This commission reported the khedive’s personal indebtedness to be £6,744,000, and that his resources were wholly insufficient to pay his current expenses and the interest, and recommended that he surrender all his private estates to the government, and that it assume his liabilities, and pay him and the members of his family a fixed stipend for their support. This proposition was accepted by Ismaïl in a speech which shows that, with all his faults, he has noble traits of character. As an evidence of his good faith he conveyed all his estates to the government, and received in return an annual allowance for the support of himself and his family. Although Ismaïl was controlled by European influence his administration of public affairs was to some extent influenced by native ministers, the principal and most influential of whom were Nubar, Chérif, Riaz, and Ismaïl Sadyk, Pashas. Messrs. Rivers Wilson, and De Bligniers, as representatives of the English and French governments held portfolios in the ministry, having virtually control of finances.

In the latter part of 1878 the crisis was approaching. All the debts could not be paid in full, and the commissioners decided that the sacrifices should be borne equally by all.

On February 18, 1879, a council of ministers was held at Cairo. As Minister Nubar Pasha and Mr. Rivers Wilson were leaving in a carriage, they were stopped by a crowd of army officers, clamoring for payment of arrears of their salaries. The ministers were grossly insulted, their coachman wounded, and they pursued to Nubar’s private apartments, where they were held prisoners until the khedive came with a regiment of soldiers and dispersed the mob. This affair created intense excitement in London and Paris, where it was believed that the attack on Nubar and Mr. Rivers Wilson was instigated by the khedive as a means to get rid of Nubar as prime minister, for whom he entertained a profound aversion. It will be remembered that he was a Christian, and had the confidence of the European powers, and was appointed at the dictation of the foreign bondholders. He immediately resigned and an apology was made to Mr. Wilson, which he accepted. On the 7th of April, 1879, the culmination of the crisis was precipitated by the khedive and the Egyptians themselves. It seemed to be a last struggle of Egyptians for independence, and was the first real effort to save Egypt for the Egyptians. Ismaïl dismissed his ministry, which had been practically forced upon him by the European powers, and appointed a new one, composed wholly of Egyptians, with Chérif Pasha as prime minister. Wilson and De Bligniers were dismissed, but they refused to surrender their offices and appealed to their governments. It was a rebellion of Egypt against the western powers, and the khedive was supported by all the political and religious influences of the country.

The pashas, the harems, the ulemans, the priests, and the principal land owners combined to support him in his effort to regain his lost power. The last straw was laid on the camel’s back when the new ministry issued a decree on April 22, 1879, virtually suspending payment of all foreign debts. This was followed by a demand from the English and French governments for the abdication of Ismaïl, and on the 25th of June, 1879, he received an order from the Porte to abdicate in favor of his son, Mehemet Tewfik, which he obeyed, and Tewfik was immediately proclaimed khedive, as Tewfik I. Liberal provision was made for Ismaïl and his family in a style commensurate with the dignity of an oriental viceroyalty.

Tewfik formed three successive ministries within four months, the last on September 21, 1879, in which Osman Pasha was made Minister of War. On demand of England Messrs. Baring and De Bligniers were appointed comptrollers-general of finance with unrestricted authority, and an order issued that all subjects of the khedive should be treated alike, the pashas and other officials being required to pay taxes, and in failure to do so their rents were to be seized and their produce sold. The condition of Egypt was now most deplorable. It was at war with Abyssinia and a most disastrous famine prevailed. It is authoritatively reported that in September, October, November and December, 1879, 700,000 people in Egypt were in a starving condition, and that 10,000 actually died from that cause. When we consider that this state of things was brought about by forced collections of taxes to pay interest to European bondholders, and through methods forced upon them for that purpose, we need not be surprised that antipathy should arise to European interference, and that some efforts should be made to relieve this people of those oppressive burdens.

For the purpose of consolidating the public debt, and to form a plan for its liquidation, a commission was established of representatives of the English, French, Italian, Austrian and Egyptian governments. A plan was prepared by this commission and a law drafted to carry it into effect, which was adopted by the ministry, and at once put into operation. It consolidated all debts created before 1880, and provided for the issuing of bonds for the principal, and coupons for the interest, and that no suit could be brought on such debts except as the coupons and bonds should mature, and for an equitable division and appropriation of the income so that current expenses should be paid and the surplus applied to the interest and principal of the debt, and the collection of taxes was fixed to correspond with the ripening of the crops. This was the first step toward bringing order out of chaos. The result surpassed the most sanguine hopes of the government. The fellahs were able to pay their taxes out of their crops and have a surplus. Instead of forced collections the people came voluntarily to the collectors, anxious and able to pay their taxes. Land rose in the market, and the future looked prosperous for Egypt.

