The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1878-05-30


ferred to, which places poor humanity
in an awkward dilemma-between abject
poverty on the one hand for herself and
child in an uncharitable world for all
time to come, and afluence and refine
ment on the other hand for her offspring,
which she is to virtually disown for its
well.being, and remain in her poverty,
solitary and alone. How shall she de-
eide ?-Aug,ssfa Chronicle and Constitt-
tionaliSt.
HOW FRANCE PAID HER DEBT.
A Phenomenon that Excited the Wonder
OF Europe.
No event of modern times has excited
more wide and general surprise than the
case with which the French people paid
off the heavy war indemnity of 81 ,6O0,-
100000 to Germany. 1t has been puz-
zle alike to fnanciers, to statesmen and
to political economists, how a nation
just emerged from costly Though
brief military struggle could raise so
enormous sum in cash in less than two
years time. National pride, it was wide
ly said, had much to do with it, but no
amount of national pride could have
raised s., 900, 100000 in nation where
the conditions of great accumulated
wealth and general prosperity did not
pre-exist. National pride had not avail
ed to save French honor from condign
and overwhelming defeat in war, nor to
avert the humiliating.a aspect of her capi-
tai in the hands of a foreign foe, nor 10
redeem her from the reproach of ill-pre-
pared and undisciplined forces and badly
organized campaigns.
Another theory of this rapid payment,
says French Journal, of the stupendous
fine of five milliards of francs, was that
France was the holder of about S2000,-
100000 Of foreign securities, which were
sold and the proceeds invested in the
new "rentes" or government bonds issued
at FIVE per cent. interest, to raise money
for meeting toe German indemnity.
For, be it mentioned, Bismarck had ex-
acted not only cash payment, without
credit, but also payment in gold and sill
yer. The whole sum of $1,000, ,000, 900
(including 2O0,00O,OOO francs levied on
the city of, Paris, and other war contribu-
tions levied during the progress of hos
tilities,) was paid in specie, excepting
only 100, 100000 francs in notes of the
Bank Of France, which the Prussians
consented to tqke in place of an equal
amount of gold. Inquiries into the cur
rent of exchanges actually developed the
fact that France was exporting securities
and importing gold the whole time of
the indemnity payments; but the actual
amount to which the flow of the precious
metal into France extended on this ac-
count could not be actually learned.
Another explanation of the rapid
liquidation by France of this prodigious
levy was that the annual income of
France is $S,6O0,OO0,0O0, aud that the
payments to Germany took only one.
third of the gross annual earnings of the
French people. But there can be no
doubt that to the general character for
frugality and the accumulated savings of
the French people must be mainly
credited the great financial phenomenon
of the nineteenth century. The enor-
nous loans which the payments of the
indemnity compelled the French govern
fment to put upon the market were all
promptly taken, and the greater part of
the money came from the French people.
Five per cent. rentes, or bonds, to the
heavy amount of 81 $40, ,000, 900, were all
taken at an average price of SO per cent,
thus making the interest to the investors
Acreage per cent Not only so, but
the second loan, of 1872, was so eagerly
sought for that the subscriptions covered
the amount called for thirteen times
over. compelling the government to
award the rentes among the subscribers
pro rata.
All travellers in France unite in repre-
senting tie French people as great econ
omists. With them not only does very
little money go great way in supplying
their wants, but the sums saved, even at
the slenderest incomes, represent hand
some surplus. In England there is one
man in every five who spends all he gets,
but in France there is not one in forty
who spends his income; the other thirty
nine lay something by. Profusion and
waste, which characterize the use of the
means of living in England, and more
conspicuously still in the United States,
are quite unknown among the French
people. Of what nine families out of
every ten would here throw away, a
French family would make a variety of
appetizing dishes; and it is literally true
that the French men and women would
liye, and live we'll, on the mere waste of
American families. These habits of
economy enable the people to lay up
their savings year by year, and it is well
known that the public funds are the
most favorite means of investment with
the peasantry. The French rentes can
be had in denominations of 100 francs
(S20) and upward, and have always been
highly popular with the masses. The
principle of popularizing the loans of the
government has worked admirably, and
has been borrowed to advantage in the
issue of United States bonds, which are
now to be had in sums as low IS $50.
Here is fact which speaks volumes
in favor of the French system of public
iaWS. Oo iouS aSO do LOU Iue ueuI VI
France was held by 1,083,639 persons,
who averaged $1,000 each. 1t is now
still more widely distributed. In Eng
land, on the other hand, her great pub
lie debt of So, ,S50, 100000 is in the hands
of only 126,331 persons, thus averaging
more than $50, 900 to each holder. It is,
unfortunately, impossible to ascertain
how many persons hold the public debt
of the United States, because so large
proportion of it is in the form Of coupon
bonds, which pass from hand to hand
without registration. In France, all the
rentes are inscribed in the name of the
holder on the books of the treasury. To
have their names in the "Grand Livere"
of the public debt is an honor eagerly
sought after by the mass of the people.
During all the recent enormous drain
,,ooo Ior rooourooo which hos noorly