In 1821 he entered a banking-house newly established at St Petersburg, but returned two years later to Paris, where he was appointed cashier to the Caisse Hypothecaire.
The Caisse itself remained, but shorn of all political and administrative powers, its functions being strictly limited to receiving the assigned revenues and to ensuring the due payment of the coupon.
The Caisse was authorized, after payment of the coupons on the debt, to make good out of their balance in hand the difference between the authorized expenditure and the non-assigned revenue.
Immediately the powers protested against this infraction of the law of liquidation, and the Caisse applied for a writ to the Mixed Tribunals.
The Conversion Economies Fund was also placed at the free disposal of the Egyptian government- The General Reserve Fund ceased to exist, but for the better security of the bondholders a reserve fund of Li,8oo,ooo was constituted and left in the hands of the Caisse to be used in the highly improbable event of the land tax being insufficient to meet the debt charges.
Besides the Caisse there was the Railway Board, which administered the railways, telegraphs and port of Alexandria for the benefit of the bondholders, and the DaIra and Domains commissions, which administered the estates mortgaged to the holders of those loans.
If a surplus remained to the Caisse after making good such deficit the surplus was to be divided equally between the Caisse and the government; the government to be free to spend its share as it pleased, while the Caisse had to devote its share to the reduction of the debt.
This security was the establishment of a Treasury of the Public Debt, known by its French title of Caisse de la Dette, and commonly spoken of simply as the Caisse.
The Caisse de la Dette, instituted in May 1876 as a result of the Cave mission, led to international control over a large portion of the revenue.
The power of the Caisse de la Dette, which had virtually controlled the execution of the international agreements concerning the finances, was swept away, together with almost all the other financial fetters binding Egypt.