Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1891-12-16
IMPORTANCE OF THE NICARAGUA CANAL.
Plans for the Construction of the Great
Waterway Are Explained.


Waterway Are Explained.
The annual report of the Maritime Canal
Company, of Nicaragua, shows that much cost
ly aud necessary preparatory work has been
done during the year in the construction of
shops, railroad tracks, and harbor piers and
breakwaterS. and that the work OF canal con-
struction has made some progress.
L deem it to be matter or the highest con-
Germ to the United States that this canal. con-
Meeting the waters of the Atlantic and Pacific
oceans, and giving to US a short water commun-
icatiOn between our ports upon those two great
SEAS should be speedily constructed, and at the
smallest practicable limit of cost. The gain in
freights to the people, and the direct saving to
the government of the United States in the use
of Its naval vessels would pay the entire cost of
this work within a short series of years The
report of the secretary of the navy shows the
saving in our naval expenditures which would
result.
The senator from Alabama (Mr. Morgan), in
his argument upon this subject before the SEN
ate at the last session, did not overestimate the
Importance Of this work when he said that 'the
canal is The most important subject now con.
nected with the commercial growth and prog
resS of thexUnited States" If this work is to be
promoted by the usual financial methods and
without the aid of this government, the expendi-
lures, in its interest bearing securities and
tocks, will probably be twice the actual cost
This will necessitate higher tolls and constitute
a heavy and altogether needless burden upon
our commerce and that of the world. Every
dollar of the bonds and stock of the company
should represent dollar expended in the le-
gitimate and economical prosecution of the
work. IhlS is only possible by giving to the
bonds the guaranty of the United States govern
ment. Such guaranty would secure the ready
sale at par of a per cent. bond, from time to
time, as the money needed. do not doubt
that, built upon these business methods, the
canal would, when fully inaugurated, earn its
fixed charges and operating expenses. But if
its bonds are to be marketed at heavy discounts
and every bond sold is TO be accompanied by a
gift of stock, as has come to be expected by in
vestorS in such enterprises, the traffic will be
seriously burdened to pay interest and divi-
dends. 1 am quite willing to recommend gov
eminent promotion in the prosecution of
work which, if no other means offered for Sc
curing the completion. is OF such transcendent
interest that the government should. in my
opinion secure it by direct appropriations
from its treasury.
guaranty of the bonds of the canal compa-
ny to an amount necessary to the completion of
the canal could, think, be so given not to
involve any serious risk of ultimate loss. The
things to be carefully guarded are the compile
ton of the work within the limits of the guar
anty the subrogation of the United States to the
rights of the first mortgage bondholders for any
amounts it may have to pay, and in the mean
time control of the stock of the company
security against mismanagement and loss. l
most sincerely hope that neither party Sec
tional lines will be drawn upon this great
American project SO full of interest to the peo-
pie of all states, and SO influential in its eff
fects upon the prestige and prosperity of our
COR on