Omaha daily bee., 1891-02-20
THE NICARAGUA BOND SCHEME.

1t is said that a humber of senators
who at first approved the proposal that
the government should guarantee $780,
100000 of Nicaragua canal bonds have
changed their minds, and there is con.
sequenty less probability that this
scheme for making the. government
practically responsible for the cost OF
this enterprise will succeed. Notwith-
standing the fact that the proposition
had the unanimous support of the com
mittee on foreign relations it has re-
ceived very little public endorsement
Nobody fails to recognize the import.
ance of the canal project CONNER
cially, and there is felt to be
some force in the argument
that If the government guaranteed
the bonds it would prevent them from
going abroad and at the same time
would, in effect, make the canal a ma
tional affair. But on the other hand it
is reasonably said that if the projectors
of the enterprise can show as they
claim, that it will assuredly be profit
able they ought to have no difficulty in
enlisting American capital, and as to ex-
tending the authority of the govern
ment over it that will hardly be neces.
sary for its protection 1t is suggested
that as En- gland secured control of the
Suez canal by obtaining most of the
stock and now makesre regulations for that
great commercial water route, SO in time
some foreign power might got control of
the Nicaragua canal. But the danger
of this is extremely remote, if indeed
there is any danger. The chances are
that the canal will always remain under
American management, whether its
bonds are sold abroad or at home.
Public sentiment is not in favor Of the
government guaranteeing the bonds of
any corporation. Experience has shown
that in such transactions tho govern
ment uniformly gets the worst of it. But
even il this were not the case the policy
is bad on general principles. 1t is not a
function OF the government to engage in
that sort of business. If congress should
pass the bill which provides for guaran-
teeing the Nicaragua canal bonds, it
would amount practicallyto taking $780,
900, 900 from the treasury of the United
States and making present of it to the
corporation. This of course would not
be done directly, and the promoters of
the scheme are profuse in assurances
that not dollar would come out of the
national treasury, but it is safe to regard
rs certainty that when the interest
payments we're due the cash box of the
company would be found empty or lack
ing, and the government would be called
upon to supply the money. The interest
on Pacific railroad bonds guaranteed by
the government has taken out OF the
treasury over $60,00DO00. Further
more, it is highly probable that
the $4,000 900 which the Nicaragua
canal company want guaranteed would
be only starter. Once involved in This
business the government may be called
upon to put up two or three times the
amount now asked for, and finally there
would arise the Same question that
there is now regarding the Pacific
railroads, namely: that of the govern
ment assuming ownership of the canal.
1t is clearly the duty of congress TO re-
ject the proposition which the promot-
ers of the Nicaragua canal are urging.
and which for some occult reason re-
ceived the favorable consideration of all
the members of the senate committee on
foreign relations 1t is time there was
distinct disavowal Of the policy OF