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I.The United States and other American Countries—Transportation Routes[2]
II.General Plan of the Panama Canal[38]
III.Peruvian Waterways and Railways[138]
IV.Bolivian Railway Routes[334]

PANAMA TO PATAGONIA

CHAPTER I

ECONOMIC EFFECT OF THE CANAL

Philosophic Spanish-American View—Henry Clay’s Mistaken Population Prophecy—The Andes Not a Canal Limitation—Intercontinental Railway Spurs—Argentina and the Amazon as Feeders—Centres of Cereal Production—Crude Rubber—Atlantic and Pacific Traffic—Growth of West Coast Commerce—North and South Trade-wave—Distances via Panama, Cape Horn, and the Straits of Magellan—Waterway Tolls and Coal Consumption—Ecuador and Peru—Bolivia and Chile—Isthmian Railroad Rates—Value of United States Sanitary Authority—American Element in New Industrial Life.

THE effect of the Panama Canal on the West Coast industrial development and the reciprocal influence of this South American progress on the waterway are economic facts. The citizen of the United States who would know the subject in a wider range than the mere gratification of his patriotic impulses and his national pride, should turn to the study of commercial geography, the potential political economy of unexploited natural resources. The European statesman, jealously watchful of trade conditions in the New World and the causes which modify them, will follow these channels without suggestion.

Whether the digging of the Canal take ten, fifteen, or twenty years, does not affect its industrial value. The Spanish-American, with his inherited inertia and his lack of initiative, in waiting for to-morrow would be content if the work consumed half a century. What Humboldt prophesied of the Southern Continent as the seat of future civilization, what Agassiz predicted of the Andean and the Amazon populations, he is sure now will be realized. He even reverts to his favorite method of comparing the square miles of Belgium with the square miles of his own South American country, whichever one it may be, and exhibits the latter’s possibilities for the human race by explaining the number of people it can sustain when it shall have as many inhabitants to the square mile as has Belgium. Yet while he believes that the destiny of the Southern Continent is at the threshold of realization, Yankee impatience only would amuse him. Since the interoceanic waterway and all its benefits are to be, what matter a few years? Time, says the Castilian proverb, is the element. This philosophic Latin view may serve as a curb to fault-finding if the construction work on the Canal seems to halt while the engineering obstacles are studied and experiments are made in order to determine the best means to overcome them.

But though the Spanish-American, who is of the race that controls the West Coast countries of South America, is patient in his waiting for ultimate results, he does not fail to grasp the immediate effect. All the processes of the economic evolution unroll before his mental vision. For Colombia, Ecuador, Peru, Chile, and Bolivia, the standard already has been set, and the goal towards which they must work has been fixed. Their national policies and their commercial and industrial growth at once come under the stimulus of the waterway. “The Panama Canal,” said the leader of public thought in one of the Republics, “will precipitate our commercial evolution.” It is the spring from which will gush the streams of immigration.

MAP OF THE UNITED STATES
AND OTHER AMERICAN COUNTRIES
SHOWING THE CHIEF OCEAN AND RAIL TRANSPORTATION ROUTES
1906