81 6 Bat Roumania entering the war and her frontiers being closed, the possi bility of obtaining metallic currency, to serve as a security for the issue, did not exist, so the form was to be found, for the new issues of the bank on behalf of the state to have a proper security. So in March 1917, on the basis of the financial Convention concluded between the British and the Roumanian Government a credit of £ 40 millions was opened to Roumania, as had been promised by the allies, by instalments. (An : 17). This credit was to be used for financing the necessary expenses for covering the cost of material and ammunition, sent to us by the Roumanian military mission in the west, and on the other hand for financing the necessary expenses for maintaining the mobi lized troops. These could not be maintained otherwise than by advances granted by the National Bank, which ought to have a legal basis for its issue, that is a security. Therefore this security was already arranged by a part of the said loan. To this effect art. 9 of this convention says: -In view of the arrangement which the Roumanian Government might wish to make in order to procure in London, security for the issue of Roumanian notes, the British] Government undertakes to change stock not bearing interest, of the British Government, for an equivalent amount of Roumanian Treasury bills, issued in virtue of this convention, and by instalments as will be determined later. For the object of issueing notes, these bonds may not be discounted in cash. Later on the British Government by a communication made on May ll 1 * 1 1917 to M" r Mi$u, consented to open an account in the books of the Committee for reducing the National debt called The Roumanian Government (for the account of the National Bank of Roumania, and it. credited that account with the sum of £ 5.000.000 (Annex 18). In the letter which the Lords of the Treasury sent to the Minister of this country in London, they add that this credit, which was granted in exchange of Roumanian Treasury bills for an equivalent face value, created in conformity with the stipulations of the convention is subject to the condition that it should not bear interest, to serve only for the issue of National Bank of Roumania notes, that they should not be extinguished by drawing by lots, and that this agree ment shall continue to be in effect, till a year after the conclusion of the peace when the obligation on both sides will be annulled. On Sept: 4 th 1917 a new credit of £ 3.000.000 was granted, and on Dec : l 5t 1917, a further credit of £ 4.000.000, also under the same clauses as in the financial convention concluded in March 1917 (an : 18). But to this latter credit is added that the Lords of the Treasury have agreed that it is an ex ception, that it remains in effect for two years after the end of the war, but if circumstances should demand, they will be disposed to consider an application for extending the above delay.