Warren sheaf., 1891-12-17
TIE NICARAGUA CANAL.
An Important Project With Which the
Government Should Become Identified.

An Important Project With Which the
Government Should Become Identified.
The annual report Of the Maritime Canal
company OF Nicaragua shows that much costly
and necessary preparatory work has been done
during the year IN the construction OF shops,
railroad tracks and harbor pie-s and break
waters and the work Of canal construction has
made some progress.
1 L deem it to be a matter OF 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 COM
munication between our ports upon these two
great seas, hould be speedily constructed and
at the smallest practicable limit of cost. The
gain III frelghts to The people and the direct
ing to the government OF the United States i'll
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 senate
at the last session did not Ocerestimate the i'm
portance OF this work when he said that 1.-The
canal is the most important subject now con-
nected with the commercial growth and progress
of the United States.''
Ii this work is to be promoted by the usual
financial methods. and without the aid OF this
government, the expenditures in it's interest
bearing securities and stocks will probably be
twice the actual cost. This will necessitate
higher tolls and constitute a heavy and alto
gether needless burden upon our commerce and
that OF the world. Every dollar OF the bouds
and stock of the company should represent a
dollar expended in the legitimate and eco.
nomical prosecution Of the work. This is only
possible By giving to the bonds the guaranty
OF the United States government. Such a
guarantee would secure the ready sale at par OF
q 3 per cent bond, from time to time, as the
money was needed. / do not doubt that, built
upon these bus ness methods the canal would,
When fully inaugurated, earn it's fixed charges
and operating expenses. But If it's 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 investors
III such enterprises, the traffic will be seriously
burdened to pay interest and dividends. ] am
quite willing to recommend government promo
tlon i'll the prosecution OF good work, which,
If no other means offered for securing it's COM
pletlon. is OF such transcendent interest that
the government should, in my opinion, secure it
by direct appropriations from it's treasury,
guaranty of the bonds OF the canal company
TO an amount necessary to the completion Of
the canal could. l think, be SO given as 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
guaranty. the subrogation OF the United States
to the rights OF the first mortgage bondholders
Tor any amounts it may have to pay, and in the
meantime a control OF the stock OF the company
most sincerely hope that neither party nor
sectional lines will be drawn upon this great
American project so full OF interest to the peo-
PIE of all our states and SO Influential in its ef-
fects upon the prestige and the prosperity OF our
common cOnntrv