The Washington critic., 1888-07-19
WASHINGTON, JULY 10, 1883,
rANAMA,s rINANc1AL srnA1Ts.


Even if the Panama Canal should
be completed, there are numerous
climatic, sanitary and other reasons
thatwould prevent its ever becominga
serious commercial rival to the Mica
ragua Canal. The latter, moreover,
being strictly American enterprise,
strengthened by concessions from the
Nicaraguan government, is in no
danger of becoming involved in po-
litical entanglements, such as, in the
event of wars among the foreign
powers, would be certain to threaten
railway controlled by France at the
1sthIfiup
IT would appear, however, from an
elaborate and carefully-prepared ar.
ticle published so recently as June 80
in the BconOmiste Francois and repro
duced in the New York Ecentng Post
of Tuesday, that the Panama Com
panyy even with the temporary relief
afforded by the issue of lottery bonds,
is in no condition to successfully
prosecute its costly undertaking, and
that it is only matter of no very
long time when it will have to be
abandoned.
An analysis of the financial condi-
tion Of the company, made upon the
assumption that it has succeeded in
placing a, new loan of S72 1000, 900, re-
duces its available resources to $53, :
o00,000, as there are to be deducted.
about,$S, ,000,0 900 of the last loan of
March, 1888, that were presented for
exchange; $5,OOO,0OO for expenses,
and $6,000,000 that We're borrowed not
long ago from various credit estab-
lishments, to be repaid from the re-
cent issue.
But this is not all. The company
is legally bound to place the sum of
$24, 600, 900 in French rentes to guar
antee its lottery prizes, SO there will
remain but $29, ,000,00 at last as net
operating resources; and even this
sum, continues the writer, "is not at
its disposal, for the price of the
bonds is stipulated to be payable in
seven installments, the last of which
isnot due until November, 1889. AS
the many small subscribers will not
anticipate these installments, the most
the company can dispose of is some
$4,000, 600 between this time and the
month of February, 1885,"
In other words, of the Sl44, 100000
demanded for the completion of the
canal, only $72,000,000 has been Sc
cured, and even of this half a
merely nominal sum is available
The EcOn0miste then proceeds to
give the company both warning and
advice as follows
il results from this that the Panama Com
pany can spend no money on Its works, but
during the next four or five months will have
hardly enough TO pay interest on its loans and
its general expenses.
The active career of the Panama Company
is ended IL has now only respite of few
months to prepare for liquidation. Let II
play Its part loyalty. Let II announce i'm
mediately that the July coupon on its shares
will not be paid, for, In the existing ciroum
stances, the payment of the coupon would be
a scandal. Let It set TO gathering up, for dis
tflDutlOu 10 llS DOuunOlueTs, inc OuuS ana
ends which remain TO it. Auy other course
would be new and more inoxcusable folly
added to those which have marked the
lamentable career of the Panama Company
II is said that the company is negotiating
with financial establishments to take, at a
heavy discount, part of the bonds which
the public have refused The company and
the financial concerns should both have q
care. Such proceedings would constitute q
fragrant irregularity; grave responsibilities
would be incurred. When the Senate and
the Chamber, under mistaken impulse
granted authority for the issue of lottery
bonds, these great bodies had In view pub
lie issue, and not a clandestine bargain upor
usurious conditions. The tribunals would
show themselves, at no distant day, justly
severe against such unworthy transactions
The Panama Company Is in It's agony, as al
tbs world knows; It should at least know hov
90 die with little dignity. Let II return t,
the subscribers their insufficient funds anC
proceed Immediately to its liquidation. Ii
any case 1t must certainly liquidate wthil
six months.
NOR, InpNf catsu lfg paaunn,