st of this work within a
short series of years. The report of the Secretary of the Navy shows the
saving in our naval expenditures which would result.

The Senator from Alabama (Mr. Morgan) in his argument upon this subject
before the Senate at the last session did not overestimate the
importance of this work when he said that "the canal is the most
important subject now connected with the commercial growth and progress
of the United States."

If this work is to be promoted by the usual financial methods
and without the aid of this Government, the expenditures in its
interest-bearing securities and stock will probably be twice the actual
cost. This will necessitate higher tolls and constitute a heavy and
altogether needless burden upon our commerce and that of the world.
Every dollar of the bonds and stock of the company should represent a
dollar expended in the legitimate and economical prosecution of the
work. This is only possible by giving to the bonds the guaranty of the
United States Government. Such a guaranty would secure the ready sale at
par of a 3 per cent bond from time to time as the money was needed. I do
not doubt that built upon these business methods the canal would when
fully inaugurated earn its fixed charges and operating expenses. But if
its bonds are to be marketed at heavy discounts and every bond sold is
to be accompanied by a gift of stock, as has come to be expected by
investors in such enterprises, the traffic will be seriously burdened to
pay interest and dividends. I am quite willing to recommend Government
promotion in the prosecution of a work which, if no other means offered
for securing its completion, is of such transcendent interest that the
Government should, in my opinion, secure it by direct appropriations
from its Treasury.

A guaranty of the bonds of the canal company to an amount necessary
to the completion of the canal could, I think, be so given as not to
involve any serious risk of ultimate loss. The things to be carefully
guarded are the completion of the work within the limits of the
guaranty, the subrogation of the United States to the rights of the
first-mortgage bondholders for any amounts it may have to pay, and in
the meantime a control of the stock of the company as a security against
mismanagement and loss. I most sincerely hope that neither party nor
sectional lines will be drawn upon this great American project, so full
of interest to the people of all our States