WAR INDEMNITY, the sum of motaey paid by the defeated country in an intenut tional war to the victorious government. The largest amount demanded in this way previous to 1919 was $1,000,000,000, which Frattce was compelled to pay Germany after the war of 1870-71. In the war of 1866 Prussia took from Austria and her allies a war indemnity of $4/,750,000, besides $3,750,00) requisitioned dur ing the campaign. The war between Japan and China covered about nine months and the amount paid by the latter nation was $185,000, 000. For the Turko-Russian War of 1877, Russia dernanded $701,000,000, but her claim was reduced to $160,000,000. Great Britain has received two indemnities from China, the first, in 1840, being $25,000,000, and the second, in 1860, about $10,000,000. The sultan of Turkey was forced by the powers to reduce his claims of $50,000,000 on Greece at the close of the war of 1897 to $10,000,000. The settlement of war claims between the United States and Spain at the end of the war of 1898 was unique. The Spanish-American War lasted four months, and cost the United States $150,000,000. The Spaniards were defeated in every battle on sea and land, and finally sued for peace. A treaty was signed by President McKinley and by the queen regent of Spain in 1899 by the terms of which the United States relinquished all claims for indemnity of any kind, and agreed to send back to Spain, at its own cost, all Spanish soldiers taken prisoners, with their arms. The United States further agreed to pay to Spain the sum of $20,000,000. On her part, Spain was to relinquish all claim of sovereignty over Cuba; to cede to the United States the island of Porto Rico and other islands then under Spanish sovereignty in the West Indies; the island of Guans, the Ladrones; and the archi pelago known as the Philippine Islands. In this case it would appear that the victors paid for their success. At the close of the trouble be tween China and the powers, growing out of the Boxer uprising in 1900, it was agreed that China pay the powers 450,000,000 tads as an indemnity. These settlements are petty com
pared with that exacted from Germany under Section VIII of the Treaty of Versailles signed 28 June 1919 according to which 'iCtermanY tindertalies to make compensation for all dam age caused to civilians, the total obligation to be determined by au Inter-Allied Reparation, Com mission. As an immediate.stee toward restora tion Germany shall pay within ..two. !years 20,060000,000 marks in either gold, goods, ships or other specific forms of payrneet. The Commission may require Germany. toRive from time to time by way of guarantee issues of bonds or other obligations to• cover such claims as are not otherwise satisfied. In this connection and on account of the total amount of claims, bond issues are presently to be re quired of Germany in acknowledgment of its debt as follows: 20,000,000,000 marks gold, payable not later than 1 May 1921, without in terest; 40,000000;000 marks gold, begring 254 per cent interest between 1921 and 1926, and thereafter 5 per cent with a 1 per cent sinking fund, payment beginning in 1926, and an under taking to deliver 40,000,000,000 marks gold, bearuag interest at 5 per cent under terms to be fixed by the Commission?) Germany was also obliged to utidertake ((to replace ton for ton, and class for etas& all merchant ships or fishing boats lost or dam aged owing to the war, and to cede to the Allies all German merchant ships of 1,600' tons gross and upwards, one-half of her ships bo tween 1,600 and 1,000 tons gross, and one quarter of her steam tmwlers and other fishing boats. As an additional part of reparation, the German government further agrees to build merchant ships for the account of the Allies to the amount of not exmeding 200,000 tons gross annually during the next five years.°