The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1873-08-14
GERMAN FINAN CE-A GREAT
-" EXAMPLE. SIS
From the Boston Advertiser.

n rev weeks ago there was a great
disquietude in England from the fear
that more gold would be demanded
of her from Germany than could be
conveniently paid, and the rate Of
interest was carried up in the Bank
of England to 7 per cent. per annum
to enable her to prepare for the ex-
pected shock, but, owing to better
understanding between some Of the
great commercial powers than then
existed, the rate of interest has sud.
denly been lowered to an extent which
indicates entire composure. The sit.
uation was this France had a debt
to pay to Germany, and on a pledge
to the Bank of France Of the INSTALL
ments falling due to France in Dec.
1s75,and JAM, Feb, March and April,
1874, from subscribers to the great
French loan of three millards of
francs, such installments amounting
to three hundred and fifty millions of
francs, 1t was arranged that the Bank
of France should lend its government
2Oo,oO0,ooo francs, or pay Germany
98,OOO,OOO in four installmeits of
92,OoO,ooo each, payable June 5, July
5, August 5, and September 5, 1878
which would completely
meet the idemnity to Germany arising
from the recent war. At the same
time the Alabama claims, amounting
to fifteen millions OF dollars had to
be provided for by England to pay to
the United States, and Germany was
in turning her coined money
from silver into gold, policy which
compelS her to lock up equivalent
amounts of both metals until the
change,shall be actually accomplished
It being known that the value of gold
used. in this process in each month
will exceed the value of the monthly
payments to be made by France.
The difficulties were further COM
olicated by the fact that the United
States was using the most strenuous
to institute the five per cent.
oan for the six per cent. held in Eu-
rope, and that Germany under re
cent act passed for the benefit Of her
soldiers was engaged in
placing in securitie as fund consisting
IF about one hundred and thirty mil
ions of dollars raised to pay these
annual bounties. It was fortunate
hat the law for this purpose, which
'equires that the fund shall be ulti-
nately invested temporarily in those
IF other countries. 1t was also for
.unate that the amount to be received |
or the alabama IDENTITY might
De invested in the 5 per cents of the
United States.
Here were complications of great i'm
)ortance to the commercial world, if
either France or England or Germany or
he United States should exhibit stubborn
less, but by a mutual and satisfactor un-
or through remarkable
coincidence they have been arranged |
with sagasi'y, and in manner to pro.
note the solid advantage Of each country
Germany invested about fifteen millions
Of dollars Of the fund set apart for soldiers
and their families in the 5 per cents of
the United States, no doubt on the under
standing that the amount should immedi-
Ately be applied to take up such portion
Of the per cents of the United States
held abroad as would most conveniently |
the object of financial ease
and at the same time it was understood |
that instead Of demanding gold from
England for the Alabama claims, the
Treasury of the United States should re-
ceive as gold either its six per cents. or
enough Of the portion of its debt in W hich
the payment was to be invested. Ger
many had clearly an interest in giving
financial ease to each of the countries
as without it the large payments