Mr. Goschen appears to be successfully conducting the nego- tiations
-with the Egyptian Government, which the undertook on the part of the bondholders. The report that he had induced the Khedive to cancel the Consolidation scheme not having been contradicted, we may assume, we suppose, that it is true. If so, the Khedive may be congratulated on his good-sense in taking the advice of one so competent and above all suspicion as Mr.
• Goschen. At the same time, the sacrifice amounted to little more than a confession that he had done wrong. For the scheme bad _fallen stillborn, the bondholders having wisely refused to give up the old bonds. According to the report, the old terms will revive in all their integrity, the mortgages taking priority as by original contract. This is only just. It is also said that the interest in every case is to be reduced to 5 per cent. The reduc- tion is, no doubt, a violation of the contract, but if 5 per cent. ean and will be paid, the bondholders had better take that amount than insist ,upon the 7 per cent., which they have no chance of getting. But whether Egypt can pay even 5 per cent. depends upon whether economy is to be rigidly enforced.
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