,SECTION #c1 ,*APT] #c 
,! ,HI/ORICAL ,CONDITIONS ( ,ACCUMULATION3 ,9T]NATIONAL ,LOANS 

,PEOPLE 3 

,AU?OR 3 ,ROSA ,LUXEMBURG 

,TEXT 3 

,! IMP]IALI/ PHASE ( CAPITALI/ ACCUMULATION :I* IMPLIES UNIV]SAL COMPETITION COMPRISES ! 9DU/RIALIZATION & CAPITALI/ EMANCIPATION ( ! H9T]L& :]E CAPITAL =M]LY REALIZ$ ITS SURPLUS VALUE4 ,*>ACT]I/IC ( ?IS PHASE >E3 L5D+ ABROAD1 RAILROAD CON/RUCTIONS1 REVOLUTIONS1 & W>S4 ,! LA/ DECADE1 FROM #ai TO #a#i#a1 %[S 9 P>TICUL> ! WORLD-WIDE MOVEM5T ( CAPITAL1 ESPECIALLY 9 ,ASIA & NEI<BOR+ ,EUROPE3 9 ,RUSSIA1 ,TURKEY1 ,P]SIA1 ,9DIA1 ,JAPAN1 ,*9A1 & ALSO 9 ,NOR? ,AFRICA4 ,JU/ AS ! SUB/ITUTION ( COMMODITY ECONOMY = A NATURAL ECONOMY & ?AT ( CAPITALI/ PRODUCTION = A SIMPLE COMMODITY PRODUCTION WAS A*IEV$ BY W>S1 SOCIAL CRISES & ! DE/RUCTION ( 5TIRE SOCIAL SY/EMS1 SO AT PRES5T ! A*IEVEM5T ( CAPITALI/ AUTONOMY 9 ! H9T]L& & BACKW>D COLONIES IS ATTA9$ AMID W>S & REVOLUTIONS4 ,REVOLUTION IS AN ESS5TIAL = ! PROCESS ( CAPITALI/ EMANCIPATION4 ,! BACKW>D COMMUNITIES MU/ %$ !IR OBSOLETE POLITICAL ORGANIZATIONS1 RELICS ( NATURAL & SIMPLE COMMODITY ECONOMY1 & CREATE A MOD]N /ATE MA*9]Y ADAPT$ TO ! PURPOSES ( CAPITALI/ PRODUCTION4 ,! REVOLUTIONS 9 ,TURKEY1 ,RUSSIA1 & ,*9A FALL UND] ?IS HEAD+4 ,! LA/ TWO1 9 P>TICUL>1 DO NOT EXCLUSIVELY S]VE ! IMM$IATE POLITICAL REQUIREM5TS ( CAPITALISM2 TO SOME EXT5T !Y C>RY OV] \TMOD$ PRE-CAPITALI/ CLAIMS :ILE ON ! O!R H& !Y ALREADY EMBODY NEW CONFLICTS :I* RUN C\NT] TO ! DOM9ATION ( CAPITAL4 ,!SE FACTORS ACC\NT = !IR IMM5SE DRIVE1 BUT AT ! SAME TIME IMP$E & DELAY ! ULTIMATE VICTORY ( ! REVOLUTION>Y =CES4 ,A Y\NG /ATE WILL USUALLY SEV] ! LEAD+ /R+S ( OLD] CAPITALI/ /ATES BY W>S1 :I* TEMP] & TE/ ! MOD]N /ATE'S CAPITALI/ 9DEP5D5CE 9 A BAPTISM BY FIRE4 ,?AT IS :Y MILIT>Y TOGE!R ) F9ANCIAL RE=MS 9V>IABLY H]ALD ! BID = ECONOMIC 9DEP5D5CE4 

,! =W>D-?RU/S ( CAPITAL >E APPROXIMATELY REFLECT$ 9 ! DEVELOPM5T ( ! RAILWAY NETWORK4 ,! P]MAN5T WAY GREW MO/ QUICKLY 9 ,EUROPE DUR+ ! =TIES1 9 ,AM]ICA 9 ! FIFTIES1 9 ,ASIA 9 ! SIXTIES1 9 ,AU/RALIA DUR+ ! SEV5TIES & EI<TIES1 & DUR+ ! N9ETIES 9 ,AFRICA47#a7 

,PUBLIC LOANS = RAILROAD BUILD+ & >MAM5TS ACCOMPANY ALL /AGES ( ! ACCUMULATION ( CAPITAL3 ! 9TRODUCTION ( COMMODITY ECONOMY1 9DU/RIALIZATION ( C\NTRIES1 CAPITALI/ REVOLUTIONIZATION ( AGRICULTURE AS WELL AS ! EMANCIPATION ( Y\NG CAPITALI/ /ATES4 ,= ! ACCUMULATION ( CAPITAL1 ! LOAN HAS V>I\S FUNCTIONS3 7A7 IT S]VES TO CONV]T ! MONEY ( NON-CAPITALI/ GR\PS 9TO CAPITAL1 I4E4 MONEY BO? AS A COMMODITY EQUIVAL5T 7L[] MIDDLE-CLASS SAV+S7 & AS FUND ( CONSUMPTION = ! HANG]S-ON ( ! CAPITALI/ CLASS2 7B7 IT S]VES TO TRANS=M MONEY CAPITAL 9TO PRODUCTIVE CAPITAL BY MEANS ( /ATE 5T]PRISE-RAILROAD BUILD+ & MILIT>Y SUPPLIES2 7C7 IT S]VES TO DIV]T ACCUMULAT$ CAPITAL FROM ! OLD CAPITALI/ C\NTRIES TO Y\NG ONES4 ,9 ! SIXTE5? & SEV5TE5? C5TURIES1 ! LOAN TRANSF]R$ CAPITAL FROM ! ,ITALIAN CITIES TO ,5GL&1 9 ! EI<TE5? C5TURY FROM ,HOLL& TO ,5GL&1 9 ! N9ETE5? C5TURY FROM ,5GL& TO ! ,AM]ICAN ,REPUBLICS & ,AU/RALIA1 FROM ,FRANCE1 ,G]MANY & ,BELGIUM TO ,RUSSIA1 & AT ! PRES5T TIME .<#a#i#a#b.> FROM ,G]MANY TO ,TURKEY1 FROM ,5GL&1 ,G]MANY & ,FRANCE TO ,*9A1 &1 VIA ,RUSSIA1 TO ,P]SIA4 

,9 ! ,IMP]IALI/ ,]A1 ! =EIGN LOAN PLAY$ AN \T/&+ P>T AS A MEANS = Y\NG CAPITALI/ /ATES TO ACQUIRE 9DEP5D5CE4 ,! CONTRADICTIONS 9H]5T 9 ! MOD]N SY/EM ( =EIGN LOANS >E ! CONCRETE EXPRESSION ( ?OSE :I* *>ACT]IZE ! IMP]IALI/ PHASE4 ,?\< =EIGN LOANS >E 9DISP5SABLE = ! EMANCIPATION ( ! RIS+ CAPITALI/ /ATES1 !Y >E YET ! SURE/ TIES BY :I* ! OLD CAPITALI/ /ATES MA9TA9 !IR 9FLU5CE1 EX]CISE F9ANCIAL CONTROL & EX]T PRESSURE ON ! CU/OMS1 =EIGN & COMM]CIAL POLICY ( ! Y\NG CAPITALI/ /ATES4 ,PREEM95TLY *ANNELS = ! 9VE/M5T 9 NEW SPH]ES ( CAPITAL ACCUMULAT$ 9 ! OLD C\NTRIES1 SU* LOANS WID5 ! SCOPE = ! ACCUMULATION ( CAPITAL2 BUT AT ! SAME TIME !Y RE/RICT IT BY CREAT+ NEW COMPETITION = ! 9VE/+ C\NTRIES4 

,!SE 9H]5T CONFLICTS ( ! 9T]NATIONAL LOAN SY/EM >E A CLASSIC EXAMPLE ( SPATIO-TEMPORAL DIV]G5CIES BETWE5 ! CONDITIONS = ! REALIZATION ( SURPLUS VALUE & ! CAPITALIZATION !RE(4 ,:ILE REALIZATION ( ! SURPLUS VALUE REQUIRES ONLY ! G5]AL SPREAD+ ( COMMODITY PRODUCTION1 ITS CAPITALIZATION DEM&S ! PROGRESSIVE SUP]CESSION ( SIMPLE COMMODITY PRODUCTION BY CAPITALI/ ECONOMY1 ) ! COROLL>Y ?AT ! LIMITS TO BO? ! REALIZATION & ! CAPITALIZATION ( SURPLUS VALUE KEEP CONTRACT+ EV] MORE4 ,EMPLOYM5T ( 9T]NATIONAL CAPITAL 9 ! CON/RUCTION ( ! 9T]NATIONAL RAILWAY NETWORK REFLECTS ?IS DISP>ITY4 ,BETWE5 ! ?IRTIES & ! SIXTIES ( ! N9ETE5? C5TURY1 RAILWAY IS BUILD+ & ! LOANS NECESS>Y = IT MA9LY S]V$ TO \/ NATURAL ECONOMY1 & TO SPREAD COMMODITY ECONOMY - AS 9 ! CASE ( ! ,RUSSIAN RAILWAY LOANS 9 ! SIXTIES1 OR 9 ?AT ( ! ,AM]ICAN RAILWAYS :I* W]E BUILT ) ,EUROPEAN CAPITAL4 ,RAILWAY CON/RUCTION 9 ,AFRICA & ,ASIA DUR+ ! LA/ TW5TY YE>S1 ON ! O!R H&1 ALMO/ EXCLUSIVELY S]V$ ! PURPOSES ( AN IMP]IALI/ POLICY1 ( ECONOMIC MONOPOLIZATION & ECONOMIC SUBJUGATION ( ! BACKW>D COMMUNITIES4 ,AS REG>DS ,RUSSIA'S RAILROAD CON/RUCTION 9 ,EA/]N ,ASIA1 = 9/ANCE1 IT IS COMMON KN[L$GE ?AT ,RUSSIA HAD PAV$ ! WAY = ! MILIT>Y OCCUPATION ( ,MAN*URIA BY S5D+ TROOPS TO PROTECT H] 5G9E]S WORK+ ON ! ,MAN*URIAN RAILWAY4 ,) ! SAME OBJECT 9 VIEW1 ,RUSSIA OBTA9$ RAILWAY CONCESSIONS 9 ,P]SIA1 ,G]MANY 9 ,ASIA ,M9OR & ,MESOPOTAMIA1 & ,BRITA9 & ,G]MANY 9 ,AFRICA4 

,9 ?IS CONNECTION1 WE MU/ DEAL ) A MISUND]/&+ CONC]N+ ! CAPITAL 9VE/M5TS 9 =EIGN C\NTRIES & ! DEM& ( !SE C\NTRIES = CAPITAL IMPORTS4 ,ALREADY 9 ! E>LY TW5TIES ( ! LA/ C5TURY1 ! EXPORT ( ,BRITI% CAPITAL TO ,AM]ICA PLAY$ AN IMPORTANT P>T1 BE+ L>GELY RESPONSIBLE = ! FIR/ G5U9E 9DU/RIAL & COMM]CIAL CRISES 9 ,5GL& 9 #a#h#b#e4 ,S9CE #a#h#b#d1 ! ,LONDON /OCK EX*ANGE HAD BE5 FLOOD$ ) ,S\? ,AM]ICAN /OCKS & %>ES4 ,DUR+ ! FOLL[+ YE>1 ! NEWLY DEFEAT$ /ATES ( ,S\? & ,C5TRAL ,AM]ICA RAIS$ LOANS 9 ,LONDON ALONE = MORE ?AN ,G,B,P#b111 & 9 ADDITION1 5ORM\S QUANTITIES ( ,S\? ,AM]ICAN 9DU/RIAL %>ES & SIMIL> BONDS W]E SOLD4 ,?IS SUDD5 PROSP]ITY & ! OP5+ UP ( ! ,S\? ,AM]ICAN M>KETS 9 !IR TURN CALL$ =? GREATLY 9CREAS$ EXPORTS ( ,BRITI% COMMODITIES TO ! ,LAT9 ,AM]ICAS4 ,BRITI% COMMODITY EXPORTS TO !SE C\NTRIES AM\NT$ TO ,G,B,P#b1#i1 9 #ahba :I* HAD RIS5 TO ,G,B,P#f1#d1 BY #a#h#b#e4 

,COTTON TEXTILES =M$ ! MO/ IMPORTANT ITEM ( !SE EXPORTS2 ?IS P[]FUL DEM& WAS ! IMPETUS = A RAPID EXPANSION ( ,BRITI% COTTON PRODUCTION1 & MANY NEW FACTORIES W]E OP5$4 ,9 #a#h#b#a1 RAW COTTON TO ! VALUE ( ,G,B,PM4 #abi WAS MADE UP 9 ,5GL& & RIS5 TO ,G,B,PM4 #a#f#g4 

,! SITUATION WAS ?US FRAU<T ) ! ELEM5TS ( A CRISIS4 ,TUGAN ,B>ANOVSKI RAISES ! QUE/ION3 

',BUT FROM :]E DID ! ,S\? ,AM]ICAN C\NTRIES TAKE ! MEANS TO BUY TWICE AS MANY COMMODITIES 9 #ahbe AS 9 #a#h#b#a8 ,! ,BRITI% !MSELVES SUPPLI$ !SE MEANS4 ,! LOANS FLOAT$ ON ! ,LONDON /OCK EX*ANGE S]V$ AS PAYM5T = IMPORT$ GOODS4 ,DECEIV$ BY ! DEM& !Y HAD !MSELVES CREAT$1 ! ,BRITI% FACTORY-[N]S W]E SOON BR\<T TO REALIZE BY !IR [N EXP]I5CE ?AT !IR HI< EXPECTATIONS HAD BE5 UNF\ND$4'7#b7 

,HE ?US *>ACT]IZES AS 'DECEPTIVE'1 AS AN UNHEAL?Y1 ABNORMAL ECONOMIC PH5OM5ON ! FACT ?AT ! ,S\? ,AM]ICAN DEM& = ,5GLI% GOODS HAD BE5 BR\<T AB\T BY ,BRITI% CAPITAL4 ,?US UNCRITICALLY HE TOOK OV] ! DOCTR9E ( AN EXP]T ) :OSE O!R !ORIES HE WI%$ TO HAVE NO?+ 9 COMMON4 ,! OP9ION HAD BE5 ADVANC$ ALREADY DUR+ ! ,5GLI% CRISIS ( #ahbe ?AT IT C\LD BE EXPLA9$ BY ! 'S+UL>' DEVELOPM5T ( ! RELATIONS BETWE5 ,BRITI% CAPITAL & ,S\? ,AM]ICAN DEM&4 ,NONE O!R ?AN ,SISMONDI HAD RAIS$ ! SAME QUE/ION AS ,TUGAN ,B>ANOVSKI & GIV5 A MO/ ACCURATE DESCRIPTION ( EV5TS 9 ! SECOND $ITION ( HIS ,N\VEAUX ,PR9CIPES3 

