Index

53; London joint stock banks curtail loans, 53; clearing house certificates in time of panic, 54; Banque de France, 105-113; banks in France, 114-121; dif ficulties due to moratorium, 54, 55, 122, 124, 126; banks of France supporting American loan, 137; United States, drains on cash reserves in July, 1914, 150: clearing house certificates, 150; United States, legal reserve, 169; State, response to President's appeal to join federal reserve system, 177; resources, 1914·1918, 185. See also Private banks; Savings banks. Banque de France: note issue, 10, 22, 24, 27, 112; legal limit Increased, 51, 111; table, 1915·1918, 111: issue expande9 to meet emergencies, 109, 110; value of notes, 107: amount in circulation, 108; Chamber of Commerce notes secured by notes of. 88: credits, 11. 13. 28. 30, 32, 33: plans for relief of Parquet, 123; steady rise in shares from 1915, 127; chart, 128: the great central bank.

France, 24; gold reserve, 24, 35, 107· 108, 143: assets limited to liquid items. 42: stops runs on Societe Generale by statement of bank's status, 44; initial burden of war on, 45; selected items from balance sheets, 1914-1918, table. 113: suspension of specie payments. 50; redis .. countin~ for private banks, 52, 54. Ill, 126; decline in moratorium bills and Rain in new bills, 67-68; advantage taken of moratorium, 85; receives hoarded gold for Treasury notes. 86: advances to the government, 70, 100, 101, 108. 109, 112; redemption of notes, 79; silver reserve. 83: silver affected as legal tender by sus pension of gold payments, 84; gold supply protected. 87; attitude toward use of checks. 90, 91; clearing operations, 91: heroic role during the war, 105; gold policy. 105-107: methods to reduce State's debt, 109; current accounts exBank credits: efforts to convert to gold. 5; Germany, France and Russia, 6; con traction. 11; expansion, 12, 13; France, 28, 32, 109-110. 126: transfers without use of checks, 30; German "giro sys tern," 30; in time of panic, 52-54; in crease, France, 68; United States, 170; expansion, 182-195; Treasury certificates of indebtedness, 182. 183; loans on liberty bonds. 183; loans to tax payers.

183; effect on prices, 184; necessity for expansion during transition periods, 184 185: effect of loan policy of United States, 185; control over extensions, 172 174, 190-194; subcommittee on money rates of New York liberty loan committee organized, 194. See also Credit. Bank notes: usage in England, France and America. 29; velocity of circulation, France, 31: hoarding, in France, 45, 78, 85, 110; depreciation of French, 79, 83, 84, 85; comparison between bank note issue and deposit and check system, 89 90; issue of Banque de France, 110. 11.2; raising legal limit of issue, table, 111 ; issue of Banque de l'Algerie, 111; of federal reserve bank notes, 163; federal reserve notes as legal reserve, 169. See also Currency; Money; Paper money. :Bank of England: depository at Ottawa, 12; discounted heavily for London banks, 1914, 53; all lawful demands for gold paid, 106; gold reserve policy, 174, 175; agency for federal reserve banks. 178; gold in vault, bank notes in circulation.

etc., since outbreak of the war, chart. 215. Bank of France-see Banque de France. Banking systems: lack of French statistical material, 19; character and operation of French banks, 19-23; contrast between French and American, 19, 24-25, 27, 29, 31, 34, 53-54: French terms explained, 20-23; centralization In France, 24-26; evils accentuated by centralization, 39; marketing operations of private banks, ~6; testimony of officers of Credit Lyonnais as to marketing operations. 37: deposit and current account banking, 27. 30. 31, 32, 33, 34: in America, 33, 34: branch banking in Canada, France. etc .• 40: in· vestments. loans. etc., banks of various countries, 40-42; French system, 43; 221 Acceptances-see Bills of exchange. Aldrich-Vreeland Act, 10, 150, 151. 165. Allies. The: increase in American exports. 4; adverse balance of trade, 11; increas ing shipments of goods from United States, 12; loans by United States. 180.

American National Monetary Commission. 37, 53. Austin, O. P., 159. Austria: national banks, 10.

