244 



EGYPT. 



The movement of shipping, from 1870 to 

 1875, was as follows : i 



The total expenditures for the construction 

 of the Suez Canal and the first arrangements 

 amounted, up to the close of the year 1873, to 

 471,769,980 francs. The value of the buildings 

 and the inventory belonging to the company 

 was estimated, in 1874, at 21,795,545 francs. 

 The income of the company was, in 1871, 13,- 

 276,000 francs; in 1872, 18,325,000; in 1873, 

 24,831,127; in 1874, 26,726,145; in 1875, 30,- 

 844,636. The expenditures were, in 1871, 15,- 

 9 18, 000 francs; in 1872, 16,253,000 ; in 1873, 

 17,346,109 ; in 1874, 18,667,568 ; in 1875, 17,- 

 946,547. Surplus in 1872 (the first year which 

 showed a surplus), 2,071,279 francs ; in 1873, 

 7,485,077 ; in 1874, 8,059,577. 



Mr. Cave, who was sent to Egypt by the 

 British Government at the close of 1875 (see 

 ANNUAL CYCLOPAEDIA for 1875) to examine the 

 financial condition of the country, finished his 

 examination and made his report in March. 

 The report began with a criticism of the past 

 administration of Egyptian finances, and an 

 inquiry into the causes which had brought 

 about the state of things then existing. The 

 country had suffered much from the dis- 

 honesty and wastefulness of its officials. The 

 Khedive's Government, with the intention of 

 raising enough capital to pay off the floating 

 debt, had made a law enabling land-owners to 

 commute the land-taxes on terms which en- 

 tailed the sacrifice of half the revenues from 

 this source for all time, for the sake of obtain- 

 ing eleven times the annual amount for the 

 period of twelve years. The result was disas- 

 trous, in that the sum at present only sufficed 

 to pay the interest on the floating debt, while, 

 after 1886, the Egyptian revenue, which now 

 produced $53,445,350, would by the operation 

 of the above law lose an annual sum of $12,- 

 250,000. The normal expenditure of the Gov- 

 ernment was about $45,403,405, more than 

 half of which was devoted to the service of 

 the debt. Every available portion of the rev- 

 enue was pledged as security for the loans. 

 The present pressure arose from the Khedive's 

 inability to meet the bonds of the floating 

 debt, which were continually falling due, and 

 were estimated to amount to at least $91,- 

 215,380. The second part of the report re- 



ferred to the possibility of combining and 

 consolidating the whole debt, in the event of 

 British credit taking the place of Egyptian 

 credit, in which case a diminution of the rates 

 of interest, resulting from the guarantee by 

 England, would allow of the entire repurchase 

 of the Suez Canal without imposing fresh bur- 

 dens on the country. This combination was, 

 however, rendered impossible through the op- 

 position of other governments. In the third 

 part of his report, Mr. Cave suggested the con- 

 version of the whole Egyptian debt into a 

 stock bearing seven per cent, interest, and the 

 appointment of a person who should inspire 

 confidence at the head of a Board of Control 

 to supervise the collection of taxes. Mr. Cave 

 thought that if the present debt were replaced 

 by one bearing a moderate rate of interest, 

 there was no reason why the country should 

 not quickly recover, as its revenues were 

 deemed sufficient, if properly managed, to meet 

 its liabilities. In the course of the debates in 

 the British Parliament, March 31st, on Egyp- 

 tian finances, a statement by Mr. Disraeli, that 

 the Khedive was opposed to the publication 

 of the report, excited some question ; but the 

 explanation was made that the report con- 

 tained statements concerning the transactions 

 between the father of the Khedive and the 

 great powers which were not suitable for pub- 

 lication, but that the practical 'results of the 

 report, as well as the statement of the present 

 condition of Egyptian finances, would be made 

 public at an early day. The report was actual- 

 ly laid before the Parliament on the 7th of 

 April. 



At the beginning of the year the Italian 

 Government sent Signer Scialoja to Egypt to 

 effect a financial management with the Khedive 

 in the interest of the Italian creditors. In 

 May he was appointed by the Khedive presi- 

 dent of a newly-constituted Chief Council of 

 Finance, and shortly afterward made a report 

 substantially agreeing with that of Mr. Cave, 

 and advised the Khedive to adopt a plan of 

 settlement very similar to that recommended 

 by the English agent. Negotiations were 

 opened in April with French parties proposing 

 to relieve the most pressing necessities of the 

 Khedive, and undertake the settlement of af- 

 fairs, to the defeat of the English plan, but 

 they were very soon broken off. On the 25th 

 of May the Khedive issued his decree for the 

 unification of the public debt. It provided for 

 the issue of seven per cent, bonds, with inter- 

 est from the 15th of July, 1876, to be redeem- 

 able at par within sixty-five years, with half- 

 yearly drawings; to be issued to bearer, in 

 amounts of 500, 2,500, 12,500, and 25,000 

 francs each ; coupons not to be subject to any 

 tax by the Egyptian Government, and both 

 coupons and bonds to be paid in gold, without 

 deduction, at Cairo, Paris, or London. Messrs. 

 Von Kremer, De Blignieres, and Caravalli, for- 

 eign commissioners, were appointed directors 

 of the commission for liquidating the public 