',! OP5+ UP ( ! IMM5SE M>KET AF=D$ BY ,SPANI% ,AM]ICA TO 9DU/RIAL PRODUC]S SEEM$ TO (F] A GOOD OPPORTUNITY TO RELIEVE ,BRITI% MANUFACTURE4 ,! ,BRITI% GOV]NM5T W]E ( ?AT OP9ION1 & 9 ! SEV5 YE>S FOLL[+ ! CRISIS ( #a#h#a#h1 DISPLAY$ UNHE>D-( ACTIVITY TO C>RY ,5GLI% COMM]CE TO P5ETRATE ! REMOTE/ DI/RICTS ( ,MEXICO1 ,COLUMBIA1 ,BRAZIL1 ,RIO DE LA ,PLATA1 ,*ILI & ,P]U4 ,BE=E ! GOV]NM5T DECID$ TO RECOGNIZE !SE NEW /ATES1 IT HAD TO PROTECT ,5GLI% COMM]CE BY FREQU5T CALLS ( BATTLE%IPS :OSE CAPTA9S HAD A DIPLOMATIC RA!R ?AN A MILIT>Y MISSION4 ,9 CONSEQU5CE1 IT HAD DEFI$ ! CLAMORS ( ! ,HOLY ,ALLIANCE & RECOGNIZ$ ! NEW REPUBLICS AT A MOM5T :5 ! :OLE ( ,EUROPE1 ON ! CONTR>Y1 WAS PLOTT+ !IR RU94 ,BUT H[EV] BIG ! DEM& AF=D$ BY FREE ,AM]ICA1 YET IT W\LD NOT HAVE BE5 5\< TO ABSORB ALL ! GOODS ,5GL& HAD PRODUC$ OV] & ABOVE ! NE$S ( CONSUMPTION1 HAD NOT !IR MEANS = BUY+ ,5GLI% M]*&ISE BE5 SUDD5LY 9CREAS$ BEYOND ALL B\NDS BY ! LOANS TO ! NEW REPUBLICS4 ,EV]Y ,AM]ICAN /ATE BORR[$ FROM ,5GL& AN AM\NT SUFFICI5T TO CONSOLIDATE ITS GOV]NM5T4 ,AL?\< !Y W]E CAPITAL LOANS1 !Y W]E IMM$IATELY SP5T 9 ! C\RSE ( ! YE> LIKE 9COME1 ?AT IS TO SAY !Y W]E US$ UP 5TIRELY TO BUY ,5GLI% GOODS ON BEHALF ( ! TREASURY1 OR TO PAY = ?OSE :I* HAD BE5 DISPAT*$ ON PRIVATE ORD]S4 ,AT ! SAME TIME1 NUM]\S COMPANIES ) IMM5SE CAPITALS W]E =M$ TO EXPLOIT ALL ! ,AM]ICAN M9ES1 BUT ALL ! MONEY !Y SP5T F\ND ITS WAY BACK TO ,5GL&1 EI!R TO PAY = ! MA*9]Y :I* !Y IMM$IATELY US$1 OR ELSE = ! GOODS S5T TO ! LOCALITIES :]E !Y W]E TO WORK4 ,AS LONG AS ?IS S+UL> COMM]CE LA/$1 9 :I* ! ,5GLI% ONLY ASK$ ! ,AM]ICANS TO BE K9D 5\< TO BUY ,5GLI% M]*&ISE ) ,5GLI% CAPITAL1 & TO CONSUME !M = !IR SAKE1 ! PROSP]ITY ( ,5GLI% MANUFACTURE APPE>$ DAZZL+4 ,IT WAS NO MORE 9COME BUT RA!R ,5GLI% CAPITAL :I* WAS US$ TO PU% ON CONSUMPTION3 ! ,5GLI% !MSELVES B\<T & PAID = !IR [N GOODS :I* !Y SELL TO ,AM]ICA1 & !REBY M]ELY =W5T ! PLEASURE ( US+ !SE GOODS4'7#c7 

,FROM ?IS ,SISMONDI DREW ! *>ACT]I/IC CONCLUSION ?AT ! REAL LIMITS TO ! CAPITALI/ M>KET >E SET BY 9COME1 I4E4 BY P]SONAL CONSUMPTION ALONE1 & HE US$ ?IS EXAMPLE AS ONE MORE W>N+ AGA9/ ACCUMULATION4 

,D[N TO ! PRES5T DAY1 ! EV5TS :I* PREC$$ ! CRISIS ( #ahbe HAVE REMA9$ TYPICAL = A P]IOD ( BOOM & EXPANSION ( CAPITAL1 & SU* 'S+UL> COMM]CE' IS 9 FACT ONE ( ! MO/ IMPORTANT F\NDATIONS ( ! ACCUMULATION ( CAPITAL4 ,P>TICUL>LY 9 ! HI/ORY ( ,BRITI% CAPITAL1 IT OCCURS REGUL>LY BE=E EV]Y CRISIS1 AS ,TUGAN ,B>ANOVSKI HIMSELF %[$ BY ! FOLL[+ FACTS & FIGURES3 ! IMM$IATE CAUSE ( ! #ahcf CRISIS WAS ! FLOOD+ ( ! ,AM]ICAN M>KET ) ,BRITI% GOODS1 AGA9 F9ANC$ BY ,BRITI% MONEY4 ,9 #a#h#c#d1 ,U,S COMMODITY IMPORTS EXCE$$ EXPORTS BY ,G,B,PM4 #ab BUT AT ! SAME TIME !IR IMPORTS ( PRECI\S METAL EXCE$$ EXPORTS BY NE>LY ,G,B,PM4 #c4#b4 ,EV5 9 #a#h#c#f1 ! YE> ( ! CRISIS ITSELF1 !IR SURPLUS ( IMPORT$ COMMODITIES AM\NT$ TO ,G,B,PM4 #a4#d1 & /ILL ! EXCESS ( BULLION IMPORT$ WAS ,G,B,PM #a4 ,?IS 9FLUX ( MONEY1 NO LESS ?AN ! /REAM ( GOODS1 CAME *IEFLY FROM ,5GL&1 :]E ,U,S RAILWAY %>ES W]E B\<T 9 BULK4 #a#h#c#e_/#f SAW OP5+ 9 ! ,UNIT$ ,/ATES ( SIXTY-ONE NEW BANKS ) A CAPITAL ( ,G,B,PM4 #a4#d1 PR$OM9ANTLY ,BRITI%4 ,AGA91 ! ,5GLI% PAID = !IR EXPORTS !MSELVES4 ,! UNPREC$5T$ 9DU/RIAL BOOM 9 ! ,NOR!RN ,/ATES ( ! ,UNION1 EV5TUALLY LEAD+ TO ! ,CIVIL ,W>1 WAS LIKEWISE F9ANC$ BY ,BRITI% CAPITAL1 :I* AGA9 CREAT$ AN EXP&+ M>KET = ,BRITI% 9DU/RY 9 ! ,UNIT$ ,/ATES4 

,& NOT ONLY ,BRITI% CAPITAL - O!R ,EUROPEAN CAPITALS1 ALSO MADE EV]Y POSSIBLE EF=T TO TAKE P>T 9 ?IS 'S+UL> COMM]CE'4 ,TO QUOTE ,S*AEFFLE1 9 ! FIVE YE>S BETWE5 #ahdi & #a#h#e#d1 AT LEA/ ,G,B,PM4 #a W]E 9VE/$ 9 ,AM]ICAN %>ES ON ! V>I\S /OCK EX*ANGES ( ,EUROPE4 ,! SIMULTANE\S REVIVAL ( WORLD 9DU/RY ATTA9$ SU* DIM5SIONS ?AT IT CULM9AT$ 9 ! WORLD CRA% ( #a#h#e#g4 - ,9 ! SIXTIES1 ,BRITI% CAPITAL LO/ NO TIME 9 CREAT+ SIMIL> CONDITIONS 9 ,ASIA AS WELL AS ! ,UNIT$ ,/ATES4 ,AN UN5D+ /REAM WAS DIV]T$ TO ,ASIA ,M9OR & ,EA/ ,9DIA1 :]E IT F9ANC$ ! MO/ MAGNIFIC5T RAILROAD PROJECTS4 ,! P]MAN5T WAY ( ,BRITI% ,9DIA AM\NT$ 9 #ahf TO #hdd MILES1 9 #ahg TO #d1#h#b MILES1 9 #ahh TO #i1#c#f#a MILES & 9 #ahi TO #a#f1#h#g#e MILES4 ,?IS AT ONCE 9CREAS$ ! DEM& = ,BRITI% COMMODITIES4 ,NO SOON] HAD ! ,W> ( ,SECESSION COME TO A CLOSE1 ?AN ,BRITI% CAPITAL AGA9 FL[$ 9TO ! ,UNIT$ ,/ATES4 ,IT AGA9 PAID = ! GREAT] P>T ( ! 5ORM\S RAILROAD CON/RUCTIONS 9 ! ,UNION DUR+ ! SIXTIES & SEV5TIES1 ! P]MAN5T WAY AM\NT+ 9 #ahe TO #h1#h#d#d MILES1 9 #ahf TO #c1#h#g MILES1 9 #ahg TO #e#c1#b#a#b MILES1 9 #ahh TO #i#d1#a#i#h MILES1 & 9 #ahi TO #a#g#i1#e MILES4 ,MAT]IALS = !SE RAILWAYS W]E ALSO BE+ SUPPLI$ BY ,5GL& - ONE ( ! MA9 CAUSES = ! RAPID DEVELOPM5T ( ! ,BRITI% COAL & IRON 9DU/RIES & ! REASONS :Y !SE 9DU/RIES W]E SO S]I\SLY AFFECT$ BY ! ,AM]ICAN CRISES ( #a#h#f#f1 #ahgc & #a#h#h#d4 ,:AT ,SISMONDI CONSID]$ %E] LUNACY WAS 9 ?IS 9/ANCE LIT]ALLY TRUE3 ! ,BRITI% ) !IR [N MAT]IALS1 !IR [N IRON ETC41 HAD BUILT RAILROADS 9 ! ,UNIT$ ,/ATES1 !Y HAD PAID = ! RAILWAYS ) !IR [N CAPITAL & ONLY =W5T !IR 'USE'4 ,9 SPITE ( ALL P]IODICAL CRISES1 H[EV]1 ,EUROPEAN CAPITAL HAD ACQUIR$ SU* A TA/E = ?IS MADNESS1 ?AT ! ,LONDON /OCK EX*ANGE WAS SEIZ$ BY A V]ITABLE EPIDEMIC ( =EIGN LOANS 9 ! MIDDLE ( ! SEV5TIES4 ,BETWE5 #ahg & #a#h#g#e1 LOANS ( ?IS K9D1 AM\NT+ TO ,G,B,PM4 #b#f1 W]E RAIS$ 9 ,LONDON4 ,! IMM$IATE CONSEQU5CE WAS A RAPID 9CREASE 9 ! OV]SEAS EXPORT ( ,BRITI% M]*&ISE4 ,AL?\< ! =EIGN C\NTRIES CONC]N$ W5T P]IODICALLY BANKRUPT1 MASSES ( CAPITAL CONT9U$ TO FL[ 94 ,TURKEY1 ,EGYPT1 ,GREECE1 ,BOLIVIA1 ,CO/A ,RICA1 ,ECUADOR1 ,HONDURAS1 ,MEXICO1 ,P>AGUAY1 ,P]U1 ,/4 ,DOM+O1 ,URUGUAY1 & ,V5EZUELA COMPLETELY OR P>TIALLY SUSP5D$ !IR PAYM5TS ( 9T]E/ 9 ! LATE SEV5TIES4 ,YET UNDET]R$ BY ?IS1 ! FEV] = EXOTIC /ATE LOANS BUR/ \T AGA9 AT ! 5D ( ! EI<TIES - ! ,S\? ,AM]ICAN /ATES & ,S\? ,AFRICAN COLONIES W]E L5T IMM5SE QUANTITIES ( ,EUROPEAN CAPITAL4 ,9 #a#h#g#d1 = 9/ANCE1 ! ,>G5T9E ,REPUBLIC BORR[$ AS MU* AS ,G,B,PM4 #a & ! LOAN HAD RIS5 TO ,G,B,PM4 #ei BY #a#h#i4 

,5GL& BUILT RAILWAYS ) H] [N IRON & COAL 9 ALL !SE C\NTRIES AS WELL1 PAY+ = !M ) H] [N CAPITAL4 ,9 #a#h#h#e1 ! ,>G5T9E P]MAN5T WAY HAD BE5 #a1#i#e#b MILES1 9 #ahic IT WAS #h1#e#e#g MILES4 ,EXPORTS FROM ,5GL& W]E RIS+ ACCORD+LY3 

  

,BRITI% TOTAL EXPORTS 7MA9LY TO ! ,>G5T9E7 AM\NT$ TO ,G,B,PM4 #dg 9 #ahhe & TO ,G,B,PM4 #a4#g A M]E F\R YE>S LAT]4 

,AT ! SAME TIME1 ,BRITI% CAPITAL FL[$ 9TO ,AU/RALIA 9 ! =M ( /ATE LOANS4 ,AT ! 5D ( ! EI<TIES ! LOANS TO ! ?REE COLONIES ,VICTORIA1 ,NEW ,S\? ,WALES & ,TASMANIA AM\NT$ TO ,G,B,PM4#a#a#b1 ,G,B,PM4 #ha ( :I* W]E 9VE/$ 9 RAILWAY CON/RUCTION4 ,! P]MAN5T WAY ( ,AU/RALIA EXT5D$ OV] #d1#i MILES 9 #a#h#h1 & OV] #a#e1#f MILES 9 #a#h#i#e4 

,BRITA91 SUPPLY+ CAPITAL & MAT]IALS = !SE RAILWAYS1 WAS ALSO EMBROIL$ 9 ! CRISES ( #ahi 9 ! ,>G5T9E1 ,TRANSVAAL1 ,MEXICO1 ,URUGUAY1 & 9 ?AT ( #ahic 9 ,AU/RALIA4 

