Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1873-12-31
What the Late War with Ger
many Cost Her. ba,
Her National Debt Increased
s2,1s4,ooo,ooO.
How She Raised the Money for the Enor-
mOasa German IndefnniIy--The
Government LOan Nearly
.osa All Taken by Her
Farmers. .v
Thorough Reorganization oG Her
Army----Her Deserminasao
to Reconquer AIsacc f
and LOrrxIne.

Special Correspondence Of the Chicago Tribune.
PARIS, November %, 1S73.-Some-
thing like ten weeks ago the last in
stallment eff the huge German fine was
liquidated by France and the last
German regiment marched cut Of her
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 foa
the payment Of the so-called indem-
nifty.
The ,promptitude with which the
money was raised and paid has chal-
lenged the wonder and admiration o4
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 LOCO, COG, 00G in
gold, with per cent. interest on the
unpaid iinstallments. But this was not
the whole liability of France on account
of her unfortunate war. There are to
be added the ransom of Paris. which
was $4,000, 00a, and the expense of
supporting the German force left In the
occupied territory until the whole fine
was paid. The aggregate sum Of these
items, including the ransom of Paris,
was ST, 141 900, 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 2
s1,O76, 0OO,O
or nearly half the present national
debt of the United States.
Besides this enormous indemnify.
the French Government had to provide
for it's own expenditures in waging the
war and afterward in crushing the
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,
600. 1000, and she loss of revenue in
1870, II, To, and '73, caused by the
debt has been increased since July,
1870, 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 heavy discount.
The bonds now form part of the ma
tional debt, and draw 5 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 $1O0,000,000, negotiated in
England, when the Germans had
crushed the French into the dust It
sold for less than 80 per cent, and is
costing 7 40 per cent. on the money
realized. The 1000, OO0 600 German
fine was raised by two national sub
scriptions, which realized S3 per cent,
making the bonds cost per cent. on
the money received.
Then there were several loans from
THE BANK OF FRANCE,
aggregating 1906, 900, 600, at 1 per cent,
to be repaid in installments, or annui-
ties, of $40, 100000 per annum. The
reason for obtaining this immense loan
from the. Bank at 50 low rate of in
terest should be explained. The Gov
eminent first authorized the Bank to
suspend specie payments second, to
increase it's notes to the amount of the
loan third, the notes were made le-
gal-tender, receivable by the Govern
ment for all taxes and duties, and a
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 it, to be repaid, as above stated, in
less than eight years.
Before the war the Bank Of France
had 1926, 100000 to $3.50 ,OOO,OOO of
notes IN circulation, and held IN it's
vaults 1926, 100000 to $3.50, 900, 900 of
coin for their redemption. The bank
now has SAG, 900, 900 of coin on hand.
and 5000, 900, 900 of notes in circulation.
The amount varies more or less. The
maximum issuse Of notes IS S64O. 600. :
900, so that the full quantity permitted
by law is not at this time in circula.
ton. [ believe there is stipulation
that, as fast as the government paws it's
loan to the bank, like amount of notes
shall be cancelled and, as the gov
eminent has refunded to the bank the
first 'annuity" Of 100000, [ sup
pose that accounts tor the apparent
contraction OF like amount below the
maximum limit.
The money borrowed to extingrish
the German fine and to defray the ex-
penses Of the war, and loss Of revenue.
amounted to S1,S56, 900, 600. But as
the bonds sold, on which the money
was procured, only realized an average
of IS per cent. of their face, the add.
ton to the bonded debt of France is
several hundred millions more thar
that sum. As nearly as can find out
the
INCREASE OF THE DEBT
is as follows:
30 nds sold at average Of IS pc
cent. 10 realize amount of Ger
man tine. go. .............. 81 2s8. o00, O0
Borrowed from Bank OF France. 3O6 O0p. O0
Bonds sold to de!ray war expcn-
ses and loss OF revenue 500 900. O0l