THE BIG DITCH

Taranaki Daily News, Volume LV, Issue 293, 3 May 1913, Page 9

THE BIG DITCH

CAN THE PANAMA CANAL PAY? NEW FORTS AND FLEET NECESSARY (By John Foster Fraser). When you have lauded the perseverance of the Americans for cutting a waterway between the two Americas, acknowledged the engineering skill, and paid tribute to the organisation which brought triumph to the undertaking, you are confronted with the question: What is the use of the Panama Canal ? Most folk are surprised at such >in enquiry. Why, the Panama Canal is going to save distance by thousands of miles; it is going to open a new route for the commerce of the world; it will be a realisation of the dream of Columbus by being the western way to the Orient. The American people expect a great traffic. That is why they are providing double locks, so that there may be no delay by the holding up of ships. While vessels going one way will be hoisted to Gatun Lake, others travelling the opposite way will simultaneously be lowered from the lake to ocean level. They assure you that their experts have made calculations which demonstrate that in spending £80,000,000 in constructing the Panama Canal Uncle Sam has made one of the best investments in his history, and that the canal is going to be a "paying proposition." Let us see. The canal will shorten the sea journey between New York and the west coast of the United States by over 8000 miles. It was the need of this cut—when during the Spanish American war the warship Oregon had to steam from the Pacific to the Atlantic by way of the Straits of Magellan—which stirred the Americans to provide a gateway between the two seas. But it is on the transit of merchant shipping that the canal must rely if it is to be a commercial success. And in the matter of sea-borne goods the markets of the Eastern States will have an advantage by thousands of miles over their present position in reaching California, Peru, parts of Chili, Australia and Japan. At present, however, the American mercantile marine is a bad last among the trading concerns of the world. South America is the land of to-morrow. As far as I can gather there is not a { single liner flying the United States flag running between ports on the two sides of the equator. The trade is in the hands of foreigners, .chiefly British, and the growl has been heard in American circles that their dollars are being spent to build a canal for foreign ships. Except to West Central America the canal is going to be of little advantage to British shipping. The value of the west coast trade I know, but as part of the British shipping trade in the world it is insignificant. By Panama New Zealand is slightly nearer to England than by any other way; but with the Suez Canal in existence, India, China, Australia —indeed, every ice-free port in Asiatic waters—is more distant by the Panama route than by Suez. Wliy, taking it that both New York and Liverpool sent ships to Shanghai, the former by Panama and picking up passengers at San Francisco, and the latter via Suez, the English ship would have the lesser distance to travel. Accordingly, on oven terms, British shipping with the East and with Australia has nothing to gain by Panama.

BLOW AT THE RAILWAYS. Americans are buoyantly confident that as a commercial venture the Panama Canal will pay—not all Americans, but the bulk of them. It is not for me to discuss the abrogation of the HayPauncefote Treaty and the giving of the preference to American ships engaged in coastwise traffic. I will only "remark that though in England this has been interpreted as an unscrupulous violation of a written compact in order that favoritism may be shown to American ships by passing them toll-free through the canal and foreign ships be proportionately penalised, what really actuated the United States President and the two Houses was to deliver a blow at Transcontinental American railways, which are by no means popular, by relieving ships plying between Atlantic and Pacific ports from the burden of tolls and giving them a better chance to compete with the railways in the carrying of freight. We know how elastic the American miiul can be in stretching the meaning of words in a treaty. Therefore, although the proposal is for the United States Government to give free use of the canal to coast-trade vessels only, it is not an extravagant assumption that, with the alteration of the United States law, allowing foreign-built hut Ameri-can-owned ships to carry the stars and stripes at their mastheads, a ship sailing out of New York, going through the canal, calling at San Francisco, and proceeding to Yokohama, will soon be counted as ''a coasting ship." Allowing American ships to use the canal toll-free—and the cheery American will tell you that as the canal is being built with his money he can do as he likes—the important question remains: How is the canal to be made a commercial success? Are the tolls on foreign ships to be so high that a profit will be made out of them? The main use of the canal to foreign ships for generations will be to bring to Europe focftlstuft's from the northern section of the continent and nitrates from the southern section. It is the intention of the United States Government to charge tolls not on the tonnage or freight, but on cargo capacity—though I believe this will be changed. In any case, the foreign trade hv way of the canal will not bear heavy tolls. Ilcavv tolls will only frighten away the bird that lays tli« golden eggs.