,! FOLL[+ TWO DECADES MADE A DIFF]5CE ONLY 9 SO F> AS ,G]MAN1 ,FR5* & ,BELGIAN CAPITAL L>GELY P>TICIPAT$ ) ,BRITI% CAPITAL 9 =EIGN 9VE/M5TS1 :ILE RAILWAY CON/RUCTION 9 ,ASIA ,M9OR HAD BE5 F9ANC$ 5TIRELY BY ,BRITI% CAPITAL FROM ! FIFTIES TO ! LATE EI<TIES4 ,FROM !N ON1 ,G]MAN CAPITAL TOOK OV] & PUT 9TO EXECUTION ! TREM5D\S PROJECT ( ! ,ANATOLIAN RAILWAY4 ,G]MAN CAPITAL 9VE/M5TS 9 ,TURKEY GAVE RISE TO AN 9CREAS$ EXPORT ( ,G]MAN GOODS TO ?AT C\NTRY4 

,9 #a#h#i#f1 ,G]MAN EXPORTS TO ,TURKEY AM\NT$ TO ,G,B,PM4 #a#d1 9 #aiaa TO ,G,B,PM4 #e4#f#e4 ,TO ,ASIATIC ,TURKEY1 9 P>TICUL>1 GOODS W]E EXPORT$ 9 #aia TO ! VALUE ( ,G,B,PM4 4#f & 9 #aiaa TO ! VALUE ( ,G,B,PM4 #a4#h#e4 ,9 ?IS CASE1 ,G]MAN CAPITAL WAS US$ TO A CONSID]ABLE EXT5T TO PAY = ,G]MAN GOODS1 ! ,G]MANS =GO+1 TO USE ,SISMONDI'S T]M1 ONLY ! PLEASURE ( US+ !IR [N PRODUCTS4 

,LET US EXAM9E ! POSITION MORE CLOSELY3 

,REALIZ$ SURPLUS VALUE1 :I* CANNOT BE CAPITALIZ$ & LIES IDLE 9 ,5GL& OR ,G]MANY1 IS 9VE/$ 9 RAILWAY CON/RUCTION1 WAT] WORKS1 ,ETC4 9 ! ,>G5T9E1 ,AU/RALIA1 ! ,CAPE ,COLONY OR ,MESOPOTAMIA4 ,MA*9]Y1 MAT]IALS & ! LIKE >E SUPPLI$ BY ! C\NTRY :]E ! CAPITAL HAS ORIG9AT$1 & ! SAME CAPITAL PAYS = !M4 ,ACTUALLY1 ?IS PROCESS *>ACT]IZES CAPITALI/ CONDITIONS EV]Y:]E1 EV5 AT HOME4 ,CAPITAL MU/ PUR*ASE ! ELEM5TS ( PRODUCTION & ?US BECOME PRODUCTIVE CAPITAL BE=E IT CAN OP]ATE4 ,ADMITT$LY1 ! PRODUCTS >E !N US$ )9 ! C\NTRY1 :ILE 9 ! =M] CASE !Y >E US$ BY =EIGN]S4 ,BUT !N CAPITALI/ PRODUCTION DOES NOT AIM AT ITS PRODUCTS BE+ 5JOY$1 BUT AT ! ACCUMULATION ( SURPLUS VALUE4 ,!RE HAD BE5 NO DEM& = ! SURPLUS PRODUCT )9 ! C\NTRY1 SO CAPITAL HAD LA9 IDLE )\T ! POSSIBILITY ( ACCUMULAT+4 ,BUT ABROAD1 :]E CAPITALI/ PRODUCTION HAS NOT YET DEVELOP$1 !RE HAS COME AB\T1 VOLUNT>ILY OR BY =CE1 A NEW DEM& ( ! NON-CAPITALI/ /RATA4 ,! CONSUMPTION ( ! CAPITALI/ & WORK+ CLASSES AT HOME IS IRRELEVANT = ! PURPOSES ( ACCUMULATION1 & :AT MATT]S TO CAPITAL IS ! V]Y FACT ?AT ITS PRODUCTS >E 'US$' BY O!RS4 ,! NEW CONSUM]S MU/ 9DE$ REALIZE ! PRODUCTS1 PAY = !IR USE1 & = ?IS !Y NE$ MONEY4 ,!Y CAN OBTA9 SOME ( IT BY ! EX*ANGE ( COMMODITIES :I* BEG9S AT ?IS PO9T1 A BRISK TRAFFIC 9 GOODS FOLL[+ H>D ON ! HEELS ( RAILWAY CON/RUCTION & M9+ 7GOLD M9ES1 ETC474 ,?US ! CAPITAL ADVANC$ = RAILROAD BUILD+ & M9+1 TOGE!R ) AN ADDITIONAL SURPLUS VALUE1 IS GRADUALLY REALIZ$4 ,IT IS IMMAT]IAL TO ! SITUATION AS A :OLE :E!R ?IS EXPORT$ CAPITAL BECOMES %>E CAPITAL 9 NEW 9DEP5D5T 5T]PRISES1 OR :E!R1 AS A GOV]NM5T LOAN1 IT USES ! M$IATION ( A =EIGN /ATE TO F9D NEW SCOPE = OP]ATION 9 9DU/RY & TRAFFIC1 NOR DOES IT MATT] IF 9 ! FIR/ CASE SOME ( ! COMPANIES >E FRAUDUL5T & FAIL 9 DUE C\RSE1 OR IF 9 ! SECOND CASE ! BORR[+ /ATE F9ALLY GOES BANKRUPT1 I4E4 IF ! [N]S SOMETIMES LOSE P>T ( !IR CAPITAL 9 ONE WAY OR ANO!R4 ,EV5 ! C\NTRY ( ORIG9 IS NOT IMMUNE1 & 9DIVIDUAL CAPITALS FREQU5TLY GET LO/ 9 CRISES4 ,! IMPORTANT PO9T IS ?AT CAPITAL ACCUMULAT$ 9 ! OLD C\NTRY %\LD F9D ELSE:]E NEW OPPORTUNITIES TO BEGET & REALIZE SURPLUS VALUE1 SO ?AT ACCUMULATION CAN PROCE$4 ,9 ! NEW C\NTRIES1 L>GE REGIONS ( NATURAL ECONOMY >E OP5 TO CONV]SION 9TO COMMODITY ECONOMY1 OR EXI/+ COMMODITY ECONOMY CAN BE \/$ BY CAPITAL4 ,RAILROAD CON/RUCTION & M9+1 GOLD M9+ 9 P>TICUL>1 >E TYPICAL = ! 9VE/M5T ( CAPITALS FROM OLD CAPITALI/ C\NTRIES 9 NEW ONES4 ,!Y >E PREEM95TLY QUALIFI$ TO /IMULATE A BRISK TRAFFIC 9 GOODS UND] CONDITIONS HI!RTO DET]M9$ BY NATURAL ECONOMY & BO? >E SIGNIFICANT 9 ECONOMIC HI/ORY AS MILE-/ONES ALONG ! R\TE ( RAPID DISSOLUTION ( OLD ECONOMIC ORGANIZATIONS1 ( SOCIAL CRISES & ( ! DEVELOPM5T ( MOD]N CONDITIONS1 ?AT IS TO SAY ( ! DEVELOPM5T ( COMMODITY ECONOMY TO BEG9 )1 & FUR!R ( ! PRODUCTION ( CAPITAL4 

,= ?IS REASON1 ! P>T PLAY$ BY L5D+ ABROAD AS WELL AS BY CAPITAL 9VE/M5TS 9 =EIGN RAILWAY & M9+ %>ES IS A F9E SAMPLE ( ! DEFICI5CIES 9 ,M>X'S DIAGRAM ( ACCUMULATION4 ,9 !SE 9/ANCES1 5L>G$ REPRODUCTION ( CAPITAL CAPITALIZES A SURPLUS VALUE ,?AT HAS ALREADY BE5 REALIZ$ 79 SO F> AS ! LOANS OR =EIGN 9VE/M5TS >E NOT F9ANC$ BY ! SAV+S ( ! PETTY B\RGEOISIE OR ! SEMI-PROLET>IAT74 ,IT IS QUITE IRRELEVANT TO ! PRES5T FIELD ( ACCUMULATION1 :51 :]E & H[ ! CAPITAL ( ! OLD C\NTRIES HAS BE5 REALIZ$ SO ?AT IT MAY FL[ 9TO ! NEW C\NTRY4 ,BRITI% CAPITAL :I* F9DS AN \TLET 9 ,>G5T9E RAILWAY CON/RUCTION MI<T WELL 9 ! PA/ HAVE BE5 REALIZ$ 9 ,*9A 9 ! =M ( ,9DIAN OPIUM4 ,FUR!R1 ! ,BRITI% CAPITAL :I* BUILDS RAILWAYS 9 ! ,>G5T9E1 IS ( ,5GLI% ORIG9 NOT ONLY 9 ITS PURE VALUE-=M1 AS MONEY CAPITAL1 BUT ALSO 9 ITS MAT]IAL =M1 AS IRON1 COAL & MA*9]Y2 ! USE-=M ( ! SURPLUS VALUE1 ?AT IS TO SAY1 HAS ALSO COME 9TO BE+ FROM ! V]Y BEG9N+ 9 ! USE-=M SUITABLE = ! PURPOSES ( ACCUMULATION4 ,! ACTUAL USE-=M ( ! V>IABLE CAPITAL1 H[EV]1 LABOR P[]1 IS MA9LY =EIGN3 IT IS ! NATIVE LABOR ( ! NEW C\NTRIES :I* IS MADE A NEW OBJECT ( EXPLOITATION BY ! CAPITAL ( ! OLD C\NTRIES4 ,IF WE WANT TO KEEP \R 9VE/IGATION ALL ON ONE PLANE1 WE MAY EV5 ASSUME ?AT ! LABOR P[]1 TOO1 HAS ! SAME C\NTRY ( ORIG9 AS ! CAPITAL4 ,9 PO9T ( FACT NEW DISCOV]IES1 ( GOLD M9ES = 9/ANCE1 T5D TO CALL =? MASS EMIGRATION FROM ! OLD C\NTRIES1 ESPECIALLY 9 ! FIR/ /AGES1 & >E L>GELY WORK$ BY LABOR FROM ?OSE C\NTRIES4 ,IT MI<T WELL BE1 !N1 ?AT 9 A NEW C\NTRY CAPITAL1 LABOR P[] & MEANS ( PRODUCTION ALL COME FROM ! SAME CAPITALI/ C\NTRY1 SAY ,5GL&4 ,SO IT IS REALLY 9 ,5GL& ?AT ALL ! MAT]IAL CONDITIONS = ACCUMULATION EXI/ - A REALIZ$ SURPLUS VALUE AS MONEY CAPITAL1 A SURPLUS PRODUCT 9 PRODUCTIVE =M1 & LA/LY LABOR RES]VES4 ,YET ACCUMULATION CANNOT PROCE$ H]E3 ,5GL& & H] OLD BUY]S REQUIRE NEI!R RAILWAYS NOR AN EXP&$ 9DU/RY4 ,5L>G$ REPRODUCTION1 I4E4 ACCUMULATION1 IS POSSIBLE ONLY IF NEW DI/RICTS ) A NON-CAPITALI/ CIVILIZATION1 EXT5D+ OV] L>GE >EAS1 APPE> ON ! SC5E & AUGM5T ! NUMB] ( CONSUM]S4 

,BUT !N1 :O >E !SE NEW CONSUM]S ACTUALLY2 :O IS IT ?AT REALIZES ! SURPLUS VALUE ( CAPITALI/ 5T]PRISES :I* >E />T$ ) =EIGN LOANS2 & :O1 9 ! F9AL ANALYSIS1 PAYS = !SE LOANS8 ,! 9T]NATIONAL LOANS 9 ,EGYPT PROVIDE A CLASSICAL ANSW]4 

,! 9T]NAL HI/ORY ( ,EGYPT 9 ! SECOND HALF ( ! N9ETE5? C5TURY IS *>ACT]IZ$ BY ! 9T]PLAY ( ?REE PH5OM5A3 L>GE-SCALE CAPITALI/ 5T]PRISE1 A RAPIDLY GR[+ PUBLIC DEBT1 & ! COLLAPSE ( PEASANT ECONOMY4 ,UNTIL QUITE REC5TLY1 CORVEE PREVAIL$ 9 ,EGYPT1 & ! ,WALI & LAT] ! ,KH$IVE FREELY PURSU$ !IR [N P[] POLICY ) REG>D TO ! CONDITION ( L&[N]%IP4 ,!SE PRIMITIVE CONDITIONS PRECISELY (F]$ AN 9COMP>ABLY F]TILE SOIL = ! OP]ATIONS ( ,EUROPEAN CAPITAL4 ,ECONOMICALLY SPEAK+1 ! CONDITIONS = A MONET>Y ECONOMY HAD TO BE E/ABLI%$ TO BEG9 )1 & ! /ATE CREAT$ !M BY DIRECT COMPULSION4 ,UNTIL ! ?IRTIES1 ,MEHEMET ,ALI1 ! F\ND] ( ,MOD]N ,EGYPT1 H]E APPLI$ A ME?OD ( PATRI>*AL SIMPLICITY3 EV]Y YE>1 HE 'B\<T UP' ! FELLAHE5'S 5TIRE H>VE/ = ! PUBLIC EX*EQU]1 & ALL[$ !M TO BUY BACK1 AT A HI<] PRICE1 A M9IMUM = SUBSI/5CE & SE$4 ,9 ADDITION HE IMPORT$ COTTON FROM ,EA/ ,9DIA1 SUG> CANE FROM ,AM]ICA1 9DIGO & PEPP]1 & ISSU$ ! FELLAHE5 ) (FICIAL DIRECTIONS :AT TO PLANT & H[ MU* ( IT4 ,! GOV]NM5T AGA9 CLAIM$ ! MONOPOLY = COTTON & 9DIGO1 RES]V+ TO ITSELF ! EXCLUSIVE RI<T ( BUY+ & SELL+ !SE GOODS4 ,BY SU* ME?ODS WAS COMMODITY EX*ANGE 9TRODUC$ 9 ,EGYPT4 ,ADMITT$LY1 ,MEHEMET ,ALI ALSO DID SOME?+ T[>DS RAIS+ LABOR PRODUCTIVITY4 ,HE >RANG$ = DR$G+ ( ! ANCI5T CANALIZATION1 & ABOVE ALL HE />T$ ! WORK ( ! GREAT ,KALIUB ,NILE DAMS :I* 9ITIAT$ ! S]IES ( GREAT CAPITALI/ 5T]PRISES 9 ,EGYPT4 ,!SE W]E TO COMPRISE F\R GREAT FIELDS3 

