NOV 1 1909 NORTH AMERICAN REVIEW No. DCXLVIII. NOVEMBER, 1909. WHAT USE IS THE PANAMA CANAL TO OUR COUNTRY WITHOUT AMERICAN SHIPS BY BERNARD N. BAKER. MOST of what we have heard and read of the Panama Canal relates to its political and strategic advantages. It is somewhat curious that as a practical people the Americans have thus far been disposed to consider this vast enterprise from the standpoint of sentiment. The thought dominant in the American mind. is that the canal will be worth its great cost as an agency in the broader statesmanship in which the United States is engaged. There has been a great deal of the "hurrah" in the promotion of this project, with a magnificent disregard of what it may mean as a waterway when it is finished. No one can reasonably find fault with this condition. Many of the most useful works owe their origin and success to politics and military foresight. But in the end means must be found to pay the cost of operation and to make some return upon the capital invested. More important still, it is incumbent upon us to inquire wherein we may use our new opportunities for the increase of our commerce. For in the near future and largely in 37 VOL. CXC.-No. 648. Copyright, 1909 by THE NORth American REVIEW PUBLISHING COMPANY. All Rights Reserved. the present national safety depends to a very considerable degree upon the power of the people to command their just share in the trade of the world. Let me say from personal observation that the work at Panama is being done in a manner that deserves the support and admiration of every one. Nothing in human history can equal it. All the more, therefore, should we strive as a people to prepare ourselves for the new facilities which our Government is preparing to give us by dividing this great hemisphere and saving to water traffic thousands of miles of dangerous navigation. At conservative estimates we shall have invested in the Panama Canal, when it is completed, at least $500,000,000, and the minimum working expenses have been placed at about $5,000,000 per annum. Any one can see from this that a very remarkable traffic will be required to meet the fixed charges. It is not likely that this traffic will be forthcoming in the early years of the canal, and it is still more doubtful that it will arrive within the next decade unless our own people begin to make provision for it. Personally, I feel quite certain that with the enormous growth of our country, and with the really wonderful development that is going on in South America, and with the new fields that are open in the Far East, we shall be able to make the Panama Canal pay, not only as a canal, but as a help to the vast bulk of American trade. But it requires some boldness to lift this optimism out of the conditions that at present prevail, and the purpose of this article is to point out certain facts that would be grotesque if they were not so pitifully true. Our able Secretary of State has lately presented the statistics in travel and trade between Latin-American countries and the United States. Travel increased fifty per cent. during the preceding year, and our Latin-American trade grew from $261,000,000 in 1897 to $596,000,000 in 1907, or one hundred and twenty-eight per cent., while our exports to Latin America grew from $76.000,000 in 1897 to $256,000,000 in 1907, or two hundred and thirty-seven per cent. But our share of this trade is only 13.8 per cent., while the vast bulk goes to England, Germany and Japan. To-day six lines of railway are being built across South America, and they mean new business of the largest value. But the small percentage of that which we are securing is transported, like our other South-American trade, mainly in foreign bottoms. To-day there are only eleven vessels engaged in foreign trade that fly the American flag, and it may be well to give the list here: "American Line plying between New York and Southampton: 'St. Paul,' 11,629 tons; St. Louis,' 11,629 tons; 'Philadelphia' (British built), 10,786 tons; 'New York' (British built), 10,798 tons. Great Northern Steamship Company plying between Seattle and the Orient: Minnesota,' 20,718 tons. Pacific Mail Steamship Company plying be tween San Francisco, Hawaii, Japan, China and Hongkong: 'China' (British built), 5,060 tons; 'Korea,' 11,276 tons; Siberia,' 11,284 tons; 'Manchuria,' 13,639 tons; Mongolian,' 13,639 tons. International Mercantile Marine Company plying between Antwerp and Boston: ‘Samland,’ 9,710 tons-eleven vessels in all, making a total tonnage of 130,166 tons." That is all the United States now has in the cross-seas service. Compare this with England's 11,517 vessels, with a total tonnage of 18,320,668, or of Germany's 2,094, with a total of 4,110,562 tons. In order that these comparisons may be understood, it should be stated that there are a little over 800,000 tons which the Marine Report gives to our foreign trade, but which is made up of vessels plying between Canada and port to port in the United States, both on the Great Lakes and in the coastwise trade. The point in this glaring contrast is that the United States simply has not the ships afloat or under construction, or even under consideration, to develop any trade with South America or with any other part of the world. A second point is even more amazing. The United States Government owns the Panama Steamship Company from New York to Colon and owns the Panama Railroad Company from Colon to Panama and operates them as commercial lines. The Panama Steamship Company claims the right to regulate rates to and from Colon on account of the joint ownership of the Panama Steamship Company and the Panama Railroad Company by the United States Government War Department. Keeping this ownership in mind, I have tried to drive home the present situation by the following statement of facts and rates: 1. The rate on hides from Central America to New York is $30 a ton. The Pacific Coast Steamship Company, from Central America to Panama, receives $12 a ton; the Panama Railroad Company, from Panama to Colon, receives $8.10 a ton; and the Panama Steamship Company, from Colon to New York, receives $9.90 a ton. The rate on hides from Central America to Europe is $24 a |