71

Roumania’s  action  in  the  neutrality  period,  shows  in  a  concrete  manner
the  nature  of  her  participation  in  the  war  on  account  of  her  exceptional  geographical ­
  situation  Though  in  a  formal  manner  she  was  not  yet  at  war  still
she  was  considered  as  an  ally,  and  loans  and  war  material  were  accorded  to
her  in  spite  of  the  difficulties  which  the  great  belligerant  Powers  had'to  meet.
This  was  on  the  one  part  a  manifestation  of  confidence  in  the  action  of  Roumania
  who  did  not  conclude  the  treaty  of  alliance  till  August  the  4 lh  1916.
On  the  eve  of  joining  the  war  and  on  the  other  hand  an  acknowlegement  that
though  the  geographical  situation  of  Roumania  did  not  allow  her  to  approach
the  armies  of  her  future  allies  she  was  nevertheless  a  factor  which  by  her  very
reserve  contributed  from  that  moment  to  the  common  action.
This  was  the  situation  till  August  the  4 lh  1916,  when  Roumania  took  a
final  descision  and  concluded  a  treaty  of  alliance  and  a  military  convention  of
August  the  4 lh  1916.  Which  only  preceded  her  entering  into  action  by  ten  days.

SECTION  II.
THE  FINANCING  OF  THE  ARMED  NEUTRALITY  PERIOD  (1914-1916)
The  fruits  of  our  economical  prosperity  before  the  war  and  a  healthy  po  -
licy  ol  securing  the  issue  of  the  National  Bank  enabled  the  Roumanian  State  to
contract  four  loans  of  a  hundred  million  each  at  the  issue  Bank  (annex  24)  for
the  need  of  the  preparation  of  the  army,  as  follows  :
On  September  12"'  1914  a  hundred  million  lei.
On  December  20"'  »  »  »  »  »
On  June  15 st  1915  »  »  »  >,
On  December  19 st  1915  »  »  »  »
So  it  is  to  be  re  mar  Iced  that  for  these  four  loans  the  State  paid  to  the  national ­
  Bank  a  metallic  security  of  ninety  nine  million  elective  gold  proceeding  for
the  greater  part  from  the  custom  duties  on  export  levied  in  gold  or  from  the  contracts ­
  for  cereals  which  we  will  speak  of  lower  down.
Subsequently  the  value  of  these  four  loans  was  reimbursed  to  the  issue
Bank  from  the  proceeds  of  the  four  hundred  million  "National  loan--  ot  April
1916,  this  loan  was  a  manifestation  of  the  solidity  of  this  financial  organization
but  which  in  any  case  was  not  sufficient  to  support  the  expenses  of  a  war  even
in  the  preparation  period.
For  this  object  Roumania  was  obliged  to  apply  to  te  financial  aid  of  the
triple  Entente  nations.

1.
Loan  in  Italy  on  December  10 st  1914  the  »Banca  dltalia*  on  the  application ­
  of  the  national  Bank  of  Roumania  consented  to  open  the  Government  a
credit  up  to  the  sum  of  10  million  Italian  lire  in  exhange  of  treasury  bills