The German armies immediately proceeded to the siege of Paris and on January 8, 1871, the French capital had to capitulate. A few months later, in May, France and Germany made peace, the former paying an indemnity of $1,000,000,000 and ceding Alsace and a part of Lorraine. In the meantime the unification of Germany had progressed rapidly. Even before Paris had fallen, the German princes, headed by the King of Bavaria, had offered to King William the presidency over a new federation containing both the north and the south German states. This federation was to be known as the German Empire and its president as the German Emperor. On January 18, 1871, in the Hall of Mirrors at Versailles King William accepted this offer, and was proclaimed German Emperor. It was quite natural that in the beginning the path of the newly created German Empire should not be strewn exclusively with roses. At the time of its formation, it is true, it had nothing to fear from other nations. France which, in a way, may be considered at that time as its only external enemy, had been beaten, and beaten in such a way that it was clear that years would have to elapse before the new republic would be in a position to undertake anything against Germany. Indeed, a great many thoughtful people throughout the entire civilized world were hoping that this period of recuperation through which France was bound to pass would result in a gradual understanding between Germany and France. The gulf which separated them immediately after the Franco-Prussian War, to be sure, was wide; for the attitude of the two peoples in regard to the taking over of Alsace-Lorraine was widely different. The French felt that Germany had abused its power at the moment of its victory to tear an integral part off the body politic of the republic. They vowed that although the necessity of the moment had forced them to submit they would never forget the "lost provinces," and this spirit, this demand for restitution, was fostered and nourished throughout the years to come. From time to time it seemed as if the great masses of people in the two countries would finally reach an understanding. But whenever the cry for restitution seemed to have been stilled, politicians of one kind or another succeeded in making it sound again. Germany on the other hand claimed that Alsace-Lorraine had originally been a German province, had been taken from Germany by force, and that the French had neither a legal nor moral claim to the territory.