462 PROVISION OV BORROWING FACILITIES. 



agent amongst the people of the district of any standing, they being 

 nearly all money-lenders themselves. An outsider had, therefore, to be 

 appointed ; he had great difficulties at first, but the people of this dis- 

 trict now begin to realize the ad vantages, and are dealing with the Bank." 



I stated last year that I considered the scheme as an experiment. 

 I am still of the same opinion. Some long time must, in fact, yet 

 elapse before it can be considered as having passed out of the ex- 

 perimental stage. Manifestly, the main danger is that the cultivators, 

 being once free from crushing debt, will use the margin of income 

 they thus obtain to incur fresh debt. That some of them will adopt 

 this procedure is highly probable. That the majority will fall into 

 the same error is very far from being certain. Any opinion on this 

 subject at present ean be little more than a matter of conjecture. 

 Lengthened experience alone can show whether, now that the taxes 

 are no longer arbitrary and capricious, and the rights of property are, 

 in fact as well as in name, secured by law, the fellaheen of Egypt will 

 abandon the habits of extravagance of which they have so often been 

 accused, and develop national habits of thrift. I can only speak of 

 my personal opinion, formed after long residence in this country. It 

 is that, under favourable conditions for the exercise of economy, the 

 Egyptian peasant will probably prove more thrifty than the English, 

 though less so than the French member of a corresponding class of 

 society. I am encouraged in this belief by the following remarks 

 which have been addressed to me by SIR EDWIN PALMER. " There is," 

 he says, " nothing to indicate that the fellaheen, once relieved of 

 their onerous debts to the money-lenders, are inclined to plunge again 

 into debt, beyond the debt to the Bank ; indeed, the facility with 

 which the recovery of the loans or instalments has been effected would 

 seem to show that this is not the case." 



However this may be, it is abundantly clear that the experiment 

 which is one of great interest and importance, is well worthy of a 

 further and prolonged trial. 



Before leaving this subject, I wish to make a few remarks, which 

 may be interesting both because they are illustrative of the practices 

 of the village usurers, and because they may serve to explain the 

 advantages of the conditions now offered to the villagers by the Bank. 



I have occasionally heard it stated that 10 per cent, is too high 

 a rate of interest to charge, as the fellahejn can often obtain loans 

 at that rate from the local money-lenders. 



