THE INTEROCEANIC CANAL PROBLEM 79 



pursued. It seemed doubtful whether it were better to open 

 their subscription books to foreign capital or to make another 

 appeal for Congressional aid. The first course carried the 

 objectionable feature of permitting foreign influence to enter 

 into what they wished should be a purely American scheme ; 

 and the second course at that time promised but little hope 

 of success. As a last resort, however, great pressure was again 

 brought to bear upon Congress to guarantee the company's 

 bonds and thus secure the stockholders from possible loss. 

 In furtherance of this idea, a convention held at New Orleans 

 in November, 1892, in which six hundred delegates assembled, 

 some from every state and territory in the Union, unanimously 

 passed resolutions calling upon Congress to lend its aid to the 

 construction of the Nicaragua Canal. These representa- 

 tions of public will resulted in the reintroduction of a bill in 

 the Senate (December 23, 1892), authorizing a govern- 

 mental guarantee of the company's bonds to the extent of 

 $100,000,000 providing that in consideration of such guar- 

 antee the government should receive in absolute ownership 

 $80,500,000 of the capital stock. 



The passage of this bill would most assuredly have placed 

 the United States Government in the position of owner of 

 the canal ; but there were diplomatic considerations that pre- 

 vented the United States from thus suddenly converting the 

 company's project into a national undertaking. These consid- 

 erations must be examined later, but for the present, suffice 

 it to say, the bill never passed beyond a stage of lively and 

 animated debate, and the Maritime Canal Company therefore 

 gained nothing by its call ypon Congress. New issues of 

 the company's bonds were made, but the financial panic of 

 1893, which wrecked the Construction Company, so increased 

 the timidity and caution of investors as to render the success 

 of the new bond issue impossible. The Maritime Canal Com- 

 pany became substantially stranded. The nexTy ear another 

 desperate attempt was made to secure legislation in Congress 

 that should place the company upon a firmer financial basis. 

 On January 22, 1894, the old guarantee bill of 1892 was 

 reintroduced into the Senate with some modifications. By 