REAL OBJECT OF THE f'AXAL. Though our friends constancy speaK of the canal as an agency to improve commerce, the real thought behind it is to provide a quick means to get United States warships from one sea hoard to the other. I have alluded to the anxiety the whole American nation felt in their war with Spain while the Oregon had to hasten round by Cape Horn, when eight thousand miles would have been saved had there been a way through the isthmus. The need of such a way is felt to be more pressing than ever. Not only is there the ever possibly danger of complications with a European Power, but Japan has developed into a great naval force. Xo love is lost between the Americans and the Asiatics wishing to enter the States. The considerabhsettlement of Japanese in Mexico rouses concern at Washington. When the Americans thought that a private firm, acting on behalf of the Japanese Oovernment, was about to secure from Mexico a stretch of coast which could serve as n naval base the Americans were more than perturbed. Til the event of war between the United States and another Power the canal would play an important part. The fact thai; there is a canal at all means that the United Stales, instead of concentrating her fleet on one coast, would have it divided. The first aim of the enemy would lie to prevent the two sections from joining. Indeed, the canal would be the weakest link in the chain of defence. Some American authorities with whom T have spoken deny it will be a weak link. But they recog-

nise, more than the mass of American people have yet realised, that the canal will be an object of attack, and that defence is a necessity. I have even met men who confidently declare that the canal will be impregnable—a big word, and inclined to be meaningless under modern war conditions. Anyway, what the American people will soon have to face will be, not the receiving of profits from a commercial canal, but a heavy charge put upon them to maintain the canal as an instrument of war. The calculation has been made that the canal, instead of being a line investment for the United States, is going to cost that country £4,000,000 a year in efficient upkeep. Preparing for eventualities, fortifications are being constructed, and heavy guns will be placed on the island of Flamenco, whicli lies at the Pacific end of the canal. But five miles further out in the Bay of Panama is the much bigger island ol Taboga, with deep water on the west side, where the enemy's ships could ride close in and the guns of Flamenco be unable to touch them. Taboga and its neighboring islands belong to the Republic of Panama, but if the entrance to the canal is to be really guarded it will he imperative for the United States to acquire Taboga and tunnel it after the manner of Gibraltar. The expense of this will startle the American people, though they will be Well able to bear it. Heavy double fortifications are intended on the Atlantic side to bar the approach of the enemy, for from deep water to the three double locks at Gatun is seven miles, and could be reached with long-range guns. Fine specimens of massive engineering though the locks are, it would not be difficult for-a daring opponent to wreck them and render the canal useless. Ostensibly the reason the United States Government are going completely to depopulate the canal zone through a ten-mile-wide atrip of country between the Atlantic and the Pacific is because they do not want colored settlers; but the actual object is to keep the ground clear of anybody who might be troublesome if the United States were at war. Not only this, but on the hills adjoining the various locks fortifications will be erected.

A military force wftl be stationed at Culebra. How large it will be has not yet been settled. Certainly it will not be fewer than 5000 men. There are American military authorities' who, understanding that as war comes swiftly, and that it will be difficult to hurry a defensive force to the canal during hostilities, where the first endeavor of the foe is to block the route, feel that in peace the defence must be on a war footing, and that a force- of 20,000 men will be necessary. It is clear from all this that the United States War Department fully appreciates what the canal means, is taking the requisite steps, and does not intend to leave much to chance. The very fact that these precautions have to be taken—notwithstanding the talk about impregnability—is an acknowledgment of the danger. With developments in modern warfare —aeroplanes, for instance—it would be nothing short of marvellous' if during a conflict with a first-class Power the United States were able to keep the canal free from mishap and open to the quick transfer of warships from ocean to ocean.

Though in the States, as with us at Home, there is uneasiness about the increased expenditure on naval arrangements, there is a growing feeling that the Panama Canal, whilst useful in speedily bringing warships from one coast to the other, will soon direct public attention to the possibility of the canal being made ineffective in war-time, and must arouse thoughts about the wisdom of placing absolute reliance upon it as the gate to let American ships pass to where they are most needed, and the consequent necessity for the American nation to have not one fleet, but two fleets, one in each ocean. I have had counsel with Americans, taking a quiet view of the situation, proud of the canal, who admit that when their people grasp the full consequences of cutting the Americas in twain they will be compelled to set about having a navy second to none in the world. I must not, however, neglect the fact that there is a body of opinion which regrets that the United States Government should have thought it necessary to fortify the canal. Doing so brings obligations and responsibilities the end of which is far from sight. It will mean a bigger navy, maintained on a footing and at an expense in no way consonant with the present ambition or wishes of the American people. The opponents of fortification believe that the neutralisation of the canal could have been guaranteed by the Great Powers. Mow that would have been possible is hard to understand, as the United States would want to use the canal in war time and the other belligerent would not be likely ito keep to.a "hands-off" policy in regard to what might prove the crack in the American armor through which the lance could be thrust. However, the United States is committed to fortifications, and must bear the brunt of the troubles which will inevitably arise. At present the majority of American citizens do not bother about peering into the future. The Panama Canal is Hearing completion, and is a worthy monument to American enterprise, organisation and determination. The_ dream of four centuries will be a reality within a couple of years. With that prospect the Americans are content.