222 INDEX panded, 110; premoratorium bills, 110, 111; agency for federal reserve banks, 178. Banque de l'Algene: a bank of Issue, 27; limit of note Issue raised, 111. Banque Nationale de Credit: credit exten sions, 110; cllaracter, 117; assets and liabilities, table, 117; benefited by popular distrust of great credit houses, 118. Banque de Paris et des Pays-Bas, 25, 127. Bills of exchange: substitute for currency in France, aI, 32; probable effect of use of checks upon, 91. Bogart, E. L., 102, 179, 180. Bond issues-see Bons de la defense na tionale; Liberty loan; Treasury certifi· cates of Indebtedness. Bons de la defense nationale, 86, 87, 98. Bourse, La-see Stock exchange. Bulletin de la Statistique Generale de la France, 71, 75, 198. Caisse des Depots et Consignations, 19, 26; function, 119; deposits and withdrawals of savings banks, 119; technically insol vent, 119-120; policy of investment, 120.

Call rates: New York, chart, 154; London, chart, 217. Candace, ~r., 42. Capital [s5ues Committee of Federal Re serve Board, 172, 191. Capital Issues Committee of \Var Finance Corporation, 191, 192. Chambre de Compensation des Banquiers de Paris, 54, 91, 93. Charts: gold in vault. bank notes in circu lation, etc., Bank of England, since out break of the war, ~15; German Reichs bank since the outbreak of the war, 219; London market rate, 216; London call rate, 217; exchange rates in Switzerland on Berlin and \'ienna, 219. Checks: use in Fran<..~, 27, 32; as credit instrument, 28-30; use encouraged, 54, 88-89, 90; effect of war upon, 82; efforts to increase use in payments, 88-89; crossed checks, 89; attitude of Banque de France, 90, 91; legislation affecting, 90, 91; collection system inaugurated by federal reserve system, 178. Clearing house: deposit credit transferred, 27; extended use, during war, !H; new Caisse de Compensation, 91-92; Chambre de Compensation des Ranquiers de Paris, 54, 91, 93: certificates, 150, Cleveland, Grover, 174.

Coal supply, France, 77. Coin-see Currency. Commercial paper-see Discounting. Commissions, received by French banks on sale of securities. 37. Commodities: prices in France during war, 71-81; prices in the United States and certain foreign countries, 199: distinction between "commodity prices" and ., cost of living," 71. 201: commodities and securities, 203-~ 10. Comptoir rl'Escompte, 25: profits, 1913 1914:, 114: moratorium, 115: assets and liabilities. 1913·1918. table, 116; support. ing American loan, 137. Conseil Superieur du Tourisme, 69. Consumption of goods: effects of the war. 3-5: economies in, by French public, 76; coal, France, 77, 78; luxuries. France, 78; high prices in France not. entirely due to, 78; cause of increased prices, United States, 156, 196-198. See also Production. Contre I'O/igarclzie financiere en France, 36. Cost of li.... ing, distinguished from general commodlty pnces, 71, 201.

Cotton exchange, 151. Coulisse, Paris curb market, 47, 122, 123. Credit: demoralization of credit system, 78; extraordinary remedies, 8·11; adjust ment of trade balance, 11·12; govern ment guaranty of railroad credit in Eng land, France and United States, 1-1; sys tem in France before the war, 33: trade balance adverse to France, 35, 62, 74, 134; rehabilitation, 61; resources of the state, 49; government credits to promote French shipping, 69·70; new credit insti tutions in France, 121; commercial failures, ID06·1918, in United States, table, 152; extended by United States to foreign countnes, table, 159. See also Bank credit. Credit Foncier: mortgage loans, 26, 120; position of, 120; profits and dividends, 1916·1917, 121. Credit Industriel, 25, 137. Credit Lyonnais: statement, Dec. 31, 1905, 20-24: assets, table, 20; liabilities, table, 23; acceptances, 32; great credit house, 25; testimony of officials on marketing operations, 37; profits, 1913, 1914, 114; moratorium, 115; assets and liabilities, 1914-1918, table, 115; supporting Ameri can loan, 137.

