Tue announcement that the British Government had resolved to purchase the share of the Khedive in the Suez Canal has, not unnaturally, been a matter of much interest not unmingled with surprise in the East, where the bare announcement of facts arrives so long before the account of the preliminaries. Taken in connection with the recent failure of the Turkish Government to meet its financial engagements, as well as in its apparent connection with the position of affairs in European Turkey and in Central Asia, this most recent step of the British Government may apparently be looked upon as one of the most important events of the day. The cost of the Suez Canal in round numbers may be assumed as nearly approaching sixteen millions sterling, Of this sum, in original shares or bonds, the Khedive holds nominally some 200 millions of francs. Most of the bonds were, however, we believe, issued to him at a discount, so that the actual amount of his interest in the Canal when reduced to par would be about 150 millions of franes. This, from the short notice in the telegram, we presume to be the share purchased by the British Government for four millions sterling. It actually represents, we believe, 7/16ths of the capital of the Canal. Some three or four years ago, negotiations for the purchase had already advanced to a considerable extent, but fears as to probable expense of keeping the Canal open prevented their being concluded. Experience now goes to prove that this expense is not likely to be so great in the future, and that at a comparatively small cost, in proportion to the original outlay, the available width of the Canal could be doubled. It will thus be seen that the project, though a startling one, some time back, the British Government has been conceiving the possibility of stepping in. The hostility of Lord Palmerston to the Canal was one of those phenomena difficult of explanation. The result was that the British capitalist was scarcely represented in its construction, and that this work was mainly carried out by French, Dutch, and Belgian capital, with the assistance of the Khedive, to whom its completion was, of course, a matter of the greatest moment. The successful construction of the Canal, contrary to Lord Palmer-prediction, placed din the curious predicament that, Suis ste was most interested in the maintenance of the new highway, she had not a word to sayin its management, It was true that the scheme had been a costly one for its original supporters, and' that the host of small investors who had listened to the persuasive words of Baron Lesseps, have up to this time, and probably will for a long time +o, come, had to remain without any Tetarn whatever on their investment, Recent events have, however, thrown Franco and England together, even more closely than before; and the purchase by the British Government of a largo share in the Canal, now, places its management almost entirely in the hands of those two great maritime nations. It is to be presumed that the body of French shareholders are agreoable to the project, which will certainly not reduce their chance of the enterprise becoming financially successful, even if it do not directly contribute to that end, With regard to the financial position of the Khedive's share, little is known. A considerable portion was in ordinary shares in the undertaking, not likely for many years to come to pay a dividend; but others, invested in bonds, issued from time to time, and bearing interest of about six por cent. nominal. As these bonds were issued at us low a rate as 66 per cent., they would show a rate of interest of about nine per cent. They are, however, saddled with various obligations as to deferred payment, so that, as an ime mediate investment, the British Govern ment will probably find itself the loser, In some measure, however, the British Government is mixed up with Egyptian finance, and the present occasion prow bably seems a good one to consolidate all interests. In 1855, it will be tee membered, the then British Government guaranteed a loan to Turkey of five millions sterling, which, under the conditions, was placed on the mar. ket at the low rate of four per cent, As a guarantee for a loan the previous year, the Turkish Government had already pledged a portion of the tribute due from Egypt. With the sanction, or at the request of the British Go. vernment, the balance of that tribute, amounting to about £70,000, was applied to the first payment of the interest and sinking fund, the annual amount of which was to be £250,000, viz., £200,000 interest, and the balance to form a sinking fand, increasing in amount as bonds were paid off. The recent collapse of Turkish finance, and the uncertainty whether the Khedive was bound to Great Britain to lodge in the Bank of England the amounts due from his tribute, or to obey in preference the commands of his suzerain, doubtless in some measure influenced the Government in the course they have taken. It is curious that the financial arrangements of Lord Palmerston with regard to the guaranteed loan of 1855 were adversely witnessed by the present leaders of the two political
Text read from the printed page and cleaned; old type leaves the occasional error.