The Sun.
London, England, 1862-02-17 00:00:00

THE EGYPTIAN LOAN.

A letter from Alexandria, dated Feb. 3, says
Whether or not the Egyptian Government is to
take a loan, and who are to be the persons privi-
liged to supply the money, are questions that still
remain more or less undecided. The Imperial Go-
vernment, as I lately mentioned, have granted
authority to the Viceroy to contract the debt ; but
a difference of opinion hes arisen on the subject
with
the Prussian Consul-General. The latter
asserts that the Imperial firman solely applies to the
offer made by the German bankers, while Said
Pasha maintains that he is free to borrow the
money wherever he pleased, and on the best terms
he can get. The question in dispute could not bo
agreed upon here, and it has accordingly been re-
ferred for solution to Constantinople.
Under any circumstances it is understood that
nothing will be definitively arranged until M.
Thouvenel makes known his decision upon the
claims brought against the Egyptian Government
by the Comptoir d'Escompte. But, meanwhile,
proposals analogous to those of the German
capitalists have been made to the Viceroy by
Wale of the kcal bankers, and these offers have
been received with a degree of favour, in ge-
neral attributed to the repugnance felt by the
Viceroy to contracting a foreign debt. if,
however, this repugnance proceeds solely from ap-
prehensions of difficulties with foreign Governments,
it is not easy to see why it should greatly benefit
the Alexandrian bankers. Although resident in
.E.,eypt, they are Europeans, and they would conse-
quently have precisely the same claims as their
brethren in Europe on their respective Governments
for intervention in any question that might arise
between themselves and the Viceroy. In neither
case is it proposed that there should be a European
guarantee of any kind. It is more likely, therefore,
that the) Viceroy simply looks to the possibility of
making a better bargain.
The proposal under discussion is to issue bonds
at par for about 40,000,000 f., redeemable by annual
drawings in 30 years. An annuity of 11 per cent.,
which is that demanded by the German banks,
would thus admit of dividends of nearly 101 per
cent. per annum, besides the sinking fund. The
Viceroy proposes formally to assign certain specific
sources of territorial revenue as a pledge to the
holders of the securities for the punctual payment
of his annual obligations, and to issue the bonds
endorsed with this important condition, as well as
with special reference to the Imperial firman by
which it is authorized. Under these terms it seems
not improbable that a large number efpersons here
would be tempted to take a share in the loan. The
credit of the Egyptian Government, through its
wise perseverance in the late economical reforms,
now stands exceedingly well. The Treasury bonds,
which a year ago were at 13 to 15 per cent. discount
per annum, are now sought after at 9 to 10 per
cent., and these bonds, it must be remembered, bear
no interest, and are unsupported by security of any
nature whatsoever beyond the confidence derived
from the punctuality with which the Government
has throughout the past always met its engagements
towards the public. The only condition imposed
by the Turkish Government has been that the
Egyptian stock shall not be quoted on the European
Exchanges, and the reason seems to be, that the
Turks cannot bring themselves to face the humili-
ating contrast which the Turkish and Egyptian
quotations would certainly offer. Doubtless, there-
fore, many persons would be found here ready to
invest their savings in the new securities ; but that
the whole amount of above £1,500,090 sterling
could be taken up without the assistance of European
capital is a proposition far more difficult to meet in
the affirmative. I have therefore stated the case
With all impartiality, for the benefit of any among
your readers who may feel tempted to entertain
the idea of investing in Egypt. Comparisons,
as the Turks seem so well to know, are often
odious, but a Moorish loan having so lately been
concluded, the terms of the operation just termi-
bated and of that under discussion fall naturally op.
posite each other. On the one hand is the immense
advantage of a virtual guarantee from the British
Government ; on the other are higher dividends,
supported by security which, though comparatively
Weak, can byno means be regarded as wholly invalid.
But in all these matters, it must be owned, the
weakest point for the Government is its unfortunate
connection with the Suez Canal scheme. The reports
current here respecting the operations of the com-
pany become daily more and more unfavourable
The small channel, or rifle/0 de service, dug through'
Lake Menzaleh, is already, I am informed, almost
entirely obliterated. Whatever embankments had
been raised on either side have been washed away,
and the small boats that occasionally attempt the
passage find themselves every now and then stuck
fast in the open but shallow lake. The approaches
to Port Said are in as unpromising a state as ever,
and the cutting through the sand heights of El Gisr
it is found must be attempted, in spite of its ac-
knowledged difficulties and disadvantages; and, I
must add, it is now altogether vain for the projec-
tors of the scheme to talk of English jealousy and
animosity. Here, at all events, people of all nations
have at length arrived at a tolerably happy state of
unanimity on the subject, and none are more ready
to treat the undertaking with ridicule than the
French themselves—those, at least, who are not per-
sonally interested in it. Many even of the latter
abandon the cause, and disputes are carried before
the French tribunals, through which it is believed
that some curious revelations will ere long come to
light. Among other things that may be held to fore-
bode that the beginning of the end is drawing nigh
Must be reckoned the hints that are becoming more
and more frequently cast at the immense difficulties
and obstacles caused by English opposition. Now,
this is too unreasonable. No doubt the scheme found

little favour with the English people or Government,
and it is by no means unlikely that the Porte was

dissuaded from making over the Isthmus of Suez to

a foreign company, but surely our adversaries, to use
their favourite expression,must be prepared to admit
that the disfavour they complain of was by no
means unnatural. They themselves had plainly
informed us that the great object was to aim a blow
at what they called "le point faible de la cuirasse
Anglctise." And yet,_ beyond what I have men-
tioned, I know of nothing that can be laid to our charge. Since the first day when the work was I
commenced in the isthmus there has been no inter-
ference with it, either direct or indirect. None, in
fact, have boasted more loudly of the rapid success
with. 'Which one-half of the capital was obtained in
l'rance, and the remaining deficiency supplied by
the Egyptian Viceroy, of the crowds of volunteers
'who were flocking to the works from all parts of
Egypt, and of the impotence of England to delay
the completion of the canal by even a single day,
than th‘nte who now show an incipient disposition
to attribute failure to English illwill. I should
Avish that the eaq task of proving the utter irra-
tionality of Such
an accusation, unparalleled as is
the charge for inconsistency, at least on this side
1)f the Atlantic, could avail to silence our above-
mentioned adversaries, but any such hopes must, I
fear, be very moderatel
_ritish publjhadib.eet
indulged in. The lon,r-
-0
suffering Brit'
be prepared. to see
a fresh burden of retipsoenesiitbi
Ity fitted to its broad
shoulders. Already
C declared in the Isthmus
kio Suez journal that th© conduct of the British
p in hindering the formationondto
toit; a, naviable
channel from the Mediterranean
no less obnoxious to the reprobation of the Ica.. is
rtzekd_ world than that of the Federal Americanl:
all countries
ing up against future generations of
the harbours of the States with which they are at
war. Let us, however, at least hope that the
Egyptian Government may have the Ivisdetn—and
good fortune to guard itself against
gaipst th© more
tangible
demands with which it will undoubtedly
be threatened on the bursting of the great bubble,
for the existence of which it is, unfortunately, so
large responsible.

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