Currency: issue of emergency, 10; deprecia tion. France, 79, 80, 84, 85; effects of depreciation of greenbacks, 1862, in United States, 84, 85; depreciation out side of United States, 198; effect of the war on medium of exchange in France, 82·92; estimate of gold in circulation, 82; disappearance from circulation, 83; crossed checks as a method of prevent ing inflation, 89; emergency, under Aldrich-Vreeland Act, 10, 150, 151, 165; silver certificates and dollars retired, 163; inflation as cause of rising prices, 196, 201, 202. See also Bank notes; Money; Paper money. Debts: world unable to meet, 7-8; method of payment in France, 29, 31. See also Public debts. Deposits: contrast between France and America, 27, 33, 34; made mobile with out checks. 32; bank, share functions of money, 86: expanded hr Banque de France to meet emergencies, 110; maxi· mum raised in France. 120. Depression-see Economic depression; Fi· nancial depression.

Discounting: policy of French banks, 40, 41: Russian bills, by Bank of England, 131. See also Rediscounting. Dun's Re7!iew, 152. Economic depression: industry during the war. 3-5: demoralization of, 8; depression and ., reprise des affaires," 56-70: sys tems of guiding and controlling produc tion and consumption. 57-88: relief measures, r;f)-()o: contrast between Ger many and France, 61: demoralization of French industry and trade, 63; indus tries in France affected by German inINDEX 223 vasion, 64; labor situation, 64-66; prices of c..:rtain commodities significant, 72. Economic readj ustment: substitution of public for private control, France and Germany, 60-61; "reprise des affaires," 61, 70; a false economic philosophy, 62; phases of the doctrine, 68; revival of business in France, 6:5-(;5, 66, 67, 68; unemployment, 64-65; labor shortage, 64, 66; important developments, 68. Economist, (London), quoted, 21, 50, 72, 73, 74, 8U.

Economiste Fran,ais. quoted, 46, 54, 63. England-see Great Britain. England, Bank of-see Bank of England. Essential Industries Finance Corporation, 193. European Entente Allies-see Allies, The. Exchange mediums-see Bank notes; Checks; Currency; Gold; Money; Paper money; Silver. Expenditures, government-sec Public finance. 'Failures, commercial, 1906-1918, table, 152. Federal reserve system: established, 165; condition at beginning of 1917, 165; Rrowth, 166; rediscounting, 165-16f1, 171; principal resources and l.iability items on selected dates, 167; holdmgs of gold, 168, 169; legal reserve of member banks, amendment to act, 169; success as shown by handling of liberty loans, 170; gold settlement fund created in Washington, 171; daily settlements in augurated, 171; efficiency of substituting book transfers for cash shipments, 171: control of credits, 172: re~ulation of foreign exchange rates, 172, 173; restric tion of foreign gold shipments, 172-177; effect upon credit abroad, 174; policy compared with Bank of England, 174, 175; adverse criticisms, 176: President's appeal in t 917 to State banks and trust companies to join system, 17}; agencies established at home and abroad, 178; check collection system, 178; statistical plans, 178; growth of demand deposits, loans, etc., of member banks, 186; table, 187; war obligations held by member banks with earning assets, 186, 189; table, 188.

Figaro, 54. Financial depression: difficulty in financi~g private enterprise. 14; state aid In France, 14; causes before the war. 43-45; depression and "reprise des affaires," 56-70; international efforts to depress ex change, 60. Finot, .rean. 36. Fiscal methods-see Public finance. Food supplies: France, 76-77. . Foreign exchange: New York exchange rates, 12: international efforts to depress, 6n; nanque de France protects French exchange, 106; checks on New York and London at discount in French markets, 133; rates turn against France, 133; agreement between France and England, 134; rates in Paris on various points, 1916, table, 134; policy of Ban que de France, 136; French short term credits to protect, 136; collapse of rubles on French exchange market, 136, 137; prob lem of Russian exchange, 137; financial relations of United States and France, 137, 138; French exchange in neutral markets, 138; franc and pound sterling in New York, 138-139; New York syndi cate to protect credit, 153; regulation of rates by Federal Reserve Board, 172, 173, 174; course of exchange with bellig erents, 157, 158, 159, 160; with neu trals, 160, 161; Spain, 161, 162; South America, 161, 162; rise in price of silver on countries with silver standard, 162; shipment of silver by United States in settling foreign balances, 163; of gold, 12; rates in New York of leading bellig erents, 157, 159, 160; table, 160; on neutral countries, 160, 161, 162; table, 159; on countries using silver standard, 162; London stock exchange values, table, 213; London market rate, chart, 216; London call rate, chart, 217; rates in Switzerland on Berlin and Vienna, 219.

