5 Centimes – France

In 1914, France operated under the gold standard, a system managed by the Banque de France. The franc, established in the late 18th century, was legally defined as 0.2903225 grams of fine gold, a parity set in 1803 and remarkably stable for over a century. This "germinal franc" symbolized financial solidity and national prestige. The Banque de France held substantial gold reserves to back its banknotes, which were legally convertible into gold coin upon demand, though in practice, large silver coins and banknotes were the common circulating media.

The financial system was robust but not overly centralized, with several private issuing banks still operating alongside the Banque de France in certain regions. However, the economy was characterized by a distinct preference for liquidity and a deep-seated aversion to debt, rooted in traumatic experiences like the collapse of John Law's system in the 1720s and the assignat hyperinflation during the French Revolution. This "currency trauma" made the public and policymakers deeply conservative, prioring monetary stability and hoarding gold coins (napoléons) as private savings.

When war was declared in August 1914, this stable system was immediately suspended to prevent a run on gold and to finance mobilization. The government declared a moratorium on debt payments, made banknotes legal tender and inconvertible into gold, and the Banque de France began providing massive advances to the state. These emergency measures, intended to be temporary, marked the decisive end of the classical gold standard era in France, setting the stage for the wartime inflation and profound monetary challenges that would follow.