After its defeat in the Franco-Prussian war of 1870, the resulting Treaty of Frankfurt contains provisions for France to pay Prussia five billion francs in war reparations over a three-year period. When the government launches a national loan scheme, Société Générale is admitted as one of the syndicate of banks authorized by the state to issue debentures, and contributes to underwriting the second billion francs of the loan. In securing this position, the bank can thank its connections with the Rothschild banking group, which is involved in all public financial issues at this time. The issue proves hugely successful, with nearly 43 billion francs subscribed before the date of issue.