There are several considerations which point out the present as the most auspicious moment for attaining the object in view. The profound peace with which Europe and the whole civilized world is now blessed, the abundance of capital in the money market, the present low rate of interest, and the difficulty of finding investments, are all favorable to the raising of the necessary funds; the immense strides which science has made in overcoming natural difficulties, once deemed insuperable, add to the means of accomplishment, while the growing importance of British Colonies in and about New Zealand, the inevitable impulse that recent events must give to the China trade,[2] and the efforts of all maritime nations to make establishments in the Polynesian Islands will render the Canal a certain source of profit and honor to those who will aid in its formation.

Several parts of the Isthmus of America have been proposed for the communication between the two seas, such as the Province of Nicaragua, the Isthmus of Tehuantepec, &c.; but invincible obstacles occur in all those localities, while on the contrary the Isthmus of Panama is beyond doubt the most favorable point, according to the opinion of all the scientific and practical men who have visited that part of the new world.[3] We shall proceed, therefore, to describe that Isthmus as far as is necessary for the present purpose.

The Isthmus of Panama[4] may be considered as extending from the Meridian of 77° to that of 81° W. of Greenwich. Its breadth at the narrowest point, opposite to the city of Panama, is about thirty miles. The general feature of the Isthmus on the map is that of an arc, or bow, the chord of which lies nearly east and west. It now forms a province of the republic of New Granada.

It may appear strange, yet it is now well known to be the fact, that although the small width of the Isthmus was ascertained soon after the discovery of America, its natural features remained entirely unknown for three hundred years. Robertson, in his History of America, states that the Isthmus is traversed in all its length by a range of high mountains, and it was reserved for our scientific countryman, Lloyd, who surveyed the Isthmus in 1828 and 1829, by direction of Bolivar, then president of the Republic of Colombia, to dispel the illusion. From his observations, confirmed by more recent travellers, it is now ascertained that the chain of the Andes terminates near Porto Bello to the east of the Bay of Limon, otherwise called Navy Bay, and that the Isthmus is, in this part, throughout its whole width, a flat country. It was also long supposed that there was an enormous difference between the rise and fall of the tide in the Pacific and Atlantic Oceans on either side of the Isthmus, and that the opening of a communication between the two seas would be productive of danger to a large portion of the American continent. It is now, however, ascertained that the difference of altitude is very trifling, not more than thirteen feet at high water.[5] The prevalence of these errors may have tended, in combination with Spanish jealousy, unhealthiness of climate on the Atlantic side, the denseness of the forests, and the unsettled state of the Government for some years after the Spanish yoke was shaken off, to prevent the undertaking now proposed from being seriously considered.

Panama is the principal city on the Isthmus. Its site has been once changed. When the Spaniards first visited the Isthmus in 1512, the spot on which the old city was afterwards built, was already occupied by an Indian population, attracted by the abundance of fish on the coast, and who are said to have named it "Panama" from this circumstance, the word signifying much fish. They, however, were speedily dispossessed; and even so early as 1521, the title and privileges of a city were conferred on the Spanish town by the emperor, Charles the Fifth. In the year 1670, it was sacked and reduced to ashes by the buccaneer, Morgan, and was subsequently built where it now stands.

The position of the present town of Panama is in latitude 8° 57' N.; longitude 79° 30' W. of Greenwich, on a tongue of land, shaped nearly like a spear head, extending a considerable distance out to sea, and gradually swelling towards the middle. Its harbour is protected by a number of islands, a short distance from the main land, some of which are of considerable size, and highly cultivated.

There is good anchorage at each of these islands, and supplies of ordinary kinds, including excellent water, which may be obtained from several of them.[6]

The city of Panama was, in the 17th century, a place of great importance, but has gradually sunk into comparative insignificance. The policy of the present Government of New Granada is to restore this city to its pristine importance, and for this reason, one terminus of the intended Ship Canal should be at, or as near as conveniently may be to, this position.

The natural obstacles to be overcome in forming a Canal between Panama, and the nearest point of the opposite coast, which is the Gulph of San Blas (likewise called the Bay of Mandingo), render it expedient to select a position west of that line, and the happy coincidence of two navigable rivers, traversing the low lands to the west of Porto Bello, the one falling into the Atlantic, and the other into the Pacific Ocean, which may either form part of the navigation, or be used to feed the Canal, renders that part of the Isthmus the most eligible for this purpose. The rivers alluded to, are the Chagres and the Rio Grande.

The town of Chagres, at the mouth of the river of the same name, is about thirty-two miles west of Porto Bello (Puerto Velo); it is situated on the north bank of the river, which falls into the Caribbean Sea. The harbour formed by the mouth of the river having been greatly neglected, has been much choked up; but it would be unnecessary to incur the expense of improving it, for Navy Bay, called also the Bay of Limon, lying immediately to the eastward of Chagres, is a large and spacious harbour, being three miles wide at the mouth, and having sufficient draught of water for the largest ships in the British Navy. The river Chagres approaches within three miles of the head of this Bay; the ground between is a dead level,[7] and all writers agree that, the difficulties of the harbour being surmounted, there is abundance of water in the Chagres. It is, therefore, proposed either to cut a Canal from Navy Bay to the Chagres, and then to ascend that river as far as its junction with the river Trinidad, and after traversing a part of the latter, to construct a canal which shall connect the Trinidad with the River Farfan, a branch of the Rio Grande, and to proceed by that river to Panama; or should the Bay of Chorrera, which is laid down in the plan, be deemed a preferable harbour, to branch off to that bay; or to make the Canal across the whole width of the isthmus, from the Bay of Limon to that of Panama, using the rivers Trinidad, Farfan, and Bernardino, and other streams which cross the line, for the supply of the Canal.