The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1871-11-24
THE GREAT PAYMENT.

Tho largest sum of money ever con-
tracted for in one bargain, says the
Erentng Post, is the indemnity to be
paid by France to Germany, in conse-
Quenee of the recent war. Il Is SO large
that its payment disturbs the money
markets of the whole world and no in
telligent forecast of the financial future,
even in New York, can be formed with
out understanding the progress already
made in it, and that soon to be made.
Reducing the payments in every case
to American money, the account, ac-
cording TO the last advices by telegraph,
stands thus: France has paid, as con-
tribution for the city Of Paris, $4,000
600; for the maintenance of German
troops in France, from March to Octo-
Der, 1871, $60,OO0,O00; and for the first
payment upon the national indemnity,
1926, 100000, besides $4,000 600, allow
ed as the purchase money for the rail-
roads in Alsace and Lorraine; in all,
1886, 100000. OF this, perhaps $1,000
600 must be deducted, as spent in France
by the German troops for supplies,
leaving 1880, O00, 900 for the amount of
specie actually moving to Germany,
and causing the present disturbance.
There are due to Germany. in the
spring of 1872, 100000, 900, to be paid
beginning with January Is the remain
der of 81, 100000 to be paid April / +; be-
sides more than 30OOO, 900 for interest.
at five per cent. per annum, upon the
remaining S6O0,OOO,OOO. The total
amount of money to be transferred
from one country to the other for the
year ending April l, 1872, is, therefore,
more than $46O,OOOOO0. England is the
only medium through which the pay
ment can be made, in the present dis
organized state of the French curren-
cy, and is, indeed, the only market in
which French credit can obtain cash on
q large scale. Hence the alarm of Brit
ish tinanciers at the prospect of heavy
drain of coin and bullion from their
vaults.
1t remains to be seen how London
can escape "Black Friday" of her own
which now threatens to come to her be-
fore February next. According to all
precedent, there will be a severe strin.
gency in the money market there, a
panic in securities, long list Of mer-
camille failures, a minimum bank rate
of ten per cent.-all as the consequences
OF a drain of specie from the bank of
England and then, after endless mis-.
chief is done, the government will step
in, suspend Peel's banking act, enabling
LHo UdHhS W cApduu It's IOduS duO C1rCu-
lations without SO much coin in its
vaults and public confidence will grad
ually return. The bank lost SIS, 900, 600
in coin during the month ending Octo.
Der z, and $29,O00.0O0 in its total re-
serve; and this seems to have been but
the beginning of the drain, since the
German government is very slow to re-
store the funds TO general circulation,
and there Is every prospect that, by Feb
rusry l, it will have S3OO,O0O,OOO clock
ed up" from use as carefully as the coin
reserve in the United States treasury.
But public attention has been called
to the subject in England; and in full
view of the dangers yet in prospect, the
alarm which the first great movement
of coin caused has snbsided. If the
confidence and hope now expressed
have any justification, it must be that
the financiers Of London have in view
some way, which is not clearly under
stood by others, of keeping their own
money at home, without producing a
panic