, 1873-12-14
How She Raised t11o Honey for The
Enormous German Indemnity.
The Governmont-Loans Nearly All
Taken by Her Farmers.
France the Most son:supporting coun-
try in the World...uer E1-
ports and Imports.
Thorough Reorganization OF Her Army..-
uor Determination to Rcconqner
Alsaco aud Lorraine.
Contrast Between the Land-syetoms
Of Great Britain and France.

Contrast Between the Land-syetoms
Of Great Britain and France.
Special Correspondents Qf The CHICAGO Tribune.
r4nrH Nov. 23, 1873.
Something like ten weeks ago, tho lust in
stallmont Of the hugo German tiuo was lquidatcd
by France and tho Inst German regiment
marched out Of her territory OIL the 10th Of
September, 1879, and left the Flonch people to
themselves, after an occupation Of nearly throe
years Of tho eaateru districts, which wore held
rs security for the payment Of tho so-called ill.,
dcmnity.
Tho prompttudo with which tho money was
raised ana paid Inns challenged tho wonder aud
admiration Of al nations. Tho Gormaua intond-
I'D to iuilict
70 ENORMOUS FINE
as to cripple and weake,i Franco for 1nany years
to come, and render hor unable, from sheer
nscal exhaustion, to attompt tho vengeance
which ali Frenehnen harc sworn to take sooner
Or lator.
Tho principal Of the flne was Ave mlliords Of
francs, Or 81, 200 300 in gold, with por cent
icterost on tho unpaid inAtallmonts. But this
vas not the wholo liability of Franco Oh acoouut
ct her unfortunate war. There nre to bo added
tho ransom Of Paris, which WIS 540,000,000, and
the c1penao Of supporting tho German forco
loft in tho occupied Territory until tho
Whole ano was paid. The aggregate sum
OF thesc items, including tho ransom Of
Paris, Was SILL ,000. 900; from which de-
duct e85,b00,00o MS the purchase-money Of tho
railroads III the oaptured prosncos Of ABaco and
LORRAINE e,-leayng to bo paid in bard cash
S1,07U, 100000,
naHr1v hnfF fHa t,rnpppk tnttnrn1 dnE+ ef TIM
United Stukea,
Besides this enormous indemnity, the Frouch
Government had to provide for its own expondl-
tures in wagiug tho war, and aftorTard in crush
Ing the Commune. II. A1agno, tho Minister Of
Fiuance, III his recent report to tho French Par
ha.nent, states the actual cost Of waGing tho war
At $500 000 600. aud tue loss OF reyonue in 1870.
II, "a, and '79, caused by the war, ut $3.50 000,
oo0. THO nationn1 dobt Inns been Increased since
July, 1870, much moro than the German inlom-
nifty and the cost Of resistance because the
money hnd to ho raised by tho sale Of bonds at
haayy discount. The bonds now form part Of
tile national debt, and drAw per cont interest.
The money WAS
OBTAINED IN TIE FOLLOWING MANNER:
The first $150,000 GOO. subscribed for at the
outbreak Of tho war, sold for nearly par. Tho
next was the Morgan loan OF 9100, ,000, 900, nogo-
tiated III England, when tho Germans had crush
cd the French into the dust. It sold for lesa
than 80 per cent, and III costing 7 4-10 per cout
On the money realized. Tho $1,000, 900, 900 Cor
man fne was raised by two national subscrip-
tious, which realized abous 83 per cent, making
tho bonds cost poE cont on tho money re-
ceived.
Then there were several 1onns from
TIE BANK or FRANCE,
aRgregating 1906. .0u0,0 600, ut per cent, to bo
repaid in ingtallments or annuities, OF S40, ,000-
0W per annum. The reason for obtaining this
immense loan from the Bank at 30 low ratio Of
interest should DO explained. TIE Government
h1at authorized the Bank to suspend Bpocic-pay-
meutH second, to increase its notes to the
amount Of tho loan third, tho notcs were mado
legal-tender, receivable by the Government
for I'LL taxes and duties, mud logal-tender for
the payment of dobtH Of all kinds. 1u consid-
GRAFTON OF those extraordinary privileges, the
Bank agreed to charge the Government only
per cont interest OH the notes loaned to it, to be
repaid, aa above stated, In something less than
aiYht yearB.
Before tho war, the Bank Of France had $685.
GD0, ,G00 to 1850, 200. .000 Of noeB in circulation,
n and held IN ss vaults 1926, ,0oo.o 900 to s280000
ooo Of coin for their redemption. Tho Bank
now haa s148, 1000, 900 Of coin OH hand, and 4G00-
GOO, QUO Of notes in circulation. The amount
varies more or less. The maximum isauo Of
notes 10 SGA0, 0,o0o.ou0, that the full quantity
permitted " law is not at this time in ciscula-
tion. I bei,eyo there is stipulation that, as
fast as tho Government repays It's loau to tho
Hank, like amount Of notes shall be cancelled
and. Us tho Government Inns refunded to tho
Bank the first "annulty" Of $40, ,000, ,000, sup
pose that accounts for the apparent contraction
OF Q like amount below the MAXIMUM Limit.
Tho money borrowed to extinEuiah the Ger
man fine, md to dofray the oxrense* Of tic war,
aud loss OF revenue, amounted to 81, 1856 0G00 900.
But as tho bonds sold, on which tho money was
cont Of their face, the addition to tho bonded
debt Of Franco Is several hundred millions mora
than that sum. AZ nearly aB can find out, tho
1SonEA9E OF THE DEBT
Ia as follows:
1onds sold ut average Of Is per cent to
realzc amount Of German hue. 81 288 Co., GDD
Borrowed from Bunk Of France. ..,..... J0000U0UO
4onds sold to defrsy war expenses and
Ao7s oi Fe9enues.. 6au t10 600
Total increase Of tho debt. ,ooo
Interest thereon annuity. y............., u yUDCeO
II is shown that there has boon added to tho
previous debt OF Erante o sum equal to the preH-
eut national debt Of the United htatea, Tho six
months war with Germany resulted in lou1,-
ling tho national debt, adding noarly 800 900 600
u year to the public taxcB forever, and tho loss
OF two fino provinces, containing 1.50o,000 in-
habitanta; yet France hAs wlthHsood those
ENORMOUS losses, and recovered hor strength
With rebound that III
ASTONISHING 70 CONTEMPLATE.
1t IL quite tslo that the cost Of slle war aside
from tue derman contHcation, was expended
W.thin Franco, aud ia not lost to tho cupital
o. Tue nation, except to tic oxtont that it
represents. property consumed and destroyed by
a,r. tho war. But tho German hno, levied on tho
nation (and Oh pars), amounting, with interest,
@ to nearly q ,10o, ,0oo'000, had to 10 ralBcd aud
sgns ous OF the country. Al tho whole gold alld
siivpr 9 CON - circulation in France, ut tue tio
" ule conclusion Of the war. WAS supposed not
20 exceed 5000. .o0u,00o, or little more than half
1,s sns INDEMNITY tn how "as France ablc to hand
" ,o7o ,0o, oo0 In coin for it Naa maid in suNd
fo1a' esory franc OF It shall try antl explain
In he first pIuce-Whon In Gnvnr1,sacn. ,uu
Fowod from tho Bank of FRANCE $500 ooo 900.
aud authorized tho Dunk to issuu like amnrut
Of notes ~ addition to tH former circulation. il
liberated from circulation un equal amount Of
coin whlc was ITO longor required for tho trauB-
functions. ''9
Gscond-Iho Government not only nlado the