At the called session of March, 1885, Mr. Cleveland withdrew the treaty, not from opposition to its general purposes, but because, as he stated in his annual message in December, 1885, it was "coupled with absolute and unlimited engagements to defend the territorial integrity of the states where such interests lie." He held that this clause was an "entangling alliance inconsistent with the declared policy of the United States." This objection to the treaty could have been easily removed by negotiation, as Mr. Bayard, a Member of the Senate when the treaty was pending, and Secretary of State under President Cleveland, very well knew. Thus, by an unfortunate division in the Senate and the action of the President, the construction of the canal by the United States was prevented. Subsequently, in 1887, concessions were made by Nicaragua and Costa Rica to a private association of citizens of the United States, which led to the incorporation, by Congress, of the Maritime Canal Company of Nicaragua.
The interposition of a private corporation between the United States and Nicaragua has created all the delays and embarrassments that have followed. Such a corporation can obtain money only be selling its bonds bearing a high rate of interest, secured by a mortgage of all its property and concessions, and its stock must accompany the bonds. Experience has shown that such a work cannot be executed, especially on foreign soil, without the support and aid of a powerful government. If such aid is rendered it must be to the full cost of the work, and all the benefits should inure to the people and not to the corporation or its stockholders. The experience of the United States in the construction of the Pacific railroads is an example of the inevitable result of copartnership. The attempt of the Maritime Company to construct such a work as the Nicaraguan canal without the aid of the government will end either in failure or at a cost, in bonds and stock, the interest of which would be so great that the cost of the transit of vessels through the canal would deter their owners from using it, and goods would be, as now, transferred by rail to and from Panama.
The method of aiding the Maritime Canal Company proposed in the bill reported by me, and again recently by Senator Morgan, is as good as any that can be devised, but I greatly prefer the direct and absolute purchase of the concessions of that company, and the negotiation of new treaties with Nicaragua and Costa Rica upon the basis of the former treaty, and the execution of the work under the supervision of the engineer corps of the United States in the same manner that internal improvements are made in this country. The credit of the United States will secure a loan at the lowest possible rate of interest, and with money thus obtained, and with the confidence of contractors that they will receive their pay for work done, the cost will be reduced to the actual sum needed. It is the interest of the commercial world as well as of the United States that the tolls charged on the passage of vessels should be as low as possible, and this will be secured by the construction of the work by the government.
If the present owners of the concessions from Nicaragua and Costa Rica will not accept a reasonable price for their privileges and for the work done, to be fixed by an impartial tribunal, it is better for the United States to withdraw any offer of aid; but if they will accept such an award the United States should take up the work and realize the dream and hopes of Columbus. At present the delay of action by Congress grows out of the fact that no detailed scientific survey of the route has been made by the engineer corps of the United States. The only approach to such a survey was the one made by A. G. Menocal, an accomplished civil engineer of the navy, but it was felt that this was not sufficient to justify the United States in undertaking so great and expensive a work. In accordance with this feeling the 53rd Congress directed the Secretary of War to cause a thorough survey to be made and to submit a full report to the next Congress, to convene December 2, 1895. This survey is now in progress and will no doubt largely influence the future action of Congress.
A brief description of the canal proposed may be of interest to those who have not studied the geography and topography of its site, though it is difficult to convey by writing and without maps an adequate conception of the work. It is apparent, according to Menocal's surveys, that the physical difficulties to be overcome are not greater than those of works of improvement undertaken within our own country, for the highest part of the water way is to be only 110 feet above the two oceans—a less altitude than that of the base of the hills which surround the city of Washington. The works proposed include a system of locks, similar in character to the one built by the United States at the falls of Sault Ste. Marie and to those constructed by Canada around the falls of Niagara. A single dam across the San Juan River, 1,250 feet long and averaging 61 feet high, between two steep hills, will insure navigable water, of sufficient depth and width for the commerce of the world, to a length of 120 miles. The approaches to this level, though expensive, are not different from similar works, and will be singularly sheltered from floods and storms. Of the distance of 169.4 miles from ocean to ocean, 142.6 miles are to be accomplished by slack- water navigation in lake, river, and basins, and only 26.8 miles by excavated canal. The greatest altitude of the ridge which divides Lake Nicaragua from the Pacific Ocean does not exceed, at any point, 42 feet above the lake.
Perhaps the chief engineering difficulty is in the construction of harbors at the Pacific and Atlantic termini of the canal, but that at Greytown, on the Atlantic coast, which is considered the most formidable, has already been partially built. The obstacles are not to be compared with those encountered in the attempted construction of the Panama canal, or with those which were easily overcome in the construction of the Suez Canal; and the whole work, from ocean to ocean, is free from the dangers of moving sand and destroying freshets. Lake Nicaragua itself is one of the most remarkable physical features of the world. It fills a cavity in the midst of a broken chain of mountains, whose height is reduced, at this point, nearly to the level of the sea, and it furnishes not only the means of navigation at a low altitude, but enormous advantages as a safe harbor.
If the survey ordered and now (1895) being made should confirm the reports of Menocal there is no reason why the United States should not assume and execute this great work without ultimate loss, and with enormous benefit to the commerce of the world. It will be a monument to our republic and will tend to widen its influence with all the nations of Central and South America.
The last letter I received from General Sherman was as follows:
"No. 75 West 71st Street, New York,} "Tuesday, February 3, 1891. } "Dear Brother:—I am drifting along in the old rut—in good strength, attending about four dinners out per week at public or private houses, and generally wind up for gossip at the Union League club. Last night, discussing the effect of Mr. Windom's death and funeral, several prominent gentlemen remarked that Windom's fine speech just preceding his death was in line with yours on the silver question in the Senate, and also with a carefully prepared interview of you by George Alfred Townsend which I had not seen. I have ordered of my book man the New York 'Sun' of Sunday, February 1st, which contains the interview.
"You sent me a copy of your speech in pamphlet form which was begged of me, and as others naturally apply for copies, I wish you would have your secretary send me a dozen, that I may distribute them.