FIRST STAGE OF INTERVENTION. 143 loans they proposed to issue for public subscription.

It was, of course, understood on both sides that the commission to the promoters was to err, if at all, on the side of liberality. Out of many competing schemes suggested at this period, the one which met with most acceptance was the proposed establishment of a State bank, into whose custody all monies received by the State should be handed, and from whose funds all payments due from the State were to be paid. It was thought that if the management of the bank was placed in the hands of officials nominated by the Great Powers, an arrangement of this character would restore the credit of Egypt, while it would be acceptable to these Powers, owing to the fact that it involved the assumption of no direct pecuniary responsibility on their part. The negotiations, however, for the erection of a State bank, were abandoned when it became clear that England was not prepared at that period to undertake any pecuniary responsibility, direct or indirect, in respect of Egypt Ismail, at this period, doubtless imagined that the same jealousies which had prevented any joint action of the European Powers for the protection of the creditors of the Ottoman Empire would operate to prevent any action of a like kind being taken in the case of Egypt Moreover, he entertained a profound and not ill-grounded confidence in his own ability to play off one Power against another — England against France, and Germany against both. At this time he had lost the services of Nubar, who had