National Republican., 1885-07-30
TIE PANAMA CANAL.

TIE PANAMA CANAL.
A recent Paris telegram suggests the
probability of trouble in the immediate
future for the Panama Canal Company.
1t appears that the directors of the com
pary have asked the government to
sanction new issue Of 100000 OOOf
worth Of bonds The premier of the
ministry of the French republic is not
inclined to grant this modest petition,
for the good reason that there is already
n heavy deficiency in the budget caused by
the Tonquin business and other foreign
follies. Naturally enough, the premier
concludes that the government ought not
to load itself with new responsibilities at
such time.
Those Americans-andt there are many
Of them in this city-who have endeav-
ored TO keep themselves advised OF the
Progress of the Panama canal will not
be surprised to learn that the company,
finding itself in strait, has appealed to
the government for guarantee. As the
New York Times puts it, "the company
is no longer buoyed up by popular faith
in De Lesseps, but is striving TO trans
form the enterprise from one directed
and supported by the energy and CAPT.
tai of private citizens into one sup
ported by the national government of
France. Inasmuch as France has re-
peatedly declared that it would not take
the position in regard to the canal which
the government is now urged to take,
the refusal to give the guarantee is what
might have been expected. But the
reasons offered are financial rather than
political, and it appears that the com
pany can have the governments ap.
proval if it cannot secure its garantee. ?"
Reports of United States officers on the
canal company's financial condition and
prospects have exerted powerful inhu'
ence in Europe, ,dissipating the rose.tinted
rhetoric of NJ. de Lesseps and causing
capitalists to button their pockets. 1t
will be remembered that the original es.
innate of cost made and given to the
world by NJ. de Lesseps and his company
was $120,000, 900, and the protector ol
the enterprise assured his supporters, or
dupes, that the work could easily be
completed in eight years, or by Jan. l,
1889.
How far these statements we're from
the truth is shown by the London Fndn-
cial Nclcs in recent article.
According to this excellent authority,
up to September last NJ. de Lesseps and
his company had raised little more
than Sill, 900, 900, and the company S
liabilities we're $l53,0 100000. OF the
sum raised about $lOi, ,0O0,0 900 had been
expended. With this money a good
plant had been provided and thorough
preparation for the actual work of dig
ging the canal had been made, but OF
May /, 1885, there had been eXcayatet
only 1886, 500 cubic meters, or les!
than 10 per cent. of the entire quantity
to be excavated, if the NewS'S estimate
of 12j, 900, 900 cubic meters is sufficiently
large.
The New York Times, commenting
on the statements Of the Finoncia
Ne,cs, says:,
Our own correspondent. writing from Panam
In February last stated that the ewhole amour
to be excavated was l5O.C0O,O00 motors. 1t |
plain, therefore, that only a small part Of til
work has been done for, while there is still
much to be excHyated, no progress has bee
made toward tho solution of the creates
problem-how to tame and control the Chagre
river. Indeed, 1t is now said that after borin
to depth Of sixty feet no rock foundatio
has been reached upon which to build tn
enormous dam at Gamboa.
Assuming that the Ch1gres can be controlle
by dam. that the amount to be excayate
has not been underostimuted and that til
harbor improvements and the GambOa dal
will not cost more than $40, ,0Ol.OO, it is est
mated that the entira cost Of the canal cannC
fall below $3.50 100000 in money. reprogGntin
liabilities amounting to sGOO.0O,OOj. We AZ
not aware tina. any one maintains that th
traffic receipts would pay the interest on n
investment so large, Tie Financial Ne,r. bC
leves that there would be an annual deficit {
at least SlO,OO0,0OO.
In the light afforded by thesS and othc
figures and fats, the reported demand of tn
company that the French government sha
guarantee n new loan of Sl0O.OOO,OQO will NJ
surprise any one. The course of this grcs
enterprise promises to become in the nea
future.very interesting from political as we
as from a financial point Of view in Americ
and in Europe.
Should this work ever be completed
which is open to serious doubts-th
cost of it will necessitate enormous tor
mage dues to pay even 3per cent. il
terest on the investment. Then ther
will be heavy outlays for repairs an
other incidental expenses.
The true American policy is to secuI
isthmian transit by rail at another poin
This is practicable and may be speediI
consummated at a cost which would
offset by the advantages it would fu
nish in a single year.
.
pIIH IJIDn'C DITDTAT DT A. m