Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1919-10-16
sy BARON JACQUES DE NEU.
FLEE
OF TIE Banking Firm Of Neutllze & Co.

over tne WOflu To-Day Is the question
II the reconstruction of France. Her
record in 1871 might answer the CUES
lion.
In Nay. 1871. France signed with
The victorious Germans the treaty of
Fran. fort, under which she sErren.
icrrd Alsape-t arraine, she npiignied
hers; II, besides, to pay as a war in
Gemnity 50a0G0,o00 fir: ncs- within SO
lays after the re-astahishmant Of the
authority of tho Versailles government
in Paris; 100000 600 In 1871. 500,-
JjA 40 by aIuy l. 1879, and the last
s,00o.00o,000 by March 2, 1874,
On the other hand, the evacuation
" the French departments (Se'ne,
Seine ct Marne, Seine ct Disc, Olse)
w the German troops was only to
fnka place after payment Of the third
'alf-hillion, and the German troops Of
occupation had the right Of levying
roonsitions In the occupied depart.
roDts. and even outside Of these,
should the French government fail to
.,r;y out the obligations undertaken
ny item for their maintenance,
Situation In 1871.
Tho financial load imposed by the
r"r was extremely heavy. It was nee,
a>sary to face the expenses Incurred
lnrng the war and to pay the billions
Indemnity, Notwithstanding the losses
'aused to agriculture, commerce, and
industry by the cessation Of work
The losses in francs due to the war
we're estimated as follows:
Indemnity payable to Ger
m"ny .....,..,,,.,,..a UW,NO,Op
Interest on this indemnity. 30l ,145O7a
Cost of issuing the loans. 275,564. 2O3
tie. cts for years 1901 ,2,760 100000
,"tuul loss of AlSaceLor-
raine .................7,O 00O 100000
Total more than. go. 15,0O0,000,OO0
These charges We're all the heavier
cause France had lost the 1897 DDS
,i;lahitants OF AlSaceLorraine. and
t.Ir population of the remaining terri.
'"rv had decreased by 491.515.
The worst side OF Frances position
as the maintenance of the German
my of occupation in several depart.
,cntS. including the department of
he Seine which surrounds Paris,
:..t'a :. i.,'st ~! IT the Frtnr',
government w.' to i, HteT Ill lis en-.
4r.v un The ok cuti"n Of The fiL"pcial
.,s A. e. TIRE y = Ia - 0bt.til
e tlnal evacuation of the German
my.
Paying the Indemnity.
The government finally decided that
lie best policy was to issue loanss as
fast as possible to raise the money
Cor the payment of the war indemnity,
nd meanwhile to reorganize the eco
noniic situation of France. letting
Gade and iHdustry readiust them
-elvcs and increasing the taxes pru-
Gently and progressively so as not to
disturb the investment power Of the
- "ntry ana its reconstruction.
The main effort was made In the
|,ne of indirect taxation. customs du-
I rs. and taxes on articles such as
agar. coffee. alcohol, etc. In October,
III. registry fees and stamps were
ncrea scd; extra duties were charged
n passengers tickets and railway
tieichts; the duties on matches We're
,nised at fir"t, and. later on. a mo-
! opoly of this article was organized.
1872 fres., alterations were brought
nto the system of taxation, and
.Ax on raw materials was passed. in
suite of the discomfort of manufac-
turers.
The first loan of two billions was
voted on June %, 1871. and on June
u 1t was issued at $3.50
"Evcrything had to he improvised,"
said Theirs. '"The general manage
rent of the loan was hastily organized
N the Louvre, and the wickets and
offices for the subscriptions were
placed in the Palais de FIndustrie.
The treasury officials had to manage
the best they could. On the 26th
things were more or less ready, and
nn the morning of the 9th the sub
scrihers were crOwding the wickets."
The number of individual subscrib-
rrs was 331 .905 and the capital sub.
scribed amounted to 1897 10000 of
vhich 2225.000,OO0 was allotted.
The brilliant result of this first loan
created the most favorable impression.
The French people saw in 1t the first
step toward the rehabilitation of
France and the re-establishment of it's
credit.
Bismarck had insisted that the in
dcmnity payments should be made
only in the main commercial cities of
Germany. and exclusively in gold, or
IN silver. or i'm Eanknotes of the hanks
of England, Prussia, the Netherlands,
or Belgium, or in bills of exchange
approved by German experts. To do
this 1t was necessary to carry out
exchange operations On q scale never
Witnessed before.
Nevertheless, the payment Of the
two first billions was completed be-
tween June, 1871, and March, 1872,
somewhat in advance of the stipulated
dates.
Germany Amazed.
Owing to the continual complaints
coming from the occupied territories,
and encouraged by the favorable re-
suits already obtained, the government
decided to appeal at once to the ma
xtTtt fIA 80 tot,