I don't think Daddy paid anything. Daddy was the one from whom the secret most needed to be kept. Daddy might have gotten violent on best buddy Frank. He may have talked tolerance, but He was from Kansas during a period where that sort of thing was regarded as very bad. (Indeed, it was a felony crime in 20 something states at the time.)
If anybody paid anything, it was Frank, because if Stanley's dad found out, or Frank's Wife found out, Frank would be in Deep Doo-Doo. People have remarked on how Frank and his Wife divorced around the time little Barry Soetoro showed up in Hawaii and started visiting ole Uncle Frank.
Obviously Frank's Wife (Helen Canfield) would likely have realized that her Hubby had been playing bouncy bed with Stanley Ann.
Just a guess though.
Suggests that Davis wasn't the father, no?
In those pre-Internet days, Stanley grandpa wouldn't have known of Davis's Communist or pornographer past. He might have thought of him as a liberal or progressive, but beyond that he would have known that he was an educated Black man, of whom there were probably few in Hawaii at that time.
He-Stanley, raising a half-Black child, might not have known about FMD's background and might well have looked to him as a possible mentor for young Barack. If he knew that Davis was the father he wouldn't have let the child anywhere near him and would probably already have moved his family far away if he could have.
So could Davis have been the father without grandpa and grandma knowing about it? Doubtful. Left to herself, a teenage girl isn't going to gravitate to a tired 56-year old hack journalist, no matter how attractive the journalist thinks himself to be. It does happen sometimes, but you'd have to explain what the attraction would be. Looks, charm, money -- that wasn't there, and though Frank may have been a competent propagandist, he was far from brilliant.
If SAD and FMD lived in the same neighborhood a relationship or connection might theoretically be possible, but just as Malcom X probably had thousands of better and more likely sexual or romantic prospects than Stanley Ann if he wanted them, she probably had dozens or scores of better and more likely possiblities than Frank Marshall Davis.
Rape? Unwilling seduction? A drunken mistake? All the more reason why the Dunhams would have left the island ASAP. Girls have a way of conveying their distrust of creepy old men, even without coming out and saying what happened. If grandpa felt comfortable with FMD, it's an indication that he probably wasn't the father. If the Dunhams stayed on the island it's an indication that they weren't especially concerned about there being sexual predators nearby.
There is a resemblance between Obama's mother and the woman in the photos, but the dates seem a little off. The picture looks to be from the very late Fifties or very early Sixties. By the time SAD was about the age of the woman in the photo, in the mid-Sixties, furnishings would have changed. That's not exact, of course, and there's always a lag between what's advertised and what people actually have in their homes, but it is something to take into account.