inflicted on its prospects by the refusal of Lloyd's to insure ships on the Red Sea at any premium. I hardly imagine that the statement can be literally true. If it is, I should strongly advise English underwriters to reconsider a decision which can only eventuate in diverting the business of maritime insurance into the hands of more enterprising traders. No opposition, however influential, can hinder the Suez Canal route from being the sea highway between Europe and India. Only the other day I read an article, bristling with statistics, in an English financial organ, the object of which was to prove that, for a variety of ingenious reasons, the trade to India would still be carried round the Cape. I was reminded of an old pamphlet, written at the time when the Manchester and Liverpool Railway was in course of construction, wherein it was shown, by incontrovertible figures, that though, theoretically, there might be a slight saving of time in going from Manchester to Liverpool by railroad, yet, practically, the public would find it shorter to go by coach. The one answer to all objections as to the eligibility of the Suez Canal is contained in the simple fact that the distance from London or Liverpool to Bombay by this route, as compared with that by the Cape, is some five thousand miles less out of ten thou

sand. Keep this fact well in mind, and you will have no doubt as to the truth of the assertion I have often made before, and now repeat for the last time, that the whole course of trade between East and West has been revo

lutionized by the piercing of the Isthmus.

THE KHEDIVEH.

CAIRO, December 16.

WHAT is the exact status of the Khediveh is a question which puzzles all diplomatic experts to solve. If, however, you have resided for any time within his dominions, you have no practical difficulty as to defining his position. As regards the Sultan, he may be a mere vassal; though I confess the Porte would, in my opinion, find extreme difficulty in acting upon the vassalage theory; but, as regards Egypt, he is de facto, if not de jure, the supreme lord and master. Some weeks ago it was currently reported that the Padishah intended to be present at the opening of the Canal; the idea of the Sultan's visit could have obtained credence only with persons ignorant of the true state of the relations between Turkey and Egypt. The Sultan might of course come here as a conqueror if he resolved to depose the Khediveh, and was able to carry out his resolution; but he could no more come to Egypt in any other capacity than that of

guest, while Ismail Pacha remains Khediveh, than Victor Emmanuel, who till lately had upon his coins the superscription of "Rè di Gerusalemme," could visit Judea as the reigning monarch. Opinions may differ, and do differ widely, as to the reforms which the Khediveh has introduced under his reign. Still, the broad fact cannot be questioned that, whether successfully or unsuccessfully, he has made an attempt to introduce into the East the civilization of the West. The effort, laudable or otherwise, places him at once above the ordinary level of Eastern rulers; and no person who has noted the extraordinary development of civilization now going on in Egypt can help feeling a deep interest in the ruler to whom this development is mainly due. It was my wish, therefore, before terminating my Egyptian tour, to have an opportunity of being presented to his Highness. My wish was responded to, as soon as expressed, with the uniform courtesy which I have received throughout my sojourn in this country; and this morning I had the honour of being presented to the Viceroy.

Eleven o'clock in the morning was the hour fixed for my reception. The Khediveh always receives visitors at that hour at the Palace of El-Eb-Din; and as he is, to a great extent, his own Prime Minister, the antechambers