Foreign trade: international trade during war, 3-5; London, center for interna tional payments, 7-8; settling balance be tween countries, 11-12; balance of inter national payments in favor of France, 35; France a creditor nation, 133; trade balance adverse to France, 35, 62, 74, 133, 134; control by French govern ment, 135; problem in making foreign payments, 135; handling French credits in United States, 137; net balances of United States and method of financing since July 1, HH4, table, 158; rapid expansion, 156, 157; rates to domestic trade, 1910-1918, 157. France: money, credit and banking, 19-42; capitalist nation at outbreak of war, 35; private banks, policy and marketing opera tions, 36; outbreak of the war in, 43-55; public debt, 43; causes of depression before the war, 43-45; runs on banks, 44; hoards funds, 45; credit resou rces, 49; assets of banks not liquid, 49-50; government emergency measures, 50; de pression and "reprise des affaires," 56 70; creditor position early in war, 60, 133; contrast between France and Ger many, 61; granting credits to promote shipping, 69-70; prices of commodities during the war. 71-81; government con trol of supplies and prices, 73; effects of the war on the medium of exchange, 82-92; French fiscal methods, D3-104; Banque de France. 105-113; private banks and savings banks, 114-121: mora torium in, 122-126; French bourse. ·127 132; French foreign trade and foreign exchange, 133·l3!); amounts borrowed and sources of loans, 135.

France, Bank of-see Banque de France. French bourse--see Stock exchange . Germany: exports to, 4; bankers make efforts to increase gold supply, 1912. 6; moratoria applied, 9; legal tender notes of loan bureaus, 10; manufacture financed by banks. 40: bank assets not liquid, 41; public debt of France compared with. 43; substitution of public for private control, 60-61; contrast between Germany and France, 61; percentage of increase in prices, 81: exchange rates on Berlin and Vienna. chart, 21n. Gide, Charles. 81, 82, 85. Gold: disappearance from circulation, 7; in 224 INDEX France, 82; efforts to convert bank cred its into, 5-6; to increase gold reserve, France and Russia, 6; depreciation in relation to pr~c~c, 13, 80, 203, 204; re serve, Franct:, 35; hoarded, France, 45, 85, 106, 107; control of shipments, 50 60, 106; holdings of Banque de France, 82; estimated amoufit in France, In08, 1912, and at outbreak of war, 82; value upholds value of silver, 87; reserve of Banque de France, 105; Banque de France suspends payment, 106; demands met by Bank of England, 106; "held abroad" by Banque de France, 106, 107; English doctrine of gold reserve, 107; accumulation by Banque de France, 143; by Europe, 144; gold coin, 153; situa tion in IfH4, 15a; syndicate in New York for pooling, 153; imports and ex ports, 12, 153-155; cal1 rate in New York, chart, 154; excess in 1017, 155; increase as result of foreign trade ex pansion, 157; holdings of federal reserve banks, 167-160; settlement fund in Washington created by federal reserve system. 171; foreign shipments restricted by Federal Reserve Board. 172-175; ef fect upon credit abroad, 174; arguments against policy, 175, 176; essential ele ment of gold standard, 173; in vault, Bank of F:ngland, since outbreak of the war, chart, 215; in vault, German Reichsbank, since outbreak of the war, chart. 218.

