The fate of the Panama Canal is hanging in the
balance. M. de Lesseps, deceived by his experience in Egypt, where he
had the advantage of forced labour, has under-estimated the cost of the works at Panama, and now demands permission to raise a lottery loan of 224,000,000. M. de Freycinet is afraid to refuse, lest the shareholders should lose their money, and a panic begin on 'Change ; but he is also afraid to yield, because M. Rousseau, the engineer sent to report, while believing the Canal practicable, doubts about the ultimate coat. The Premier accordingly refers the matter to the Chamber without offering advice, and the Chamber is inquiring with an obvious distrust of the assurances it receives. It may give way ; but if it does not, M. de Lesseps must either offer heavy interest to preference shareholders— thus loading the undertaking from the outset—or must sell his concessions and his works to the American Government, which would be delighted to finish the Canal at any cost, and retain the control in its own hands. It is probable he will select the first alternative; but the sum to be raised is very large for a private speculation, and the hesitation of the Chamber daunts investors, who reflect also that "the great Frenchman" cannot live for ever. M. de Lesseps is eighty-one years old.
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