IRRIGATION SY/EMS1 9 :I* ! ,KALIUB WORKS BUILT BETWE5 #ahde & #ahec TAKE FIR/ PLACE - QUITE AP>T FROM UNPAID =C$ LABOR1 !Y SWALL[$ UP ,G,B,PM4 #b4#e & 9CID5TALLY PROV$ QUITE USELESS AT FIR/2 

R\TES = TRAFFIC - ! MO/ IMPORTANT CON/RUCTION :I* PROV$ ULTIMATELY DETRIM5TAL TO ,EGYPT BE+ ! ,SUEZ ,CANAL2 

! CULTIVATION ( COTTON1 & 

! PRODUCTION ( SUG> CANE4 

,) ! BUILD+ ( ! ,SUEZ ,CANAL1 ,EGYPT BECAME CAU<T UP 9 ! WEB ( ,EUROPEAN CAPITALISM1 NEV] AGA9 TO GET FREE ( IT4 ,FR5* CAPITAL L$ ! WAY ) ,BRITI% CAPITAL H>D ON ITS HEELS4 ,9 ! TW5TY YE>S ?AT FOLL[$1 ! 9T]NAL DI/URBANCES 9 ,EGYPT W]E COLOR$ BY ! COMPETITIVE /RUGGLE BETWE5 !SE TWO CAPITALS4 ,FR5* CAPITAL WAS P]HAPS ! MO/ PECULI> EXPON5T ( ! ,EUROPEAN ME?ODS ( CAPITAL ACCUMULATION AT ! EXP5SE ( PRIMITIVE CONDITIONS4 ,ITS OP]ATIONS W]E RESPONSIBLE = ! USELESS ,NILE DAMS AS WELL AS = ! ,SUEZ ,CANAL4 ,EGYPT FIR/ CONTRACT$ TO SUPPLY ! LABOR ( #b1 S]FS FREE ( *>GE = A NUMB] ( YE>S1 & SECONDLY TO TAKE UP %>ES 9 ! ,SUEZ ,COMPANY TO ! TUNE ( ,G,B,PM4 #c4#e1 I4E4 #d P] C5T ( ! COMPANY'S TOTAL CAPITAL4 ,ALL ?IS = ! SAKE ( BREAK+ ?R\< A CANAL :I* W\LD DEFLECT ! 5TIRE TRADE BETWE5 ,EUROPE & ,ASIA FROM ,EGYPT & W\LD PA9FULLY AFFECT H] P>T 9 ?IS TRADE4 ,!SE ,G,B,PM4 #c4#e =M$ ! NUCLEUS = ,EGYPT'S IMM5SE NATIONAL DEBT :I* WAS TO BR+ AB\T H] MILIT>Y OCCUPATION BY ,BRITA9 TW5TY YE>S LAT]4 ,9 ! IRRIGATION SY/EM1 SUDD5 TRANS=MATIONS W]E 9ITIAT$3 ! ANCI5T SAKIAS1 I4E4 BULLOCK-DRIV5 WAT]-:EELS1 ( :I* #e1 HAD BE5 BUSY = #g MON?S 9 ! YE> 9 ! ,NILE DELTA ALONE1 W]E P>TIALLY REPLAC$ BY /EAM PUMPS4 ,MOD]N /EAM]S N[ PLI$ ON ! ,NILE BETWE5 ,CAIRO & ,ASSUAN4 ,BUT ! MO/ PR(\ND *ANGE 9 ! ECONOMIC CONDITIONS ( ,EGYPT WAS BR\<T AB\T BY ! CULTIVATION ( COTTON4 ,?IS BECAME ALMO/ EPIDEMIC 9 ,EGYPT :51 [+ TO ! ,AM]ICAN ,W> ( ,SECESSION & ! ,5GLI% COTTON FAM9E1 ! PRICE P] %ORT TON ROSE FROM SOME?+ BETWE5 ,G,B,P#c & ,G,B,P#d TO ,G,B,P#b-,G,B,P#b#e4 ,EV]YBODY WAS PLANT+ COTTON1 & =EMO/ AMONG ALL1 ! ,VIC]OY & HIS FAMILY4 ,HIS E/ATES GREW FAT1 :AT ) L>GE-SCALE L& ROBB]Y1 CONFISCATIONS1 =C$ 'SALE' OR PLA9 !FT4 ,HE SUDD5LY APPROPRIAT$ VILLAGES BY ! SCORE ?\< )\T ANY LEGAL EXCUSE4 ,)9 AN 9CR$IBLY %ORT TIME1 ?IS VA/ DEMESNE WAS BR\<T UND] COTTON1 ) ! RESULT ?AT ! 5TIRE TE*NIQUE ( ,EGYPTIAN TRADITIONAL AGRICULTURE WAS REVOLUTIONIZ$4 ,DAMS W]E ?R[N UP EV]Y:]E TO PROTECT ! COTTON FIELDS FROM ! SEASONAL FLOOD+ ( ! ,NILE1 & A COMPREH5SIVE SY/EM ( >TIFICIAL IRRIGATION WAS 9TRODUC$4 ,!SE WAT]WORKS TOGE!R ) CONT9U\S DEEP PL[+ - A NOVEL DEP>TURE = ! FELLAH :O HAD UNTIL !N M]ELY SCRAT*$ HIS SOIL ) A PL[ DAT+ BACK TO ! ,PH>AOHS - & F9ALLY ! 9T5SIVE LABORS ( ! H>VE/ MADE BETWE5 !M 5ORM\S DEM&S ON ,EGYPT'S LABOR P[]4 ,?IS WAS ?R\<\T ! SAME =C$ PEASANT LABOR OV] :I* ! /ATE CLAIM$ TO HAVE AN UNRE/RICT$ RI<T ( DISPOSAL2 & ?\S&S HAD ALREADY BE5 EMPLOY$ ON ! ,KALIUB DAMS & ! ,SUEZ ,CANAL & N[ ! IRRIGATION & PLANTATION WORK TO BE DONE ON ! VIC]EGAL E/ATES CLAMOR$ = ?IS =C$ LABOR4 ,! #b1 S]FS :O HAD BE5 PUT AT ! DISPOSAL ( ! ,SUEZ ,CANAL ,COMPANY W]E N[ REQUIR$ BY ! ,KH$IVE HIMSELF2 & ?IS BR\<T AB\T ! FIR/ CLA% ) ,FR5* CAPITAL4 ,! COMPANY WAS ADJUDG$ A COMP5SATION ( ,G,B,PM4 #c4#c#e BY ! >BITRATION ( ,NAPOLEON ,I,I,I1 A SETTLEM5T TO :I* ! ,KH$IVE C\LD ALL ! MORE READILY AGREE1 S9CE ! V]Y FELLAHE5 :OSE LABOR P[] WAS ! BONE ( CONT5TION W]E ULTIMATELY TO BE MULCT$ ( ?IS SUM4 ,! WORK ( IRRIGATION WAS IMM$IATELY PUT 9 H&4 ,C5TRIFUGAL MA*9ES1 /EAM & TRACTION 5G9ES W]E !RE=E ORD]$ FROM ,5GL& & ,FRANCE4 ,9 !IR HUNDR$S1 !Y W]E C>RI$ BY /EAM]S FROM ,5GL& TO ,ALEX&RIA & !N FUR!R4 ,/EAM PL[S W]E NE$$ = CULTIVAT+ ! SOIL1 ESPECIALLY S9CE ! R9D]PE/ ( #ahfd HAD KILL$ (F ALL ! CATTLE1 ,5GL& AGA9 BE+ ! *IEF SUPPLI] ( !SE MA*9ES4 ,! ,F[L] WORKS W]E EXP&$ 5ORM\SLY ( A SUDD5 TO MEET ! REQUIREM5TS ( ! ,VIC]OY = :I* ,EGYPT HAD TO PAY47#d7 

,BUT N[ ,EGYPT REQUIR$ YET A ?IRD TYPE ( MA*9E1 COTTON G9S & PRESSES = PACK+4 ,DOZ5S ( !SE G9S W]E SET UP 9 ! ,DELTA T[NS4 ,LIKE ,5GLI% 9DU/RIAL T[NS1 ,SAGASIS1 ,TANTA1 ,SAMANUD & O!R T[NS W]E COV]$ BY PAILS ( SMOKE & GREAT =TUNES CIRCULAT$ 9 ! BANKS ( ,ALEX&RIA & ,CAIRO4 

,BUT ALREADY 9 ! YE> ?AT FOLL[$ ?IS COTTON SPECULATION COLLAPS$ ) ! COTTON PRICES :I* FELL 9 A C\PLE ( DAYS FROM #b#gD4 P] P\ND TO #a#$41 #a#bD41 & F9ALLY #fD4 AFT] ! CESSATION ( HO/ILITIES 9 ! ,AM]ICAN ,UNION4 ,! FOLL[+ YE>1 ,ISMAIL ,PA%A V5TUR$ ON A NEW SPECULATION1 ! PRODUCTION ( CANE SUG>4 ,! =C$ LABOR ( ! FELLAHE5 WAS TO COMPETE ) ! ,S\!RN ,/ATES ( ! ,UNION :]E SLAV]Y HAD BE5 ABOLI%$4 ,= ! SECOND TIME1 ,EGYPTIAN AGRICULTURE WAS TURN$ UPSIDE D[N4 ,FR5* & ,BRITI% CAPITALI/S F\ND A NEW FIELD = RAPID ACCUMULATION4 #ah GIANT SUG> FACTORIES W]E PUT ON ORD] 9 #a#h#f#h-#i ) AN E/IMAT$ DAILY \TPUT ( #b %ORT TONS ( SUG>1 ?AT IS TO SAY F\R TIMES AS MU* AS ?AT ( ! GREATE/ !N EXI/+ PLANT4 ,SIX ( !M W]E ORD]$ FROM ,5GL&1 & TWELVE FROM ,FRANCE1 BUT ,5GL& EV5TUALLY DELIV]$ ! LION'S %>E1 BECAUSE ( ! ,FRANCO-,G]MAN W>4 ,!SE FACTORIES W]E TO BE BUILT ALONG ! ,NILE AT 9T]VALS ( #f4#b MILES 7#a KM471 AS C5T]S ( CANE PLANTATIONS ( AN >EA COMPRIS+ #a SQ4 KM4 ,WORK+ TO FULL CAPACITY1 EA* FACTORY REQUIR$ A DAILY SUPPLY ( #b1 TONS ( SUG> CANE4 ,FELLAHE5 W]E DRIV5 TO =C$ LABOR ON ! SUG> PLANTATIONS 9 !IR ?\S&S1 :ILE FUR!R ?\S&S ( !IR NUMB] BUILT ! ,IBRAHIMYA ,CANAL4 ,! /ICK & K\RBA% W]E UN/9T+LY APPLI$4 ,TRANSPORT SOON BECAME A PROBLEM4 ,A RAILWAY NETWORK HAD TO BE BUILT R\ND EV]Y FACTORY TO HAUL ! MASSES ( CANE 9SIDE1 ROLL+ /OCK1 FUNICUL>S1 ETC41 HAD TO BE OBTA9$ AS QUICKLY AS POSSIBLE4 ,AGA9 !SE 5ORM\S ORD]S W]E PLAC$ ) ,5GLI% CAPITAL4 ,! FIR/ GIANT FACTORY WAS OP5$ 9 #a#h#g#b1 #d1 CAMELS PROVID+ MAKE%IFT TRANSPORT4 ,BUT IT PROV$ TO BE SIMPLY IMPOSSIBLE TO SUPPLY CANE 9 ! QUANTITIES REQUIR$ BY ! UND]TAK+4 ,! WORK+ /AFF WAS COMPLETELY 9ADEQUATE1 S9CE ! FELLAH1 ACCU/OM$ TO =C$ LABOR ON ! L&1 C\LD NOT BE TRANS=M$ OV]NI<T 9TO A MOD]N 9DU/RIAL WORK] BY ! LA% ( ! :IP4 ,! V5TURE COLLAPS$1 EV5 BE=E MANY ( ! IMPORT$ MA*9ES HAD BE5 9/ALL$4 ,?IS SUG> SPECULATION CONCLUD$ ! P]IOD ( GIGANTIC CAPITALI/ 5T]PRISE 9 ,EGYPT 9 #a#h#g#c4 