Great Britain: government paper, 10-11 ; methods of financinR the war, 11; gov ernment guarantee of railroad credit, 14; Bank of England, fi3. lOG. 174, 175, 178. 215; public debt of France as com pared with, 43; protects Russian bonds, 131, 132. Gresham's law of money circulation, 83, 85. Guyot, Yves, 89. Hoover, Herbert, 77. Importation of luxuries-see Luxuries. Income: people of France before the war, 30; income tax, France, 44; United States, 155, 182. Industries-see Economic depression; Eco nomic readjustment. International payments-see Foreign trade. Investments: efforts to make liquid, 5-7; " rentes." long time obligations of French government. 26, On-l00; foreign securi ties marketed by French banks, 35; French savings put into foreign invest ments, 36; controlled by great banks in France, 38; French banking funds in second rate foreign government securi ties, 38·39; in times of crisis and de pression, 45.

Kinley, David. 29, 31. Klotz. Louis, 69, 100. Legal tender: notes of German loan bureaus, 10; legal tender privilege of silver franc, 82; effeet of suspension of gold pay ments upon silver. France. 84; silver coins, 87; legal tender currency notes issuerl in France, 87. 88. Leroy-Beaulieu. Paul. 46. Levy, Raphael-Georges, 54, 82, 83, 8n, 106. Liberty loans: 177; operation of' federal reserve banks in handling, 170, 171'; totals, 181. Lloyd George. David. 131. Loans: method of protecting margin on col lateral loan, 0; mortgage loan business done by Credit Foncier, 26; doctrine that rleposits are created hy, 27, 33; created by deposits, France, 33; policy of Ameri can and French banks, 41; short time paper of foreign banks, held by ~"rench banks, 41; curtailed by London joint stock hanks, 53; France, short term treasury bi11s, 08; long time government loans, !)!)-100: subscriptions to first and second loans. !)n; third and fourth French loans, 100; relation of hank loans and deposits to reserves. 110; loans to France, by Allies, 13;'; to Allies, by France, 136: to Allies. by United States.

180; involved in bourse settlement, 122, 12:l, 124. London stock exchange: course of rates, 14~. 160; price of silver, 162, 163; issues of new securities limited, 100-191; values, table. 213. Luxuries: importation checked, United States and France, 61, 62; business dull, 63; policy of France as to imports, 135. Lysis, 36, 37, 42, 120. McAdoo, William Gibbs, 1!H, 104. Monetary Commission. American National, :J7. 5:J. Money: as a "bearer of options" and "store of value," 5, 85; continental Europe adopts a paper money basis, 7; preference for hard money, France. 7; reasons (or preference, 86; effects of change of value. 71; hoarding, 83, 85; Gresham's Jaw of circulation. 83; reason for failure to circulate freely, 85. See also Bank notes; Currency; Paper money. Moratorium: applied in England, France and Germany, 0; not in United States, !); dispeFised with, 15; proclaimed in France, 45, riO; extended to negotiable instruments. l)1; advantage taken by hanks, ;) 1-~2, 54; difficulty of French hanks due to, 52; England, ;'3; effect on industry and banking, 54, 55; moratoria or informal substitutes, 50; reaction from, 63; decline in bills, Banque de France. IfH4-1018. table, 67-68; rent moratorium, France. 73, 125; private banks of France, 114-115; contrast in methods of stock exchange settlements, Paris, London, New York, 122-123; loans involved in settlement. 122, 123, 124; in France, 122-126; plans for re lief of Parquet, 123; modification, 124, 125; premoratorium hills, 110·111,125; France hampered by. 12fl.

Morgan. J. P .. and Co., 25, 160. Mortgage loans, 26. National banks-see Banks. National defense bonds. France-see Bons de la defense nationale. National Monetary Commission: testimony of official~ of Credit Lyonnais on market ing operations. 37; report Quoted, 5~. New York stock exchange: internal situa tion. 14'~: decline of foreign investments in American securities, 144; import and export situation, 144, 145; sale of se• INDEX 225 curities by foreign investors, 147, 148 ; closing of stock exchange, 146-149; drain upon "banks for cash reserves, 149, 150; emergency currency provisions of Aldrich Vreeland Act adopted, 150, 151; cotton exchanges, 151; commercial credit situa tion, 152. Noble, H. G. S., 149. Noyes, A. D., 143. Panics-see Stock exchange. Paper money: paper money basis adopted by continental Europe, 7; issue of emer gency currency, 10-11, 93; depreciation affects price of gold, 13; metallist theory of value, 83, 84, 88; Chamber of Com merce notes, 88; United States Civil "'''ar issues, 84, 93, 183; basis for value, 173 174; depreciation in foreign countries, 198. See also Bank notes; Currency; Money.

