The transit trade with the East, which formerly passed overland through Egypt, has been diverted to the Suez Canal, the traffic through which has little to do with the trade or shipping of Egypt. The number of ships using the canal increased in the 20 years 1880-1900 from 2000 to 4000, while in the same period the tonnage rose from 4,300,000 to 14,000,000. In 1905 the figures were:—Number of ships that passed through the canal, 4116 (2484 being British and 600 German), net tonnage 13,134,105 (8,356,940 British and 2,113,484 German). Next to British and German the nationality of ships using the canal in order of importance is French, Dutch, Austrian, Italian and Russian. About 250,000 passengers (including some 40,000 pilgrims to Mecca) pass through the canal in a year (see further [Suez]).

Currency.—The monetary system in force dates from 1885, when through the efforts of Sir Edgar Vincent the currency was placed on a sound basis. The system is based on the single gold standard. The unit is a gold coin called a pound and equal to £1, 0s. 6d. in English currency. The Egyptian pound (£E.) is divided into 100 piastres, of which there are coins in silver of 20, 10, 5 and 2 piastres. One, ½, 1⁄5 and 1⁄10 piastre pieces are coined in nickel and 1⁄20 and 1⁄40 piastre pieces in bronze. The one piastre piece is worth a fraction over 2½d. The 1⁄40 of a piastre is popularly called a para and the native population generally reckon in paras. The legal piastre is called the piastre tariff (P.T.), to distinguish it from the ½ piastre, which in local usage in Cairo and Alexandria is called a piastre. Officially the ½ piastre is known as 5 milliemes, and so with the coins of lower denomination, the para being ¼ millieme. The old terms kis or “purse” (500 piastres) and khazna or “treasury” (1000 purses) are still occasionally used. Formerly European coins of all kinds were in general circulation, now the only foreign coins current are the English sovereign, the French 20 franc piece and the Turkish mejidie, a gold coin worth 18 shillings. For several years no Egyptian gold pieces have been coined. Egyptian silver money is minted at Birmingham, and nickel and bronze money at Vienna. Bank-notes, of the National Bank, are issued for £E.100, £E.50, £E.10, £E.5 and £E.1, and for 50 piastres. The notes are not legal tender, but are accepted by the government in payment of taxes.

The history of the currency reform in Egypt is interesting as affording a practical example of a system much discussed in connexion with the currency question in India, namely, a gold standard without a gold coinage. The Egyptian pound is practically nonexistent, nearly all that were coined having been withdrawn from circulation. Their place has been taken by foreign gold, principally the English sovereign, which circulates at a value of 97½ piastres. In practice the system works perfectly smoothly, the gold flowing in and out of the country through the agency of private banking establishments in proportion to the requirements of the circulation. It is, moreover, very economical for the government. As in most agricultural countries, there is a great expansion of the circulation in the autumn and winter months in order to move the crops, followed by a long period of contracted circulation throughout the rest of the year. Under the existing system the fluctuating requirements of the currency are met without the expense of alternately minting and melting down.

Weights and Measures.—The metrical system of weights and measures is in official but not in popular use, except in the foreign quarters of Cairo, Alexandria, &c. The most common Egyptian measures are the fitr, or space measured by the extension of the thumb and first finger; the shibr, or span; and the cubit (of three kinds = 222⁄3, 25 and 26½ in.). The measure of land is the feddan, equal to 1.03 acres, subdivided into 24 kirats. The ardeb is equal to about 5 bushels, and is divided into 6 waybas, and each wayba into 24 rubas. The okieh equals 1.32 oz., the rotl .99 ℔, the oke 2.75 ℔, the kantar (or 100 rotls or 36 okes) 99.04 ℔.

Constitution and Administration.—Egypt is a tributary state of the Turkish empire, and is ruled by an hereditary prince with the style of khedive, a Persian title regarded as the equivalent of king. The succession to the throne is by primogeniture. The central administration is carried on by a council of ministers, appointed by the khedive, one of whom acts as prime minister. To these is added a British financial adviser, who attends all meetings of the council of ministers, but has not a vote; on the other hand, no financial decision may be taken without his consent. The ministries are those of the interior, finance, public works, justice, war, foreign affairs and public instruction,[4] and in each of these are prepared the drafts of decrees, which are then submitted to the council of ministers for approval, and on being signed by the khedive become law. No important decision, however, has been taken since 1882 without the concurrence of the British minister plenipotentiary. With a few exceptions, laws cannot, owing to the Capitulations, be enforced against foreigners except with the consent of the powers.

While the council of ministers with the khedive forms the legislative authority, there are various representative bodies with strictly limited powers. The legislative council is a consultative body, partly elective, partly nominative. It examines the budget and all proposed administrative laws, but cannot initiate legislation, nor is the government bound to adopt its suggestions. The general assembly consists of the legislative council and the ministers of state, together with popularly elected members, who form a majority of the whole assembly. It has no legislative functions, but no new direct personal tax nor land tax can be imposed without its consent. It must meet at least once in every two years.

For purposes of local government the chief towns constitute governorships (moafzas), the rest of the country being divided into mudirias or provinces. The governors and mudirs (heads of provinces) are responsible to the ministry of the interior. The provinces are further divided into districts, each of which is under a mamur, who in his turn supervises and controls the omda, mayor or head-man, of each village in his district.

The governorships are: Cairo; Alexandria, which includes an area of 70 sq. m.; Suez Canal, including Port Said and Ismailia; Suez and El-Arish. Lower Egypt is divided into the provinces of: Behera, Gharbia, Menufia, Dakahlia, Kaliubia, Sharkia. The oasis of Siwa and the country to the Tripolitan frontier are dependent on the province of Behera. Upper Egypt: Giza, Beni Suef, Fayum, Minia, Assiut, Girga, Kena, Assuan. The peninsula of Sinai is administered by the war office.

Justice.—There are four judicial systems in Egypt: two applicable to Egyptian subjects only, one applicable to foreigners only, and one applicable to foreigners and, to a certain extent, natives also. This multiplicity of tribunals arises from the fact that, owing to the Capitulations, which apply to Egypt as part of the Turkish empire, foreigners are almost entirely exempt from the jurisdiction of the native courts. It will be convenient to state first the law as regards foreigners, and secondly the law which concerns Egyptians. Criminal jurisdiction over foreigners is exercised by the consuls of the fifteen powers possessing such right by treaty, according to the law of the country of the offender. These consular courts also judge civil cases between foreigners of the same nationality.

Jurisdiction in civil matters between natives and foreigners and between foreigners of different nationalities is no longer exercised by the consular courts. The grave abuse to which the consular system was subject led to the establishment, in February 1876, at the instance of Nubar Pasha and after eight years of negotiation, of International or “Mixed” Tribunals to supersede consular jurisdiction to the extent indicated. The Mixed Tribunals employ a code based on the Code Napoléon with such additions from Mahommedan law as are applicable. There are three tribunals of first instance, and an appeal court at Alexandria. These courts have both foreign and Egyptian judges—the foreign judges forming the majority of the bench. In certain designated matters they enjoy criminal jurisdiction, including, since 1900, offences against the bankruptcy laws. Cases have to be conducted in Arabic, French, Italian and English, English having been admitted as a “judicial language” by khedivial decree of the 17th of April 1905. Besides their judicial duties, the courts practically exercise legislative functions, as no important law can be made applicable to Europeans without the consent of the powers, and the powers are mainly guided by the opinions of the judges of the Mixed Courts.