The worst of it was, that the money which had been subscribed was not from rich people, who would feel its loss very little, but from poor people, who put their savings, and the money they were storing away for their old age, into the Canal; and when they lost it, it meant misery and poverty to them.

So the Panama Canal failed.

But the project of making a canal was not given up.  Two years before the idea of digging at Panama had been thought of, the ground where the Nicaragua Canal is being built had been surveyed, and thought better suited to the purpose than Panama.

The reason for this was, that at Panama a long and deep cut had to be made through the mountains.  This had to be done by blasting, in much the same way that the rocks are cleared away to build houses.  This is a long and tedious work.

The Nicaragua Canal will be 159 miles long, while the Panama, if it is ever completed, will be only 59 miles; but of these 159 miles, 117 are through the Nicaragua Lake and the San Juan River—­water-ways already made by nature.  For the remaining distance, there are other river-beds that will be used, and only 21 miles will actually have to be cut through.

The main objection to this route for the Canal is, that there is a volcano on an island in the Nicaragua Lake, and there are always fears of eruptions and earthquakes in the neighborhood of volcanoes.  A great eruption of the volcano might change the course of a river, or alter the face of the country so much, that the Canal might have to be largely remade.

The building of this Canal will cost hundreds of millions of dollars—­two hundred millions, it is said.

Nicaragua is not a rich-enough country to be able to pay for this, and it is here that the subject touches the closest interests of other countries, and is serious enough to overthrow a much-desired treaty.

If the Canal is to be built, it must be built by a country rich enough to pay for it.

The country which builds the Canal will have the right to collect a toll from every vessel passing through, and also to defend it, and prevent the ships of an enemy from using it.

The United States is naturally anxious to be the country that controls the Canal.  But England does not appear to want us to have entire control.

England owns the greater part of the Suez Canal, which joins the Mediterranean Sea and the Red Sea.  This Canal, you will see by looking at the map, makes a short cut to Asia, and saves ships the long journey round Africa and the Cape of Good Hope.

England finds this Canal very useful; it makes a great deal of money for her, and she would like to have just as large a share of the Nicaragua Canal That is at least what the Senators say.

When the Treaty was mentioned in the Senate, Senator Morgan at once demanded that his Nicaragua Canal Bill should be acted upon.

His bill provides that the United States Government shall furnish the money for the Canal, and in return shall own nearly the whole of it, and have the right to say who shall have charge of its affairs.