Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-31

banks has been a strong arm for the
French government in it's international
policies. Political aims could be pur-
sued with some certainty of success
when financial dealings could be made
through a small group of banks which
We're in sympathy with the foreign
policy of the government. The present
war. with other things. will bring a
crucial test of the soundness of this
system.
The war area covers a large part of
the area of French investments
abroad. In consequence Frances income
from her foreign securities is proper
tionately more curtailed than that of
her ally, England, or of her enemy,
Germany. Yet she still has some very
profitable sources of foreign Income
which have been disturbed only tenn
porarily by hostilities.
The geographical distribution of the
French foreign investments sheds some
light on the economic background OF
the great war. and of the causes which
may bring it to an end, regardless of
military considerations.
Warning Europe includes approx
something more than $1,000. 100000.
BY far the largest amount of money
advanced by France in the past has
been to Russia. The loans to the Rus
sian government were large, while
heavy investments were also made in
the securities of private corporations.
The amount of Russian obligations
held in France at the outbreak of the
war was known to exceed $4,000 000. 900.
This was in itself a pretty good rea
son why France could not stay at peace
when Russia was at war with a neigh
boring country.
European diplomatic history has an
interesting chapter on the way in
which the car prevented Germany
from pouncing upon France second
time after her defeat and humiliation
at Sedan. Gratitude alone. therefore.
might have justified Frances alliance
with Russia, but state policy required
something more than a sentimental
bond. Accordingly. French money was
poured into Russia for investment.
France in going to war as an ally of
Russia, therefore, was not only keeping
her treaty obligations, but was taking
the step necessary to protect her Rus
sian investments.
Just what Russia has been doing in
the way of paying interest on the
French loans since hostilities broke
out is not known; but in view of her
need of fresh loans it is not likely that
she has been doing much. Russia $
enormous resources, however, are back.
of these French loans, as of all her OBJ
legations, and only an annihilating de-
feat of the allies can cause an ultimate
loss to the French investor.
bul the dIilcuHl vi iHOHtE WHICH
France already had advanced to Rus
STA was a very good reason why the
principal burden of further financing
Russia should rest upon England New
ertheless, France has continued to
stand by Russia, and any share of the
AngloFrench loan, or of future Anglo
French loans, which Russia may get
will be guaranteed by France much
as by England.
The Balkans and Greece represent
French money approXimating 100000
900. Rumana and Greece which are
at least friendly to the allies, account
for 100000 of this sum, and there
has been no intimation that these
countries. while maintaining their be-
nevolent neutrality. are not paying the
interest on their French debts. Should
the two countries become belligerents
on the side of the allies they would
want more money from France and
England, which would be furnished in
the form of loans. but they would also
be expected to keep up the interest on
the original loans.
Bulgaria never obtained much French
money. Serbia, however was the bene-