straighter, had
less elevation at its summit, and required fewer locks. Congress finally
decided to construct a high level lock-canal. The cost of keeping up and
operating a Panama canal was estimated at six-tenths that of one across
Nicaragua. Harbor expenses and facilities would be nearly the same for
both lines. The time required for construction, probably nine or ten
years, would be a trifle the less at Nicaragua. Control works, to keep
always the proper depth of water in the canal, could be more easily
maintained at Panama.

Panama political and commercial complications were serious. The isthmus
was Colombia territory, and, since October, 1899, a civil war had been
raging in that republic. Its financial condition was desperate. Two
hundred million inconvertible paper pesos had depreciated to the value
of two cents each in gold, yet were legal tender for all obligations. In
such a country, especially as war was in progress, the only government
able to maintain itself was despotic. Civil troubles were intensified by
dissension between Catholics and Protestants. Revolution accompanied any
change in administration.

Under Ferdinand de Lesseps, creator of the Suez Canal, the French
company had performed extensive excavations at Panama. The New Panama
Canal Company of France held certain concessions from the Colombian
government. The value of its assets was $109,000,000 at most. If we dug
at Nicaragua these would be worth little. Besides, a Nicaragua canal
completed, some $6,000,000 of stock owned by the French company in the
Panama railroad would dwindle in value.

The validity of the French company's rights was questioned. Its
agreement to work some each year had not been kept. Its charter was to
expire in October, 1904, but, for 5,000,000 francs, the Colombia
President granted a six-year extension. Even with this the French
franchise would revert to Colombia in 1910. Colombia wished delay. The
United States transcontinental railroads did not want a canal, as it
would divert from them heavy, bulky, and imperishable freight. They
therefore joined Colombia in seeking delay, playing off the Nicaragua
plan against the Panama, hoping to defeat both.

Late in 1901, newspapers in the United States began urging the purchase
from Colombia of a land belt across the isthmus to be United States
territory. Our Senate, December 16, 1901, by a vote of 72 to 6, ratified
the Hay-Pauncefote treaty with Great Britain, in which it wa