Paris curb marKet, 47, 122, 123. Paris et des Pays-Bas, Banque de-see Banque de Paris et des Pays-Bas. Pallain, Georges. 90. Parquet, Paris official stock exchange, 122, 123, 124. Picat, M.. 89. Postal orders and postal checks developed in France, 90. Prices: during the war, 12-13; price-fixing, 58, 59, 73; of commodities in France, 71-81. 119; distinction between commod· ity prices and cost of living, 71, 201; change in prices, 1914, 1915, 72, 73; jitovernment control, France, 73; prices by quarters, 1911-1918, 73; 1901-1918, 198; United Kingdom, 1901-1918. 198; exports and imports compared. 1914, 1916, France, 74, 75; in France and Great Britain, 75, 80; compared, 1901 1918, table, 75; increase, 1014-1916, table, 80; percentage of increase, 81; causes of increase, France, 78, 79, 80; United States, 156, 196-198; diversion of resources for prosecution of war. 197 200 ; effect of loans and expansion of bank credit on, 184; wholesale commod ity prices, United States and certain foreign countries, 200; table, 199; cost of living, 201; value of money, 201, 202; real estate and rents, 201. 202, 203; changes in, as related to actual move ments of gold, 203, 204; stock and com modity prices compared, 205, 206; rela tion of commodities and securities, 205 210; British war loans, 214.

Private banks: large amounts in deposits and current accounts, 27; marketing operations in France, 36; testimony of officers of Credit Lyonnais as to market ing operations, 37; timidity of French, 49, 52. 53, 54; shrinkage of deposits and current accounts, 52; credit extensions, 110; policy of selling investors second rate foreign bonds, 112; brief descrip tion of French, 114; use of moratorium by, 114-115, 125, 126; assets and liabili ties of Credit Lyonnais. 115: Comptoir d' Escompte. 116; Societe Generale. 116; change in form of statements. 116; de crease in acceptances, 117, 118; assets and liabilities of Banque Fran~aise por Ie Commerce et l'Industrie, 117, 118; of Banque Nationale de Credit, 117, 118; private banks and the moratorium, 126. Production: effects of the war, 3-5; private enterprise, 57, 58; socialistic system, 57 58; price-fixing, 58, 59; measures used to meet economic situation, 59-60; con trast between Germany and France in substitution of public for private con trol, 60-61; luxuries, 61-62; false busi ness philosophy, France, 62, 63; Lyons' fair for exhibition of new products, 6fi; cereals in France. with table, 76, 77;"

meat, 76; coal, 77; cause of increased prices, 156, 196-198; expansion in United States. table, 156. Public debts: France as compared with England and Germany, 43; of warring states, 15; war debt, France, 102-104; methods to reduce. IOU; debt of France set off by loans to Allies, 136. Public finance: United States methods of financing the war, 11; obtaining funds for war expenditures of governments, 10; financing the war, Great Britain, 11 ; French fiscal methods, 93-104; issue of paper money, 93; doctrine. that war ex penses should be met by taxation. !}3, 94, 95, 183; protecting Russian obliga tions, 100; bons de la defense nationale, 98; long time loans, 99-101; Bogart's tables giving elements of war financial history, 102; France's war debt. 103-104' problem of France in making foreig~ paY}11ents, 13ri; expenditures of the I!nlted States for 1917, 179; appropria tIOns for 1918-1919, 180; loans to Allies, 180; revenues for fiscal years 1916-1918 180. 181; ,pol.icy of loans and expansioti of bank credit for financing war, 176, 17~, 180-195; liberty loan and war savlngs stamps, 181-182' short term ~reasury certificates~ 182: 183; expan sIOn of bank ,cfed1t, 183-195;" policy compared to <;:Ivil War practice, 183; effect upon prIces, 184; loan policy as affect~ng bank expansion, 185-186; as affectmg member banks of federal re serve system, 186-189; charts 187 188 con~rol of credit, 190, 191; 'creation of Capital Issues Committee and War Fi.nance Corporation, 191-194; subcom mittee on money rates of New York Liberty Loan Committee, 194, 195.

