Effect of the Canal on the Interest of the Valley of the Mississippi—Pacific Railroad as a Rival of the Isthmean Canal—Rates of Freight on Ocean, Lakes, Rivers, Canals, and Railroads—San Francisco and the Trade of China and Japan—Considerations of General Interest—Probable Revenue.
The products of the Valley of the Mississippi and its tributaries may be collected at points along the river, to be shipped direct for China, Japan, Australia; and the products of the Orient may be brought, without breaking bulk, to Galveston, New Orleans, Mobile, Pensacola, Appalachicola, and even Memphis, Cairo, St. Louis, Louisville, and Cincinnati, thence to be distributed by the river system, which extends throughout the States of the South, and reaches even to the borders of British America. With one, or at most two, transshipments, the produce of the Indies may be transported, by the way of the Illinois river, or the projected improvement of the Fox and Wisconsin rivers, to Chicago and Lake Michigan, thence to be distributed throughout the shores of the northern lakes.
Teas, silks, Japanese and East India goods may be transported by way of the ship canal and the Mississippi river, and delivered at St. Louis at one-third or one-fourth the cost of transportation of the same articles by the Pacific railroad. While the Pacific railroad is a great national highway, bringing into political and commercial union two great sections of the country, building up cities, opening mines, bringing under cultivation a vast extent of arable land along its route, the proposed canal across the American Isthmus must be the sole dispenser of the bulkier products of China and the Indies.
The question may be asked how far the railroads constructed and to be constructed between the Atlantic and Pacific, especially within the limits of the United States of America, may supersede the commercial advantages which would result from the canalization of the Isthmus?
Trade has always increased in proportion to the facilities for transportation; and it is evident that, even in the most populous country, the reciprocal relation of production and consumption may be increased by a better organization and a more judicious application of labor. In all cases of competition between railroads with canal, lake, or coast trade, the result has been the reduction of rates and the increase in the quantity of material transported. Two railroads, American and Canadian, skirt the shores of the Northern Lakes, making, with the line of lake steamers, three competing lines. The consequence of this rivalry has been a reduction upon freight during the summer months, to enable the two roads to compete with the lake route and canal.