Ptolemy had been one of the most capable of the generals throughout the campaign in Asia and India. It is believed that he was connected with the royal family. When Alexander died, Ptolemy knew that no single man could ever replace him and rule over the vast empire which he had created; he had seen that the gigantic task had been wearing out the strength of Alexander, a superman. As he was certain the empire must be divided, Ptolemy desired that Egypt fall to his share. It was a fertile country, difficult to attack, having the natural defense of surrounding deserts. During his long reign Ptolemy led Egypt to prosperity before he handed over its management to his son, Ptolemy II. Then only was he free to compose his Memoirs, which could not be published during Cassander's lifetime. In future years these Memoirs, compiled from the Daily Journal to which he had access, provided the main source of accurate information on the campaign in Asia and reinstated the reputation of the King whom he followed with devotion during eleven strenuous years.

Although Ptolemy conferred many benefits on Egypt, certain aspects not in accord with Alexander's aims should be mentioned. The Treasury became enriched, the soil more fertile, but the people were impoverished and did not possess the freedom and initiative of the democratic Greek cities. All the land was owned by Ptolemy and was farmed for his use, as had been the custom in Egypt for centuries. The fellahin could not leave their villages without special permit; they were obliged to cultivate their territory or farm; they could not cut a tree without official license and were continually inspected. As a definite amount of their produce had to be given to the King, the loss fell on the peasant when there was a bad harvest. Wheat and oil, the main products of Egypt, where a virtual monopoly of the King. There was no escape from heavy taxation; an immense army of inspectors and officials had thorough registration notes of every individual, his income and possessions.

Ptolemy built only one city, Ptolemais, in Upper Egypt. He encouraged Greek and Macedonian settlers; especially did Greeks flock to Egypt where they could acquire wealth. Housing was speeding up, for not only did the military seek quarters in the land of the Nile, but also did artisans, lawyers, doctors, merchants, and students of art. The Greeks tended to keep to themselves and did not mix much with the Egyptians; they had their own clubs, Hellenic games and competitions, but except in outlying villages these did not influence the native population. Recently discovered papyri described the daily life of distant small communities prove that Greek gymnasia were widely distributed, not only in towns, but in comparatively limited groups throughout Egypt. Apart from the moral element which characterized Greek games, competitions introduced a friendly atmosphere. It is now known also that Greek and Macedonian colonists acquainted the native population with the best examples of Hellenic literature: Pindar, Homer, and Menander.

Ptolemy developed the Alexandrian museum which made the town a famous education center. It resembled a modern university inasmuch as it had Professors who lecture and taught every branch of learning: natural science, physics, astronomy, mathematics, and literature. Among its eminent instructors were Euclid and Archimedes, of immortal distinction. For a time the famous scholar Eratosthenes presided as head of the unique Alexandrian library; so high was his reputation that students flocked to Alexandria from all parts of the world. Following the example of Alexander, Ptolemy sent a stream of reports and specimens to Aristotle. He encouraged the study of the arts but failed to induce writers, musicians, artists, and philosophers to settle in so busy a town Alexandria. Theocritus, the poet, born in Sicily, came to Egypt and there he wrote pastoral idylls of such high quality that they are believed to have inspired Virgil, Shelly, and Milton. The philosophers, however, found the peace and the calm of Athens more congenial. In that distant century, just as today, students preferred the quiet atmosphere of old universities, cloistral in comparison with the activity of the towns in which industry thrives. Sooner or later the philosophers wended their way back to Greece and the satisfying beauty of Athens.

Contrast that peace with the whirling activities of Alexandria when the huge volume of trade opened up between the East and the West. Produce from Ethiopia, Africa, and Arabia came through Egypt and was carried by vessels from the Alexandrian harbor to the towns of the Mediterranean coast and the islands of the Aegean Sea. As Alexander had foreseen, the Phoenician ships were displaced by those from Alexandria. Merchandise from the Indus traveled by the sea route discovered by Nearchus and exchanged goods with the towns on the Tigris created by Seleucus and his son. Ships made the circuit of the southern coast of Arabia, whence camels and caravans convoyed their cargo by the Red Sea and the Nile to Alexandria. Egypt imported the spices so much sought after by the rapidly growing population of Asia, Greece, and other Mediterranean countries. Egypt also imported wines, wool, marble, and horses, and exported woolen textiles, wheat, linen, luxury creams, and perfumes. In time came changes: new industries, new towns, and a diminishing output from the silver mines once so productive of wealth for Greece and Macedonia.

Ptolemy introduced Greek banking methods which aided international trade; in this connection Alexander's silver coinage proved invaluable. Even in that century many modern financial transactions were employed, such as interest on money loans, and drafts on banks for payment of bills; those methods for simplifying finance and trade were lost in Europe during the Dark Ages. Volumes have been written concerning the economic developments during the Hellenistic age.

Ptolemy did not interfere with the religious beliefs and customs of the Egyptians; as in India, these had become too deeply intertwined with the lives and traditions of the nation. He introduced the worship of Serapis as a link between the Egyptian and the Greek deities. Many temples were erected, some say forty-two; of these the most important was the Serapium in Alexandria, where the god was represented by a noble statue, colored blue, with jeweled eyes and an expression of great majesty and also mystery. The worship of Serapis reached as far as Rome and endured until the final extinction of Paganism in 325 AD. There is an extensive literature on this subject.

Although the poor did not benefit, the Ptolemy Kings were preferred to all previous conquerors because three generations of their line resided in Egypt. Their predecessors had been only passing visitors; tax collectors and other officials had not been slow to take advantage of the people when the supreme ruler lived in far distant countries.