passions are or, at any moment may become-too strong to allow of an international system of this latter type working smoothly. "The principles of true politics," Burke once said, "are those of morality enlarged, and I neither now do, nor ever will, admit of any other." An influential school of English politicians have been zealous in supporting the principle of action thus advocated by Burke. "I would not," Mr. Bright said in 1877, "dissociate what is true in morals from what is true in statesmanship." Few persons would wish to speak in disparaging terms of these noble principles. They certainly command my full assent, and, I may add, that during a long diplomatic career, I have persistently acted upon them to the best of my ability. But, whilst our principles may be elevated, our application of them must be subordinated to the facts with which we have to deal. Do not let us imagine that nations and Governments in general are prepared altogether to assimilate public and private morality. Mr. Lecky says with truth: "Nothing is more calamitous than the divorce of politics from morals, but in practical politics public and private morals will never absolutely correspond."1 Internationalism, in spite of its fair exterior, which proclaims equality of governing power and equitable treatment towards subject races, means but too often in practice political egotism, a disregard of the rights of subject races, and, in the case now under discussion, a decadence in the authority of that European Power on the maintenance of whose paramount influence the advance of true civilisation in Egypt depends. That Power is Great Britain.

■ Map of Life, p. 181.

CHAPTER LIII

FINANCE

The first bankruptcy of Egypt-Risk of a second bankruptcy-The Race against Bankruptcy-The era of reform-Fiscal reliefReduction of taxation - -Increase of revenue - ExpenditureAggregate surplus since 1888-The indebtedness of the fellaheen -Distribution of land-Importance of the financial question.

"GREAT," says Carlyle, "is Bankruptcy. Honour to Bankruptcy; ever righteous on the great scale, though in detail it is so cruel. Under all falsehoods it works unweariedly mining. No falsehood, did it rise heaven high and cover the world, but Bankruptcy, one day, will sweep it down and make us free of it."1

In Egypt, bankruptcy, of a truth, destroyed many false gods and pricked many bubbles. Notably, it dashed down Ismail Pasha, the great high-priest of Sham, from that false eminence which he had attained, and allowed him to be pulverised by the adventurers who were his former worshippers. More than this, bankruptcy, riding roughshod over all who would not recognise the irresistible nature of its action, brought home to the minds of a reluctant Egyptian Ministry that they must needs abandon the Soudan, at all events for a time, because they could not afford to stay there. These and many other benefits did bankruptcy, in its ruthlessness, confer on a land whose 1 French Revolution, Book iii. c. i.

government had for many years been one gigantic falsehood.

When the British troops occupied Egypt in 1882, one act of bankruptcy had already been committed. In 1879, the Government of Egypt declared themselves insolvent. In 1880, a composition with their creditors was effected. Nevertheless, under the combined influences of the Arábi rebellion and the cataclysm in the Soudan, the Treasury was again on the high road to another act of bankruptcy. There was, however, this difference between the financial chaos of 1878-79 and that of 1882-83. During the earlier of these two periods, the hopes of every well-wisher to Egypt were based on a declaration of bankruptcy. It was impossible to apply a remedy until the true facts of the case were recognised. In 1882-83, on the other hand, it was in the true interest of every Egyptian, and of every sympathiser with Egypt, to stave off bankruptcy, for the remedy which would certainly have been applied, had a condition of bankruptcy been declared, was almost as bad as the disease. That remedy was international government in excelsis. Hence, the Egyptian Government had to enter upon what Lord Milner has aptly termed "The Race against Bankruptcy."

The struggle was long and arduous. For some while, the issue seemed doubtful. The final result was a complete triumph. It may be said that the period of doubt lasted till 1888. By that time, the race had been virtually won.

So long as the Egyptian Government and their British advisers were in constant danger of being throttled by bankruptcy, it was hopeless to think seriously of fiscal reform. More than this, any improvement in the administrative system which involved an increase of expenditure-and it may

be said that practically every improvement required money-had to be set aside. Attention was concentrated on one object, and that was how to make both ends meet. But when financial equilibrium was assured, the aspect of affairs changed.

When it became known that the Egyptian Treasury was in possession of a surplus, all the various interests concerned clamoured for the redress of long-standing and often very legitimate grievances. The inhabitant of the country pleaded that his land-tax was too high, and pointed with justice to the fall in the price of agricultural produce as a reason for affording him relief. The inhabitant of the town complained of the oppressive nature of the octroi duty. The population in general urged that the price of salt was excessive. The possessor of live stock asked why he should pay a tax for every sheep or goat on his farm. The seller of produce at every market or fair dwelt on the fact that his goods had to be weighed by a Government official who charged a fee for the Treasury and another fee for himself. Why, again, it was urged, should railway, postal, and telegraph rates be higher in Egypt than elsewhere? Why should a boat passing under a bridge pay a toll, whilst a passenger going over the bridge paid nothing? These, and a hundred other arguments and proposals, were put forward by the advocates of fiscal reform.

On the other hand, each zealous official, anxious to improve the administration of his own Department, hurled in demands for money on a povertystricken Treasury. The soldier wanted more troops, and painted in gloomy colours the dangers to which the frontier was exposed by reason of the proximity of the Dervishes. The Police officer wanted more policemen to assist in the capture of brigands. The jurist urged that, without well-paid judges, it was impossible to establish a pure system

of justice. The educationalist pointed out with great truth that, unless the sums placed at the disposal of the Department of Public Instruction were greatly increased, the execution of the policy of employing Egyptian rather than European agency in the administration of the country would have to be indefinitely postponed. The soldier, the policeman, the jurist, the director of prisons, and the schoolmaster all joined in asking for the construction of expensive buildings. The medical authorities clamoured for hospitals, and pointed out that, without improved sanitation, which was a bottomless financial abyss, there could be no guarantee against epidemic disease. The engineer showed that it was false economy not to extend the system of irrigation, to drain the fields, to make roads, and to develop railway communication. Following on the larger demands, came every species of minor proposal. Would it not be an attraction to the tourists, who spent so much money in Egypt, if a theatrical company visited Cairo in the winter? How could this be managed unless the Government gave a subvention to the theatre? Was it not a scandal, now that a civilised Power was virtually governing Egypt, that more was not done to protect the ancient monuments of the country from injury? What report would the winter visitors to Egypt make when they returned to Europe, if, in driving to the Pyramids, they were bumped over a road which had not been repaired since the Empress Eugénie drove over it some twenty years previously? These, and scores of other questions, were asked, in tones of more or less indignant remonstrance, by individuals who realised the desirability of paying attention to some one or other subject in which they were interested, but who had no clear perception of the financial situation considered as a whole.