The brilliant success of the national loan went far to strengthen the position of Thiers. The high offers for a share in this loan, which indicated the inexhaustible wealth of the nation and the solid credit of France abroad, promised a rapid payment of the war indemnity, the consequent evacuation of the country by the German army of occupation, and a restoration of the disturbed finances of the state. The foolish manifesto of the Count de Chambord, who declared that he had only to return with the white banner to be made sovereign of France, brought all reasonable and practical men to the side of Thiers, and he had, during the last days of August, 1871, the triumph of being proclaimed "President of the French Republic." The new president aimed, next to the liberation of the garrisoned provinces from the German troops of occupation, at the reorganization of the French army. Yet he could not bring himself to the decision of enforcing in its entirety the principle of general armed service, such as had raised Prussia from a state of depression to one of military regeneration. Universal military service in France was, it is true, adopted in name, and the army was increased to an immense extent, but under such conditions and limitations that the richer and more educated classes could exempt themselves from service in the army; and thus the active forces, as before, consisted of professional soldiers. And when the minister for education, Jules Simon, introduced an educational law based on liberal principles, he experienced on the part of the clergy and their champion, Bishop Dupanloup, such violent opposition, that the government dropped the measure. [Illustration: DREYFUS, HIS ACCUSERS AND DEFENDERS Lawyer Labori; Henry, the suicide; Dreyfus, the prisoner; Esterhazy, the confessed criminal; General Mercier, chief accuser.] [Illustration: THE DREYFUS TRIAL Dreyfus in the act of declaring "_I am Innocent_."] [=Reorganization of the Army=] In order to place the army in the condition which Thiers desired, an increase in the military budget was necessary, and consequently an enhancement of the general revenues of the state. For this purpose a return to the tariff system, which had been abolished under the empire, was proposed, but excited so great an opposition in the assembly that six months passed before it could be carried. The new organization of the army, undertaken with a view of placing France on a level in military strength with her late conqueror, was now eagerly undertaken by the president. An active army, with five years' service, was to be added to a "territorial army," a kind of militia. And so great was the demand on the portion of the nation capable of bearing arms that the new French army exceeded in numbers that of any other nation. [=Gambetta as an Agitator=]