The Panama Canal and its Makers Part 10

Expenditure on work July 1, 1907-June 30, 1908 32,874,654 ----------- Total 126,047,062

The amount authorised to be appropriated by the Act of June 28, 1902, was $135,000,000, plus $50,000,000 purchase money, that is to say, $185,000,000 in all, for "the ca.n.a.l, harbours, and defences."

What the total cost will be is unknown, but Colonel Goethals stated in evidence (January, 1908) that the Ca.n.a.l would cost at least $250,000,000, and possibly as much as $500,000,000.

The combined cost of the Suez, Manchester, and Kiel Ca.n.a.ls has been $205,000,000.

The following important ship ca.n.a.ls have been completed for smaller sums:--

U.S.S. St. Marie (somewhat more than) $6,000,000 Canadian ditto nearly 4,000,000 Amsterdam 10,000,000 Corinth (about) 5,000,000 Cronstadt (about) 10,000,000 Welland (Lake Erie-Lake Ontario) 24,000,000 ---------- Total 59,000,000

Adding these figures to those already given, we have a grand total of $264,000,000 for the cost of nine of the greatest existing ship ca.n.a.ls, which is about the same as the lowest current official estimate for the final cost of the Panama Ca.n.a.l.

In the case of a commercial company undertaking such a work as the Panama Ca.n.a.l, the charge for compounded interest increases as the unremunerative years advance at an appalling rate, which would surprise anyone not versed in the c.u.mulative capability of figures which increase in "geometrical progression."

Fortunately it is not necessary for the United States to reckon the cost of the Ca.n.a.l in this way, and the Government have been in a peculiarly advantageous position for financing the Ca.n.a.l.

The bonds bear interest at 2 per cent., and in December, 1907, were slightly above 103. As all American banks have to deposit gold with the United States Treasury it evidently pays to take up and deposit these bonds, which reckon as gold, receiving 2 per cent. interest.

Moreover, the small amount of securities with Government guarantee in America renders such issues convenient, so that the Government can raise money more cheaply than with us, although for industrial purposes the rates may be higher.

At the present time the payments of Government pensions in connection with the Civil War are yearly diminishing at a rapid rate. Finally, there has been in the Treasury a large surplus of cash. Thus from one cause and another the expenditure already incurred has not yet been felt.

As I write the last lines of the account in which I have endeavoured to state the salient facts relating to a great undertaking at only moderate length, I recall our departure from Colon harbour on the R.M.S.

_Orinoco_ homeward bound. I confess that after the Ca.n.a.l Zone most places seem only half alive, and I long to be back where one can watch human activities so great and so intelligent, while the spirit is soothed by the balmy air which blows warm and fragrant from the tropical forest.

May the arduous labours of the Isthmian Ca.n.a.l Commission be crowned with success!