The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-05-01
HOW INDEMNIrIEs ARE PAID.

Notwithstanding the fact that the United
States are to pay to Spain the sum of $20-
900 eco in gold in consideration Of the lat
ter's cession of the Philippine islands. the
proba bi!ities are that not one dollar of act
ual money viii ever leave the United States
on account of the indemnify payment, and
that Spais viii never see abe CLINT of the
gold she will have received. Indeed, 1t i5
likely that the exchange Of actual cash in
making the settlement viii be limited and
comparatively small Mr.. Roberts. director
of the mint, has an article in the indie
pendent in which he tells how the pay
ment will be made. 1t is optional with
Spain how she will have her money. She
can take ii in coin, or in bullion, or in a
check on the sub-treasury in New York.
There Is no doubt that she wiu choose the
latter method. Having received her check.
she will turn 1t over 10 some bank for
collection. and receive in return the
amount in sterling exchange on London
The check win go through the Clearing
House, and the payment to the Clearing
House by the sub-treasury will be the only
transaction involving the handling of act
ual cash on this side of the ocean.
Spain wiz thus acquire credits in Lon
don, Paris and other European cities which
are now due to residents in the United
States. These credits she will turn over to
individuals and corporations 10 whom she
is indebted. Thus, according to Mr.. Rob-
erts, there will be few entries on bank
Ta6parg apd ba
complshed"
Practically the same mode of operation
was gone through with In the payment of
war indemnities after the conclusion of
peace between France and Germany, and
China and Japan. There are many persons
who think that the great indemnity paid
by France to Germany, amounting to more
than one thousand and sixty millions of
dollars. was handed over in cash. mostly
gold. The American visitor to Germany
who goes to Spandau invariably has point
ed out 10 him the tower in which is stored
the gold which Germany received from
her conquered foe, and comes away with
the impression that at least half of the to-
tai sum is bearded there. The fact is that
only Httie more tnan Sl4o,UOOUOO was paid
in coin and bank notes, while 1919 500. 900
was paid in bills of exchange There was
only $30OOO,OOO of gold in the Spandau
fortress. The French people did not pay
the indemnity in three years by digging
up their stockings of boarded coins and
extracting enough from them TO float the
governments loan. That is a popular YER
sion of the affair. calculated to illustrate
the thrift and patriotism of the French
people. They are indeed thrifty, careful
and patriotic; but the fact is that the
greater part of the sum needed was raised
by rich men selling foreign securities held
by them, and turning over to the govern
ment the foreign exchange thus secured
in payment for French rentes In the case
of the Chinese payment to Japan, the lat
ter country, desiring TO put her financial
system upon a gold basis, drew about one
third of her indemnity of s165, 100000 in
gold. The balance she took in bills of ex-
change on European banks. when there
was "a few entries in bank ledgers, and
the thing was done" as Mr.. Roberts ex-
presses it