The Dominion. MONDAY, JULY 22, 1912. THE PANAMA CANAL.

Dominion, Volume 5, Issue 1498, 22 July 1912, Page 4

The Dominion. MONDAY, JULY 22, 1912. THE PANAMA CANAL.

The two main issues in connection with the Panama Canal_ do not directly concern Australasia, which s mainly interested in the transformation of ocean routes that the canal will bring about. Ours is only a secondary and indirect interest in the tolls and fortification questions ; but we can feel glad, for more ,than one reason, that the signs point to the failure of the design to use the canal to penalise the non-Ameri-ean mercantile marine. Under fch c - Hay-Pauncefote Treaty it is provided, that "the canal shall be free and open, in time of .war and in time of peace, to the vessels of commerce and of war of all nations, on terms of entire equality, so that there shall be no discrimination against . any nation or its citizens or subjects in respect of the conditions or charges of traffic or otherwise." In despite of the Treaty it was proposed by the American Senate to allow American vessels to' use the canal free of tolls, and, as the cable messages of the past week or two have told us, there has been a stiff fight on the proposal, at the back of which it has boen possible to feel the strong hand of British official pressure. The original idea was that the tolls should simply be remitted in the case of American vessels, but there was kept in reserve the alternative device of charging the American ships ' and issuing refunds from the United States Treasury. That America should have entertained at all the idea of breaking the letter as well as the spirit of the Hay-Paunoefote Treaty is a very depressing fact—far more disturbing than the fact tliac the Hearst newspapers are crying I out that the Treaty should be torn up. America obtained its authority to construct the canal only throng" entering into agreements with Powers which could have prevented th; digging of the canal altogether had they chosen. Between letting Ameri can vessels go free, on the onr hand. ..and refunding from the United

States Treasury the tolls charged them, on the other, there is a vast difference. America, where no Treaty stands in the way, must be allowed tff possess the fullest power to subsidise her mercantile marine just as she chooses. This alternative' device to observe the Treaty and yet place American vessels at an advantage raises, however, an internal American issue. Despite the fact that in ocean-carrying the American mercantile marine is very far behind the mercantile marine of other nations, there is a very strong feeling in America against sjvip subsidies. Today we learn that. Senator, Lodge has lost all hope of carrying thj free toll provision, and has concluded, that as the House is against tin Alternative device of a subsidy by refund, the' prospects are in favour of a prompt recognition of Britain's view—in favour, that is, of honesty to treaty obligations. The whole story of the canal is one that does little credit to tho United States. As the New York Fnsl observed last month, "broken pledges dot the entiro history of the canal." In the first place the canal was made possible oy a raid on a defenceless republic with which America was in tho_ act of negotiation. The fortification of the canal is possible only by direct breach of a pledge, for permanent fortifications are impliedly 1 ruled out by an article in the 1903 treaty with Panama and the third article . in the Hay-Pauncefote , Treaty. Tho. Post _ eluded Senator . UtfOT for his folly in attempting to ! force the observance of faith on thj . tolls issue. After such a wholesale breaking of pledges, it sarcastically - observed, what could another breach matter'? "Why not," it scornfully concluded, "why not be logical and round out the record by another act of broken faith 1 Senatok Root must