New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-06-25


The proposed authorization by the French
Government of lottery loan for the compile
ton of the Panama Canal has already hit a
snag. In the Chamber of Deputies the bill has
been referred to a committee of eleven, eight
members of which are hostile to the measure.
Since the disastrous South Sea Bubble no
scheme so precarious or so little supported by
sober facts has been submitted for government
approval, nor has any civilized Legislature ever,
with that exception, lent its name and the
credit of the country to such an enterprise
France, one would have thought. had enough
experience in John Laws time to last her
several centuries. But NJ. de Lesseps apr ears
to have exercised all and more than all the fas-
cnatiOn of his Scotch predecessor in balloon
adventures, and in the teeth even of most dam
aging reports from French commissioners both
the. public and the Ministry seem strongly
disposed to back the undertaking. There is
probably no doubt that lottery loan of almost
any amount can be raised, but what is not at
all certain is whether any portion Of such Il
loan will ever be repaid. 1t is to be hoped that
the committee will kill the bill.
The difficulties in the way of the Panama
Canal are of two kinds. In the first place it is
by no means certain that the canal can be built
at all, upon the present lines or upon any other
The disposal of the Chagres River is an un-
solved problem; and nobody can guarantee the
success of any of the engineering plans which
have been proposed. In the second place it is
as plain as anything we'll can be that even if the
canal can be completed it will fail to pay inter
est on the investment. But if it be admitted
that By the lavish use of capital the work can
l. q. l.. ,l...
capital must render the enterprise more hope
lessly unremunerative. From the beginning
the French estimates of the probable amount of
tonnage to pay tolls for the use of the canal
have been, in the opinion of authorities Of all
other nations, altogether extravagant aud un-
warrantable. Yet even upon the basis of these
excessive estimates it is easily demonstrated
that the canal cannot yield profit, cannot in
fact keep up interest payments on the capital
sunk in it. Under these circumstances the
Government appears about to assume a heavy
responsibility, and one which is certain to exer-
else dangerous political influence hereafter.
A lottery loan must depend for success upon
the French masses. Guaranteed or indOrsed
by the Government, millions of thrifty French
peasants will invest in such an undertaking.
Now the French peasant and small proprietor is
perhaps more passlonately attached to his saw
ings than any other kind of human being, and
he will not see them sacrificed quietly. The
present Government nay consider that it will
be out of the way when or if crash comes, but
whatever Government is i'll power at the time
will be held accountable for the fleeing of the
people, and it is possible that such col
lapse might result in rendering republicanism
itself widely unpopular. When. too. it comes TO
be known that the truth about the Panama
Canal was no secret at the time of authorizing
the lottery loan, the popular anger is certain to