WILL THE PANAMA CANAL

Dunstan Times, Issue 2480, 10 May 1909, Page 7

WILL THE PANAMA CANAL

PAY?

Already considerable discussion (says Chambers’ 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, 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 as showing the assured prosperity of this waterway across the isthmus,' especially as it was argued that the major part of the traffic between Europe and the Antipodes would favor the transAmerican 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 be nractjcally the same as by the Panama. It must be remembered also that Suez is on one of the greatest sea-trade highways :n the world. On this route the_ mercantile marine taps a string of the busiest markets, while via Panama no such advantages are offered. Moreover, strange to relate, the shortest journey between New York and Hongkong, the door of China, will even then be via Suez. To the Australian traffic the Panama Canal will be a 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 point whether the possibilities of new traffic offered by the somewhat shorter journey through tho 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 1,172 miles near 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 BCO miles as compared with the 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 transcontinental line for transhipment are such as to reduce the delay and cost to a minimum, which in any event will be less than the canal dues. By the new Canadian trans-continental railway, New York, Chicago, and the other prosperous industrial centres in the north of the States will have their distance to Japan shortened by over 1000 miles. The United States Government is, however, relying on the patriotism of the citizen to ensure the prosperity of its enterprise, but it is to be feared that loyalty is but an indifferent reed 1 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,