[Extracts from the Report of 1898.] 



As an experimental measure, the Government at one time advanced 

 E. 10,000 in small sums to the fellaheen. The experiment proved 

 sufficiently successful to afford encouragement for private enterprise 

 to enter this field of action. The Egyptian Credit Foncier consented 

 to lower the minimum amount of its advances to E. 100. Inas- 

 much, however, as the advances made by village money-lenders are 

 generally in small sums of less than E. 10, it was evident that the 

 limit of E. 100 was still too high to reach the majority of those 

 whom it was desirable to relieve. 



A further tentative step has now been taken in the direction of 

 dealing with this question. The newly-created National Bank is 

 about to make advances of small sums up to 20 at 9 per cent, 

 interest. Further, the Bank offers advances up to 1 00 at the same 

 rate of interest, to those who wish to pay off their old debts ; repay- 

 ment to the Bank will be made in five yearly instalments due in 

 October of each year, that is to say, at the time the cotton crop is 

 gathered. All such advances will be reported to the Government, 

 who will instruct the tax collectors to enter them on the "Wirdes,"* 

 and effect the recoveries with the taxes. 



The 9 per cent, interest will be distributed as follows : 1 per 

 cent, will be paid to the local agents of the Bank ; per cent, will 

 go to the tax collectors ; the remaining 7 per cent, will be retained 

 by the Bank, which will be put to some expense, notably in the 

 direction of appointing a thoroughly trustworthy European Inspector, 

 who will visit the villages and control the action of the local agents. 

 The services of an official of this description are indispensable. 



The experiment will, for the present, be tried in one district only. 

 Should it prove successful, the Bank will be prepared to extend its 

 operations. 



As the fellaheen at present habitually borrow money at exorbi- 

 tant rates of interest sometimes as high as 40 per cent., and even 

 higher it is probable that advantage will be taken of the terms 



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* The "Wircle" is the Schedule in the possession of each landowner, setting 

 forth the amounts due for laud tax and the dates at which payments should be 

 made. 



