87

decided  to  attack  Roumania  be’fore  the  common  attack  of  the  Allies  should
take  place,  so  on  July  the  20 ll ‘  the  Hungarian  army  passes  the  Tisza  and  attacks
the  Roumanian  army.  The  Roumanian  army  taking  a  counter  offensive  beats
the  Hungarian  red  army  to  the  satisfaction  of  the  whole  healthy  public  opinion
of  Hungary,  drives  them  back  across  the  Tisza  advances  towards  Ruda-Pest  occupying ­
  it  on  August  the  4 th .
The  occupation  of  Ruda-Pest  and  of  the  territory  West  of  the  Tisza  had  as
its  object  to  disarm  the  communist  army  reestablishing  order  and  quiet  in  Hungary ­
  and  obliging  her  to  execute  the  decisions  of  the  Peace  Conference.
Roumania’s  exceptional  military  action  did  not  end  even  when  all  the
Treaties  of  Peace  were  concluded,  as  she  was  obliged  to  remain  in  a  permanent
state  of  armed  expectancy  assisted  also  by  the  presence  of  the  troops  of  the
great  Allied  States.  (England,  France,  Italy).
Roumania  instituted  in  this  situation  the  following  military  zone  under
martial  law.
1.  At  the  Dniestre  so  as  to  meet  eventual  attacks  executed  by  surprise  under ­
  diffrent  aspects  by  sovietic  Russia.
2.  At  the  South  Frontier  of  the  Quadrilatere  for  assuring  order  and  qniet
amongst  the  population  against  the  bands  of  Rulgarian  comitagis.
3.  At  the  Western  Frontier  against  armed  incursions  and  infiltrations  of
spies  kept  up  by  Hungarian  chauvinism,  all  this  after  she  had  cooperated  with
the  Allied  army  of  the  East  for  pacifying  sovietie  Russia,  with  Poland,  Galicia,
and  the  Allies  in  Dobroudja.  In  fact  the  Interallied  command  was  in  Bucarest
till  August  1920.

SECTION  II.
Financing  the  period  after  the  Armistice
The  army  worn  out  and  decimated  after  the  severe  struggles  which  it  had
gone  through  during  the  offensive  of  1917.  The  country  exhausted  on  one  side
by  the  Russians  and  totally  laid  waste,  fust  by  the  German  occupation  and  then
by  the  retreat  of  Mackensen’s  troops,  the  population  robbed  and  lacking  even  the
means  of  existence,  made  a  supernatural  effort  which  only  an  unshaken  faith
in  the  final  triumph  gives  to  nations  which  are  eager  to  cut  out  their  future
existence.
The  financing  of  this  period  and  the  continuation  of  the  war  was  done:
1)  By  issue  of  the  National  Bank  without  any  real  security  other  than  Treasury ­
  Bonds  of  the  Roumanian  State.
2)  By  internal  loans.
3)  By  advances  granted  by  the  Allies  in  the  shape  of  armamant,  war  material ­
  and  supplies  for  the  civil  population.
4)  By  issue  of  Treasury  bonds  abroad,  for  the  supply  of  the  Country.
5)  By  advances  granted  by  the  International  Committee  of  Relief  bonds.