"quarter" On The Battlefield
The term "quarter," used in warfare, originated from an agreement ancientIy made between the Dutch and Spaniards, that the ransom of a soldier taken in action should be a quarter of his pay.
Probably it meant to "grant conditions."
In this sense the expression was commonly used at one time. As a modern warlike term, to give quarter means that the prisoners of war should be sent to the rear of the army and there lodged and fed by the captors until exchanged or released on the termination of hostilities.
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Ann Arbor Argus-Democrat