- 89 -It is worth noting that this surplus had not previously reached £E 50,000. It appears that there is a great deal of money hoarded in the country (1). The Egyptian currency has a strong relationship with land prices, so there is no doubt that the wealth of landowners and proprietors has increased considerably. Similarly, there is no doubt that many Egyptians have acquired money that they did not know what to do with other than save it or buy land with it. Therefore, it is not appropriate to consider land alone as a basis for our valuation, as is the case in other countries. I stated in my last annual report that customs duties on coal, liquid fuels, charcoal, building timber, and petroleum oil were reduced to four percent from eight percent. However, it is not possible to ascertain the result of this reduction due to the many factors that have affected trade, such as changes in shipping rates, unrest in Russia, and the outbreak of cattle plague. Nevertheless, it has become clear to me that the price of coal and timber imported from the Mediterranean coast has decreased by about 4 percent. It is not correct to say that levying an eight percent duty on most goods hinders trade. However, there is no doubt that reducing customs duties in the future would be beneficial, so that it becomes four percent on all items, and this is to be considered a financial reserve. However, this reserve is not expected to be established in the near future due to the many expenses required of the government from all sides.

(25) Cigarette Trade A customs duty of twenty qirsh (gold) per kilogram is now levied on tobacco imported into Egypt. For some years, nothing of this duty was refunded on tobacco re-exported from Egypt. However, in 1891, it was decided to refund 50 percent of it, i.e., 10 qirsh (gold) per kilogram, when it was re-exported. At that time, I was inclined towards this amendment, but things turned out differently than I expected. I later learned that Egyptian cigarette smokers abroad did not benefit from it; rather, all the profit, it seems, went into the pockets of intermediaries. It is worth mentioning that the export trade of cigarettes from Egypt is not as important as some might think. Although its profit is much greater than that of Ankala, it does not reach one-tenth of the world's trade in this commodity.

(1) The English Chamber of Commerce newspaper, in its January issue, mentioned strange evidence of the Egyptian tendency to save money. I have presented many incidents of this kind, including what I was told about a recent event: a wealthy Egyptian died and left his entire fortune, estimated at £E 80,000 in gold, hoarded in his home. There is no doubt that this hoarding of money contributes significantly to the commission of crimes.

(17)