NO BAGS FOR MONEY.

New Zealand Herald, Volume LXVI, Issue 20252, 11 May 1929, Page 3 (Supplement)

NO BAGS FOR MONEY.

CURIOUS FRENCH CRISIS, STORY OF THE WAR OF 1870. The most anxious problem with which the world is confronted to-day remains, as it has been for some years past, that of repawiiion, the sum which Germany must pay for the damages she wrought in the war. Tho International Commission which has been dealing with tho situation is not tho first conference on war indemnities in which Germany has had a part. After Germany's war with Franco in 1870 she demanded and obtained, in addition to Alsace-Lorraine, two hundred million pounds from France. Then, as .now, troops of the victorious army were to remain in possession of some of the territory of the conquered and to be withdrawn only when the sum was paid. The Headquarters Staff was, however, to return to Germany when certain instalments had been received from the debtors.

In February, 1871, something like panic was caused in Europe when it was rumoured that France had defaulted, that she would not pay the instalment duo, that the Headquarters Staff was not leaving France, but that signs pointed to a .possible renewal of hostilities. As a matter of fact, behind the potential tragedy there lay a sad little comedy. ll is true that Franco was late with her instalment, but tho cause, as explained to Bismarck by M. Jules Favre, the French Minister of Finance, was not thai the hundred million francs due was not ready for payment, but that there was nothing to contain the sum. There was a famine of canvas. The Bank of France was entirely without money-bags. It could not, said M. Favre, pay the sum in one great heap, as that would cause overwhelming inconvenience and loss of time. What was to be done ? Bismarck replied that he appreciated the difficulty, and he offered to assist by sending to Germany for canvas for the use of the Bank. M. Favre was grateful but diffident. "You see," he explained, " according to law the Bank of I'ranee charges 75 centimes for each money-bag. " Very well," replied Bismarck, " we will willingly pay for every bag." Bismarck obtained rolls of canvas from Berlin and had it forwarded to Paris. There it wrs made up into bags and handed over to the Bank of France. In those bags the Bank of France placed one hundred million francs. Accompanying the money was a bill for 23,500_ francs, the charge for the bags containing the money. The account and the laws ot France were examined by a legal tribunal and the regulations were found .to be as stated by M. Favre. Thereupon the sum was paid for the money bags the canvas for which had been supplied from Berlin.