The Isthmus of Suez Question

by Ferdinand de Lesseps

1. The average value of imports and exports between Europe and the extreme East, being about 600 fr. per ton, the saving in the interest, on the capital employed at the rate of six per cent. will be 6 fr. per ton.

2. A ship of 500 tons burthen, costs at the least, fully equipped, 150,000 fr., and pays seven per cent. per ann. to the assurance companies when it navigates the Chinese waters. It only makes at present two voyages in the year including the return; with the Maritime Canal it will be able to make three, which will effect a saving to the owner of two per cent. that is 3000 fr. or 6 fr. per ton.

3. The capital represented by the ship ought to yield an interest arising from the freight, of at least twelve per cent. on account of wear and continual reparation. By enabling the ship to make an additional voyage, the Canal gives the means of saving four per cent. that is, 6000 fr. or 12 fr. per ton.

4. This same ship has a crew of fifteen men, exclusive of the captain. Taking the pay of each man at 70 fr. per month, and that of the captain at 600 fr., it will be found that a saving will be made of 2500 fr. which is 5 fr. per ton.

5. Although it may be said that the insurance upon merchandize is not determined by the duration of the voyage, but by the risk which the ship runs, according to the route it takes; we do not the less persist in maintaining that the facilities of navigation in the Red Sea being at least equal to those viâ the Cape, the rate of insurance must be lower upon merchandize exposed two months less to the chances of navigation. This rate is usually two and a half per cent. upon merchandize going to China; we do not think we are beyond the truth in assuming a diminution of half per cent. in favour of the passage by the Canal, which would be a farther saving of 3 fr. per ton.

By adding up the figures thus obtained, we find a saving of 32 fr. per ton on merchandize which shall pass by the Canal: this minimum figure of 32 fr. calculated for a diminution of 2,000 leagues; will increase in proportion to the distance gained by the ports nearest to the cutting; for Constantinople, for instance, the saving will be more than double, on account of the 4300 leagues gained by her navigation. Leaving 22 fr. of the increased profit to the advantage of navigation, there will remain 10 fr. per ton for passage dues in favour of the Company, a figure which is less than two per cent. on the estimated average value of the merchandize, at 600 fr. per ton. Now, silks, indigos, coffees, sugars, tobaccos, gums, cottons, woollens, wines, spirits, &c. &c. are of greater value than this figure; there is only rice and coal which do not reach it.

It will doubtless be objected to our calculations, that the freights to Australia being on an average only 50 to 60 fr. per ton on merchandize, if the 32 fr., which we show as an advantage presented by the Canal, were forestalled in the freight, there would only remain 20 to 30 fr. per ton for the shipowner, who would evidently suffer loss. It will thence be concluded that our valuations are exaggerated. But at present the shipowner who despatches his vessel to Australia at the rate of 60 fr. per ton, is equally at a loss by the merchandize; and if he consents to make the speculation, it is for the advantage that he finds in the freight of the passengers. Well, the speculation will not be altered by opening the Canal; the shipowner will still lose on the merchandize and gain by the passengers: only he will lose less than at present by the one, and gain more by the other. It is the same for China and the other parts of the extreme East. The freights are so low in relation to the distance and the chances of navigation, that loss appears to result from them. But it is clear that then the shipowners are interested in those operations of commerce that are very lucrative, and are moreover indemnified by the passage of numerous emigrants, functionaries, &c. &c. The opening of the Maritime Canal, far from being hurtful to these operations, will, on the contrary, be eminently advantageous to them, and the shipowners will find their ultimate profits increased by it. Our calculations, therefore, remain intact, since they are based upon practical data, known to every one, and which are, moreover, according to the general usages of commerce.

Let us now endeavour to give an idea of the commerce in imports and exports, which is carried on between Europe and India, China, &c.

Trade has so much increased for a period of ten years, and especially during the last three years, in consequence of the discovery of gold in Australia; and every year its developement is such, in relation to the preceding year, that it is impossible to settle its statistics even approximately. For the figures given for one year are already erroneous before they make their appearance. It is, however, possible to throw some light upon this question, which has been the subject of so much controversy, and to give a minimum figure.

Mac Culloch, in his statistics of 1842, gives the following figures for the tonnage of merchandize imported and exported by the commerce of England.