The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-05-28
THE NICARAGUA CANAL.

The New York Central is not injured by
the Erie canal, and the Lake Shore rail-
way, competing closely with cheap water
transportation. is a most profitable line.
In the light OF these facts, which show
that anything which increases the pros
perity of any portion Of the United States
will prove advantageous to all the inter-
ests in that section, the New York Ercn-
ing Post does not believe that the trans
continental railways would oppose the
building of the Nicaragua canal. The Post
says on this point:
1t is of course probable that at first some OF
the commodities now carried by rail would seek
the water route: but the advantages certain to
accrue to the railway from the advance in gen.
erai business would soon far outweigh the tenn
porary loss.
John T. Doyle, leading lawyer of San
Francisco, forcibly argues in the Bulletin
that it is not sound policy to count upon
the construction of the Nicaragua canal
by private subscriptions to its bonds on
the part of the people Of the Pacific and
Atlantic states. If this policy is adopted
European capital will largely invest in the
bonds and stock Of the canal. and its con-
troll will pass into European hands rather
than remain with the United States. Mr..
Doyle advises that every effort should
be made to secure aid from the United
States government; that the government
shall indorse its guarantee on the COM
pany's bonds to the extent of 800, OOO, 900
at per cent. i; the bonds to be deposited in
the United States treasury and paid out to
the company in installments, according to
the actual work done. The company is
cent. of its stock as security, thus giving
to the United States preponderating in
fluence, though not an exclusive con-
troll" 30 long as the bonds remain I'M
redeemed.
This Is substantially the bill reported in
the last congress and ably advocated at
every opportunity by Senators Sherman
of Ohio, Morgan of Alabama and Allen OF
Washington. II It was sound policy for
our government to vote bonds to build the
Union Pacific railway it is certainly sound
policy TO extend national aid to the Mica
Aob~o S"h"AS AoA SA0 NicdEuSua CdHal
will be worth far more to
our government as link in our naval sys.
tenn of defense than the Union Pacific rail-
way is as a valuable line Of military
transportation. Indeed, the United States
never will be able to give the Pacific coast
efficient naval protection until we can
quickly pass our ships from the Gulf Of
Mexico to the Pacific.
Without government aid this great
work will either proceed but slowly to
completion. or will be pushed forward by
European capital and be controlled by it.
The company has already expended five
millions of dollars; without the endorse
ment of the United States it will be found
most difficult TO quickly market
the bonds of the company; with
its endorsement these bonds would be
quickly taken. The Union Pacific would
never have been rapidly completed by
private enterprise had not the government
given it most generous aid. Not only did
the government give land and vote it a
loan of some sixty millions of dollars, but
1t helped it to quickly sell its first mort
gage bonds by making the government
claim second lien on the road.
The government cannot do wiser thing
than to push the Nicaragua canal rapidly
forward to completion by guaranteeing its
bonds TO the extent of 500, oOo. 900.