ii strikingly demonstrated by the response to the new loan which is now being raised. It will bo seen by to-day's cables that the lowest estimate of last Thursday's subscription to the loan at the Bank of France alone was six hundred million, but it is estimated that the total response reached a thousand millions. The figures are a marvellous testimony to, tho wealth and patriotism of the French people, and of their absolute faith in victory. Such a magnificent outpouring of funds for the national cause is also proof of the serious way in which the war is regarded in France, especially when it is considered that the country has home the strain of men, money, and munitions for fifteen months. That tho Allies are in such a strong financial position as to be able to faM with equanimity the tremendous financial strain caused by the war is 'ie of the chief factors in their confidence in the result. Both in Britain and France the credit system has not only withstood the war shock admirably, but is running in the same way as usual, although, possibly, requiring a certain amount of driving power from the State. Germany, on the other hand, has been forced to resort to paper currency unbacked by gold reserve—a system that spells sure disaster in the very near future. Apparently her available cash is being wasted on supporting infamous intrigues in sther countries as a means of attaining her ends, but within the German Empire there is little but paper currency, the value of which is already greatly depreciated and will be more so as time goes on. It is particularly cheering, therefore, to see that France has such a plentiful supply of gold and that the disposition to use it for war purposes animates the whole nation.