The Mahdi, after his victory, returned to Obeid, where a great religious ceremony took place to celebrate the event. The heads of the European officers were cut off and placed on spikes over the gates of the town. Of the crushing nature of the blow inflicted by the defeat of Hicks' army it is scarcely necessary to say more than a few words. It destroyed the only army which Egypt had ready to put in the field. It increased the prestige of the Mahdi enormously, and placed all the country south of Khartoum at his mercy. Khartoum itself was in a situation of very great peril. Its garrison numbered only some 2,000 men to defend four miles of earthworks and keep in order 60,000 natives, of whom 15,000 were avowed rebels. Measures for the defence of the town and the calling in, as far as possible, of the outlying garrisons were at once taken, and reinforcements were demanded from Cairo. In the meantime a panic prevailed, and all the Europeans began to take flight. Happily the Mahdi did not follow up his success, but remained in the neighbourhood of Obeid for several weeks, occupied, probably, in dividing with his followers the spoils of victory. CHAPTER XXX. ABANDONMENT OF THE SOUDAN--OSMAN DIGNA. On the 31st of October, 1883, at the suggestion of Cherif Pasha, it was resolved that the British Army of Occupation, which now numbered 6,700 men, should be reduced to a total force of 3,000 men and six guns, to be concentrated in Alexandria. Speaking of the change proposed, Ministers declared, at the Guildhall banquet on Lord Mayor's day, that by the 1st of January, 1884, the last British soldier would have left Cairo. How far this prediction was verified will be seen later on. On the arising of trouble in the Soudan the question was submitted in Parliament to Mr. Gladstone whether or not Her Majesty's Government regarded the Soudan as forming part of Egypt, and, if so, whether they would take steps to restore order in that province. Mr. Gladstone enigmatically replied that the Soudan "has not been included in the sphere of our operations, and we are by no means disposed to admit without qualifications that it is within the sphere of our responsibility." On the 19th November Sir Evelyn Baring wrote to Lord Granville that bad news was expected from Hicks Pasha, and if his force were defeated Khartoum would probably fall into the hands of the rebels. The Egyptian Government had no funds to meet the emergency, and it was not improbable that the Egyptian Government would ask Her Majesty's Government to send English or Indian troops, or would themselves send part of Sir Evelyn Wood's army to the front. On the 20th Sir Evelyn Baring was informed that the British Government could not lend English or Indian troops, and advised the abandonment of the Soudan within certain limits. This was at once communicated to Cherif Pasha.