THE FRENCH INDEMNITY.

Evening Star, Issue 3298, 15 September 1873, Page 3

THE FRENCH INDEMNITY.

The Economist , in an able article on the! financial condition of some of the leading; countries of Europe, traces the progress which is being made in the payment of those enormous sums to Germany by Franse, which very many statists and financers considered would have the effect of disturbing the money market for some years to come. So far from this being the case, however, it appears that though the larger proportion of the indemnity has been paid, and the re-, mainder would be discharged by the sth of September, no material alteration has taken place in the value of money or permanent stock in any of the principal marts of commerce in the world. It appears that on the sth of march last the German Government had received three and a-half milliards (L 140,000,000) out of the five milliards (L 200,000,000) stipulated by the treaty of peace. L 13,000,000 was to be allowed France for the Alsace and Lorraine railways, but to counter-balance this, an additional sum of L 10,275,000 was imposed upon Paris as a special indcmnifica- 1 tion to the Germans, and a further sum of L 12.000.000 interest account will have to be paid in September. In March, therefore, it is estimated that, indepependent of the deduction for the railways, Germany had received in cash fully the amount named, namely, L 140,000,000. This large sum having passed from France to Germany before the 16th of March last, the convention of that date stipulated that L 20,000,00 the second moiety of the fourth milliard—was to be paid before the 10th of May, and this,, in fact, has sinee been done. Germany, on May the 10th, had received L 160,000,000. The convention of that date finally stipulates that the L 40,000,000 constituting the 6th and last milliard, was to be paid by equal instalments of L 10,000,000 on the sth of June, sth of July, sth of August, and sth of September, on which last date France is also to pay the interest due from March to the last day of payment. Thus, notwithstanding the heavy payments made up to the 10th of May, France will have to; pay in addition in the following four months, | au amount equal to L 45,000,000, including interest and principal. According to a statement just made by the minister Del-, brich to the German Parliament, Germany will have received altogether by September 6th about L 220,000,000, namely: —indemnity (five milliards), L 200,000,000 ; interest, L12,O00,000; Paris contribution, &c., 110,275,(4)0 ; total, L 222,275,000. Deducting the value of the Alsace and Lorraine. railways reckoned jin the L 200,000,000, the transfer altogether will be L 210,000,000, in bills and cash, within barely two years and a-half, and above L 125,000,000 of this' amount will have been transferred within the . twelve months ending next September. The payment of such a war indemnity within so i short a period, is without a parallel in his- ! Tory, ancient or modern. |