Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1874-01-01
FRANCE.
What the Late War with Ger.
many Cost Her.
Her National Debt Increased
$2,l84, 100000.
How She Raised the Money for the nor
mOas German lndemnity...The
Government Loan Nearly
All Taken by Her
Farmers.
Thorough Reorganization of Her
Army.--.Hcr Determination
to RccOnqacr Alsacc
and Lorraine.

Special Correspondence 81 The Chicago Tribune.
PARIS, November %, 1873.-Some-
thing like ten weeks ago the last in.
stallment of the huge German fine was
iquidated by France and the last
German regiment marched ont of her
territory on the 18th 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.called 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
80 ENORMOUS 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 tho fine was five
milliards of francs, or 81, ,O0O, 600, 600 in
gold, with S per cent. interest on the
unpaid installments. 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 $40, 600; OO0, 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 tho ransom of Paris,
was 81, 141, ,OO0, 600 from which deduct
$65, 600, 900 as the purchase. money OF
the railroads in the captured provinces
of Alsace and Lorraine, Leaving to be
paid in hard cash
$1,076, 100000.
or nearly half the present national
debt of the United States.
Besides this enormous indemnity,
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,
OO0, 900, and the loss of revenue in
1870, II, ~, and 70, caused by the
war, at $3.50, OOO, 600. The national
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, 600 subscribed fol
at the outbreak of tho war, sold fo1
nearly par. The next was the Morgan
loan of 800, 600, 900, negotiated in
England, when the Germans had
crushed the French into the dust. 1t
sold for less than 80 per cent, and is
costing z 40 per cent. on the money
realized. The 81. 600, ,0O0. 900 German
fine was raised by two national sub
scriptions, which realized 50 per cent,
making the bonds cost 6 per cent. on
the money received.
Then there were several loans from
THE BANK OF FRANCE,
aggregating 1906, OOO, 600, at 1 per cent
to be repaid in installments, or annui
ties, of $40, ,000, 900 per annum. Tht
reason for obtaining this immense loer
from the Bank at so low a rate of in
terest should be explained. The Gov.
eminent first authorized the Bank tt
suspend specie payments second, <
increase it's notes to the amount of tn,
loan third, the notes were made le
gal-tender, receivable by the Govern
ment for all taxes and duties, and /,
legal-tender fer the payment of debt
of all kinds. In consideration of thes
extraordinary privileges, the Banl
agreed to charge the Government only
per cent. interest on the notes loane,
to it, to be repaid, as above stated, il
less than eight years.
Before the war the Bank of France
had 1926, ,000. 900 to $3.50, ,000, 900 o
notes in circulation, and held in it
vaults 1926, O00, 900 to $3.50, 600, 600 o
coin for their redemption. The banl
now has $146, O0O, 600 of coin on hand
and $500, ,O00, 600 of notes in circulation
The amount varies more or less. Th
maximum issuse of notes is $64O, 600,
600, so that the full quantity permitte,
by law is not at this time in circula
tion. I believe there is stipulation
that, as fast as the government pays it
loan to the bank, a like amount of note
shall be cancelled and, as the gov
erpnent has refunded to the bank th
first "annuity of $40, ,O00, 900, sur
pose that accounts for the apparen
contraction of like amount below tn
maximum limit.
The money borrowed to extinguis
the German fine and to defray the ez
penses of the wal, and loss of revenue
amounted to 81, 1856, OOO, 600. But a
the bonds sold, on which the none
was procured, only realized an averag
Of IS per cent. of their face, the add
tion to the bonded debt of France
several hundred millions more tina
that sum. As nearly as I can find out
the
INCREASE OF THE DEBT
is as follows:
30 nds sold at average OF IS 20
cent. to realize amount of Ger
man nIlc. ....................Sl,Z ~, ,ZS6, ,vOO, W
Borrowed from Bank OF France. 3O6, ,OOO, ,O(
Bonds sold to dctray war cxpcn.
ses and loss OF revenue. ..... 59e,ooo,ot