The Sun.
London, England, 1861-10-17 00:00:00

Now that a foreign loan seems out of the ques-

tion, the only expedient that is suggested is to con-
tinue the issue of Treasury-bonds, or of some other
securities of a similar nature; the object, of course,
being to raise funds wherewith to meet liabilities as
they fall due, and thus to remove the due dates to
more distant periods. I need now only add that the
market rate of discount on existing Government
bonds is about 10 or 12 per cent. per annum, and it
becomes evident enough that the expedient under
consideration is, to say the least of it, a very deli-
cate one. In fact, if nothing better can be devised,
it becomes a question whether, with the best pos-
sible wishes and intentions, the Government, in-
stead of extricating itself, may not become more and
more deeply involved, not merely in a stationary
debt but in an increasing one. But the question is
one upon which your readers will form their own
conclusion, and I recommend it especially to those
who have had opportunities of watching the result
of similar transactions in commercial or private life.
As yet no definite course has been finally decided
upon, but the Viceroy continues resolutely to perse-
vere in his measure of retrenchment. A quantity
of silver plate and other valuable articles has just
again been advertised for sale by public auction,
and the greater part, if not the whole of his jewelry,
may shortly be expected for sale on the London or
Paris markets.

Strong as is the interest that naturally attaches
to these questions, they have latterly well-nigh
been completely forgotten under the threats of a

more immediate calamity that has been hanging
over the country, or which, indeed, I ought to say,
has actually fallen upon many wide districts, owing
to, a rapid and excessive rising of the Nile.
It is hardly more than a week ago that fears, ex-

cited by the extraordinary height of the river, and
more especially by the continuance of its growth,
began powerfully to manifest themselves through-
out the country. Gradually the embankments
along the river and canals became crowded
with the village population, watching and strength-
ening the weak points of the dikes, upon which the
safety of their lands depended. The Governors of
the provinces and the whole official staff down-
wards soon also followed, and took up their quar-
ters in tents pitched at the several points of danger,
where they had to occupy themselves in urging and
directing the peasantry in their labours for the com-
mon safety. The scene as viewed from the river
has been described to me as a most singular and
exciting one, and at night, from all directions, far
and near, the fires of the watchmen came gleaming
through the darkness over a wide expanse of swift-
rolling and angry-looking waters. The next intel-
ligence we received at Alexandria was that the
flood had attained the level of 24 cubits and 16
karats, or 24ths, a height unparalleled for some 25
years past, and by which the whole country was
thrown into a state of consternation. Then fol-
lowed accounts of damage and losses in various dis-
tricts, all more or less severe, though fortunately
still of a local character. But the progress of the
waters had now become a question of inches, and it
was felt that with the slightest increase every em-
bankmentm ust give way, and the entire length
and breadth of
the
country
be abandoned to a
devastating flood.
Since then the information that has come to hand
is to the effect that the river is subsiding, though
not without having caused a lamentable amount of

damage.
On the night of the Ist inst. the waters broke
through from a canal on the western side :of the
river, near the railway. The latter has been de-
stroyed, telegraph posts and wires torn up and
washed away, and some ten miles at least of coun-
try laid under water. A goods train that was sent
up with an engineer and platelayers pulled up for
a moment at a place where the regular passenger
train had just passed before them. The embank-
ment immediately began to give way from under
them, and the carriages sank down into the water.
The men took refuge upon the roofs, but after a
while found that both before and behind them the
earthen embankment bad entirely melted away
from under the rails. They had to adopt the only
means for saving themselves that offered—to drag
themselves through the water along the rails, their
only guide in the darkness that had set in, until
they reached dry land, in a state of utter exhaus-
tion, and some among them having been on the
point of letting go their hold and of resigning
themselves to what seemed an inevitable fate.
Yesterday intelligence came from the Delta of
similar damage to the railway from Kafr Zayat
towards Benha, which has likewise become impass-
able, and in several parts is altogether destroyed.
Cut off as we are from communication with the
interior, both by rail and telegraph, it is impos-
sible to come to any conclusion possessing the
slightest pretensions to accuracy of the amount of
injuries and losses that have been experienced
throughout the country. But day by day we have
received intelligence of fresh disasters. The greater
part of the standing crop of Indian corn is univer-
sally declared to be lost. In Upper Egypt, the
, crops of dura seyfi, or holcas, which, as in the case
with Indian corn in the Lower Country, forms
there the staple article of food, must in like manner
have been swept away. Many villages have been
entirely overwhelmed, and immense losses of cattle
are spoken of, and even of human life. Granaries,
both Government and private; have been flooded,
and already it is said there is an intention to pro-
hibit the further exportation of grain from Alexan-
dria, so as to secure a sufficiency of food until next
harvest. From the cotton districts, where the pro-
cess of picking the first ripe pods had just com-
menced, we have also accounts of heavy losses, to
the extent of atleast in great measure reversing the
sure anticipations so lately entertained of an un-
I usually heavy crop, an event the more deplorable

at this moment, when the value of this aescription
of produce is raised to an eitraordim.,ry point.
Steamers have been collected for t:10 transit of
the outward Calcutta mails and passent7 ers. The
passengers will be conveyed by rail from the land-
ing-place t 3 Kafr Damar, the first statiot beyond
Alexandria, and thence by way of L'he c: anal and
Nile to Boulac.
It is calculated that at least two or flax Te months
will be required to repair the damages to I,ahe rail-
way, and to admit of a resumption of the tisaffic*
The expense which this alone will inflict upon
Government amid its other losses, all which it can
so ill afford, may easily be conjectured.

OCTOBER 8.

The Calcutta and China passengers who arrived
at Suez on the evening of the sth inst. have only
this day reached Alexandria. The mails and cargo
will be down this evening.
We have received few authentic details of the in-
undations to fill up the general account I have
already given you; but things seem quite as bad as
they were at first described. A vast extent of the
Delta is desdribed as presenting the aspect of ono
sheet of water. The river has, however, fallen to
24 cubits. From the cotton districts, which lie
chiefly beyond the eastern branch of the Nile, re-
ports agree in stating that a large portion of the
crop is lost or damaged, though it still seems impos-
sible to form an estimate of the amount. An im-
mense number of villages have lost the whole of
their stock of grain, and will have to look to the
Government even for seed.

The losses to the latter will be enormous. A
piece of good news has, however, come forward by
the French steamer—namely, an offer from Frank-
fort of a loan of 60,000,000 f. to 70,000,000 f. at 11
per cent. interest per annum, redeemable in 30 years,
and without any demands of special security.
Nothing, of course, could be more opportune. But
there is a report, which obtains very general credit,

that the French Consul-General has raised some
opposition to the contract being concluded. What
could be the object of such interference it is not
easy to conceive, but it is still more difficult to guess
upon whaireasonable grounds such opposition could
be based.