PANAMA CANAL FINANCES.

Taranaki Daily News, Volume LVI, Issue 252, 23 March 1914, Page 4

PANAMA CANAL FINANCES.

A recent cable from Xew York stated that Professor Johnson anticipated tin taxpayers would be obliged to meet a loan of four millions during tile first ten years of tile operations of the cana'. This may or may not be ail accurate estimate, but that there is certain to lie a deficit. and probably one of considerable dimensions is only natural. h is, however, merely a guess as to what the income will be, and jus; as uncurtain is Ihe amount of the expenditure. The volume of trade, as was the case with the Suez Canal when it was first used, is to a large extent a matter for conjecture, but to estimal" the outgoings is a still more difficult task, by reason of Ihe possible trouble and expense that some of the cuttings may involve. The financial success of the l'anama ( anal will greatly dcpen.l Oi. whether the lou., will be so adjusii"l jas to Viieou) a f>e ships to use that waterway. The professor is doubtlcsright in bis estimate that after ten years, provided 110 calamity occurs, the canal revenue will meet tile annual charges for operation expenses and interest on capital. In the first five

years of the working of the Suez Canal the. income quadrupled, and some idea ol in Juiaiu-ial success subsequently may lie derived .from the fact that the "li:u'ih puivha.-ud by the British Government from the Khedive for £4,080,i'»l> were in mil valued at £37,008,000. it. noes not follow that the Panama venture may prove equally fruitful, but there is every jirospect that it will te v.rll patrouibcil. Professor Johnson 'insiders that it is necessary to secure •in annual revenue of four millions ster- ■ ' ! "K to meet the charges and annuity payable to tho Panama Republic. It will necessarily take a few years before this amount is obtained, and it can "iily be scoured by imposing a toll on all vessels using the waterway. This should greatly strengthen the action of tlie President of the United States iu adhering to the Hay-Pauncefotc iifaly. and if the Senate has any doubt ■is Lo passing the Bill, over which there lias been so much controversy, the financial aspect of the questipn should scene the matter. The intensely costly iiiil lire of the work involved in the con--i ruction of the canal has brought up the total to a very higlufigure, and must inevitably postpone the attainment of a I'.iying point for some years, during which taxation must provide the dclieii. This has been recognised by all authorities. The honor and glory of possessing such a world's wonder ma, reconcile the American people to payins the piper. The magnitude of the scheme and the large capital involved -liouM flatter their vanity, and the _■ overbial American is generally willing to pay for big things of which he cun boast. Once the canal becomes popular it will speedily become financial, and the nation which has feced this marvellous work is well able to see itturongli its early monetary difficulties.