ich
$44,760,000 could be utilised for the development of the country. With
this sum the indemnities of Alexandria were paid, defects in the payment
of interest were made good, and a small sum was left wherewith to
increase irrigation and other useful works. The criminal folly of
the former lavish expenditure was now demonstrated by a brilliant
object-lesson. This small sum, when kept out of the hands of the
rapacious bondholders, and applied to the development of the rich soil
of Egypt, was found to work wonders. From the moment when the finances
of Egypt were for the first time used to develop what is naturally the
richest soil in the world, progress towards betterment grew rapidly into
the remarkable prosperity of to-day. For a time, however, the government
was obliged to use extreme parsimony in order to keep the country from
further falling under the control of the irresponsible bondholders.
Finally, in the year 1888, Sir Evelyn Baring wrote to the home
government that the situation was so far improved that in his judgment
"it would take a series of untoward events seriously to endanger
the stability of Egyptian finance and the solvency of the Egyptian
government." The corner had been turned, and progressive financial
relief was at length afforded the long-suffering Egyptian people in the
year 1890. After several years of financial betterment, it was decided
to devote future surpluses to remunerative objects, such as works of
irrigation, railway extension, the construction of hospitals, prisons,
and other public buildings, and in the improvement of the system of
education. Great difficulty was experienced in making use of this
surplus, on account of technical hindrances which were persistently
placed in the way of the Egyptian government by the Caisse de la Dette.
These difficulties are now almost entirely removed.

In 1896 it was decided, as has been narrated, to be for the interest of
Egypt to start a campaign against the dervishes. Appeal was made to the
Caisse de la Dette to raise additional funds for the necessary
expenses of the projected campaign. The Caisse, following its universal
precedent, immediately vetoed the project. England then made special
grants-in-aid to Egypt, which both aided the Egyptian government and
greatly strengthened her hold upon Egypt. By means of this timely
assistance, Egypt was enabled successfully to pass through the period of
increased expenditure incurred by the reconquest of the