,:AT HAD PROVID$ ! CAPITAL = !SE 5T]PRISES8 ,9T]NATIONAL LOANS4 ,ONE YE> BE=E HIS DEA? 9 #a#h#f#c1 ,SAID ,PA%A HAD RAIS$ ! FIR/ LOAN AT A NOM9AL VALUE ( ,G,B,PM4 #c4#c :I* CAME TO ,G,B,PM4 #b4#e 9 CA% AFT] D$UCTION ( COMMISSIONS1 DISC\NTS1 ETC4 ,HE LEFT TO ,ISMAIL ,PA%A ! LEGACY ( ?IS DEBT & ! CONTRACT ) ! ,SUEZ ,CANAL ,COMPANY1 :I* WAS TO BURD5 ,EGYPT ) A DEBT ( ,G,B,PM4 #a#g4 ,ISMAIL ,PA%A 9 TURN RAIS$ HIS FIR/ LOAN 9 #ahfd ) A NOM9AL VALUE ( ,G,B,PM4 #e4#g AT #g P] C5T & A CA% VALUE ( ,G,B,PM4 #dhe AT #h #a_/#d  P] C5T4 ,:AT REMA9$ ( IT1 AFT] ,G,B,PM4 #c4#c#e HAD BE5 PAID TO ! ,SUEZ ,CANAL ,COMPANY AS COMP5SATION1 WAS SP5T )9 ! YE>1 SWALL[$ UP = ! GREAT] P>T BY ! COTTON GAMBLE4 ,9 #a#h#f#e1 ! FIR/ SO-CALL$ ,DAIRA-LOAN WAS FLOAT$ BY ! ,ANGLO-,EGYPTIAN ,BANK1 ON ! SECURITY ( ! ,KH$IVE'S PRIVATE E/ATES4 ,! NOM9AL VALUE ( ?IS LOAN WAS ,G,B,PM4 #c4#d AT #i P] C5T1 & ITS REAL VALUE ,G,B,PM4 #b4#e AT #ab P] C5T4 ,9 #a#h#f#f1 ,FRUEHL+ @& ,GOS*5 FLOAT$ A NEW LOAN AT A NOM9AL VALUE ( ,G,B,PM4 #c & A CA% VALUE ( ,G,B,PM4 #b4 ,! ,OTTOMAN ,BANK FLOAT$ ANO!R 9 #ahfg ( NOM9ALLY ,G,B,PM4 #b1 REALLY ,G,B,PM4 #a4#g4 ,! FLOAT+ DEBT AT ?AT TIME AM\NT$ TO ,G,B,PM4 #c4 ,! ,BANK+ ,H\SE ,OPP5HEIM @& ,NEFF5 FLOAT$ A GREAT LOAN 9 #ahfh TO CONSOLIDATE P>T ( ?IS DEBT4 ,ITS NOM9AL VALUE WAS ,G,B,PM4 #a#a4#i AT #g P] C5T1 ?\< ,ISMAIL C\LD ACTUALLY LAY H&S ONLY ON ,G,B,PM4 #g4#a AT #ac #a_/#b  P]C5T4 ,?IS MONEY MADE IT POSSIBLE1 H[EV]1 TO PAY = ! POMP\S CELEBRATIONS ON ! OP5+ ( ! ,SUEZ ,CANAL1 9 PRES5CE ( ! LEAD+ FIGURES 9 ! ,C\RTS ( ,EUROPE1 9 F9ANCE & 9 ! DEMI-MONDE1 = A MADLY LAVI% DISPLAY1 & FUR!R1 TO GREASE ! PALM ( ! ,TURKI% ,OV]LORD1 ! ,SULTAN1 ) A NEW BAK%EE% ( ,G,B,PM4 #a4 ,! SUG> GAMBLE NECESSITAT$ ANO!R LOAN 9 #a#h#g4 ,FLOAT$ BY ! FIRM ( ,BIS*(F%EIM @& ,GOLDS*MIDT1 IT HAD A NOM9AL VALUE ( ,G,B,PM4 #g4#a AT #g P] C5T1 & ITS CA% VALUE WAS ,G,B,PM4 #e4 ,9 #a#h#g#b_/#c ,OPP5HEIM'S FLOAT$ TWO FUR!R LOANS1 A MODE/ ONE AM\NT+ TO ,G,B,PM4 #d AT #ad P] C5T & A L>GE ONE ( ,G,B,PM4 #cb AT #h P] C5T :I* R$UC$ ! FLOAT+ DEBT BY ONE HALF1 BUT :I* ACTUALLY CAME ONLY TO ,G,B,PM #aa 9 CA%1 S9CE ! ,EUROPEAN BANK+ H\SES PAID IT 9 P>T BY BILLS ( EX*ANGE !Y HAD DISC\NT$4 

,9 #a#h#g#d1 A FUR!R ATTEMPT WAS MADE TO RAISE A NATIONAL LOAN ( ,G,B,PM4 #e AT AN ANNUAL *>GE ( #i P] C5T41 BUT IT YIELD$ NO MORE ?AN ,G,B,PM4 #c4#d4 ,EGYPTIAN SECURITIES W]E QUOT$ AT #$ P] C5T ( !IR FACE VALUE4 ,)9 ! ?IRTE5 YE>S AFT] ,SAID ,PA%A'S DEA?1 ,EGYPT'S TOTAL PUBLIC DEBT HAD GR[N FROM ,G,B,PM4 #c4#b#i#c TO ,G,B,PM4 #i#d4#a#a17#e7 & COLLAPSE WAS IMM95T4 

,!SE OP]ATIONS ( CAPITAL1 AT FIR/ SI<T1 SEEM TO REA* ! HEI<T ( MADNESS4 ,ONE LOAN FOLL[$ H>D ON ! O!R1 ! 9T]E/ ON OLD LOANS WAS DEFRAY$ BY NEW LOANS1 & CAPITAL BORR[$ FROM ! ,BRITI% & ,FR5* PAID = ! L>GE ORD]S PLAC$ ) ,BRITI% & ,FR5* 9DU/RIAL CAPITAL4 

,:ILE ! :OLE ( ,EUROPE SI<$ & %RUGG$ ITS %\LD]S AT ,ISMAIL'S CRAZY ECONOMY1 ,EUROPEAN CAPITAL WAS 9 FACT DO+ BUS9ESS 9 ,EGYPT ON A UNIQUE & FANTA/IC SCALE - AN 9CR$IBLE MOD]N V]SION ( ! BIBLICAL LEG5D AB\T ! FAT K9E :I* REMA9S UNP>ALLEL$ 9 CAPITALI/ HI/ORY4 

,9 ! FIR/ PLACE1 !RE WAS AN ELEM5T ( USURY 9 EV]Y LOAN1 ANY?+ BETWE5 ONE-FIF? & ONE-?IRD ( ! MONEY O/5SIBLY L5T /ICK+ TO ! F+]S ( ! ,EUROPEAN BANK]S4 ,ULTIMATELY1 ! EXORBITANT 9T]E/ HAD TO BE PAID SOMEH[1 BUT H[ - :]E W]E ! MEANS TO COME FROM8 ,EGYPT H]SELF WAS TO SUPPLY !M2 !IR S\RCE WAS ! ,EGYPTIAN FELLAH-PEASANT ECONOMY PROVID+ 9 ! F9AL ANALYSIS ALL ! MO/ IMPORTANT ELEM5TS = L>GE-SCALE CAPITALI/ 5T]PRISE4 ,HE PROVID$ ! L& S9CE ! SO-CALL$ PRIVATE E/ATES ( ! ,KH$IVE W]E QUICKLY GR[+ TO VA/ DIM5SIONS BY ROBB]Y & BLACKMAIL ( 9NUM]ABLE VILLAGES2 & !SE E/ATES W]E ! F\NDATIONS ( ! IRRIGATION PROJECTS & ! SPECULATION 9 COTTON & SUG> CANE4 ,AS =C$ LABOR1 ! FELLAH ALSO PROVID$ ! LABOR P[] &1 :AT IS MORE1 HE WAS EXPLOIT$ )\T PAYM5T & EV5 HAD TO PROVIDE HIS [N MEANS ( SUBSI/5CE :ILE HE WAS AT WORK4 ,! M>VELS ( TE*NIQUE :I* ,EUROPEAN 5G9E]S & ,EUROPEAN MA*9ES P]=M$ 9 ! SPH]E ( ,EGYPTIAN IRRIGATION1 TRANSPORT1 AGRICULTURE & 9DU/RY W]E DUE TO ?IS PEASANT ECONOMY ) ITS FELLAHE5 S]FS4 ,ON ! ,KALIUB ,NILE DAMS & ON ! ,SUEZ ,CANAL1 9 ! COTTON PLANTATIONS & 9 ! SUG> PLANTS1 UNTOLD MASSES ( PEASANTS W]E PUT TO WORK2 !Y W]E SWIT*$ OV] FROM ONE JOB TO ! NEXT AS ! NE$ >OSE1 & !Y W]E EXPLOIT$ TO ! LIMIT ( 5DURANCE & BEYOND4 ,AL?\< IT BECAME EVID5T AT EV]Y /EP ?AT !RE W]E TE*NICAL LIMITS TO ! EMPLOYM5T ( =C$ LABOR = ! PURPOSES ( MOD]N CAPITAL1 YET ?IS WAS AMPLY COMP5SAT$ BY CAPITAL'S UNRE/RICT$ P[] ( COMM& OV] ! POOL ( LABOR P[]1 H[ LONG & UND] :AT CONDITIONS M5 W]E TO WORK1 LIVE & BE EXPLOIT$4 

,BUT NOT ALONE ?AT IT SUPPLI$ L& & LABOR P[]1 PEASANT ECONOMY ALSO PROVID$ ! MONEY4 ,UND] ! 9FLU5CE ( CAPITALI/ ECONOMY1 ! SCREWS W]E PUT ON ! FELLAHE5 BY TAXATION4 ,! TAX ON PEASANT HOLD+S WAS P]SI/5TLY 9CREAS$4 ,9 ! LATE SIXTIES1 IT AM\NT$ TO ,G,B,P#b #eS4 P] HECT>E1 BUT NOT A F>?+ WAS LEVI$ ON ! 5ORM\S PRIVATE E/ATES ( ! ROYAL FAMILY4 ,9 ADDITION1 EV] MORE SPECIAL RATES W]E DEVIS$4 ,CONTRIBUTIONS ( #bS4 #fD4 P] HECT>E HAD TO BE PAID = ! MA9T5ANCE ( ! IRRIGATION SY/EM :I* ALMO/ EXCLUSIVELY B5EFIT$ ! ROYAL E/ATES1 & ! FELLAH HAD TO PAY #aS4 #dD4 = EV]Y DATE TREE FELL$1 #iD4 = EV]Y CLAY HOVEL 9 :I* HE LIV$4 ,9 ADDITION1 EV]Y MALE OV] #a YE>S ( AGE WAS LIABLE TO A HEAD TAX ( #fS4 #fD4 ,! TOTAL PAID BY ! FELLAHE5 WAS ,G,B,PM4 #b4#e UND] ,MEHEMET ,ALI1 ,G,B,PM4 #e UND] ,SAID ,PA%A1 & ,G,B,PM4 #h4#a#e UND] ,ISMAIL ,PA%A4 

,! GREAT] ! DEBT TO ,EUROPEAN CAPITAL BECAME1 ! MORE HAD TO BE EXTORT$ FROM ! PEASANTS47#f7 ,9 #ahfi ALL TAXES W]E PUT UP BY #a P] C5T & ! TAXES = ! COM+ YE> COLLECT$ 9 ADVANCE4 ,9 #a#h#g1 A SUPPLEM5T>Y L& TAX ( #hS4 P] HECT>E WAS LEVI$4 ,ALL OV] ,UPP] ,EGYPT PEOPLE W]E LEAV+ ! VILLAGES1 DEMOLI%$ !IR DWELL+S & NO LONG] TILL$ !IR L& - ONLY TO AVOID PAYM5T ( TAXES4 ,9 #a#h#g#f1 ! TAX ON DATE PALMS WAS 9CREAS$ BY #fD4 ,:OLE VILLAGES W5T \T TO FELL !IR DATE PALMS & HAD TO BE PREV5T$ BY RIFLE VOLLEYS4 ,NOR? ( ,SIUT1 #a1 FELLAHE5 >E SAID TO HAVE />V$ 9 #ahgi BECAUSE !Y C\LD NO LONG] RAISE ! IRRIGATION TAX = !IR FIELDS & HAD KILL$ !IR CATTLE TO AVOID PAY+ TAX ON IT47#g7 

,N[ ! FELLAH HAD BE5 DRA9$ ( HIS LA/ DROP ( BLOOD4 ,US$ AS A LEE* BY ,EUROPEAN CAPITAL1 ! ,EGYPTIAN /ATE HAD ACCOMPLI%$ ITS FUNCTION & WAS NO LONG] NE$$4 ,ISMAIL1 ! ,KH$IVE1 WAS GIV5 HIS CONGE2 CAPITAL C\LD BEG9 W9D+ UP OP]ATIONS4 

,EGYPT HAD /ILL TO PAY #c#i#d1 ,EGYPTIAN P\NDS AS 9T]E/ ON ! ,SUEZ ,CANAL %>ES = ,G,B,PM4 #d :I* ,5GL& HAD B\<T 9 #a#h#g#e4 ,N[ ,BRITI% COMMISSIONS TO 'REGULATE' ! F9ANCES ( ,EGYPT W5T 9TO ACTION4 ,/RANGELY 5\<1 ,EUROPEAN CAPITAL WAS NOT AT ALL DET]R$ BY ! DESP]ATE /ATE ( ! 9SOLV5T C\NTRY & (F]$ AGA9 & AGA9 TO GRANT IMM5SE LOANS = ! SALVATION ( ,EGYPT4 ,C[E & ,/OKES PROPOS$ A LOAN ( ,G,B,PM4 #gf AT #i P] C5T = ! CONV]SION ( ! TOTAL DEBT1 ,RIV]S ,WILSON ?\<T NO LESS ?AN ,G,B,PM4 #ec W\LD BE NECESS>Y4 ,! ,CR$IT ,FONCI] B\<T UP FLOAT+ BILLS ( EX*ANGE BY ! MILLION1 ATTEMPT+1 ?\< )\T SUCCESS1 TO CONSOLIDATE ! TOTAL DEBT BY A LOAN ( ,G,B,PM4 #i#a4 ,) ! F9ANCIAL POSITION GR[+ HOPELESSLY DESP]ATE1 ! TIME DREW NE> :5 ! C\NTRY & ALL H] PRODUCTIVE =CES WAS TO BECOME ! PREY ( ,EUROPEAN CAPITAL4 ,OCTOB] #ah< SAW ! REPRES5TATIVES ( ! ,EUROPEAN CR$ITORS L&+ 9 ,ALEX&RIA4 ,BRITI% & ,FR5* CAPITAL E/ABLI%$ DUAL CONTROL ( F9ANCES & DEVIS$ NEW TAXES2 ! PEASANTS W]E BEAT5 & OPPRESS$1 SO ?AT PAYM5T ( 9T]E/1 TEMPOR>ILY SUSP5D$ 9 #a#h#g#f1 C\LD BE RESUM$ 9 #a#h#g#g47#h7 

,N[ ! CLAIMS ( ,EUROPEAN CAPITAL BECAME ! PIVOT ( ECONOMIC LIFE & ! SOLE CONSID]ATION ( ! F9ANCIAL SY/EM4 ,9 #a#h#g#h1 A NEW COMMISSION & M9I/RY W]E SET UP1 BO? ) A /AFF 9 :I* ,EUROPEANS MADE UP ONE HALF4 ,9 #a#h#g#i1 ! F9ANCES ( ,EGYPT W]E BR\<T UND] P]MAN5T CONTROL ( ,EUROPEAN CAPITAL1 EX]CIS$ BY ! ,COMMISSION DE LA ,DETTE ,PUBLIQUE ,EGYPTI5NE 9 ,CAIRO4 ,9 #a#h#g#h1 ! ,T%IFFIKS1 E/ATES ( ! VIC]EGAL FAMILY1 :I* COMPRIS$ #d#c#a1#a ACRES1 W]E CONV]T$ 9TO CR[N L& & PL$G$ TO ! ,EUROPEAN CAPITALI/S AS COLLAT]AL = ! PUBLIC DEBT1 & ! SAME HAPP5$ TO ! ,DAIRA L&S1 ! PRIVATE E/ATES ( ! ,KH$IVE1 COMPRIS+ #d#h#e1#a#c#a ACRES1 MA9LY 9 ,UPP] ,EGYPT2 ?IS WAS1 AT A LAT] DATE1 SOLD TO A SYNDICATE4 ,! O!R E/ATES = ! GREATE/ P>T FELL TO CAPITALI/ COMPANIES1 ! ,SUEZ ,CANAL ,COMPANY 9 P>TICUL>4 ,TO COV] ! CO/ ( OCCUPATION1 ,5GL& REQUISITION$ ECCLESIA/ICAL L&S ( ! MOSQUES & S*OOLS4 ,AN OPPORTUNE PRETEXT = ! F9AL BL[ WAS PROVID$ BY A MUT9Y 9 ! ,EGYPTIAN >MY1 />V$ UND] ,EUROPEAN F9ANCIAL CONTROL :ILE ,EUROPEAN (FICIALS W]E DRAW+ EXCELL5T SAL>IES1 & BY A REVOLT 5G9E]$ AMONG ! ,ALEX&RIAN MASSES :O HAD BE5 BL$ :ITE4 ,! ,BRITI% MILIT>Y OCCUPI$ ,EGYPT 9 #a#h#h#b1 AS A RESULT ( TW5TY YE>S' OP]ATIONS ( ,BIG ,BUS9ESS1 NEV] TO LEAVE AGA94 ,?IS WAS ! ULTIMATE & F9AL /EP 9 ! PROCESS ( LIQUIDAT+ PEASANT ECONOMY 9 ,EGYPT BY & = ,EUROPEAN CAPITAL47#i7 

