The Nicaragua and Panama, Cknah. 37 



not been realized, and the recent general election in Bra/.il, Avhich 

 seems to have been conducted without violence, has caused a 

 feeling of confidence that we may well believe will continue and 

 permit this great state to enter heartily into the new era of ma- 

 terial development that seems opening to our sister republics. 



Work on the construction of the Nicaragua canal has steadily 

 progressed during the year. A harbor for light-draft vessels has 

 been constructed at San Juan del Norte, and satisfactory progress 

 has been made in constructing the railway designed to facilitate 

 thd work of excavation. It has been hoped by the friends of this 

 project that the canal would be constructed with funds raised by 

 private subscription. The admirable management of the pre- 

 liminary work of surveying and organization were good grounds 

 for their belief; but the bill recently introduced in Congress ask- 

 ing a guarantee for one hundred millions of bonds to be issued, 

 indicates that expectations of friends were too sanguine, and that 

 the financial backing that had been believed to be assured has 

 for some reason not been developed. This may be only a tem- 

 porary alarm, due to the general financial stringency that has 

 prevailed during the past few months, and on the recurrence 

 of an easier money market the necessity for the relief asked from 

 Congress will disappear. 



The Panama canal project, supposed to have been abandoned 

 in hopeless financial ruin, has recently been revived, with new 

 concessions extending the period for construction, and, it is cur- 

 rently reported, a scheme for a colossal lottery company for raising 

 the means for prosecuting the work. It seems incredible that 

 this canal shall become a fact in this generation ; but if it is the 

 feasible route its projectors claim, it is not improbable that the 

 demands of a future generation may necessitate its construction. 



A year ago I commented upon the improvement of the Missis- 

 sippi river. Since then one of the greatest floods oh record has 

 visited the' lower river country, devastating a large area. It 

 brought to the settlers in the valley, however, a new experience, 

 and has inspired them with a confidence in the levee system 

 that finds expression in the demand for levees of approved con- 

 struction from Cairo to the Gulf. The flood of a year ago cov- 

 ered many square miles. A large proportion of the area, how- 



