Year: 1871

many.


Once more Kaiser William thanks God, and
this time not unwlsely Ts his beloved Queen
Augusta he telegraphs these words with
deeply moved heart in gratitude to God, in
form you that the preimin aries of peace have
been signed. Tne Bordeaux Assembly must
yet ratify them" All the world rejoices in
the prospect Of peace, and in so far as Kaiser
Williams words encourage or assure that
prospect all the world will say TO them,
"Amen."


So far as the preliminary peace terms are
known to US they are these France cedes
Alsace and q certain amount of territory to
the westward, including what the French have
been proud to call their maiden fortress, the
fortress Of Metz. Belfort. 1t is said, is to be
restored to France and the war indemnity Is
fixed at five milliards Of francs, or one thou
sand millions OF dollars. As we announced
yesterday the G ,rman forces will occupy
certain amount Of French territory in addition
to the above until the indemnity is fully paid.
Contrary to what was reported some days
ago. the German soldiers are to en-
joy the full fruition Of their hard
fought fights by temporarily occupying GER
tain portion of Paris, and by means Of
sort of triumphant procession, showing them
selves off to the ladies Of the gayest centre of
the worlds population. Had We been fight
ing in the German armies we might have in
sisted on this special reward for our labors
and sacrifices AS it is, however, we think
the German demands rather hard in this parti-
cular. The National Assembly of France,
of course, must yet ratify The preliminaries of
peace.


No unprecedented mind can look at these pre-
| liminaries, thus stated, and say they are un-
| just. But as little can any such mind


look upon them and say they are other than


hard. After six months war France finds


herself more prostrate, more exhausted, than
| she was after all the wars Of the Revolution


and all the wars Of the First Napoleon. The
fact is that to-day France is, to all intents
and purposes, denoralized in every depart
ment of trade and industry. According to
our skiful estimate France has actually lost
in this war, as nearly as possible, twenty-five
thousand millions of dollars. This loss is ter
rife, and we do not think it overstated. But to
understand the financial condition Of France
to-day we must think of France as she was
before the war. The last year before the war
for which the accounts are closed was the
year 1867. In that year the actual income,
from all sources, was about three hundred
and sixty millions-ths actual expenditure
being about three hundred and ninety millions.
According to calculations which we have been
at some pains to examine the deficit of 1867
was rather under than over the average Of the
preceding and succeeding years of the empire.
1t is not, in fact, unreasonable to conclude
that the annual deficit in 1868 and 1869, not
to speak at all Of 1870, was over fifty million
dollars. 1t is well known that there had been
for twenty years chronic d. felt, the expen-


diture having increased upwards of one hun
dred and fifty millions of dollars, the charge
for the debt fifty millions; although in conse-


quence OF the general prosperity of the conn
| try and the consequent produciveness of the


old taxes the financial manipulations under the
empire contrived to make it appear that the
imposition Of new taxes was uncalled for and
unnecessary. 1t is not unreasonable to infer
that there was before this war broke out some
unexhausted taxpaying power in the country;
but as French taxes have all along been high
this uncxhausted taxpaying power cannot be
great; and it is extremely difficult to see how
the French people, by curtailing expenditure
on the one hand and by increasing taxation on
the other, can pay interest for any loans which
may be contracted for liquidating the burden
of the war. 1t ought to be remembered, too,
that the France which will have to bear this
war burden will not be the France Of 1867. In
that year the Bas Rhin, the Haut Rhin and the
Moselle yielded from direct taxes, from indi-
rect taxes and from registration dues some ten
millions of dollars; but the greater portion Of
this territory is no longer French. And
in addition to all this we must
make large and liberal allowance for
the falling off of revenue from the


influences of the war on the products and


trade Of the country. The presumption is that


in addition to all her old burdens France


would need to be able to spare for the interest


of a new debt some seventy millions of dollars


annually. II is difficult, however, to see how


she will be able to spare twenty-five or thirty
millions. The sum which Germany demands
is not SO large as was at one time anticipated;
but il is still so large that France must feel it
like a milestone around her neck for many
years to come.


It will be well of the National Assembly if
it decides to accept Germany's terms. Should
the Assembly rebel war will be resumed, and
France will be hopelessly and forever ruined
| as a great Power unless the other so-called
words, but by force Of arms. 1t is not at all