,IT %\LD N[ BE CLE> ?AT ! TRANSACTIONS BETWE5 ,EUROPEAN LOAN CAPITAL & ,EUROPEAN 9DU/RIAL CAPITAL >E BAS$ UPON RELATIONS :I* >E EXTREMELY RATIONAL & 'S\ND' = ! ACCUMULATION ( CAPITAL1 AL?\< !Y APPE> ABSURD TO ! CASUAL OBS]V] BECAUSE ?IS LOAN CAPITAL PAYS = ! ORD]S FROM ,EGYPT & ! 9T]E/ ON ONE LOAN IS PAID \T ( A NEW LOAN4 ,/RIPP$ ( ALL OBSCUR+ CONNECT+ L9KS1 !SE RELATIONS CONSI/ 9 ! SIMPLE FACT ?AT ,EUROPEAN CAPITAL HAS L>GELY SWALL[$ UP ! ,EGYPTIAN PEASANT ECONOMY4 ,5ORM\S TRACTS ( L&1 LABOR1 & LABOR PRODUCTS )\T NUMB]1 ACCRU+ TO ! /ATE AS TAXES1 HAVE ULTIMATELY BE5 CONV]T$ 9TO ,EUROPEAN CAPITAL & HAVE BE5 ACCUMULAT$4 ,EVID5TLY1 ONLY BY USE ( ! K\RBA% C\LD ! HI/ORICAL DEVELOPM5T :I* W\LD NORMALLY TAKE C5TURIES BE COMPRESS$ 9TO TWO OR ?REE DECADES1 & IT WAS JU/ ! PRIMITIVE NATURE ( ,EGYPTIAN CONDITIONS :I* PROV$ SU* F]TILE SOIL = ! ACCUMULATION ( CAPITAL4 

,AS AGA9/ ! FANTA/IC 9CREASE ( CAPITAL ON ! ONE H&1 ! O!R ECONOMIC RESULT IS ! RU9 ( PEASANT ECONOMY TOGE!R ) ! GR[? ( COMMODITY EX*ANGE :I* IS ROOT$ 9 ! SUPREME EX]TION ( ! C\NTRY'S PRODUCTIVE =CES4 ,UND] ,ISMAIL'S RULE1 ! >ABLE & RECLAIM$ L& ( ,EGYPT GREW FROM #e TO #f4#g#e MILLION ACRES1 ! CANAL SY/EM FROM #d#e1#f#b#e TO #e#d1#c#g#e MILES & ! P]MAN5T WAY FROM #b#e#f4#b#e TO #a1#f#c#h MILES4 ,DOCKS W]E BUILT 9 ,SIUT & ,ALEX&RIA1 MAGNIFIC5T DOCKY>DS 9 ,ALEX&RIA1 A /EAM]-S]VICE = PILGRIMS TO ,MECCA WAS 9TRODUC$ ON ! ,R$ ,SEA & ALONG ! COA/ ( ,SYRIA & ,ASIA ,M9OR4 ,EGYPT'S EXPORTS :I* 9 #ahfa HAD AM\NT$ TO #d1#d#e1 ROSE TO ,G,B,PM4 #a#d4#d 9 #a#h#f#d2 H] IMPORTS :I* UND] ,SAID ,PA%A AM\NT$ TO ,G,B,PM4 #a4#b ROSE UND] ,ISMAIL TO BETWE5 ,G,B,PM4 #e & ,G,B,PM4 #e4#e4 ,TRADE :I* RECOV]$ ONLY 9 ! EI<TIES FROM ! OP5+ UP ( ! ,SUEZ ,CANAL AM\NT$ TO ,G,B,PM4 #h4#a#e WOR? ( IMPORTS & ,G,B,PM4 #a#b4#d#e WOR? ( EXPORTS 9 #a#h#i1 BUT 9 #ai ! FIGURES W]E ,G,B,PM4 #add = IMPORTS & ,G,B,PM4 #a#b4#b#e = EXPORTS1 & 9 #aiaa - ,G,B,PM4 #b#g4#h#e = IMPORTS & ,G,B,PM4 #b#f4#h#e = EXPORTS4 ,?ANKS TO ?IS DEVELOPM5T ( COMMODITY ECONOMY :I* EXP&$ BY LEAPS & B\NDS ) ! ASSI/ANCE ( ,EUROPEAN CAPITAL1 ,EGYPT H]SELF HAD FALL5 A PREY TO ! LATT]4 ,! CASE ( ,EGYPT1 JU/ AS ?AT ( ,*9A &1 MORE REC5TLY1 ,MOROCCO1 %[S MILIT>ISM AS ! EXECUTOR ( ! ACCUMULATION ( CAPITAL1 LURK+ BEH9D 9T]NATIONAL LOANS1 RAILROAD BUILD+1 IRRIGATION SY/EMS1 & SIMIL> WORKS ( CIVILIZATION4 ,! ,ORI5TAL /ATES CANNOT DEVELOP FROM NATURAL TO COMMODITY ECONOMY & FUR!R TO CAPITALI/ ECONOMY FA/ 5\< & >E SWALL[$ UP BY 9T]NATIONAL CAPITAL1 S9CE !Y CANNOT P]=M !SE TRANS=MATIONS )\T SELL+ !IR S\LS TO CAPITAL4 ,!IR FEV]I% METAMORPHOSES >E TANTAM\NT TO !IR ABSORPTION BY 9T]NATIONAL CAPITAL4 

,ANO!R GOOD REC5T EXAMPLE IS ! DEAL MADE BY ,G]MAN CAPITAL 9 ,ASIATIC ,TURKEY4 ,EUROPEAN CAPITAL1 ,BRITI% CAPITAL 9 P>TICUL>1 HAD ALREADY AT AN E>LY DATE ATTEMPT$ TO GA9 POSSESSION ( ?IS >EA :I* M>*ES ) ! ANCI5T TRADE R\TE BETWE5 ,EUROPE & ,ASIA47#a7 

,9 ! FIFTIES & SIXTIES1 ,BRITI% CAPITAL BUILT ! RAILWAY L9ES ,SMYRNA-,AYD9-,D9] & ,SMYRNA-,KASSAB--,ALASEHIR1 OBTA9$ ! CONCESSION TO EXT5D ! L9E TO ,AFYON ,K>AHIS> & ALSO LEAS$ ! FIR/ TRACT = ! ,ANATOLIAN RAILWAY ,ADA-,BAZ>-,IZMID4 ,FR5* CAPITAL GRADUALLY CAME TO ACQUIRE 9FLU5CE OV] P>T ( ! RAILWAY BUILD+ DUR+ ?IS TIME4 ,9 #a#h#h#h1 ,G]MAN CAPITAL APPE>$ ON ! SC5E4 ,IT TOOK UP #f P] C5T ( ! %>ES 9 ! NEW M]G] ( 9T]NATIONAL 9T]E/S1 NEGOTIAT$ PR9CIPALLY ) ! ,FR5* CAPITALI/ GR\P REPRES5T$ BY ! ,BANQUE ,OTTOMANE4 ,9T]NATIONAL CAPITAL TOOK UP ! REMA9+ #d P] C5T47#a#a7 ,! ,ANATOLIAN ,RAILWAY ,COMPANY1 A ,TURKI% COMPANY1 WAS F\ND$ ON ! #a#d? ,R$%EB ( ! YE> #acf 7,M>* #d1 #a#h#h#i7 ) ! ,DEUTS*E ,BANK = PR9CIPAL BACK]1 TO TAKE OV] ! RAILWAY L9ES3 BETWE5 ,ADA-,BAZ> & ,IZMID1 RUNN+ S9CE ! E>LY SEV5TIES1 AS ALSO ! CONCESSION = ! ,IZMID-,ESKISEHIR-,ANGORA L9E 7#b#e MILES74 ,IT WAS FUR!R 5TITL$ TO COMPLETE ! ,ADA-,BAZ>-,SCUT>I L9E & BRAN* L9ES TO ,BRUSSA1 9 ADDITION TO BUILD+ ! SUPPLEM5T>Y NETWORK ,ESKISEHIR-,KONYA 7#b#g#h MILES7 ON ! BASIS ( ! #ahic CONCESSION1 & F9ALLY TO RUN A S]VICE FROM ,ANGORA TO ,KAIS>I 7#b#f#d MILES74 ,! ,TURKI% GOV]NM5T GAVE ! COMPANY A /ATE GU>ANTEE ( ANNUAL GROSS E>N+S AM\NT+ TO ,G,B,P#d#a#b P] KM4 ON ! ,ADA-,BAZ> L9E & ( ,G,B,P#f P] KM4 ON ! ,IZMID-,ANGORA L9ES4 ,= ?IS PURPOSE IT WROTE OV] TO ! ,ADM9I/RATION DE LA ,DETTE ,PUBLIQUE ,OTTOMANE ! REV5UE FROM TI!S 9 ! S&%AKS ( ,IZMID1 ,]TO<RUL1 ,KUTALIA & ,ANGORA1 ) :I* TO MAKE UP ! GROSS E>N+S GU>ANTE$ BY ! GOV]NM5T4 ,= ! ,ANGORA-,KAIS>I L9E ! GOV]NM5T GU>ANTE$ ANNUAL GROSS E>N+S ( #gge ,TURKI% P\NDS1 I4E4 ,G,B,P#g#a#b P] KM41 & #fd ,TURKI% P\NDS1 I4E4 APPROXIMATELY ,G,B,P#e#e1 PROVID$1 9 ! LATT] CASE1 ?AT ! SUPPLEM5T>Y GRANT P] KM4 DID NOT EXCE$ #bai ,TURKI% P\NDS 7,G,B,P#b A YE>74 ,! GOV]NM5T WAS TO RECEIVE A QU>T] ( ! EV5TUAL SURPLUS ( GROSS E>N+S OV] ! GU>ANTE$ AM\NT4 ,! ,ADM9I/RATION DE LA ,DETTE ,PUBLIQUE ,OTTOMANE AS EXECUTOR ( ! GOV]NM5T GU>ANTEE COLLECT$ ! TI!S ( ! S&%AKS ,TREBIZONDE & ,GUMU*HANE DIRECT & AID ! RAILWAY COMPANY \T ( A COMMON FUND :I* WAS =M$ ( ALL ! TI!S SET ASIDE = ?IS PURPOSE4 ,9 #a#h#i#h1 ! ,ESKISEHIR-,KONYA MAXIMUM GRANT WAS RAIS$ FROM #bah TO #bif ,TURKI% P\NDS4 

,9 #a#h#i#i1 ! COMPANY OBTA9$ CONCESSIONS TO BUILD & RUN A DOCKY>D AT ,ADA-,BAZ>1 TO ISSUE WRITS1 TO BUILD CORN-ELEVATORS & /OR]OOMS = GOODS ( EV]Y DESCRIPTION1 FUR!R ! RI<T TO EMPLOY ITS [N /AFF = LOAD+ & UNLOAD+ &1 F9ALLY1 9 ! SPH]E ( CU/OMS POLICY1 ! CREATION ( A K9D ( FREE PORT4 

,9 #a#i#a1 ! COMPANY ACQUIR$ A CONCESSION = ! ,BA<DAD RAILWAY ,KONYA-,BA<DAD-,BAZRA-,GULF ( ,P]SIA 7#a1#e MILES7 :I* CONNECTS ) ! ,ANATOLIAN L9E BY ! ,KONYA-,>EGLI-,BULGURLU L9E4 ,= TAK+ UP ?IS CONCESSION1 A NEW LIMIT$ COMPANY WAS F\ND$ :I* PLAC$ ! ORD] ( CON/RUCT+ ! L9E1 AT FIR/ TO ,BULGURLU1 ) A ,BUILD+ ,COMPANY REGI/]$ 9 ,FRANK=T-ON-!-,MA94 

,BETWE5 #ahic & #a#i#a1 ! ,TURKI% GOV]NM5T GAVE ADDITIONAL GRANTS - ,G,B,P#a1#i#d#h1 = ! ,ADA-,BAZ>-,ANGORA L9E & #a1#h1 ,TURKI% P\NDS = ! ,ESKISEHIR-,KONYA L9E - A TOTAL ( ,G,B,P#c1#f#c#b147#a#b7 ,F9ALLY1 BY ! CONCESSION ( #a#i#g1 ! COMPANY WAS EMP[]$ TO DRA9 ! ,K>AVIR> ,LAKE & TO IRRIGATE ! ,KONYA PLA91 !SE WORKS TO BE EXECUT$ )9 SIX YE>S AT GOV]NM5T EXP5SE4 ,9 ?IS 9/ANCE1 ! COMPANY ADVANC$ ! GOV]NM5T ! NECESS>Y CAPITAL UP TO ,G,B,P#g#h1 AT P] C5T 9T]E/1 REPAYABLE )9 ?IRTY-SIX YE>S4 ,9 RETURN ! ,TURKI% GOV]NM5T PL$G$ AS SECURITIES3 

AN ANNUAL SUM ( #b#e1 ,TURKI% P\NDS1 PAYABLE FROM ! SURPLUS ( ! TI!S' FUND ASSIGN$ TO ! ,ADM9I/RATION DE LA ,DETTE ,PUBLIQUE ,OTTOMANE TO COV] ! RAILWAY GRANTS & O!R OBLIGATIONS2 

