Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1899-06-08
HOW NATIONS PAY DEBTS.
FINANCIAL TRANSACTIONS CON-
QUOTED ON A LARGE SCALE.
Very Little Actual Money Changes Hands
In These Dealings-Our Debt to Spain
How France Paid Germany n war
Indemnity of $1,000, OOO, 900.

| Hon. George T.. Roberts, dircctor Of the
Jnited states mint, explains in the indie
pendent the methods usually pursued by
nations in paying war indemnitics. The
/ payment Of "A consolation prize of $50, 900 100
Just made by the United States to Spain,
serves as "A text to show that very little
actual money changes hatds. The pay
inent was made by fouG drafts on the
treasury calling for $4,000 each. Dircc-
tor Roberts says:
The drafts so through the clearing
mousse by tho Scgular method. No gold
| VIII leave this country to be received in
spain as the result of the transaction The
/ only payment Of the money will probably
hc that from the sub-trcastGV to the
clearing house. Spain will acquire credits
~ London and Paris now due TO indriIu-
ais in the United States. and will turn
these credits over to Individuals to whom
Sht is indebted. There will be Il few en-
tlleS on bank lcdgets. and the thing viii
nave been accomplished. If the United
states, instead of Keeping its holdings Of
mcuey locked up in its own vaults fol-
lowed the paacticc Of individuals. corpora
ions, municipalities States and other ma
items in keeping idle hoardings in banks
TINS payment would not create a ripple
OF the imam ,t1l sea.
1 Yet there are a great many people who
really insist that the worli is i'm a bad
OF existing debts in one column and the
amount of money to he had in another,
they find that the former exceeds the
latter They are unable to comprehend
that tho business of tine world is not done
with mon-v; that money. whether 1t be
gold, silver or paper, i1 used only in small
retail transactions, or in the payment Of
"mpaiatively insigniicant balances which
accrue from the settlement of large ac-
counts. The business activities of the
world consist in an exchange OF cummo-
dities and services. and this is effected by
the means of paper Instruments which
convey ownership.
FRENCH PAYMENTS TO GERMANY.
1t will, perhaps. be Of interest to refer
back to the payment of the gold ind m
nifty cXacted of France by Germany in tn.
t.caty of MAY 10. ISL Tnat was the most
stupendous undertaking of its kind that
has eyer been seen. France obligated it.
self to pay in all five mlliards of francs
OF about $1,000 100000 OF this two mil
lizards Of $4,000 900, was to be paid with
H. one year, and the remaining three mil
lizards, or 100000 OJ. on March >. 1874. Thus
the entire sum had to be paid within less
than three years. To the people who AL
Ways think Of payment as requiring
delivery Of cash, it seemed that France,
II it had not undertaken the impossible.
must hc greatly diltressei in CiSCharging
E,,nco nt tb1t tim in hanks and il, ,ri
waite boards was estimated at between
five ar six rnilliarIs Of f,,rre II.rce II
v,s eunooeod tbat t,raI,.o ,r,u1i lbs,
nr,.ti,,li,. If. cr+ir. sun, If ,,e,ofli,
,rone, /, ,,.,s fa,rod No. t., iri,,.trt,
would he rriunlsd il. internal Trade mr.
alvzed If. rn,nr,ar,, ,uircn n,,l trcro
vas rro,t ,nxiotv Lost th,. owl crrcts
miobt o,a..t 1i.,sIro,,oI,. ,,,o, r,i.hbot.-
Ing countrie, irtimat.i,. conner,.d y,it, -
In trade NJ Loon S,y IN. .r.,,ch min
'istor or trarcc in Me ro,.,.,,. ar ,ha sra,+
o,a,atio,, r,,,,,.l,, th,+ - ,,,,,,,,ts ian
I,,itbout =, cri.i, Of a ,.,,itaI cum, - : ooo :
ono 6no OF r,,nrs e. ,..rn,.,, ts f,n,
v.rtcb nav ba s.i1 to have ,r1,. bc,p
n,o,.od "a ba noss;iIo h,. e., ,,,,n,,,,li. ~
r,,,,
I,riudi,- ir,erost tho o,,u.l ,r,ourt
d,,n f,.,r, I,r,n,.n ,,,is a oso No., ntr ,,G e.
49, Id,,.tb, 49,, ,.,i,, ii-,,. ~ -. 81.
So. ,,ra., ~ >I,,, ,,'1 ..,,,' ,,,i,,,,r
nfr.,, ~ ,,,,,, ,t,,.,u,. ,,.tI -, d..
,,i - .',. ,oo nrt 90 ,tt ~. -, s., .
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5-a go. ,I,,,.I g., XIV In x',,,'. ~
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