This was constituted in 1886 and was chiefly made up of the net savings of the Egyptian government on its share of the annual surpluses from revenue.
From 1885-1886 onwards, outlay on public works, military and colonial expenditure, and especially the commercial and financial crises, contributed to produce annual deficits; but owing to drastic reforms introduced in 1894-1895 and to careful management the year 1898-1899 marked a return of surpluses (nearly 1,306,400).
The annual surpluses are largely accounted for by the heavy taxation on almost everything imported into the country, i and by the monopolies on tobacco and on salt; and are as a rule spent, and well spent, in other ways.
From 1876, when equilibrium between expenditure and revenue had first been attained, taxation yielded steady annual surpluses, which in 1881 reached the satisfactory level of 2,120,000.
At the same time a new General Reserve Fund was created, made up chiefly of the surpluses of the old General Reserve, Special Reserve, and Conversion Economies funds.
This new fund started with a capital of 13,376,000 and was replenished by the surpluses of subsequent years, by the interest earned by its temporary investment, and by the sums accruing by the liquidation of the Daira and Domains loans.
Moreover, some 10,000,000, being accumulated surpluses in the hands of the Caisse after meeting the charges of the debt, were handed over to the Egyptian tceasury.
Between 1885 and r9o~ the revenue of Spain varied from 30,000,000 to 40,000,000 and the expenditure was approximately equal; deficits were commomi towards the beginning of this period, surpluses towards the end For an analysis of the budget the \ear 1008 may be taken as typical mriasnuch as trade had then resumed it~ normal condition, aftem the disturbing influence of tariff revision in 1906 and the failure of many crops in 1907.
After 1896 substantial annual surpluses were spent in reducing taxation and in the extinction of debt.