No. 198.
Mr. Long to Mr. Fish.
Sir: In reply to your circular dated Washington, August 19, 1870, I would most respectfully ask leave to make the following remarks:
Long before and ever since the independence of the Spanish-American states, till by the acquisition of California by the United States, most of the capital invested in the commerce of this country was of European origin. This source of capital would naturally cause the streams of commerce to flow in the direction of its supply. This trade was unusually rich to its early founders and their successors. Our commerce in those days was struggling for an existence, and sought the old and well-beaten tracks with the Old World, content with sure but small profits with all engaged in such trade. In the earlier days of the existence of the Spanish-American republics, this country was almost a terra incognita to our merchant marine, and the old established European houses were permitted but with little competition to hold the control of this commerce in their own hands. Although the people of this country have always expressed an ardent admiration for our political institutions, and have imitated us in constructing their fundamental laws, yet it cannot be denied that the feeling of hatred and rivalry existing long-ago between the Latin and Saxon races still holds sway in the minds of the masses of the present populations of the Spanish-American states, the descendants of the old Latin stock of the south of Europe. In our recent contest this old leaven would crop out on all convenient occasions, and it is now easily discernible in the great contest raging in Europe. This animus, no doubt, has had a great deal to do in checking the growth of such feelings on the part of those people as would promote a more cordial and closer sympathy between us. I have no doubt of the truth of this singular feature of the Spanish character as exhibited on this continent. Even now, within my limited knowledge of the capitalists of this country, at least a majority of all engaged in business in this country are Europeans, or are intimately connected with European houses. Of course, the products of this capital would seek their fountain-head for consumption in manufactures, or in the needs and wants of consumers at home. The exports from Colombia and the [Page 262] Central American states are as yet in their infancy. The capacity of production at present is very limited, owing to the great want of labor.
Emigration has never yet brought to these shores the brawny arm of the stalwart laborer to take his place as an artisan or as the tiller of the soil. The few that have come are lured by the brilliant and fascinating ignis fatuus of the gold and silver mines. In this search after the hidden treasure hope soon becomes exhausted, and they retire discouraged and disgusted with everything pertaining to this country. Uncertain as the dependence upon native labor is, it is as yet the only source of supply to those engaged in either agricultural or manufacturing pursuits.
Nature has done so much for the inhabitants of the tropics as to preclude all necessity for much effort on their part to enjoy a comfortable existence. How long this state of things will exist can only be told in the future. Agriculturists of this country are now looking to the densely populated regions of China, and before long the experiment of an importation of coolies will be tested.
The aggregate amount of the products of the countries bordering on the Pacific Ocean, and which are now diverted from the United States, is very great, and they must soon be vastly augmented if this Chinese problem is successfully solved.
Intelligent minds agree, with wonderful unanimity, that the construction of an interoceanic canal by and under the influence and control of the United States will, more than all other causes combined, tend to bring directly to our own harbors and docks the rich products which are now taken from us in foreign bottoms. The bulk of the trade of most of the products of the states south of Panama is now transported in foreign bottoms through the Straits of Magellan to the markets of Europe. The high tariff of tolls over the Panama Railroad, with the great resources of the Pacific Steam Navigation Company, (a British company of unlimited means,) has conduced to this state of things. A project is now entertained, I believe, by this same company to extend their lines up the coast as far as Guatemala, so as to reach the cotton, the coffee, indigo, sugar, and other rich productions of that region. In connection with this subject, I will mention a conversation I recently had with a very intelligent person doing business in this isthmus; he said he had it from undoubted authority that a secret arrangement had been made and entered into between the Panama Railroad Company and the British Royal Mail Packet Company, by which the railroad company agreed to withdraw their line of brigs between New York and A spin wall, and to place a fourth boat on their Central American line. By this line from Guatemala to Southampton and London, they hope to be able to ship all products from Central America directly to England, thus despoiling us of what we are now receiving. The great fall in Panama Railroad stock is said to have been caused by this new arrangement. Fourteen per cent, of their usual annual dividend, with the sales of their lines of brigs, with their new steamer Winchester, was said to be the amount invested as their share in this new company.
When the sails of our merchant marine can pass from our ports unobstructed on this isthmus, then may we expect our commerce with the South American states, and also with those of Central America, to be vastly increased; and then we will have the advantage of all other nations in contending for the rich trade which wall then float upon the broad surface of the Pacific Ocean, even to its most western borders.
The citizens of the United States residing and doing business on this coast have witnessed with much approbation the patriotic and national [Page 263] proposition of our worthy and popular Chief Magistrate to the Congress of the nation, in regard to the survey and early completion, if practicable, of a canal that will bring them immediately into the marts of the world. The proposed subsidy of a line of American steamers running from Panama to Valpraiso and back is also a measure full of incentives to a revival of our tade, and the withdrawing of it from foreign bottoms. I his, in conjunction with a revised and lessened railroad tariff, is a consummation devoutly wished for, and much and great disappointment was felt by all American citizens when its failure to meet the approval of Congress was announced to us. For the statistical details of our imports and exports through this isthmus, I respectfully refer you to the annual report accompanying my report for the quarter ending September 30, 1870.