Rediscounting: by central banks Germany England and France, 9; accep'tances. 32; used to exaggerated degree by French banks, 54; Banque de France, 54, 111; ~ederal reserve banks~ 165-166, 17l. Relchsbank: Spandau treasure in vault 6 219; note issue. 6, 10; silver relea~ed' 83; gold in vault since outbreak of th~ war, chart, 218. "Rente," long time loan of French gov ernment. 9n-l0l.· " Reprise des affaires," 56·70. Ribot, Alexandre F., 62, 107 123 125,130. ' , Rovensky, John E., 158. Russia: national banks, efforts to increase gold reserve, 6, 10; Russian obligations protected in Great Britain and France 100. 132; prices, 209. 210; statement of situation by Edmond Thery, 131; rapid economic developments, 131. Savings, French, invested abroad. 36. Savings banks: protected from insolvency, 226 INDEX • France, Great Britain and United States, 14; funds deposited with central state institution, France. 26; French, a prob lem at outbreak of war, 118; deposits and withdrawals, figures of Caisse des Denots et Consiguations, 11U-120; policy of investment criticized, 120; law increasing maximum deposits, 120; re semblance of Credit Foncier to, 120-121.

Schneider-Creusot munitions firm, loan negotiated for, 137. Securities: efforts to convert to cash, 5, 6, 12, 46, 147; collapse of values, 8; values reckoned at closing price on stock ex change, 9; bought by American banks, 33; handled by French banks, 35, 127; French banks investing agencies for de positors, 35, 37-38, 40; commissions on sales, 37; effect of outbreak of war on leading, table. 48; decline in foreign, cause losses to French people, 118; bank loans involved on stock exchange, 122; decline of the "rente," 124; foreign government bonds dealt in by France. 127; ordinarily share functions ot money, 86; charts, representative stocks on Paris bourse, 128; government bonds. 129; charts discussed, 132; Russian gov ernment bonds, 130; protected by Great Britain. 131; American railway. in French bourse, 136; decline of foreign investments in, 144; sale of New York, by E-:uropean investors, 147; foreign gov ernment, in the hands of American in vestors. table, 150; course of prices, 205· 210.

Shipping, revival of French, 64, 69. Silver: large volume in circulation in France, 82; hoarded by the people, 83, 84, 85: reasons for hoarding, 86; re serve released by Banque de France, 83; depreciated as money, 84; taken out of circulation, United States. during Civil War. 84; how value as money is main tained in France, 87; not redeemable by law in gold, 87; rise in price, 162; causes, 163; shipped in settling foreign balances, 163; silver certificates and dollars retired by Congress, 163; Treas ury fund exported to India, etc.. 163; exchange rates in New York on countries using silver standard, London price of silver, table. 162. Societe Generale: great credit house. 25; moratorium. 1Hi; changes in assets and liabilities. HH3-1018, table, 116; hard hit by runs, 44: accounts examined by Banque de France, 44. Sprague. O. M. W., 149, 151, 183. Statist, 75. Stock exchange: effort to convert quoted securities into cash. 5, 6, 12, 46, 147; effect of war on Vienna, 6, 46; closed, 47; panics, 6. 7, 12: averted by credit extension of banks, 52: Londo, policy, 53; American and French policies com pared, 83; bank~ protected by closing of exchanp:es, ~·9: New York exchange. 12, 143-152: closed. 1914. 146; rate table.

