threatening language:  he accused the French Government of bad faith in procuring the release of a large force of French prisoners, ostensibly for the overthrow of the Commune, but really in order to patch up matters with the “Reds” of Paris and renew the war with Germany.  Misrepresentations and threats like these induced Thiers and Favre to agree to the German demands, which took form in the Treaty of Frankfurt (May 10, 1871).

Peace having been duly ratified on the hard terms[65], it remained to build up France almost de nova.  Nearly everything was wanting.  The treasury was nearly empty, and that too in face of the enormous demands made by Germany.  It is said that in February 1871, the unhappy man who took up the Ministry of Finance, carried away all the funds of the national exchequer in his hat.  As Thiers confessed to the Assembly, he had, for very patriotism, to close his eyes to the future and grapple with the problems of every day as they arose.  But he had faith in France, and France had faith in him.  The French people can perform wonders when they thoroughly trust their rulers.  The inexhaustible wealth inherent in their soil, the thrift of the peasantry, and the self-sacrificing ardour shown by the nation when nerved by a high ideal, constituted an asset of unsuspected strength in face of the staggering blows dealt to French wealth and credit.  The losses caused by the war, the Commune, and the cession of the eastern districts, involved losses that have been reckoned at more than L614,000,000.  Apart from the 1,597,000 inhabitants transferred to German rule, the loss of population due to the war and the civil strifes has been put as high as 491,000 souls[66].

[Footnote 65:  They included the right to hold four more Departments until the third half milliard (L20,000,000, that is, L60,000,000 in all) had been paid.  A commercial treaty on favourable terms, those of the “most favoured nation,” was arranged, as also an exchange of frontier strips near Luxemburg and Belfort.  Germany acquired Elsass (Alsace) and part of Lorraine, free of all their debts.

We may note here that the Anglo-French Treaty of Commerce arranged in 1860 with Napoleon largely by the aid of Cobden, was not renewed by the French Republic, which thereafter began to exclude British goods.  Bismarck forced France at Frankfurt to concede favourable terms to German products.  England was helpless.  For this subject, see Protection in France, by H.O.  Meredith (1905).]

[Footnote 66:  Quoted by M. Hanotaux, Contemporary France, vol. i. pp. 323-327.]