Evening journal., 1913-05-19
NEW NEWS OF YESTERDAY
How DiSraeli Bought the
KhediYe'S Suez Canal
Stock
BI Honsnd.

was chatting with the late
Frederick H. Tappen. who was for
many years president Of the Gallatin
National Bank, New York city, an in
slitution. which no longer exists. at
tho time when an earnest effort was
made to induce the United States to
decide upon the Nicsraguan route in
preferences to the Panama for the
canal frim the Atlantic 10 the Pacific.
Il mover hear discussion about the
isthmian canal based upon the dis
pute as TO whether the Nicaragua or
the Panama route is tho better with
out thinking Of something which
learned twenty-five years ago and
which was associated I'm my mind
with one Of the great traditions clus-
tered around the name OF Albert Cal
latin, for whom my bank was named,
said Mr. Tappen.
81 think IL was two or three years
after the khedivo Of Egypt sold his
stock in the Suez Canal TO Great
Britain and In that way gave Great
Britain tho command of the can !
and practically authority over Egypt
that ! heard OF tho manner in which
Disrael. who was then prime MIN
lister, acted without the slightest au-
thorty for purchasing tho canal.
The information came TO me con-
fdcntially from 2 banker who was
personal friend and who had
learned the story. also conhdentially,
in London. II seems that by pure
chance somebody had learned that
France was dickerng With the khc-
dive Of Egypt for the purchase Of
the stock IN the Suoz canal which
the khodiyc owned. There had been
somc hageing about the terms and
for that reason there WAS considera-
BILE delay.
THE man who learned that ncgo-
tations were i'm progress mentioned
The fact incidentally to a friend who
was the editor of ono OF the London
newspapers. That editor went almost
Immediately 10 msraei lie said
the prime minister that he was ccr-
tain that il England stepped IN and
I'D not hagsie sb )G the terms she
could tuy tho khcdNcs stock. The
luttcr Nps ready TO sell his stock for
a5out s2O,0OO,OOO,
"Disracli said that he had no au.
thority to purchase the stock and
that he did not have the money TO
nay for II. Moreover. he had no grant
from Parliament. and II the matter
were brought before Parliament then
The French would got busy and prob
ably close the bargain.
'lt WAS suggested 10 Disrael that
the R0thschilds would advance him
The money and Disraeli replied that
II they were ready 20 take the risk
be certainly would not be behind
them. The Rothschilds were instant
~ appealed to. and although tine
amount was very large, yet they
agreed TO furnish twenty millions.
Disraeli took the money. made the
bargain instantly with the khedive.
England got the stock in that way.
and OF course Parliament later made
an appropriation with which the
Rothschilds could be paid.
'It was a tremendous stretch of au-
thority. and on the fact OF it, a
very great risk still if Disracli had
not been able to get the money from
Parliament he could have turned the
stock over to the Rothschilds."
I said when I heard that story that
it was very similar in some Of its
features of an experience which Mr.
Gallatin had when secretary OF the
treasury in tho administration Of
Thomas Jefferson Napoleon Bona
parte agreed with certain Ameri-
cans who we're i'm Paris to sell Louisi-
ana territory to the United States for
Sl5.00O.00O. Jefferson had no author
ity. as he aftcrward admitted, 10 con
cludc the bargain. but he realized
that the opportunity was too great too
Justify letting il slip by. lie there
fore closed the bargain and then left
il 20 Mr.. Gallatin to raise the money
Congress assented TO the purchase.
but at that time the United States
was very poor. and Gallatin was
having a dreadful time In straighten-
ing out our treasury affairs and get
ting tho department into good condi-
ton Suddenly he found that he
WAS compelled 10 raise si5,000.000
with which TO pay Napoleon Bona
parte. He managed 10 do il. but !
don't think the history Of the treas
ury department. not even in the dis
trcssing times OF the Civil War. tells
story Of a more desperate exigency
than that which Gallstin confronted
when he was compelled to raise sl5.-
100000 when the times were so hard
so that the United States could make
good a bargain which Jefferson him
self admitted he had no authority un-
der the constitution to make
Disraeli took the risk and accepted
the opportunity. and England owns
the Suez canal aud Egypt. Jefferson
took tho risk and accepted the oppor-
tunitv and Gallatin found the Sl5.-
100000 which gave TO the United
states the entire Louisiana territory
Copyright, 1913. by p. j. Edwards
All rights reserycd)
Tomorrow Mir. Edwards will tell O'
Beating John Sherman in the Mat
ter OF q Postmaster"