THE FRANCO-GERMAN INDEMNITY OF 1871 273 
France closed out her part of the transaction in short order, Ger- 
many spread hers over a considerable stretch of time. The German 
Treasury, as we have seen, received bills of exchange in amounts 
enormous for that age. The bills were by no means presented for 
payment as they matured. They seem to have been nursed; and 
the proceeds were utilized from time to time, in direct ways or 
indirect, as occasion arose. True, considerable quantities were 
turned into cash before 1873, especially for the purpose of securing 
gold for the new currency. But large amounts, apparently the 
major part, were fed on the market piece by piece, as financial needs 
appeared. Sometimes the proceeds of maturing bills were invested 
by the Imperial Treasury in foreign or domestic securities; some- 
times they were left on deposit in London banks; sometimes they 
were re-invested in still other bills. As time went on, the foreign 
securities were gradually sold, the balances in London were drawn 
out; the bills in which the proceeds of the original bills had been 
re-invested were perhaps again replaced, but finally bills were 
presented for payment as they matured. Thus the operations of 
the German Government in the foreign exchange market were 
spread over a series of years. Correspondingly, the effect on the 
foreign trade of Germany — the movements of specie, of goods, of 
securities for private investment — were spread over the ensuing 
decade. And during that time, still other factors were modifying 
Germany’s international trade. Her manufacturing expansion, so 
remarkable in later years, took its first great start. Her agricul- 
tural imports swelled in consequence of the rapidly increasing 
movement of grain overseas. As is almost always the case over 
considerable periods, no one factor was so dominant that its 
effects stood out conspicuously. The consequences of the indem- 
nity operations, prolonged as they were into a period that seemed 
far removed from the initial stages, were intermingled with other 
phenomena, were disguised, concealed, buried in a confused general 
movement. 
I suspect it is in some such way as this that we can explain other 
similar cases that have puzzled inquirers. What are the conse-