River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1873-12-30
FRANCE.
What the Late War with Ger
many Cost Her.
Her National Debt Increased
$2,184,O00,C6
How She Raised the Money for the EnOr-
meas German Indemnity.-.The
Government Loan Nearly
All Taken by Her
Farmers.
Thorough Reorganization of Her
Army----IIer Determination
so EccOnguer Alsace
ana Lorraine.

Special Correspondence Of the Chicago Tribune
PARIS, November %, 1873. Some
thing like ten weeks ago the last in.
stallment of the huge German fine was
liquidated by France and the last
German regiment marched out of hel
territory on the 10th Of September,
1873, and left the French people to
themselves, after an occupation OF
nearly three years of the eastern dis.
tricts, which were held as security for
the payment Of the so.calied indem.
nifty.
The promptitude with which the
money was raised and paid has chal.
lenged the wonder and admiration Of
all nations. The Germans intended to
infict
so ENORMOUS A FINE
as to cripple and weaken France for
many years TO come, and render her
unable, from sheer fiscal exhaustion,
to attempt the vengeance which all
Frenchmen have sworn to take sooner
or later.
The principal OF the fine was five
milliards of francs, or 81, 600, 900, 600 in
gold, with per cent interest on the
unpaid installments. But tins was not
the whole liability ofFranco on account
of her unfortunate war. There are 10
be added the ransom of Paris, which
was $40, 600, 600, and the expense of
supporting the German force left in the
occupied territory until the whole fine
MA ~ hg 20 &c
items, including the ransom of Paris,
was 81, al, 600, 600 from which deduct
500, 100000 as the purchase.money of
the railroads in the captured provinces
of Alsace and Lorraine, leaving to be
paid in hard cash
S1,076, 600, GEO,
or nearly half the present national
debt of the United States.
Besides this enormous indemnity,
the French Government had to provide
for its own expenditures in waging the
war and afterward in crushing thu
Commune. NJ. Magne, the Minister
Of Finance, in his recent report to
the French Parliament, states the
actual cost of waging the war at $780,
100000 and the loss of revenue in
1870, II, u, and '73, caused by the
war, at $3.50, 900, 900. The national
debt has been increased since July,
1879, much more than the German in
demnity and the cost of resistance,
because the money had to be raised by
the sale of bonds at a heavy discount.
The bonds now form part Of the ma
tional debt, and draw per cent. inter
est. The money was
OBTAINED IN THE FOLLOWING MANNER /:
The first $3.50, 600, 900 subscribed for
at the outbreak of the war, sold for
nearly par. The next was the Morgan
loan of 800, 600, 600, negotiated in
England, when the Germans had
crushed the French into the dust. 1t
sold for less than so per cent, and is
costing Z 40 per cent on the money
realized. The $1,000, 600. 600 German
fine was raised by two national sub
scriptions, which realize ed SO per cent,
making the bonds cost per cent. on
the money received.
Then there were several loans from
THE BANK OF FRANCE,
aggregating 1906. 600, 900. at per cent
10 be repaid IN installments. or anuui
ties, of $40, 600. 600 per annum. The
reason for obtaining this immense loer
from the Bank at so low rate of in
terest should he explained The Gov
eminent first authorized the Bank L
suspend specie payments second, Il
increase its notes TO the amount of The
loan third, the notes were made a le
gal-tender, receivable by the Govern
ment for all taxes aud duties, and d
legal-tender fer the payment Of debts
OF all kinds. In consideration of these
extraordinary privileges, the Bank
agreed to charge the Government only /
per cent. interest on the notes loaned
TO II, to be repaid, as above stated, in
less than eight years
Before the war the Bank OF France
had 1925, 600, 600 to $3.50 600. 900 of
notes in circulation, and held IN its
vaults 1925, 600, 900 10 $3.50, 600, 600 of
coin ior their redemption. The bank
now has SIG, 600, 0O0 Of coin on hand.
and 5000 900, 600 of notes IN circulation.
The amount varies more or less. The
maximum lssuse of notes ~ 500. 600.
600, so that the full quantity permitted
10y law Is not 40 this time IA circula.
ton | believe there Is stipulation
that as fast as the government paws its
loan TO the bank, like amount of notes
shall be cancelled and, ma the GOV.
eminent has refunded 10 tbs bank tho
first annuity y of $4,000, 600. | sup.
pose that accounts Tor the apparent
contraction of like amount below the
maximum limit.
The money borrowed 20 extinpmsb
the German fine aud 10 dcliay tho ~.
penscs of the war, and loss OF revenue.
amounted 10 Sl,Sj6, 900, coo But ms
the bonds sold, on which the money
was procured, only realized au average
of s. ar cent. of their face the add.
tion to the bonded debt of Franco I.
several hundred millions more than
that sum As nearly as I can find out.
the
INCREASE on rHE DEBr
is as follows:
Bonds sold 40 average az 50 pc
cent 90 realize amount ui Gtr-
ulhu MT. u. as@, NNN .NW
Borrowed nom Baub ct France. 30G.uoN .OOl
T ID .I..Tr