[Extracts from the Report of 1901.] 



The distinctive feature of the Egyptian plan for dealing with this 

 interesting and important subject is that a certain amount of 

 co-operation is established between the Government and the National 

 Bank. The Bank makes the advances, and incurs the whole financial 

 responsibility of the undertaking. The Government, through the 

 agency of its tax-gatherers, collects the money due to the Bank at 

 the same time as the land tax. Thus, the Bank, being relieved 

 of the necessity of maintaining an expensive staff of subordinates, 

 is able to advance money to the peasantry at a relatively low rate of 

 interest. 



Since the Bank commenced making these loans in 1899, over 

 34,000 loans have been contracted ; relief has, therefore, been afforded 

 to an equivalent number of small proprietors. There are now 15,269 

 loans outstanding, for an aggregate amount of E.402,000 ; of 

 these, 3,326 are repayable within the year, and 11,943 repayable in 

 five years. 



The amount that fell due in 1901 was E. 146,000. This sum 

 was due from over 21,000 borrowers. The whole amount, with the 

 exception of E.600, had been recovered on the 31st December 

 last, and the small sum still owing will probably be collected this 

 year. 



The objection to the plan adopted in Egypt is that the class of 

 operation involved is more properly the work of a Land Bank than 

 of an ordinary bank. The National Bank of Egypt cannot reasonably 

 be expected to lock up more than E.400,000 of its capital in 

 undertakings of this nature. For the moment, the difficulty has been 

 met by the Government advancing E. 250,000 to the Bank. This 

 will, at all events, enable the operations to continue for the time being. 

 Whether any more complete change of system will be necessary must 

 be a matter for subsequent consideration. There can, I venture to 

 thi^k, be no question of abandoning the experiment which has so 

 far proved eminently successful. There can be no doubt that the 

 Egyptian fellaheen begin to realize the advantages of getting money 

 at a moderate rate of interest, and that they are willing to take the 

 opportunity now afforded to them of shaking themselves free from the 

 grip of the village usurers, From all 1 hear, I do not doubt that it 

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