6 of certain commodities and of housing accommodation. The latter phenomena have had their natural consequence in a demand for the higher remuneration of all classes of services rendered. So far as the officials and employees of the Government were concerned, the need for a bold measure to redress this situation was recognised last summer in the general grant of a permanent increase of 20 i3er cent, to all salaries and a temporary indemnity of 60 per cent, on the salaries so increased, with a maximum for’ any individual of £E. 300. This, which has had the effect of nearly doubling smaller salaries, may be taken as meeting in a great degree the hardsliips entailed by the rise in the cost of living, though no doubt the lot of the lowest paid employees in this country as in others is never an easy one. As an act of grace a certain measure of assistance, in no case exceeding £E. 60 a year, has been given to the recipients of pensions amounting to less than £E. 300 a year.

“ Outside the Government service the economic conditions above indicated have had their natural outcome in general demands for increase of wages as well as improved conditions, and have led to a number of strikes, some of great duration and persistence. The Labour Disputes Conciliation Board was instituted in August 1919, under the presidency of Dr. Granville, with three Egyptian and one non-Egyptian members. They have intervened in a large number of industrial disputes and resolved a great variety of questions relating to pay, hours of woi’k, overtime, special payments for sickness, accident or death periodical leave, &c. They have assisted in obtaining greatly improved conditions foj* laliour in Egyjrt, in cases where the employers have not sufficiently promptly realised how gi’eatly conditions of life have changed. In doing this they had to overcome considerable difficulties; the workmen in many cases, owing to lacl of education, found it difficult to make clear the precise nature of their grievance and to understand, on the other hand, the standpoint of the employer. In certain important cases, notably that of tlic tramways companies, the negotiations were hampered by the fact that the head offices of the companies were not in Egypt, and lengthy and tedious telegraphic communications were necessary. The success winch linaily attended the efforts of the Conciliation Board has fully justified its creation, and the community is indebted to its president and members for their valuable services.”

2. Currency.

At the outset of the war, the notes of the National Bank of Egypt were declared legal tender, and the bank was temporarily relieved of the obligation of paying them in gold. This measure was taken with the immediate object of preventing a run on the banks and of providing an emergency currency to take the place of gold, the transport of the latter to Egypt having 'become impossible. The statutory cover, however, of one-half of the issue in gold was maintained, gold being ear-ma.rked at the Bank of England for the purpose. Notes were issued to the banks as required against deposit of cash in London at the par rate of 97- piastres to the pound sterling, this arrangement having the effect of keeping the exchange steadily in the neighbourhood of par.

Gold coin rapidly disappeared from circulation, and its place was taken by notes, which were accepted with remarkably little difficulty by a population unaccustomed to paper currency. As the balance of trade accumulated in favour of the comtry the issue of notes expanded, the udnimum cover of one-half in gold being maintained. In 1916, however, it was found impossible to ear-mark any more gold, at the Bank of England, and it consequently became necessary to absolve the National Bank from the obligation to maintain the statutory minimum in gold The unbroken succession of favourable trade balances has had the inevitable result of carrying the note issue to higher and higher levels, the following figures showing the total at the end of each year since 1913 :— Note issue December 31,1913 .

„ „ 31,1914 . „ „ 31,1915 . „ „ 31,1916 . „ „ 31,1917 . „ „ 31,1918 . „ „ 31,1919 .

*P 2.700.000 8.250.000 11.550.000 21.200.000 30.800.000 46,000,000 67.300.000 House of Commons Parliamentary Papers Online. Copyright (c) 2006 ProQuest Information and Learning Company. All rights reserved.