of the interest for foreign indebtedness.  Its influence, however, extends much farther, and the Caisse exercises the right of prohibiting expenditure on the part of the Egyptian government until its own demands for current interest have been complied with.  It further has the right to veto any loan which the Egyptian government might be willing to raise, however urgent the necessity might be, unless it can be demonstrated that there is not the least likelihood that payment of the shareholders whom the Caisse represents will be in the least degree affected.  If all that the Caisse claimed as belonging to its jurisdiction were really allowed to it by the Anglo-Egyptian government, the Caisse or International Court might exercise an arbitrary control over Egyptian affairs.  It has many times seriously attempted to block the progress of Egypt with the sole aim of considering the pockets of the foreign shareholders, and in entire disregard to the welfare of the people.

Added to this tribunal is the Railway Board and the Commissions of the Daira and Domains.  The Railway Board administers the railroads, telegraphs, and the port of Alexandria.  The Daira and Domains Commissions administer the large estates, mortgaged to the holders of the loans raised by Ismail Pasha under these two respective names.  The Daira Estate yielded a surplus over and above the amount of interest on the debt paid, for the first time, in 1890.  The Domain Estate had to face a deficit until the year 1900.  Until these respective dates the Egyptian government itself was obliged to pay the deficit due to the bondholders.

[Illustration:  223.jpg VISCOUNT CROMER (SIR EVELYN BARING)]

In the year 1884, the Convention of London was signed by the European Powers, which was, however, for the most part, oppressive and unjust to the Egyptians.  The amount of money raised by taxation, which was allowed to be spent in one year, was limited to the definite sum of $25,927,890.  Fortunately for Egypt, the London Convention had one clause by which $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