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EGYPT

Egypt in the Nineteenth Century. London, 1898.—-Ebeks. Egypt: Descriptive, Historical, and Picturesque. (Translation by Clara Bell.) 2 vols. London.—Ekman. Ancient Life in Egypt. London, 1886. —Hartmann. The Arabic Press of Egypt. London, 1899.— Ibrahim - Hilmy (Prince). The Literature of Egypt and the Soudan. 2 vols. London, 1886—88.—-Lane. An Account of the Modern Egyptians. 5th ed. 2 vols. London, 1871.—Lesseps. Le Canal de Suez. 8 vols. Paris, 1875.—Milner. England in Egypt. 6th ed. London, 1899. — Moberly Bell. Khedives and Pashas. London, 1879.—Egyptian Finance. London, 1886. —From Pharaoh to Fellah. London, 1887.—M‘Coan. Egypt as It Is. London, 1877.—Egypt under Ismail. London, 1889.— Malortie (Baron de). Egypt: Native Rulers and Foreign Interference. London, 1883.—Mieville (Sir W.) Under Queen and Khedive. London, 1899.—Penfield. Present-day Egypt. London 1899.—Pollard. The Land of the Monuments. London, 1896. Poole. Egypt. In Foreign Countries and British Colonies Series. 1 vol. London, 1881.—,S'oae^ Life in Egypt. 1 vol. London, 1884.—Cairo. 3rd ed. London, 1897.—Rae. Egypt To-day. London, 1892.—Wallace (Sir D. Mackenzie). Egypt and the Egyptian Question. London, 1883.—Ward (John). Pyramids and Progress. London, 1900.—White. The Expansion of Egypt. London, 1899.—Willcocks. Egyptian Irrigation. 2nd ed. London, 1899.—Wood. Egypt under the British. 1 vol. London, 1896.—Worsfold. The Redemption of Egypt. London, 1899. (H. G. L.) Finance. The history of Egyptian finance is the story of Egypt since 1863, the date of the accession of the Khedive Ismail. The notorious and unparalleled extravagance of HiS r 6° ^876 that ruler necessitated continual recourse on increasingly onerous terms to the capitalists of Europe, and finally plunged his country into a sea of political and financial embarrassment from which it is only now emerging. When Ismail came to the throne the Egyptian debt amounted to a little over three millions. By the end of 1876 it was already estimated at ninety-one millions, and in reality considerably exceeded this figure. During the same period the taxation of the land, the principal source of revenue, had been increased about 50 per cent. Under the improvident system of borrowing pursued by Ismail, the amount of debt contracted very considerably exceeded the money actually realized, and even of the latter very little was expended on developing the resources of the country. It is stated in Mr Cave’s report of March 1876, that “for the present large amount of indebtedness there is absolutely nothing to show but the Suez Canal, the whole proceeds of the loans and floating debt having been absorbed in payment of interest and sinking funds, with the exception of the sum debited to that great work.” The Suez Canal, from which, owing to the forced sale of the country’s interests therein, Egypt derives no direct benefit to-day, cost the Egyptian Governsixteen fmillions. By the end of 1875 this 1876 1882. ment career 0 prodigality had begun to produce

[finance

same year, a general settlement of the liabilities of the country was effected on the proposals of Mr Goschen and M. Joubert. It was recognized that no mere rearrangement of existing liabilities could be expected to produce satisfactory results unless some guarantees were given against future maladministration. For this purpose the Dual Control was instituted. In its first form it consisted of two controllers, an Englishman and a Frenchman, the former superintending the revenue and the latter the expenditure of the country. This arrangement was of short duration. It was based upon erroneous information supplied by the Khedive and his ministers as to the real resources of the country. It was only with the greatest possible difficulty, and by the application of the most rigorous and most arbitrary measures to the unfortunate Egyptian taxpayer, that the payment of the coupon could be continued. Finally, in the hope of obtaining a reduction of the rate of interest on the debt, Ismail consented, in January 1878, to the appointment of a commission armed with full powers to inquire into the whole state of the country. The first report of this commission insisted on the necessity of a proper system of government through responsible ministers before any real reform could be effected. This was at first accepted by the Khedive, and in the new cabinet the two European controllers were changed into responsible ministers entrusted respectively with the portfolios of the ministries of Public Works and Finance. The new order soon became irksome to the autocratic spirit of Ismail. The dismissal of the ministry, followed by the opposition of the Khedive to the later measures recommended by the commission of inquiry, culminated in his deposition in June 1879. Through the joint action of the British and French Governments, the Dual Control was re-established in a different form, with increased powers. The two controllers took part in the deliberations of the council of ministers, and worked together in their supervision of the financial administration, the principle of dividing their functions being abandoned. These changes enabled the financial proposals of the commission of inquiry to be put into execution, and shortly after the accession of Tewfik they were embodied in the law of liquidation of July 1880, the next general settlement of the liabilities of Egypt. By this law the floating debt was paid off and the debt consolidated into a few large loans, the rate of interest being reduced to what it was at the time considered just possible for the country to pay. Under this settlement the Egyptian debt was composed as follows :— £22,609,0001 Privileged debt 58,018,000 Unified debt 9,513,000 Daira loan 8,500,000 Domains loan its natural result of serious financial embarrassment. In May of that year, in order to allay the apprehen£98,640,000 sions of the foreign creditors of Egypt, and to put The rate of interest was fixed at 5 per cent, on the a curb on the extravagant borrowing of Ismail, the i privileged and Domains loans, and 4 per cent, on the Caisse de la Dette was instituted. The Caisse was at first composed of only three members, a Frenchman, unified and Daira loans, the latter being entitled to an an Austrian, and an Italian, but in the following year an additional 1 per cent, contingent on certain circumstances Englishman was added. The original functions of the that have never arisen. The total annual encumbrances members were to act as the receivers of certain revenues of the country, including the tribute due to Turkey and that had been assigned to the service of the debt. In the interest on the Suez Canal shares bought by Great order to render their powers effective, they were given the Britain, but excluding the interest on the Daira and right to sue the Government in the Mixed Courts for Domains loans—which were expected to be defrayed by any breach of engagement towards the bondholders. The the revenues of the respective estates on which these loans effects of this measure were far more momentous than were secured—amounted to four and a half million pounds, was apparent at the time or than was intended by its about half the then annual revenue of Egypt. Further, revenue was divided between the Government and the authors. It was, in fact, the beginning of international the interference in the financial administration of Egypt. 1 rom bondholders, any surplus in the latter’s share after full 1 The figures of the Egyptian debt are always given in pounds this moment the period of financial reform may be said to have commenced. Shortly afterwards, in November of the sterling.