Various currency problems had to be solved by "Pay." The Bank of France was always in a state of worry over the huge consumption of 5 francs notes by the British Army. These were the most favoured units for paying the men; they seemed to disappear from currency at a quick rate, and they were expensive to print. The situation was improved by the adoption of the suggestion of "Pay" that a 10-francs note should be issued. Probably the Bank of France would have been quite content if they had thought that the 5 francs notes were destroyed. But they knew that they were being hoarded up by the French peasants, who absorbed every bit of silver as soon as it was put into circulation, and, after silver, favoured for their hoards notes of small denominations. At the time of the German advance in the Spring of 1918 "Pay" had a curious illustration of the hoarding ways of these French peasants. That advance let loose a flood of silver coinage. The people who lived in districts which might have to be evacuated changed their hoarded silver for notes, which would be more handy to carry away.
"Pay" at an early stage of the war put forward an interesting proposal—the issue of International Army Notes in various denominations which would be good in any one of the Allied Countries. The proposal was never carried through, but its idea is being revived in the financial world to-day by the proposal for an International Bank to take over some or all of the war debts of the Allies and issue a paper currency good in any one of the Allied Countries.
The encouragement of thrift among the soldiers was part of the work of "Pay." In August, 1915, it secured soldier subscriptions to the War Loan to the extent of £25,200. The next year it established Savings Banks, and in 1918 it set up agencies at all Army Post Offices for the sale of War Savings Certificates. But its greatest achievement in the way of thrift was the Chinese Savings Bank, which was started in August, 1918, and in a fortnight had deposits of 400,000 francs.
The last welcome task of "Pay" was to establish Field Cashiers in Germany and to fix a rate of exchange for German money, which was started at five marks=2s. 8d.
The Claims Commission (established in December, 1914) was another branch of the financial organisation. Its business was to decide upon claims for damage done by the British Army to the property of civilians, French or Belgian. The British Army paid for everything, even to an orchard tree that an Army mule had nibbled at. Claims made were sometimes ridiculous in character and in extent. In my regimental experience I remember a market gardener claiming 200 francs on account of damage done by a horse which had wandered into his potato patch for a few minutes. The claim was very amicably settled on the spot by the payment in cash of two francs. On an average, "Claims" paid about one fourth of the total asked for, and the civilian population did very well indeed on that.
In the very early days of the war the civil population of France, filled with relief and gratitude at the arrival of the British Force, of whose coming they had almost despaired, greeted officer and soldier with the most generous hospitality. Indeed as the "Old Contemptibles" marched through Boulogne women stripped off their rings to give them to the marching soldiers. Wine, fruit, and other delicacies were pressed on everybody without payment. That generous enthusiasm could not last through a four years' war, but to the very end the best of the French population recognised a duty of hospitality to their British guests. It was only natural, however, that many of the peasants and small traders, hard hit by the war, should take advantage of their opportunities to make profit out of our Army. This was particularly noticeable after the coming of the Colonial troops, who were just as lavish in spirit as the British Tommies and had a good deal more pay to spend.
MAJOR-GENERAL L. B. FRIEND
(President of Claims Commission)
The Claims Commission, which in the later stages of the war had its headquarters at Paris Plage and Le Touquet, did its work to the satisfaction of everybody. At first its responsibilities were confined to paying claims for damage done. Later it took over all the financial adjustments in connection with the hiring and the requisition of civilian land and property. Its tasks called for a great deal of tact and a wide variety of resourcefulness. In the Spring of 1918 the abandonment in evacuated areas by civilians of wine and portable property caused trouble. The events at Amiens illustrate the position. As soon as the city came under enemy shell fire the civil authorities left, and with them most of the respectable inhabitants. Less respectable people remained, and probably were guilty of some excesses. The British Army Authorities, however, were prompt in taking over control, and on April 3rd the city was quiet and orderly. But very serious reports of damage by British troops were put into circulation. On investigation by the Claims Department the actual cases resolved themselves into two: in one house three doors had been broken down; in the other case the British Army had stolen a rabbit "which had been abandoned by its owners." These were the only two charges definitely preferred. But it was, seemingly, a fact that in some villages outside of Amiens regrettable incidents arose from the fleeing civilians abandoning stores of wine or disposing of them to the troops at sacrifice prices. The French Authorities were asked to assist in forbidding the importation by civilians of intoxicants into threatened areas.