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
'adi 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. Thou-
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
serdgis, 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 cent.
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 E, 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
ao
sf
may
gradually notg
Viceroyeb. e
tr.eabsorbed a
and
dy
finally
yuenxttsi
et t
go
uihe e
h i
n g objectth e
floTathine
left this morning on a visit to the
Suez Canal works, accompanied by his nephew,
Mustapha I 'asha. M. de Lesseps was awaiting their
arrival in t he Isthmus for the purpose of rec9iving
his illustric pus visitors with all dne honour.
A circuit Istance has lately been repTtreedadtethrhesanti—l
which seet us of so extraordinary a nature.
to the pro-
gramme omit mentioning itt.ter.,oyrociving
are
a cannotware
thatwel the projected canal,
by
..urse the company's
down for its cr-
tne elevated lands lying be-
egnrgaininmeee:rsl,a wasid to cross
tween Has el 13e:iiah and Lake Timsah, and that a
cutting conserpently became necessary at this part
of the li .ne, reaching a depth of some 05 to 70 feet.
The vroigr had actually been commenced for the pur-
pogo 9f outlining the re,* d 6 fervice, or prelinai-

nary trench that has been constructed from PoriT
Said, through Lake Menzaleh, to Kantara ; but a
few days ago we heard of its having on a sudden
been discovered that by a deflection of only some
four or five miles to the eastward the difficulty
would be entirely avoided, that the canal would pass
through a tract of country actually on a level with
the sea, and where the engineers need simply follow
the existing vestiges of an ancient canal, It seems
almost incredible that so important a fact should not
have been discovered when the country through
which the great:canal was to pass was first surveyed;
more especially so since the termination of the ele-
vated land or ridge of El Gisr, and the traces of an
ancient canal are distinctly indicated not only in Li-
nant Bey's map, but also in others of far older date.
In consequence of this discovery it is announced
that the canal will proceed with even far greater
rapidity than has been promised. But the oddest
part, perhaps, of the matter is an admission that,
as regards this particular portion of the canal "Les
Anglais avaient un peu raison," in laying some
stress upon the difficulty there would have been to
prevent its bed from being choked up with sand.
But this objection is now, of course, altogether at
an end.

I hope I shall not expose myself to indignant
charges of jealous hatred, malice, and uncharitable-
ness when I add that I have heard more than one
impartial person express it as his belief that there
must be more in the matter than meets the eye.
The telegraphic intelligence received from Eng-
land within the last few days has caused among the
great majority of the Alexandrian merchants a
complete suspension of business in cotton. The
mercantile community of this place is composed, as
you are aware, of persons of all nations, and in
general they are very bold speculators. But on this
occasion their fears seem fully awakened, and the
grounds for these apprehensions, as stated here on
all sides, singularly illustrate how general has be-
come the belief that the United States Government
may allow itself to be guided by what they may
imagine will gratify popular passion, rather than by
a sense of what is due to true national dignity and
self-respect. The decline in the value of cotton
from its highest point this season may at present
be estimated at nearly 7 dols. per cantar.