160: relation of prices to securitie!; on French bourse. 1~: weaknes!; of securi· ties, 43-45, 49. 122: curb market and official bourse closed. 47: closing in vari ous countries, 47: Paris figures showing effect of war on leading securities, 48; loans involved in bourse settlement, 122, 124: contrast in methods of settlement, • Paris, London and New York, 122-123; Parquet, Paris official exchange, 122, 124; plans for relief of, 123; nature of securities and reason for collapse, 127; prices on Paris bourse, representative stocks, 1914·1918, chart, 128; govern ment bonds, 1914-1918, chart, 129; dis cussion of charts, 127, 130, 132; Ameri can railway securities in French bourse, 136; share sales from 1906-1914, 146· 147; sale of securities from European investors, 147; decline in prices and gen eral averages, 147, 148; railroad, 136, 148; industrial, 148; selling by investors and foreigners, 148: London values, 213; commodity and stock prices compared, 205; chart, 206; prices during war, 205 210; chart, 207; raiJroan. 208, 20n, 210; industrial, 208, 20D; honds, 210. See also London stock exchange; New York exchange.

Tables: Actif du Credit Lyonnais, Dec. 31, 1005, 20, 23; prices of commodities in France by quarters, 1911-1D15, 73; 1901 1918, 75; rise of prices from middle of 1914 to middle of 1016, 80; total bor· rowings, Aug. 1, 1914-Dec. 31, 1917, 102; receipts and expenditures of France, Aug. 1, 1014-Dec. 31, 1f)l7, 102; selected items from balance sheets of Banque <Ie France, 1914·1 D18, 113; Paris. effect of outbreak of the war on certain leading securities, 48; compari son French railway gross receipts. 1D13, 1914, 1916, 1917, 67; decline in mora torium and gain in new hills Banque de France, 67·68; prices of commodities by quarters, l011·IU15, France. 7~; assets and liabilities, Credit Lyonnais. HH4 1018, 11!); of Comptoir d'Escompte, 1913-1918, 116; of. Societe Generale, 1913·1918, 116; changes in assets and liabilities, 1013-1917, 117; percentage table, Russian commodities. 131; decline in share sales New York stock exchange, 1909-1914. 146; stock collateral loans of national hanks, 1010-1914. 147; sales of New York securities by European in vestors. 147: failures in United States, 1906-1917, 152; production in United States. 1910-1918. 1;')6; increase in in· come of people of United States. 1;-)6; ratio of foreign and domestic trade, 157; net foreign trade balances ann method of financing since July I, H114, 158; credits extended hy United States, to Sept. 26, 1018, IG!l; foreign government securities in hands of American investors, 159; principal resource and liability reserve system on selected dates, 167: expenditures of United St:lt~s.

1917, 179; objects of expenditures; In15· 1918, 17!): loans made by Uniterl States to its allies to Sept. 26. 1!l18. 180; revenues of United States, 1015-HH8, 180: resources of hanks. United States, 1!H4-1918, 185: wholesale prices in the United States and certain foreign coun tries, In9: London steck exchange values, 21 ~: prices on British war loans, 214. Taxation: fear of, cause of depression in France. 44: doctrine that war expendi. tures ghoulrl be met by. 93. !)4; of securi ties and income, France, 47; in France, INDEX 227 96-98; for meeting payment on war debt, 104. Temps, Le, nO-tHo Thery, Edmond, 82, 131. Thomas, Albert, GG. Trade-see ForeIgn trade. Treasury certificates ot indebtedness, 11, 171, 182, 183, 189. Treasury notes, France, 86. Trust companIes, response to President's appeal to JOIn federal reserve system, 177. UnIOn Parisienne, 137. United States: methods of financing the war, 11; banks called on for Treasury bills and certificates, 11; government guaranty of railroad credit, 14; prepara· tIOn for Industrial readjustment, 15; percentage of payments made by check, 29; check production and Importation ot luxu nes, 61·U~; New York at outbreak ot the war, 14~-152; gold, foreIgn trade and foreign exchange, IG3·164; federal re serve system, 165·178; public finance and bank credit, 179-195; prIces, 196· ~1~; commodities and securities, 205·210.

Vidal, M., 130. \Var Finance CorporatIOn, 172, 191-194. War loans, VrIces of BrItish, table, 214. War saVIngs stamps and thrift stamps, 182. War-hme expenditure, methods of obtainmg funds for, 10. Wealth, preference for liquid form evidence ot demorahzatIon of credit, 7. World war, methods of financing, 10-11.