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the mode above indicated ought to be more than compensated by the increase of revenue due to the fact of the lands thus purchased being set free for the Government to deal with.
In respect of the million's worth of Domain lands thus purchased, the Egyptian Government would be at liberty to sell them at their own estimate, to farm them at their own cost, to let them out upon their own terms, or to commute them for the pensions of the Civil List, if, as they believe, the pensioners would consent to such a commutation. In other words, the Egyptian Government would thus recover full power of dealing with one-seventh part, or thereabouts, of the lands now hypothecated to the Domain Loans.
If their success in dealing with this first instalment should establish the fact that the redemption of the Domain lands, and their consequent restoration to public circulation, is calculated to prove a profitable transaction, both for the Egyptian Treasury and for the capitalists, by whom the requisite funds might be advanced, there would be no difficulty in procuring further advances on similar instalments, until the whole Domain Loan had been liquidated.
The practical question is, whether any group of capitalists can be found ready to advance the Egyptian Government 1,000,0001, in order to enable them to purchase and set free a corresponding amount of Domain lands, and thus to establish by practical experience the truth of their contention, that a great saving might be effected, and a great advantage secured to Egypt, if the Domain lands could be taken out of the hands of the existing Administration and restored to public circulation.
Now it is idle to disguise the fact that the very advantages which such a scheme as that indicated above would present to the Egyptian Government, are disadvantages from the point of view of the capitalists, who would have to provide the advance of a 1,000,0007. in the first instance, and who would look to recouping themselves in the end by applying for subscriptions to the general public. The very freedom of action in dealing with the Domain lands redeemed by the advances contemplated, thus secured to the Egyptian Government, would in public opinion tend to impai, the value of the security, on the strength of which the advances in question would have to
be made.
It is therefore improbable that any body of capitalists could be found prepared to advance the million required as an ordinary financial operation. The only class of capitalists who are likely to undertake such an operation in good faith, must consist of persons who, directly or indirectly, have a personal acquaintance with the conditions of land tenure and agriculture in Egypt, who have a strong individual interest in the restoration of Egyptian credit and prosperity, who would consequently take account of collateral considerations, as well as of the mere question of profit or loss on the actual transaction, and who might possess special facilities for recouping their advances by the issue of debentures, reimbursable over a period of years.
Such a body of capitalists is to be found in the Crédit Foncier of Egypt, and in the financial establishments with which it is connected. If the scheme in question is to be carried out at all, it must be practically effected through the agency of the Crédit Foncier of Egypt.
If the above conclusions are admitted, it remains to be seen how the Crédit Foncier of Egypt could practically assist the Egyptian Government to liquidate the Domain Loan in accordance with the scheme already sketched out.
By the Convention of 1883 the Egyptian Government has the right at any time to select any portion of the Domain lands, and to take possession of them on payment of the prices specified in the schedules attached to the Convention.
The Egyptian Government could therefore at once avail themselves of this right, and select a number of lots of land whose total value, calculated in accordance with the prices of the schedule, would amount to 1,000,0007.
The million required to complete the purchase could be provided by the Crédit Foncier as follows, viz., by issuing debentures to the amount required to raise 600,0007. on the lands purchased by the Government from the Domains; and by advancing 100,0007. to the Government, on account current, out of its capital. these operations would be in conformity with the provisions of its Statutes.
Both
In order to secure this advance of 1,000,0002, the Egyptian Gouernment might give the Crédit Foncier a first mortgage on the million's worth of lands purchased from the Domains, and a second mortgage on the remainder of the Domain lands, and on the other securities (including the revenue of the province of Keneh), which are hypothecated in the first instance to the repayment of the Domains loan.
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