her transportation awry, we may not be in a position to level any just criticism.

But it must be set down in the interest of true report that the French credit was at one time endangered by the way the treasury, or the military authorities, handled the government credit in payment for war-supplies.

Instead of going to the bankers and making its financial arrangements, paying the warsupply contractors, the French government made many contracts under which it paid contractors, and purveyors, with the 5 per cent national-defense notes of the government, running three, six, nine, and twelve months.

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

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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

No Migration from Belgium-Germany's War Tax Levies Irreconcilable - The Army - No Neutrality over Belgium.

BEFORE Germany launched her thunderbolts of war, Belgium had an industrious, frugal, hardworking, saving population of nearly 8,000,000 people. Of these, 450,000 are now refugees in Holland, where the magnanimous Dutch are providing for them with no outside assistance. Queen Wilhelmina declares, “These are our guests and we will care for them." Nearly 30,000 Belgian troops have also been interned in Holland. It was expected that they might leak out, but the Dutch are stern in their present position of neutrality. They understand their very existence depends upon it. Some of the interned warriors attempted to escape, and six were shot by the Dutch. Nor will they permit contraband articles of war to go through their country. While the Dutch may sell their own supplies as they please, all imports of rubber, copper, or petroleum must be accounted for, and their reëxport to Germany is forbidden.

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75

Germany also holds 30,000 Belgian soldiers as prisoners. England took 18,000 severely wounded Belgian soldiers into her hospitals, and 80,000 refugees are being there cared for largely by private enterprise. The losses by the war are difficult of estimation. But at the present time there are 7,000,000 people in Belgium, most of whom must be fed by the outside world.

Belgium is the one nation from which the people have never migrated. Beyond war there is only one power that can move the Belgians from their soil, and that is the influence of the Church.

Representatives of American railroad and industrial interests are in Europe endeavoring to induce emigration from Belgium to the United States, but it is doubtful if these efforts will meet with any success. There are in the United States to-day only two Belgian settlements, one of about 1000 people in Montana and one of about 1500 in western New York. The Belgian loves his land and sits by his home though it be in ruins. The history of the land of the Belgians shows that, as the cockpit of Europe, it was the battle-ground of centuries; yet her people are more immobile than those of any other country in Europe. Earthquakes do not make sunny

Italy or golden California less attractive to their inhabitants.

About $20,000,000 (more than 10 per cent of this came from Belgian people) has been raised to feed starving Belgians, and $20,000,000 more should be forthcoming.

The English war office objected at first to the American proposals for food supplies to the little country. It was held to be the duty of the invading Germans to feed the population of the conquered country, as the Germans had appropriated large stores of supplies that were in Belgium, notably at Antwerp.

England finally assented to the proposal, as well she might, for Belgium would starve without food from the outside, irrespective of war losses. In normal times, she imports 240,000 tons of food every month. She also imports most of her raw supplies for manufacturing. Belgium is, therefore, to-day without food, or raw materials for her industries, and probably without outlet had her industries the ability to produce. Although about fifty ships are bringing food to Belgium, they are of small capacity and in the aggregate represent less than one month's supply. In the early part of December about 80,000 tons of food were going through the American commit