the natural sequel to this new
"South Sea Bubble." All who took part in this carnival of folly ought to
have suffered alike, Ismail and his beys along with the stock-jobbers
and dividend-hunters of London and Paris. In an ordinary case these last
would have lost their money; but in this instance the borrower was weak
and dependent, while the lenders were in a position to stir up two
powerful Governments to action. Nearly the whole of the Egyptian loans
was held in England and France; and in 1876, when Ismail was floating
swiftly down stream to the abyss of bankruptcy, the British and French
bondholders cast about them for means to secure their own safety. They
organised themselves for the protection of their interests. The Khedive
consented to hear the advice of their representatives, Messrs. Goschen
and Joubert; but it was soon clear that he desired merely a comfortable
liquidation and the continuance of his present expenditure.

That year saw the institution of the "Caisse de la Dette," with power to
receive the revenue set aside for the service of the debt, and to
sanction or forbid new loans; and in the month of November 1876 the
commission of bondholders took the form of the "Dual Control." In 1878 a
Commission was appointed with power to examine the whole of the Egyptian
administration. It met with the strongest opposition from the Khedive,
until in the next year means were found to bring about his abdication by
the act of the Sultan (June 26, 1879). His successor was his son Tewfik
(1879-92).

On their side the bondholders had to submit to a reduction of rates of
interest to a uniform rate of 4 per cent on the Unified Debt. Even so,
it was found in the year 1881--a prosperous year--that about half of the
Egyptian revenue, then L9,229,000, had to be diverted to the payment of
that interest[359]. Again, one must remark that such a situation in an
overtaxed country would naturally end in bankruptcy; but this was
prevented by foreign control, which sought to cut down expenditure in
all directions. As a natural result, many industries suffered from the
lack of due support; for even in the silt-beds formed by the Nile (and
they are the real Egypt) there is need of capital to bring about due
results. In brief, the popular discontent gave strength to a movement
which aimed at ousting foreign influences of every kind, not only the
usurers and stock-jobbers that sucked the life-blood of the land, but
even the engineers a