THE PANAMA CANAL.

Gisborne Times, Volume XXVII, Issue 2460, 26 March 1909, Page 2

THE PANAMA CANAL.

"f LfUl t WILL IT! PAY? ! -' * 1 ' ■ .Jf-i-,. - , I * ... i..,!.. • . • ’J “Already considerable discussion (says “Chambers’s Journal”) is being raised concerning. the. ultimate commercial prospects of:the Panama; Canal!- This is.a. problem which; is ? occupying the .close attention; of economists/1 and be ; it noted the fiercest contributions ,to the’ debate-are emanating from Americans. When the United States first suggested acquiring the French concession the success of the Suez Canal was advanced las/.showing the assured prosperity of this!waterway across the:, isthmus/ espe- ’ cially as it was argued ; that' thormajor part of the traffic between Europe and. the 'Antipodes --would favor the-trans-American route. But will this be the case ? So • far as Europe is ‘ concerned, such a deviation is somewhat doubtful, since the'distance via’Suez to the East will' fie practically' the same as by Panama. It, must be remembered also that, Suez is on one of the greatest' seatrado highways in tho world. Oil this, route the mercantile marine taps a continuous string of the busiest markets; while via Panama no' such advantages are offered. ; Moreover,v strange -to relate, the shortest journey 'between New York and Hong. Kong, the door of China, will even then: be via Suez. To the Australian traffic the Panama Canal will be of certain advantage; but even then it must be borne in mind that' more commercial ports can be touched by the old route, and it is a moot pointwhether the possibilities' of new traffic offered by, the somewhat shorter journey throiVgh'the Panama ditch will be such as to tempt shipping from a course upon which it is already firmly established. But apart from these considerations, the Panama Canal will experience severe competition from alternative routes on the American continent itself. By the time the canal is completed the Tehuantepec railway, across the Mexican isthmus to the south, and the Grand Trunk Pacific, with its new port at Prince Rupert on the north, will be in full swing. Taking the Tehuantepec line first, New; .Orleans will be 1,854 miles and New York 1,182 miles nearer San Francisco .via the railway than by the canal, while the saving on the distance between Liverpool and San Francisco by the ,iron road is about SCO miles as compared with tlie waterway. :It will be'argued that in favoring the railway breaking bulk-is necessary; but the facilities that, are being provided at each end of this; 189 miles, of trans-; continental line for transhipment are such as to reduce the’ delay and cost to the minimum, which in any event will be less than the canal dues. By the new Canadian trans-continental railway, New York, .Chicago, and the ot-~ 'her prosperous industrial centres in the north of the States will have their distance to. Japan shortened by over 1,000 miles. The United States Government is, however; relying on the -patriotism of-the citizens to ensure the prosperity of its enterprise, but it is to be feared that loyalty is but an indifferent reed upon which to lean, and that it will find the American quite as mercenary as the business man of any other nation where speed, lower freights,. and other advantages are concerned in the strenuous hustle for trade supremacy. From the military point of view the canal will be distinctly valuable to the States;, but there, are many who affirm that the undertaking, .. which will cost some seventy million, pounds, may -prove to be the most colossal commercial blunder in the .world’s history.