! RESIDUAL TI!S OV] ! LA/ YE>S 9 ! NEWLY IRRIGAT$ REGIONS2 

! NET PROCE$S FROM ! WORK+ ( ! IRRIGATION SY/EMS1 & 

! PRICE ( ALL RECLAIM$ OR IRRIGAT$ L& ?AT WAS SOLD4 

,= ! EXECUTION ( ?IS WORK1 ! ,FRANK=T COMPANY HAD =M$ A SUBSIDI>Y COMPANY '= ! IRRIGATION ( ! ,KONYA PLA9' ) A CAPITAL ( ,G,B,PM4 #e4#d TO TAKE ?IS WORK 9 H&4 

,9 #aih ! COMPANY OBTA9$ ! CONCESSION = EXT5D+ ! ,KONYA RAILWAY AS F> AS ,BA<DAD & ! ,GULF ( ,P]SIA1 AGA9 ) 9CLUSION ( A GU>ANTE$ REV5UE4 

,TO PAY = ?IS RAILWAY GRANT1 A ,G]MAN ,BA<DAD RAILWAY LOAN WAS TAK5 UP 9 ?REE 9/ALLM5TS ( ,G,B,PM4 #b#a#f1 ,G,B,PM4 #dcb & ,G,B,PM4 #dgf RESPECTIVELY1 ON ! SECURITY ( ! AGGREGATE TI!S = ! VILAYETS ,AYD91 ,BA<DAD1 ,MOSSUL1 ,DI>BEKIR1 ,URSA & ,ALLEPPO1 & ! %EEP-TAX 9 ! VILAYETS ,KONYA1 ,ADANA1 ,ALEPPO1 ETC47#a#c7 

,! F\NDATION ( ACCUMULATION H]E BECOMES QUITE CLE>4 ,G]MAN CAPITAL BUILDS RAILWAYS1 PORTS & IRRIGATION WORKS 9 ,ASIATIC ,TURKEY2 9 ALL !SE 5T]PRISES IT EXTORTS NEW SURPLUS VALUE FROM ! ,ASIATICS :OM IT EMPLOYS AS LABOR P[]4 ,BUT ?IS SURPLUS VALUE MU/ BE REALIZ$ TOGE!R ) ! MEANS ( PRODUCTION FROM ,G]MANY1 7RAILWAY MAT]IALS2 MA*9]Y1 ETC47 ,H[ IS IT DONE8 ,9 P>T BY COMMODITY EX*ANGE :I* IS BR\<T AB\T BY ! RAILWAYS1 ! DOCKY>DS1 ETC41 & NURTUR$ 9 ,ASIA ,M9OR UND] CONDITIONS ( NATURAL ECONOMY4 ,9 P>T1 I4E4 9 SO F> AS COMMODITY EX*ANGE DOES NOT GR[ QUICKLY 5\< = ! NE$S ( CAPITAL1 BY US+ =CE1 ! MA*9]Y ( ! /ATE1 TO CONV]T ! NATIONAL REAL 9COME 9TO COMMODITIES2 !SE >E TURN$ 9TO CA% 9 ORD] TO REALIZE CAPITAL PLUS SURPLUS VALUE4 ,?AT IS ! TRUE OBJECT ( ! REV5UE GRANTS = 9DEP5D5T 5T]PRISES RUN BY =EIGN CAPITAL1 & ( ! COLLAT]AL 9 ! CASE ( LOANS4 ,9 BO? 9/ANCES SO-CALL$ TI!S 7UE%UR71 PL$G$ 9 DIFF]5T WAYS1 >E PAID 9 K9D BY ! ,TURKI% PEASANT & !SE W]E GRADUALLY 9CREAS$ FROM AB\T #ab TO #a#b4#e P] C5T4 ,! PEASANT 9 ! ,ASIATIC VILAYET MU/ PAY UP OR ELSE HIS TI! W\LD SIMPLY BE CONFISCAT$ BY ! POLICE & ! C5TRAL & LOCAL AU?ORITIES4 ,!SE TI!S1 !MSELVES A MANIFE/ATION ( ANCI5T ,ASIATIC DESPOTISM BAS$ ON NATURAL ECONOMY1 >E NOT COLLECT$ BY ! ,TURKI% GOV]NM5T DIRECT2 BUT BY TAX-F>M]S NOT UNLIKE ! TAX-COLLECTORS ( ! ANCI5 REGIME2 ?AT IS TO SAY ! EXPECT$ RETURNS FROM ! LEVY 9 EA* VILAYET >E SEP>ATELY AUCTION$ BY ! /ATE TO TAX-F>M]S4 ,!Y >E B\<T BY 9DIVIDUAL SPECULATORS OR SYNDICATES :O SELL ! TI!S ( EA* S&%AK 7DI/RICT7 TO O!R SPECULATORS & !SE RESELL !IR %>ES TO A :OLE NUMB] ( SMALL] AG5TS4 ,ALL !SE MIDDLEM5 WANT TO COV] !IR EXP5SES & MAKE ! GREATE/ POSSIBLE PR(IT1 & ?US1 BY ! TIME !Y >E ACTUALLY COLLECT$1 ! PEASANTS' CONTRIBUTIONS HAVE SWOLL5 TO 5ORM\S DIM5SIONS4 ,! TAX-F>M] WILL TRY TO REC\P HIMSELF = ANY MI/AKE 9 HIS CALCULATIONS AT ! EXP5SE ( ! PEASANT1 & ! LATT]1 NE>LY ALWAYS 9 DEBT1 IS IMPATI5T = ! MOM5T :5 HE CAN SELL HIS H>VE/4 ,BUT (T51 AFT] CUTT+ HIS CORN1 HE CANNOT />T ?RE%+ = WEEKS1 UNTIL 9DE$ ! TAX-F>M] DEIGNS TO TAKE HIS DUE4 ,HIS 5TIRE H>VE/ IS AB\T TO ROT 9 ! FIELDS1 & ! TAX-F>M]1 USUALLY A GRA9 M]*ANT HIMSELF1 TAKES ADVANTAGE ( ?IS FACT & COMPELS HIM TO SELL AT A L[ PRICE4 ,!SE TAX COLLECTORS KN[ H[ TO 5LI/ ! SUPPORT ( ! (FICIALS1 ESPECIALLY ! ,MUKT>S1 ! LOCAL HEADM51 AGA9/ COMPLA9+ MALCONT5TS47#a#d7 

,ALONG ) ! TAXES ON SALT1 TOBACCO1 SPIRITS1 ! EXCISE ON SILK1 ! FI%+ DUES1 ETC41 ! TI!S >E PL$G$ ) ! ,CONSEIL DE L',ADM9I/RATION DE LA ,DETTE ,PUBLIQUE ,OTTOMANE TO S]VE AS SECURITY = ! RAILWAY GRANT & ! LOANS4 ,9 EV]Y CASE ! ,CONSEIL RES]VES TO ITSELF ! RI<T TO VET ! TAX-F>M]S' CONTRACTS & /IPULATES = ! PROCE$S ( ! TI! TO BE PAID DIRECTLY 9TO ! C(F]S ( ITS REGIONAL (FICES4 ,IF NO TAX-F>M] CAN BE F\ND1 ! TI!S >E /OR$ 9 K9D BY ! ,TURKI% GOV]NM5T2 ! W>EH\SE KEYS >E DEPOSIT$ ) ! ,CONSEIL :I* !N CAN SELL ! TI!S ON ITS [N ACC\NT4 

,?US ! ECONOMIC METABOLISM BETWE5 ! PEASANTS ( ,ASIA ,M9OR1 ,SYRIA & ,MESOPOTAMIA ON ! ONE H& & ,G]MAN CAPITAL ON ! O!R PROCE$S 9 ! FOLL[+ WAY3 9 ! VILAYETS ,KONYA1 ,BA<DAD1 ,BAZRA1 ETC41 ! GRA9 COMES 9TO BE+ AS A SIMPLE USE-PRODUCT ( PRIMITIVE PEASANT ECONOMY4 ,IT IMM$IATELY FALLS TO ! TI!-F>M] AS A /ATE LEVY4 ,ONLY !N1 9 ! H&S ( ?IS LATT]1 DOES IT BECOME A COMMODITY1 &1 AS SU*1 MONEY :I* FALLS TO ! /ATE4 ,?IS MONEY IS NO?+ BUT CONV]T$ PEASANT GRA92 IT WAS NOT EV5 PRODUC$ AS A COMMODITY4 ,BUT N[1 AS A /ATE GU>ANTEE1 IT S]VES T[>DS PAY+ = ! CON/RUCTION & OP]ATION ( RAILWAYS1 I4E4 TO REALIZE BO? ! VALUE ( ! MEANS ( PRODUCTION & ! SURPLUS VALUE EXTORT$ FROM ! ,ASIATIC PEASANTS & PROLET>IAT 9 ! BUILD+ & RUNN+ ( ! RAILWAY4 ,9 ?IS PROCESS FUR!R MEANS ( PRODUCTION ( ,G]MAN ORIG9 >E US$1 & SO ! PEASANT GRA9 ( ,ASIA1 CONV]T$ 9TO MONEY1 ALSO S]VES TO TURN 9TO CA% ! SURPLUS VALUE ?AT HAS BE5 EXTORT$ FROM ! ,G]MAN WORK]S4 ,9 ! P]=MANCE ( !SE FUNCTIONS1 ! MONEY ROLLS FROM ! H&S ( ! ,TURKI% GOV]NM5T 9TO ! C(F]S ( ! ,DEUTS*E ,BANK1 & H]E IT ACCUMULATES1 AS CAPITALI/ SURPLUS VALUE1 9 ! =M ( PROMOT]S' PR(ITS1 ROYALTIES1 DIVID5DS & 9T]E/S 9 ! ACC\NTS ( ,MESSRS4 ,GW9N]1 ,SIEM5S1 ,/9NES & !IR FELL[ DIRECTORS1 ( ! %>EHOLD]S & CLI5TS ( ! ,DEUTS*E ,BANK & ! :OLE 9TRICATE SY/EM ( ITS SUBSIDI>Y COMPANIES4 ,IF !RE IS NO TAX-F>M]1 AS PROVID$ 9 ! CONCESSIONS1 !N ! COMPLICAT$ METAMORPHOSES >E R$UC$ TO !IR MO/ SIMPLE & OBVI\S T]MS3 ! PEASANT GRA9 PASSES IMM$IATELY TO ! ,ADM9I/RATION DE LA ,DETTE ,PUBLIQUE ,OTTOMANE1 I4E4 TO ! REPRES5TATIVES ( ,EUROPEAN CAPITAL1 & BECOMES ALREADY 9 ITS NATURAL =M A REV5UE = ,G]MAN & O!R =EIGN CAPITAL3 IT REALIZES CAPITALI/ SURPLUS VALUE EV5 BE=E IT HAS %$ ITS USE-=M = ! ,ASIATIC PEASANT1 EV5 BE=E IT HAS BECOME A COMMODITY & ITS [N VALUE HAS BE5 REALIZ$4 ,?IS IS A CO>SE & /RAI<T=W>D METABOLISM BETWE5 ,EUROPEAN CAPITAL & ,ASIATIC PEASANT ECONOMY1 ) ! ,TURKI% /ATE R$UC$ TO ITS REAL ROLE1 ?AT ( A POLITICAL MA*9]Y = EXPLOIT+ PEASANT ECONOMY = CAPITALI/ PURPOSES1 - ! REAL FUNCTION1 ?IS1 ( ALL ,ORI5TAL /ATES 9 ! P]IOD ( CAPITALI/ IMP]IALISM4 ,?IS BUS9ESS ( PAY+ = ,G]MAN GOODS ) ,G]MAN CAPITAL 9 ,ASIA IS NOT ! ABSURD CIRCLE IT SEEMS AT FIR/1 ) ! K9D ,G]MANS ALL[+ ! %REWD ,TURKS M]ELY ! 'USE' ( !IR GREAT WORKS ( CIVILIZATION - IT IS AT BOTTOM AN EX*ANGE BETWE5 ,G]MAN CAPITAL & ,ASIATIC PEASANT ECONOMY1 AN EX*ANGE P]=M$ UND] /ATE COMPULSION4 ,ON ! ONE H& IT MAKES = PROGRESSIVE ACCUMULATION & EXP&+ 'SPH]ES ( 9T]E/' AS A PRETEXT = FUR!R POLITICAL & ECONOMIC EXPANSION ( ,G]MAN CAPITAL 9 ,TURKEY4 ,RAILROAD BUILD+ & COMMODITY EX*ANGE1 ON ! O!R H&1 >E FO/]$ BY ! /ATE ON ! BASIS ( A RAPID DIS9TEGRATION1 RU9 & EXPLOITATION ( ,ASIATIC PEASANT ECONOMY 9 ! C\RSE ( :I* ! ,TURKI% /ATE BECOMES MORE & MORE DEP5D5T ON ,EUROPEAN CAPITAL1 POLITICALLY AS WELL AS F9ANCIALLY47#a#e7 

,FOOTNOTES 

7#a7 

  

7#b7 ,TUGAN ,B>ANOVSKI1 ,/UDIES ON ! ,!ORY & ,HI/ORY ( ,COMM]CIAL ,CRISES 9 ,5GL&1 P4#g#d4 

7#c7 ,SISMONDI1 ,N\VEAUX ,PR9CIPES 4441 VOL4I1 BOOK IV1 *AP4IV3 ,COMM]CIAL ,WEAL? ,FOLL[S ! ,GR[? ( ,9COME1 PP4#c#f#h-#g4 

