The Sun.
London, England, 1861-12-16 00:00:00

AFFAIRS OF EGYPT.

A letter from Alexandria, dated Dec. 4, says :
The financial question, to use the ill-omened expres-
sion that has been adopted here, wears pretty
nearly the same aspect it did when I last wrote on
the subject—that is to say, that but little has tran-
spired to assist the public in coming to a definite
estimate of the means by which the Government is
to find an issue from its difficulties, or the length of
time that may be requisite for bringing about so
desirable an object.
That little, however, I am glad to say, seems
favourable. It is true it does not appear that any
terms have been concluded with the Comptoir
d'Escompte for the settlement of the old of
28,000,000 f. The first instalment, you are aware,
was paid out of the proceeds of an estate in the
Wadi Toumilat, which was sold by the Viceroy to
the Suez Canal Company. For the remainder nego-
tiations are still in progress at Paris, and M. Thon-
venel, I am informed, has by mutual consent been
appointed to seek some arrangements that may be
acceptable to both parties. A French statesman
will no doubt be able to sympathise in misfortunes
which in their character so closely resemble those
under which the Treasury of his own Government
is suffering.

Meanwhile, in accordance with the original
terms of the contract with the Comptor d'Escompte,
the Viceroy refrains from issuing fresh bonds or
sertlgis, while those in circulation are punctually
met as they fall due. Hence, doubtless, it arises
that the value of these securities is maintained at
their former rates, of about 101 to 111 per tent.
per annum discount. It is, moreover, hoped that
the Government will be able to continue in the same
course until a final mode of settlement is agreed
upon for ending the contract with its Parisian
creditors. The sales of plate and other articles,
although many of the latter especially have been
disposed of at a ruinous loss upon their first cost,
have brought in a good sum. The expenditure of
the Government is maintained at a greatly reduced
rate, and, according to the arrangements concluded
between the Viceroy and the Suez Canal Company,
the balance of 68,000,000 f. that will become due,
in addition to the bonds for £600,000 already held
by the company, will not be called for until the
year 1868, and will then be paid in annual instal-
ments of 8,500,000 f., extending until the year
1875. The relief thus afforded to the Government
will of course be of most material consequence to it.
The bonds of £600,000 above referred to fall due
from 1863 to 1866,

The circumstances I have thus detailed are very
satisfactory, but they are of course altogether insuf-
ficient to exempt the Government from the neces-
sity of seeking external aid. As to the means that
may be adopted to obtain it, little else can be offered
but conjecture. For the present there is no fur-
ther question of a foreign loan. The French Go-
vernment has disavowed the proceedings of its
Consul-General, who, as I informed you, interfered
to put an end to the negotiations with the German
capitalists. But since then more stringent orders
than ever, we are assured, have been issued by
the Porte. Not only is the Viceroy re-
strained from granting any portion of the public re-
venue as security for sums that might be borrowed,
but he has been prohibited from contracting a foreign
debt on any terms whatsoever. If this be so, it does
not appear that there will be any other alternative
but to resume the issue of Treasury bonds, using the
proceeds for the purpose of throwing back the
echeances of existing engagements to more distant
dates, and applying as much of the surplus revenue
as may not be absorbed by discounts to the object
of gradually reducing and finally extinguishing the
floating debts.

The Viceroy left this
i\, I Suezu sta Canalpha
visit to the
arrival in the Isthmus for the purpose was awaiting their
his illustrious visitors with all du of receiving
our.
A circumstance has lately been° honour.
A Pasha.isi.
de
emorning on a
reportednat thence
which seems of so extraordinary that I
cannot well omit mentioning it. Your readersure are
aware that the projected canal, according to the pro
gramme laid down for its course by the company's
engineers, was to cross the elevated lands lying be-
tween Ras el Ballah and Lake Timsah, and that a
cutting consequently became necessary at this part
of the line, reaching a depth of some 65 to 70 feet.
The work had actually been commenced for the pur-
pose of continuing the reyole de service, or prelimi-