Britain, France, and the Financing of the First World War

Fighting the First World War consumed lives, material, and money. Millions died; more suffered. By the war's end, the political map of Europe had been redrawn as empires disappeared and new states arose. In this text, Martin Horn traces the financial contours of the war, which crippled France financially, leaving Britain, itself weakened, to contest international financial leadership with the United States, the principal beneficiary of the war. Horn shows that victory followed not only from the ability to arm and feed mass armies but also from the capacity to raise money. Fighting the war imposed new demands on the belligerents, extending the power of the state and forcing cooperation among allies. Given their long tradition of hostility, adapting to these new realities was a wrenching process for Britain and France. Britain financed the war not only to win but also to preserve its prewar financial dominance; France financed it to survive and to ensure that the stability of the Third Republic was not threatened.