Doc. No. 75. 



207 



brought to a sudden close by the dissolution of the government of the re- 

 public. 



In 1838 a convention was made between the States of Nicaragua and 

 Honduras 5 under which Mr. Peter Rouchaud was authorized to conclude 

 an agreement in France, for the formation of a company to make a canal, 

 and other objects, but he effected nothing. The same result attended the 

 efforts of Seiiof Don George Viteri; Bishop of San Salvador^ who was sent 

 ambassador to Rome. 



In the same year, Mr. George Holdship, representing a company com- 

 posed chiefly of citizens of the United States, residing in New Orleans 

 and New York; among whom was Mr. Soule, of tlie former city, arrived in 

 Central America, with a view of contracting for the opening of the canal 

 with the general government. Finding that Nicaragua had pronounced" 

 against Marazan, and assumed an independent position, he proceeded to 

 that State, whence he at once entered into a contract which provided for 

 opening the canal, for the establishment of a bank to assist the enterprise, 

 and for colonization on an extensive scale. He returned to the United 

 States, and the matter ended. 



In 1844, Don Francisco Castellon, having been appointed minister from 

 Nicaragua to France, and failing to interest that government, entered into 

 a contract with a Belgian company, under the auspices of the Belgian 

 King, for the construction of the work. The grant was for sixty years, 

 at the end of which time it was to revert to the State without indemnity, 

 the State receiving meantime an interest of ten per cent. 



Still later, in April, 1846, a contract was made by Mr. Marcoleta, Nicar- 

 aguan charge d'affaires to Belgium, with Prince Louis Napoleon Bona- 

 parte, then a prisoner at Ham, which differed but little from the preceding 

 one, except that the canal was to be called canal Napoleon de Nicar- 

 agua.'''' Beyond the publication of a pamphlet upon the subject, under 

 the initials of the Prince, this attempt also proved abortive. 



So the matter rested, until 1849, when the acquisition of California by 

 the United States, and the discovery there of vast mineral wealth, again 

 directed public attention to the subject, in a more serious manner than at 

 any previous period. It now began to assume a practical form, and, as a 

 consequence, there was a renewal of propositions to the government of 

 Nicaragua. The first of these, in the form of bases subject to future ad- 

 justment, came, under date of 16th of February, from Mr. William Wheel- 

 right, the projector of the British line of steamers on the western coast of 

 South America, upon behalf of an English company. It imbodied, sub- 

 stantially, the provisions of the contract of 1844 with the Belgian company, 

 but was never acted upon by the Nicaraguan government. 



The second was in the form of a detailed contract, and was entered in- 

 to between Mr. D. T. Brov/n, representing certain citizens of New York, 

 and General Munoz, commissioner of the Nicaraguan government, on the 

 14th ot March. It, however, never received the sanction of the Execu- 

 tive, nor was it ratified by the company within the time stipulated by its 

 terms. 



Upon the 27th of August, another and final contract was entered into 

 b}^ Mr. D. L. White, agent of an American company, which, together 

 with a treaty negotiated by myself upon the part of the United States, 

 guarantying the security of the same, I have already had the honor to 

 transmit to the department. 



