New-York tribune., 1875-12-09
ENGLAND AND EGYPT.
PREMIER DIsRAELrs MAsrERsTRoKE.


RAnI SUSTAINED by THE PKOPLk-PoLIfiCAL
IMPORTANCE OF TIE PURCHASE.
IYRoM THR REGUiAR CORRESPONDENT OF THE TBIBUNRl
LONDON Nov. 27.-The public announcement OF
the purchase of the Kh6dives shares in tho suez
Canal was made yesterday. There is reason to be-
lieye that il is not more than ten days since the
English Government has had the scheme under con-
sideration. The secrecy and suddenness with which
he have been carried on and the decision
arrived NJ, are not less surprising than the courage
with which great opportunity has been seized 1t
is probable that the higher credit of percoivng the
opportunity and taking the initiative in great stroke
must be denied to the Government. IL was not,
so far as We can learn England which proposed 10
the KbGdiye TO SELL but the Kh6dive who asked En-
gland to buy. And it appears that 1t was not hl-
gland TO which he first applied. He was IN urgent
need of money. as all the world know. lie mas
floating debt of some S7O,OCO,OOO, and he was ul-
dor the necessity Of providing immediately for
large amount of Treasury bonds-not less than hree
millions sterling. His Treasury was empty, his
borrowing powers exhausted, u catastrophe seemed
almost inevitable In these straits he bcthought
himself of his Sucz Canal shares, and an
application was made TO French fnancers to pur-
chase them or to lend money on them But
il happened that these particular shares stood IN ali
unfayorable position. He was, il is true, the I'M
doubted owner of 17GGO2 shares, fully paid mp, out
of 400 900 shares into which the capital Of the
Company was divided. Their par value is 800, ana
the market value of ordinary shares was 1l3S, with
every prospect of a steady rise the Company nav
ing paid dividend Of per cent last year ana the
canal traffic rapidly increasing, while the expenses
bore an unexpectedly small proportion to the gross
receipts which last year were over F1,OOoOOO,
from which less than 81 25O, ,O0O-that IS less than
25 per cont-had to be deducted for expenses. But
the difficulty With the Khedive's shares was that he
had anticipated % years interest on them. In
other words. having t0 pay the Company T6,OOOOoO
IN 1869 or the repurchase Of certain concessions he
had done it by surrendering to them % years cou-
pons on these shares The shares We're therefore so
much capital which could earn nothing for IL years,
and when the Kh6divc tried TO raise money on them
from French capitalists. the terms offered were such
IA seemed even TO him too extortiOnae 70 he borne
In this extremity he applied TO the English Govern
ment which after brIef ncgotiatiOns-which must
have boen carried on wholly by teeTaph-bought
the shares outright for $20,OO0,0OO. On
this sum the Kh6dive agrees TO pay interest
at 5 per cent till the shares more become en-
titled to participate in tho dividends of the Com
pany He renquisheS. moreover, with respect to
these shares-and to purchaser in the position OF
England this is no slight gain-the TevcrsiOn which
belongs to him at the end of 30 years The bargain
ia subject t. the ratification OF Parliament but the
kHedlNC gets MS money AT once. lt - tiippMbl'u
TO draw on the RothSchds for the whole sum they
it is understood holding the shares as security pend
ing the meeting of Parliament and the repayment
Of their advance.
Such in brief is the financial history of tranSac-
ton destined to have political history ncalculably
more important than its financial results. Looked
at OH the mercantile side, 1t Is good bargain for
both parties The Kh6dive gets his money on easy
terms. and England gets what will prove con-
trolling interest in the Sucz Canal at a reasonable
price. She viii even make money on her stock be
fore she shares in the companys dividends, for she
will borrow at 31 per cent the four millions sterling
she londs at D. If she did not make penny-uay,
if she gotno interest at a-the advantage of having
a decisive voice in the management OF the canal
would be worth 10 her many times Che cost of her
investment. IL is settled that her commerce with
India must take this route. OF tho whole tonnage
passing through the canal 20 per cent is English.
Nothing else is necessary 70 prove the financial pr
dence Of her new undertaking.
What will he its political effect Its effect on
domestic politics is to lft Che Government at one
bound from "a position of discradit and almost dcs-
pondency 10 position in which it Is once more up
held by The confidence OF the nation 1t has done an
act without precedent, for which 1t has no legal
authority: which costs !ourmillions Of money down,
which may involve the CXpaLditure OF ten millions
more to complete the purchase of the caual, should
that De thought advisable which commits England
10 the maintenance OF her right of way through
Egypt; and which may be the direct cause Of war All
this issCen at a glance. The Ministry which does il
allows lis act TO become known from other sources,
accompanies 1t by no cx y,auation offer, apology
makes no appeal to the nation, stands absolutely
dumb while the momeutous intelligence i, given to
the public and becomes instantly the sole topic of
thought and cOnyeIsatinl among every class. No
hint is given that Parliament Ia To he summoned any
sooner than usual. The CIecn it Il sad, was only
told of the resolve at the last moment. Nh Disrae
went down 20 Windsor on Thursday afternoon, spent
the night there and returned early Friday morning
the morning when the news was told. II is per
haps no great matter what tho Queen thinks such
question. but on wLai the people should think
hung tho life death of the Ministry and the poli
cal future of England. at home aEd abroad. 1t
seems to me that Mr Dsraeli-for he Is the Ministry
and his she only will in the Goveulmcnt-shOwcd
ainos. as much bolducss IN thisway of letting the
act publish itself as in resolving on the act. He
showed at any rate. that nc understands tle En-
elsh people There has not been moments
hesitation in their answer. Liberals have Wed
with Conservatives III applauding a decision
which once more asserts Englands claim to
an imperial position; which puts an end to
all doubt, if doubt there were, that she means
to maintain her empire, peaceaby II she can. forci
bly, N she must Inc DlunCcIs winch Iia1 brought
the administration SO low that already leading
Liberal had been heard 10 predict that the Tories
would be out in another year. forgotten. They
will be rocollected by and by. doubt but for the
moment the Government has the whole country be-
hind them and that is a fact which foreign pow
ers have to take into account in making up
deir Judgment on Che situation newly presented to
them.
Whether any foreign power has been consulted in