The very success which attended the efforts of the foreign commissioners in extricating the country from the quicksands into which it had fallen—creating confidence and bringing in capital from abroad, only hastened the time when the religious national prejudices would be aroused. It was irksome to them to see all the important public offices in the hands of foreigners. The better the new system worked, the more impatient they were to get rid of foreign domination. Add to this the fact that the salaries paid these foreign officials were greater than are paid for like services in any civilized country in the world, and were unheard of in Egypt, and you can see the real cause of the discontent of the people, out of which grew the National party. Their motto became “Egypt for the Egyptians.”

On the 2d of February, 1881, a mutiny broke out in the army. Osman Reski Pasha, minister of war, had become obnoxious to the officers of the army, of whom a great number were unemployed. Osman was accused of promoting Turkish subjects to positions in the army to the exclusion of natives, and of treating the latter with contempt. The colonels of the bodyguard and two other regiments drew up and presented to the khedive a petition for his removal. It came into the hands of Osman, who arrested and placed them in confinement in the citadel. The soldiers of the guard stormed the citadel and released the colonels, who marched with them to the palace and demanded an audience of the khedive. He ordered the insubordinate colonels under arrest, but they refused to obey him. On consultation with his ministers, he finally yielded to their demands, and dismissed Osman. Ahmed Arabi Bey was the leader of this movement, and the most popular of the three colonels. Some years before he had been dismissed from his position by Ismaïl without any good reason, and from that time he determined to devote himself to the work of securing for army officers a fair trial, and of protecting the fellaheen from the tyranny and oppression of government officials. He and his fellow-officers at that time contemplated a rising in favor of popular rights, but were deterred by the belief that they would be overpowered. Arabi was chosen leader, and seven days after the last occurrence he presented a demand for the dismissal of the entire ministry, the formation of a constitution and an increase of the army, and gave notice that the troops would appear before the palace at four o’clock of that day, and wait until the demand was complied with. At the hour appointed, four thousand troops and eighteen pieces of artillery were drawn up before the palace under the command of Arabi. The khedive again yielded, formed a new ministry, and ordered an assembly of notables to be elected by the people to inaugurate a representative system of government. The independence and enthusiasm with which the fellaheen voted for these representatives revealed to the world the fact that liberal political ideas and the nationalistic principles of the popular party had taken deep root in the minds of this ancient race, “which once bore the torch of civilization, but since has tilled the fertile valley of the Nile under the whip of many masters.”

The Chamber of Notables resolved that in the new organization they would control the ministry and the financial affairs and every other department of the government. This was a declaration of war on the policy of foreign supervision, and created consternation among all who were interested in Egyptian securities. Arabi come to the front as Minister of War, and was made a pasha. When the session closed on March 24, 1882, he and his friends were masters of the situation. His next step was to dispose of the Turkish and Circassian officers who stood in the way of his plans. They were charged with conspiracy, tried by a secret court, and sentenced to confinement for life. At this juncture Admiral Seymour, with an English fleet, was sent to Alexandria with the avowed purpose of supporting the khedive. England and France now demanded that Arabi should be dismissed from the ministry and sent out of Egypt, as he was thought to be the principal disturbing element. He however refused to obey the khedive’s order to that effect, and became practically the ruler of Egypt. The army was the willing instrument of his ambition.

The next act in the drama came without warning, and startled the world by its atrocity. On June 11, 1882, a bloody riot occurred in Alexandria, in which about three hundred and eighty Europeans were killed, with a species of brutality known only to the fanatical followers of Mahomet in northern Egypt, and discounted the ferocity of the North American Indians. Arabi was accused of complicity in it, and the fact that he was in Alexandria, near the scene of the massacre, at the head of 6,000 troops, and made no effort to stop the slaughter of women and children which was going on, renders it probable that the accusation is true. However, after five hours delay, he took what appeared to be vigorous measures to stop the slaughter. It was evidently the outburst of the race hatred of Moslem against Christian, and Arabs against Europeans. It was the harvest of blood from the seed sown broadcast by Arabi and the National party in carrying on their plans to secure Egypt for the Egyptians. This massacre was followed by the flight from Egypt of all Europeans and Americans who could get away, as it was apparent it was the beginning of more serious trouble.