National Republican., 1882-12-26
TIE PANAMA DITCH.
Some Inside Facts About "The Grandest Hu-
manitary Enterprise Of This World"
A Few Specimen Fables Told to Induce
People to Take Stock.
Scenes at the Subscription Offices Recalling the Days
Of the Mississippi Bubble"
A Letter from DIR. Johnston to Admiral
Ammon.

PARIS, Nov. 20, 1ss2.-Dcar admiral: You
ask me to what cause we attribute at Paris
the present decline in the value of the stock
of the Panama canal scheme?
/ think ! cJn' ten you'ths cause or causes
of this decline; but you may be sure that ]
do not obtain my information from the Paris
press, which remains as completely muzzled
on that subject as it did during the period
when the loan was being forced on the public
In the first place, the recent earthquake
had much to do with it. One of the strong
points made byth initiators of the project was
the total absence of earthquakes at Panama
and their frequency at all the other points
where canal had been proposed, especially
at Nicaragua.
This unfortunate Intervention of nature into
the discussion in so brutal manner deranged
most disastrOusly the programme of brilliant
promises But NJ. de Iesseps, with his happy
nature, never admits that he can be defeated
in anything, and was disposed to treat the
earthquake with the contempt he shows fo1
the other physical and financial difficulties
that stand in his way. His colleagues on the
contrary, saw the thing in a different light
they had felt the trembling of the ground
and they succeeded in convincing him that
there really had been an earthquake and that
1T was his duty to make an effort of some kind
10 neutralize its effect.
So, OFF he rushed to the lecture room of the
Sorbonne, called a public meeting and there,
in the presence of a large audience of inteli-
gent men, with the levity and indifference to
facts which he has carried into the whole of
this Panama business, declared that it had
been very poor earthquake and not much of
shake after all (which is, as you know, Just
the contrary of the truth); that it was an eX-
traordinary and an exceptional event, such as
had never before occurred in that country
and would not probably ever occur again, and
then gave as one of his strong points of evil
dence-what do you SUPPOSE
Ignoring the fact that the country had a
history, and that this history tells of earth
quakes in the early part of the century one
of which at least was disastrous, he told of his
visit to Panama, and how he had there seen
many ruins of monuments and houses which
he considered as positive proofs of the absence
of earthquakes since these ruins otherwise
would have all been cast down. But the art
less lecturer omitted entirely to mention the
fact that these ruins had been the result of
earthquakes, and that their existence proved
therefore the exact opposite of what he was
trying to make them prove! He only saw
the bricks that were standing, and did not see
those that had fallen down. And in all that
intelligent audience there was not one man to
correct him, not one man who saw apparently
any more fallen bricks than he did, not one
man that,did not applaud!
To show you farther the extraordinary
popularity of M. De Lesseps, and the blind
ness with which he is followed by men of
learning and talent he was universally
cheered when he finally exclaimed that this
earthquake might in fact be considered
rather as a blessing than disaster, since it
served to remove out of sight lot of ruins
which were only Disagreement of the city.
Another cause for the decline in the price
of the stock is to be found in the following
circumstance. Not long ago a second syndi-
cate was formed with basis of sixty millions
of francs, taken out of the subscription to the
canal for the purpose of maintaining the price
of the canal shares, by buying up with an ap-
pearance of eagerness all the shares that were
offered in the market. One of the most hon
orable and influential members of this syndi-
cate, who, like the great mass of the people in
France, had been misled by the subsidized
press, and knew only one side of the canal
affair, as soon as he became acquainted with
its real situation, gave in his resignation.
This event has come in as most unfortu-
nate postscriptum to the earthquake; but it
does not apparently disturb the equanimity of
the great promoter of the scheme, or that of
the other originators, who having realized
their anticipated profits, look on with calm
ness at the unrolling of the drama. Never
theess the obstinacy of NJ. De Lesseps in see
ing everything cOuieur de rose, his levity, his
resistance to defeat, still braces up the cour-
age of the friends of the scheme, and prevents
anything like fatal crisis. The price of the
stock, however, has made serious fall, and it
is safe to say will never go up again.
Again, the purchase of the Panama railway
does not give satisfaction to those who have
closely studied the question. If the canal is
ever finished the railway will be almost worth
less property, and it is considered as piece of
sad mismanagement to divert nearly hun
dred millions of francs, so early in the oper-
alton, from the more essential work of trying
to get the canal under construction. As
part of the material for constructing the canal
it was too dear.
Then nothing like an energetic construction
of the canal has yet been commenced. The
route over which the canal is to be cut has
not yet been located in all its parts, notwith-
standing the public assurances of the COM
pany to the contrary. The most of the first
calls of money has been spent, and another
sum of $50, 100000 francs is soon to be called
for so that certain number of stockholders
begin to suspect at last that the figure of
500, 100000 francs fixed by NJ. De Lesseps in
the first place as the cost of the canal was en-
tirely a fancy figure, made use of to get the
scheme on the market, regardless of what
might follow; and now it is reported that
within very few days NJ. De Lesseps has
to previous promises, that perhaps after all
the canal would cost 100000, 600 francs-the
sum which you and Mr.. Menocal, dear admi-
raj, demonstrated at the congress of Paris
most clearly and positively was the minimum
figure the canal would cost.
Still another cause of depression is to be
found in the fact that the Colombian govern
ment has demanded as its rigit one-haif of
the money paid to the American company for
the purchase of the Panama railway,
Finally, the mortality in this promised
arcadia among the higher employees sent out
from France has been frightful, and the fact
has at last gained certain publicity.
In all this you will see that there are ele-
ments of Encouragement sufficient to explain
the decline in the stock, sufficient to alarm
even the most deluded hackers of the scheme;
while the members of the make-believe syn
dicate probably have difficulty in keeping
their countenances straight while playing the
cOmical role of bidding up the deprecated
stock. The bravest of men may revolt at a
very bitter pill.
After the speech at the SOrbOnne, the next
move of M. De Lesseps was maneuver bor-
rOwed from the highest school of diplomacy.
When monarch sees his home popularity on
the decline when he sees his own people dis
satisfied and fears for himself and his heirs
the loss of his throne, he goes to work to pro-
woke a foreign war-what historical writers
call "dynastic war"-in the hope of thus
diverting the thoughts of the peo-
pie from himself TO his neighbors So NJ De
Lesseps, after declaring at the SOrbonne that
the Panama enterprise was at present in its
most brilliant phase---the charming, sunshiny
man that he is!-nOw gives out as sort of
secret that he is deep in the study of a pro-
ject more sublime than anything he has ever
yet conceived, and by which all parts of the
world will be brought into near contact No