The Birmingham age-herald., 1914-12-19
FRANCE PREPARED
 FOR PROLONGAT|ON
 0F WAR, SAYS R|BOT
Minister of Finance De- clares Nati0n's Financial Reserves Are in Ex-
 celIent Condition

Paris, December 1S.-t5.45 D. m)-An optimistic report of the condition of the treasury and of the general financial sit uation in France was made to the appro- rrlations committee of the Chamber of Deputies today by M. Ribot, minister of finance. The minister declared the na- tion's financial reserves were such that "she can regard without anxiety the prospect of prolongation of hostilities.
 NJ. Ribot appeared to explain the 1915 budget. He told the committee that the government had advanced to other coun- tries these sums: To Belgium. 25O 0Oo, ,0O0 francs (s5O,0OOoOo); Servia, sO.oOo,Oo francs; Greece. 2o,loOooo francs: the Bank of Montenegro, 500,0OO francs
 The treasury on September had in cir culation 427.OOo,ooo francs of treasury bonds. This was increased before the end of November to s4o,Ooo,Ooo francs, the total authorized under the governments s decree of October 1. However. the gov ernment on December 3 authorized an in- crease to total of 400, 900 francs. The total of national defense 5s subscribed for now exceeds 1,Ooo,OoOOoO francs.
 Advance Expenses
 The finance minister explained that the ment for mobilization expenses 2,9OO, ,0o0,- 900 francs. The Bank of Algeria ad- vanced 100,000,0O0 francs. This proved in- suffccient and in September the govern ment called upon the Bank of France to increase it's advances to an ultimate total of 6.000,00 ,O00 francs.
 M. Ribot pointed out that the gold were slightly in excess of the amount held just before the beginning of the war which was 4,141,341, ,663 francs. Efforts are being made to increase this stock. M Ri- bot also called attention to the compar- atively small increase in note ciroula- tion, which in the last two months ard @ half had expanded only 6s7.o0OO00 francs
 The magnitude of current accounts in dicate popular confidence in the Bank of France, M. Ribot said. The notes of the Bank of France, he also pointed out are standing at par abroad, while the notes of her enemies have depre ciated considerably.
 Credit Secure
 Touching on the financial situation of the bank and the country after the war, the minister said the bank, without dan ger to its credit, could make during the war such advances as would be required. 1t would be after the war, at the moment when repayment was necessary, that the greatest difficulties would arise. The greatest peril for French finance he con tinued. would be for the country to be obliged to accustom itself to compulsory circulation of bank notes. M. Ribot said that the government would find 1t an ap- parent advantage to delay repayment of It's debt to the bank, but he added that the state would reimburse the bank from its first resources.
 M. Ribot said the government. in the bill submitted, requested authorization to issue treasury bonds up to 2,00O. .oo0, GOO francs with authority also, should the necessity arise, to go beyond this maxi mum by decree after consulting tho souri- cil of state. The government, he con- tinued. asked for connsence concerning the choice of a moment when the loan could be issued advantageously.