252 THE MARITIME CAKfAL OF SUEZ. 



Under this arrangement the Bonds were fixed at ;^s per Bond, 

 bearing interest at 8 per cent., to be repaid over a period of thirty 

 years, by annual Lottery drawings, and to be issued at the price of 

 jQi\. per Bond, thus therefore at a discount of 20 per cent. 



In June, 1874, the Company was, for the third time since the 

 opening of the Canal, placed in financial difficulties, arising from 

 the non-payment of the half-yearly coupons during 187 1, 1872, 1873, 

 and 1874; and to meet the complaints of the dissatisfied share- 

 holders, a financial operation was executed, by which the total 

 amount payable for the seven half years' interest due to the 

 shareholders of ;^i, 400,000 was capitalised. To meet this sum, 

 script, corresponding to the number of shares, was issued to the 

 shareholders in lieu of their unpaid coupons, viz., 400,000 of script, 

 repayable in forty years, at the price of issue of 85 francs, equal to, 

 say £z 7s- 6d. 



ENGLAND BUYS THE KHEDIVE'S SHARES. 



So far back as 1870, Ismail Pasha had expressed a wish to dispose 

 of his shares in the Canal, as he appears to have conversed with the 

 Consul-General of England on the subject, and to have informed him 

 that he was in favour of the' formation of a new Company under 

 English management and control, as the only way, not only to place 

 its finances on a sound basis, but also to develop the general 

 navigation of the Canal. 



Her Majesty's Consul-General communicated this conversation to 

 Lord Granville, Secretary of State for Foreign Affairs, and the 

 proposal meeting with his approval, he instructed Colonel Stanton 

 to collect all the information in regard to the financial position of 

 the Company, and this investigation showed that the financial 

 position of the Company was far from satisfactory. 



Considerable opposition was shown by Ferdinand de Lesseps 

 to this proposal, because he was naturally adverse to the manage- 

 ment and control of the Canal passing from France to England ; 

 yet, as an alternative scheme, he suggested to the Khddive, that the 

 Canal should be made International, that it should be purchased by 

 the Maritime Powers of Europe, and this proposition was supported 

 by M. Thiers, on behalf of the French Government. The Khedive 

 was not in favour of this arrangement, and he was strengthened in 



