it is deeply resented. And there is this other fact: the American press does not represent a very high grade of literature; its columns have quantity of material; the material itself lacks quality; yet the average reader's information is gotten from it, and his political views are shaped by it. The better kind of monthly reviews have only a comparatively small circulation by reason of their higher cost.

And so it happens that in the United States, which is most deeply affected by it, the "Central American Question" has not as yet made its impression upon public opinion; the word even has not as yet been coined nor its meaning been taken to heart. Consequently this country and also Europe look upon the situation in Mexico, upon the Panama Canal, upon the Caribbean Sea with its islands and its littorals, as well as upon all matters that have taken place within those domains and with regard to them, from separated viewpoints, when in fact these matters should be studied from the same angle all over the world.

Any other attitude would be a grievous mistake, for we must stop and think that the Panama Canal, especially in these times, is nothing to the Union except a mighty defensive and offensive weapon, the effective handling of which demands a strong arm with an iron hand. But the mere possession of the weapon does not suffice. It must, in accordance with the requirements of the times, be kept in proper usable form and always be within immediate reach of its owner.

It is for these reasons that almost all the incidents that for a long time have taken place in the northern hot zone of the western hemisphere, or incidents that affect those regions only slightly, are directly connected with the Panama Canal, which thus becomes the pivot of the whole Central American question. Not to repeat what has often been stated before, we must take it for granted that the reader looks upon the Panama Canal as mainly a factor of military power.

But we think also of this Panama Canal, with its two harbors, its dock-yards, depots and coaling stations, as an important rallying place for fleets, where not only men-of-war, but also merchant ships, may undergo repairs and take fuel on board. With particular reference to the latter, the American Government has come to realize that it might

just as well wring from the costly waterway a profitable revenue derived from the sale of fuel to the passing vessels. With an estimated annual traffic of between ten and twelve million tons to begin with, the sale of coal would in the long run rise to profitable proportions.

But owing to the genius of Diesel, a change was wrought in the construction of machinery which will dethrone King Coal, and lead to the advent of petroleum, which has already taken the place of coal on a large number of vessels of the American, British and other navies. In due course of time, freight and passenger steamers will adopt the same system. And as soon as a petroleum engine, adaptable to the largest vessels, shall have been perfected, then the coal-burning ship will be relegated to the past, just as were the superb sailing-vessels which Fulton, a hundred years ago, succeeded in driving off the

oceans.

This innovation in the construction of machinery will certainly before long revolutionize ship-building completely: it will also affect crew, cargo, radius of action, speed, naval-stations; it will reduce the time for taking fuel on board; it will, in short, affect the whole realm of naval strategy and deep sea trade. And petroleum, which hitherto has been nothing but an ordinary commercial article, jumps at one bound within the sphere of military and political interests.

It is evident, therefore, that every seafaring nation, and consequently the American nation, will and must give consideration to the world's oil production, but particularly oil-production near the sea coasts, and this for the same reasons that in part compelled them heretofore to look out for coal. The British Government, months ago, announced through Winston Churchill, the First Lord of the Admiralty, that it will be the policy of that country to control the world's petroleum sources around. important strategic points; and we have in the meantime learned what. Great Britain has already done in that direction.

While the world's attention was attracted first by Tripoli, then by the Balkan troubles, and while Europe wrangled about the frontiers of Albania, England went ahead and secured for herself all the oilconcessions she wanted, and when Mr. Churchill spoke the main part of that work was already completed. Great Britain once more lived up to her farsighted policy because petroleum near the coasts and whenever

possible near harbors is the watchword of the times! For the nearer oil fields are to the harbors, the more valuable they will be to the owner of the harbor, who will make every effort to get possession of them, exploit them, and conduct the oil through pipe-lines to the wharves where it will be taken as cargo on board tank-steamers; or in the form of a new elixir of life, it will in double-quick time find its way into the fuel compartments of the ships which, up to the present time, wasted days in the unclean and difficult work of coaling.

It is quite evident, therefore, that the owner of the oil wells will also control the harbors situated in their neighborhood; for at his pleasure he can limit the sale of the product and dictate the price. Whoever has lawfully acquired title to such an advantageous position will not allow himself to be crowded out, not even by the owner of the harbor.

By applying these considerations to the Panama Canal, the existence of large petroleum fields within or near the Canal Zone would be an ideal state of affairs. For instance, the oil would in that case be brought on board ships in need of it while they were passing through the locks. It would, therefore, be a matter of paramount concern to the American Government to own those imaginary oil fields, and any efforts made to that end would be considered as natural and justified.

While, however, up to the present time, no petroleum has been discovered on the Isthmus, and the geological formation of the land does not point to its presence there, yet a glance at the accompanying map of oil-fields shows that it has pleased Providence to bless countries neighboring upon the important waterway with that inestimably valuable product of nature. Indeed it seems almost wonderful, when we realize that the hand of the Creator has in this particular case anticipated the creative impulse of the engineer and the inventive spirit of the technical

man.

This fact becomes even clearer, when we consider the oil production of the world which is shown in the following comparative tables, remembering at the same time that the oil can be pumped through pipe-lines extending over many miles of territory, from its source to the place where it is to be used.

WORLD'S PRODUCTION OF CRUDE PETROLEUM, 1905-1909, BY COUNTRIES 1 [Barrels of 42 gallons]

WORLD'S PRODUCTION OF CRUDE PETROLEUM, 1908-1912, BY COUNTRIES, IN BARRELS AND METRIC TONS 2

According to these statistics, Mexico as an oil producing country has leaped within the last three years from seventh to third position; and in spite of continuous disturbances going on there, the probable exports of the product in 1913 are estimated to have risen to 24,000,000 barrels (1 barrel about 12 hectoliters).

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1 Reprinted from "The Production of Petroleum in 1909," by David T. Day, U. S. Geological Survey, p. 113.

2 Ibid., 1912, p. 137.