7#d7 ,5G9E] ,EY?1 A REPRES5TATIVE ( ,F[L]'S1 TELLS US3 ',N[ !RE WAS A FEV]I% EX*ANGE ( TELEGRAMS BETWE5 ,CAIRO1 ,LONDON & ,LE$S4 - 0,:5 CAN ,F[L]'S DELIV] #ae /EAM PL[S80 - ,ANSW]3 0,WORK+ TO CAPACITY1 )9 ONE YE>40 - 0,NOT GOOD 5\<4 ,EXPECT UNLOAD+ ,ALEX&RIA BY SPR+ #ae /EAM PL[S40 - ,A43 0,IMPOSSIBLE40 - ,! WORKS AT ?AT TIME W]E B>ELY BIG 5\< TO TURN \T #c /EAM PL[S P] WEEK4 ,N4,B4 A MA*9E ( ?IS TYPE CO/S ,G,B,P#b1#e SO ?AT ! ORD] 9VOLV$ ,G,B,PM4 #c4#g#e4 ,ISMAIL ,PA%A'S NEXT WIRE3 0,QUOTE CO/ IMM$IATE FACTORY EXPANSION4 ,VIC]OY WILL+ FOOT BILL40 - ,Y\ CAN IMAG9E ?AT ,LE$S MADE HAY :ILE ! SUN %ONE4 ,& 9 ADDITION1 O!R FACTORIES 9 ,5GL& & ,FRANCE AS WELL W]E MADE TO SUPPLY /EAM PL[S4 ,! ,ALEX&RIA W>EH\SES1 :]E GOODS DE/9$ = ! VICE-REGAL E/ATES W]E UNLOAD$1 W]E CRAMM$ TO ! RO( ) BOIL]S1 :EELS1 DRUMS WIRE-ROPE & ALL SORTS ( *E/S & BOXES4 ,! SECOND-RATE HO/ELRIES ( ,CAIRO SW>M$ ) NEWLY QUALIFI$ /EAM PL[M51 PROMOT$ 9 A HURRY FROM ANVIL OR %>E-PL[1 Y\NG HOPEFULS1 FIT = ANY?+ & NO?+1 S9CE EV]Y /EAM PL[ MU/ BE MANN$ BY AT LEA/ AN EXP]T PIONE] ( CIVILIZATION4 ,WAGON LOADS ( ?IS ASSORT$ C>GO W]E S5T 9TO ! 9T]IOR1 JU/ SO ?AT ! NEXT %IP C\LD UNLOAD4 ,Y\ CANNOT IMAG9E 9 :AT CONDITION !Y >RIV$ AT !IR DE/9ATION1 OR RA!R ANY:]E BUT !IR DE/9ATION4 ,T5 BOIL]S W]E LY+ ON ! BANKS ( ! ,NILE1 & ! MA*9E TO :I* !Y BELONG$ WAS T5 MILES ?I!R4 ,H]E WAS A LITTLE HEAP ( WIRE-ROPE1 BUT Y\ HAD TO TRAVEL ANO!R #b H\RS TO F9D ! APPROPRIATE PULLEYS4 ,9 ONE PLACE AN ,5GLI%MAN :O WAS TO SET UP ! MA*9ES SQUATT$ DESOLATE & HUNGRY1 ON A PILE ( ,FR5* CRATES1 & 9 ANO!R PLACE ! MATE HAD TAK5 TO NATIVE LIQUOR 9 HIS DESPAIR4 ,EFF5DIS & ,KATIBS1 9VOK+ ! HELP ( ,ALLAH1 RU%$ TO & FRO BETWE5 ,SIUT & ,ALEX&RIA & COMPIL$ 5DLESS LI/S ( ITEMS ! NAMES ( :I* !Y DID NOT EV5 KN[4 ,& YET1 9 ! 5D1 SOME ( ?IS APP>ATUS WAS SET 9 MOTION 9 ,UPP] ,EGYPT1 ! PL[S BEL*$ /EAM - CIVILIZATION & PROGRESS HAD MADE ANO!R /EP =W>D' 7,LEB5DIGE ,KRAFTE1 #g ,VORTRAGE AUS DEM ,GEBIETE D] ,TE*NIK1 ,B]L9 #a#i#h1 P4#b#a7 

7#e7 ,CF4 ,EVELYN ,B>+1 ,E>L ( ,CROM]1 ,EGYPT ,TODAY 7,LONDON #a#i#h71 VOL4I1 P4#a#a4 

7#f7 ,9CID5TALLY1 ! MONEY WRE/$ FROM ! ,EGYPTIAN FELLAH FUR!R FELL1 BY WAY ( ,TURKEY1 TO ,EUROPEAN CAPITAL4 ,! ,TURKI% LOANS ( #a#h#e#d1 #a#h#e#e1 #a#h#g#a1 #ahgg & #ahhf W]E BAS$ ON ! CONTRIBUTIONS FROM ,EGYPT :I* W]E 9CREAS$ SEV]AL TIMES & PAID DIRECT 9TO ! ,BANK ( ,5GL&4 

7#g7 ',IT IS /AT$ BY RESID5TS 9 ! ,DELTA'1 REPORTS ,! ,TIMES ( ,M>* #c#a1 #a#h#g#i1 '?AT ! ?IRD QU>T] ( ! YE>'S TAXATION IS N[ COLLECT$1 & ! OLD ME?ODS ( COLLECTION APPLI$4 ,?IS S\NDS /RANGELY BY ! SIDE ( ! NEWS ?AT PEOPLE >E />V+ BY ! ROADSIDE1 ?AT GREAT TRACTS ( C\NTRY >E UNCULTIVAT$1 BECAUSE ( ! PHYSICAL BURD5S1 & ?AT ! F>M]S HAVE SOLD !IR CATTLE1 ! WOM5 !IR F9]Y1 & ?AT ! USUR]S >E FILL+ ! MORTGAGE (FICES ) !IR BONDS1 & ! C\RTS ) !IR SUITS ( =ECLOSURE' 7QUOT$ BY ,?4 ,RO?/E91 ,EGYPT'S ,RU91 #a#i#a1 PP4#f#i-#g74 

7#h7 ',?IS PRODUCE'1 WROTE ! CORRESPOND5T ( ,! ,TIMES FROM ,ALEX&RIA1 'CONSI/S :OLLY ( TAXES PAID BY ! PEASANTS 9 K9D1 & :5 ONE ?9KS ( ! POV]TY-/RICK51 OV]DRIV51 UND]-PAID FELLAHE5 9 !IR MIS]ABLE HOVELS1 WORK+ LATE & E>LY TO FILL ! POCKETS ( ! CR$ITORS1 ! PUNCTUAL PAYM5T ( ! C\PON CEASES TO BE :OLLY A SUBJECT ( GRATIFICATION' 7QUOT$ BY ,RO?/E91 OP4 CIT41 P4#d#i74 

7#i7 ,EY?1 AN \T/&+ EXPON5T ( CAPITALI/ CIVILIZATION 9 ! PRIMITIVE C\NTRIES1 *>ACT]I/ICALLY CONCLUDES HIS MA/]LY SKET* ON ,EGYPT1 FROM :I* WE HAVE TAK5 ! MA9 DATA1 ) ! FOLL[+ IMP]IALI/ >TICLES ( FAI?3 ',:AT WE HAVE LE>N$ FROM ! PA/ ALSO HOLDS TRUE = ! FUTURE4 ,EUROPE MU/ & WILL LAY FIRM H&S UPON ?OSE C\NTRIES :I* CAN NO LONG] KEEP UP ) MOD]N CONDITIONS ON !IR [N1 ?\< ?IS WILL NOT BE POSSIBLE )\T ALL K9DS ( /RUGGLE1 :5 ! DIFF]5CE BETWE5 RI<T & WRONG WILL BECOME BLURR$1 !N POLITICAL & HI/ORICAL JU/ICE WILL (T5 5\< MEAN DISA/] = MILLIONS & !IR SALVATION DEP5D UPON :AT IS POLITICALLY WRONG4 ,ALL ! WORLD OV]1 ! /RONGE/ H& WILL MAKE AN 5D TO CONFUSION1 & SO IT WILL EV5 ON ! BANKS ( ! ,NILE' 7OP4 CIT41 P4#b#d#g74 ,RO?/E9 HAS MADE IT CLE> 5\< :AT K9D ( 'ORD]' ! ,BRITI% CREAT$ 'ON ! BANKS ( ! ,NILE'4 

7#a7 ,ALREADY 9 ! E>LY TW5TIES ( ! LA/ C5TURY1 ! ,ANGLO-,9DIAN GOV]NM5T COMMISSION$ ,COLONEL ,*ESNEY TO 9VE/IGATE ! NAVIGABILITY ( ! ,RIV] ,EUPHRATES 9 ORD] TO E/ABLI% ! %ORTE/ POSSIBLE CONNECTION BETWE5 ! ,M$IT]RANEAN & ! ,P]SIAN ,GULF1 RESP4 ,9DIA4 ,AFT] DETAIL$ PREP>ATIONS & A PRELIM9>Y RECONNAISSANCE 9 W9T] #a#h#c#a1 ! EXP$ITION PROP] SET \T 9 #a#h#c#e_/#g4 ,9 DUE C\RSE1 ,BRITI% /AFF & (FICIALS 9VE/IGAT$ & SURVEY$ A WID] >EA 9 ,EA/]N ,MESOPOTAMIA4 ,!SE EF=TS DRAGG$ ON UNTIL #ahff )\T ANY USEFUL RESULTS = ! ,BRITI% GOV]NM5T4 ,BUT AT A LAT] DATE ,GREAT ,BRITA9 RETURN$ TO ! PLAN ( CONNECT+ ! ,M$IT]RANEAN ) ,9DIA BY WAY ( ! ,GULF ( ,P]SIA1 ?\< 9 A DIFF]5T =M1 I4E4 ! ,TIGRIS RAILWAY PROJECT4 ,9 #a#h#g#i1 ,CAM]ON TRAVEL$ ?R\< ,MESOPOTAMIA = ! ,BRITI% GOV]NM5T TO /UDY ! LAY ( ! L& = ! PROJECT$ RAILWAY 7,MAX ,FREIH]R V4 ,OPP5HEIM1 ,VOM ,MITTELME] ZUM ,P]SIS*5 ,GOLF DUR* D5 ,HAURAN1 DIE ,SYRIS*E ,WU/E UND ,MESOPOTAMI51 VOL4II1 PP4#e & #c#f7 

7#a#a7 ,S4 ,S*NEID]1 ,DIE ,DEUTS*E ,BAGDADBAHN 7#a#i71 P4#c4 

7#a#b7 ,SAL+1 ,BORS5JAHRBU* #a#i#a#a_/#a#b1 P4#b#b#a#a4 

7#a#c7 ,SAL+1 OP4 CIT41 PP4#c#f-#a4 ,5G9E] ,PRESSEL ( ,WURTTEMB]G1 :O AS ASSI/ANT TO ,B>ON V4 ,HIRS* WAS ACTIVELY 5GAG$ 9 !SE TRANSACTIONS 9 ,EUROPEAN ,TURKEY1 NEATLY ACC\NTS = ! TOTAL GRANTS T[>DS RAILWAY BUILD+ 9 ,TURKEY :I* ,EUROPEAN CAPITAL WRE/$ FROM ! ,TURKI% GOV]NM5T3 

  

,ALL ?IS REF]S ONLY TO ! P]IOD BE=E #a#h#i#i2 NOT UNTIL ?AT DATE W]E ! REV5UE GRANTS PAID 9 P>T4 ,! TI!S ( NO LESS ?AN #bh \T ( ! #gd S&%AKS 9 ,ASIATIC ,TURKEY HAD BE5 PL$G$ = ! REV5UE GRANTS1 & ) !SE GRANTS2 BETWE5 #ahef & #a#i1 A GR& TOTAL ( #a1#e#a#f MILES ( RAILS HAD BE5 LAID D[N 9 ,ASIATIC ,TURKEY4 ,PRESSEL1 ! EXP]T1 BY ! WAY GIVES AN 9/ANCE ( ! UND]H& ME?ODS EMPLOY$ BY ! RAILWAY COMPANY AT ,TURKI% EXP5SE2 HE /ATES ?AT UND] ! #ahic AGREEM5T ! ,ANATOLIAN COMPANY PROMIS$ TO RUN ! RAILWAY1 TO ,BA<DAD VIA ,ANGORA1 BUT LAT] DECID$ ?AT ?IS PLAN ( !IRS W\LD NOT WORK &1 HAV+ QUALIFI$ = ! GU>ANTEE1 LEFT ! L9E TO ITS FATE & GOT BUSY ) ANO!R R\TE VIA ,KONYA4 

',NO SOON] HAVE ! COMPANIES SUCCE$$ 9 ACQUIR+ ! ,SMYRNA-,AYD9-,D9] L9E1 ?AN !Y WILL DEM& ! EXT5SION ( ?IS L9E TO ,KONYA1 & ! MOM5T !SE BRAN* L9ES >E COMPLET$1 ! COMPANIES WILL MOVE HEAV5 & E>? TO =CE ! GOODS TRAFFIC TO USE !SE NEW R\TES = :I* !RE >E NO GU>ANTEES1 & :I*1 MORE IMPORTANT /ILL1 NE$ NEV] %>E !IR TAK+S1 :]EAS ! O!R L9ES MU/ PAY P>T ( !IR SURPLUS TO ! GOV]NM5T1 ONCE !IR GROSS REV5UE EXCE$S A C]TA9 AM\NT4 ,9 CONSEQU5CE1 ! GOV]NM5T WILL GA9 NO?+ BY ! ,AYD9 F9E1 & ! COMPANIES WILL MAKE MILLIONS4 ,! GOV]NM5T WILL FOOT ! BILL = PRACTICALLY ! 5TIRE REV5UE GU>ANTEE = ! ,KASSABA-,ANGORA L9E1 & CAN NEV] HOPE TO PR(IT BY ITS CONTRACT$1 #be P] C5T %>E 9 ! SURPLUS ABOVE ,G,B,P#f GROSS TAK+S' 7,W4,V4 ,PRESSEL1 ,LES ,*EM9S DE ,F] 5 ,TURQUIE D',ASIE 7,ZURI* #a#i71 P4#g74 

7#a#d7 ,*>LES ,MORAVITZ1 ,DIE ,TURKEI IM ,SPIEGEL IHR] ,F9ANZ5 7#a#i#c71 P4#h#d4 

7#a#e7 ',9CID5TALLY1 9 ?IS C\NTRY EV]Y?+ IS DIFFICULT & COMPLICAT$4 ,IF ! GOV]NM5T WI%ES TO CREATE A MONOPOLY 9 CIG>ETTE PAP] OR PLAY+ C>DS1 ,FRANCE & ,AU/RO-,HUNG>Y IMM$IATELY >E ON ! SPOT TO VETO ! PROJECT 9 ! 9T]E/ ( !IR TRADE4 ,IF ! ISSUE IS OIL1 ,RUSSIA WILL RAISE OBJECTIONS1 & EV5 ! ,P[]S :O >E LEA/ CONC]N$ WILL MAKE !IR AGREEM5T DEP5D5T ON SOME O!R AGREEM5T4 ,TURKEY'S FATE IS ?AT ( ,SAN*O ,PANZA & HIS D9N]3 AS SOON AS ! M9I/] ( F9ANCE WI%ES TO DO ANY?+1 SOME DIPLOMAT GETS UP1 9T]RUPTS HIM & ?R[S A VETO 9 HIS TEE?' 7,MORAVITZ1 OP4 CIT41 P4#g74 

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,*RONOLOGY 3 
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