That part of the Isthmus called the Province of Panama, belongs to the State of New Granada. Late explorations to discover the most favourable line for a passage, from sea to sea across it, have proved its general character to be a net work of not very high mountains, with vallies in a few places, approaching to each other with only the difference between them, of from 350 to 600 feet above the level of the sea, and through which it has been proposed to open communications, either by canals, railroads, or common macadamized roads. By the first mode it has been pretty well demonstrated, that nothing can be effected from the want of water to supply a canal at the summit level. A company, formed in the United States, is strenuously engaged in the expectation of being able to form a railway from either Chagres or the Bay of Limon, on the Atlantic side, to the City of Panama on the Pacific. The difficulties chiefly to be overcome, arise from the badness of the harbours of Chagres and Panama, and the want of any shelter or accommodation at the Bay of Limon, which would be a dangerous roadstead without a very costly breakwater; and the lower part of the bay is very shallow; it has not a hut on its shores; nor does it possess a spot at which a boat could land or ship any cargo. The track of a railroad, unless entirely built upon a viaduct, must necessarily in the vallies, be exposed to annual destruction by the tropical torrents, and considerable tunnels would have to be excavated. The most recent accounts say, the natural obstacles are greater than what were at first supposed; yet, in these days of engineering prodigies, from the spirit of enterprize, energy, and perseverance displayed on all occasions by our transatlantic brethren, there is a possibility, that before long their laudable designs will be carried into execution; but whether the speculation will yield sufficient profit to answer the expectations of the Shareholders, is quite a separate question.

The apparently most feasible mode of communication is that proposed in connection with the West India Royal Mail Steam Packet Company, by means of Macadamized carriage roads from Porto Bello to Panama, and two routes have been surveyed with that object. Here the economy and facilities are self-evident, for Porto Bello has one of the finest harbours in the West Indies, with quays and magazines, and contains all the requisites for the accommodation of passengers and goods, with established internal communications. A road could easily surmount hills at any desirable inclination, and admits of zigzags, which railways or tramways do not, by which any elevation can be gained; it would not need tunnels, and, by going over the spines of hills, could not be destroyed by the heavy rains. The distance from Porto Bello to Panama, though a few miles longer than from Chagres, would still be easily accomplished in the daylight of one day and goods and passengers would arrive at their destination with only once being put upon a vehicle, which would not be the case with a railway from Chagres, and certainly the expense of the transit would be much less; so that all things considered, a common carriage road in such a country is to be preferred to a railway, or any tram way. It is more than probable, therefore, that the speculation of the Mail Companies will also be soon put into execution.

All the Engineers who have lately made exact explorations of the territory of Panama, report that the surface in general is covered with dense forests of all the beautiful timber trees already enumerated; and when these three or four projected routes across the country are completed, no doubt will remain that their resources will give rise to a very extended commerce on either hand of them through the ports of Chagres, Limon and Porto Bello on the north; and by that of Panama on the South, to which the products of the West Coasts of America are already being sent in abundance.

The coasts of Veragua and Costa Rica next deserve attention before speaking of Nicaragua; for although no actual speculation is afloat to effect a passage across them by canal or rails, still, as the American Isthmus continues very narrow along them, and their shores both on the Atlantic and Pacific possess deeply indented bays and well sheltered anchorages, these countries will very soon attract general attention from the richness of their productions, the fertility of the soil, and quantity of virgin lands which are inviting to the colonist. It is not possible to imagine that they will continue to be neglected when the routes by Panama and Nicaragua shall have been completed. The present governments of these provinces are in the hands of persons who have avoided the intestine civil wars, which have produced so much misery in the other parts of the late Republic of Central America, and their enlightened policy is reaping its reward in the rapid advancement of their prosperity. Costa Rica possesses in the north, the noble harbour of Boca del Toro at the western extremity of the Archipelago of Chirique, and between this and the river of San Juan in the Mosquito territory, there are some excellent points, such as Salt River, the Ports of Matina and Tortuga, to which produce from the interior is now being sent for Europe. On the Pacific are, the Gulf of Dulce, English harbour, the River Cartago, port Calderas and several others in the fine and secure Gulf of Nicoya. When the proximity of this advantageous position, within the action of the Panama and Nicaragua passages is more truly estimated, commercial men will soon be found giving all due attention to these fine regions, and their superb forests may be quickly rendered subservient to the wants of civilized man. In no part of the world are more encouragements held out for colonists, and they will be not more than twenty days sail from the markets on both sides of the Atlantic.

It has aleady been contemplated to effect a road from Boca del Toro to the Gulf of Dulce in the Pacific; and when the country is somewhat more advanced, there will be no great obstacle to its execution, and that at no very distant day.

NICARAGUA.

This province is now deriving immense importance from its territory, having been selected, for the first experiment, of making a canal to traverse the American Isthmus, of dimensions fit for the passage of large ships. Upon the success of this project depends the problem of the ships of the maritime nations on the shores of the Atlantic, reaching, by its means, the west coast of North America: and thus saving the time, expense, and danger of the dreary navigation round Cape Horn. England would thereby save 6,583 miles in the voyage to San Francisco, in California; New York 9,663 miles, to the same place; and from New Orleans there would be the immense difference of 10,547 miles, as shown in the table, No. 1, of the appendix, and the same relative differences in the voyages would be experienced to all the countries on the west coast of North America

The scheme for this canal commences at the port of Greytown (formerly called San Juan), on the Atlantic, at the entrance to the river of San Juan, in 11° of north latitude. Advantage will be taken of this river for ninetythree miles to the great lake of Nicaragua, its junction with it is 135 feet above the sea level. It does not at present admit of free navigation for any vessel drawing more than three feet water, for it has four long rapids in its course; but the bed of the river will be deepened, or a canal will run parallel with it; ships will then sail upon the great lake about sixty miles, with sufficient depth throughout to a point where there is a strip of land, fifteen miles wide, to be crossed by a cut to the Port of San Juan, on the

Pacific. This would be the shortest route; but as this last part presents a difficulty of a range of hills requiring either a great tunnel or a vast open cutting, the project embraces also another course, which is, to traverse the whole length of the Lake of Nicaragua, ninety miles to enter the adjoining smaller Lake of Leon, which is thirty-five miles long, passing to it up the River Tipitapa twenty miles, and thence by a canal of twenty-nine miles, gradually descending to the Port of Realejo. This last Port is about 660 miles nearer to California than Panama.

An American Company has been occupied these last two years, in a careful survey of the whole country, and has obtained a grant for forming a ship canal from the Government of Nicaragua ; and preparations for energetically pursuing the work have been making in all the present year. Of such importance has this undertaking been thought by the United States and Great Britain, that a treaty was negotiated and signed at Washington, in the beginning of this year, by these powers, guaranteeing to the state of Nicaragua, the independence of the territories to be traversed by the canal, which is to be open to all nations for ever, under any circumstances of war, with perfect neutrality within certain limits of the ports at the two extremes and both parties renounce for ever all projects of forming exclusive Colonies in these territories. The State of Nicaragua also binds itself to admit the ships and subjects of every nation for ever to all the priviléges of transit and settlement upon the terms granted to the company for forming the canal, and conforms itself to the treaty stipulations between the United States and Great Britain. This important document is given in the Appendix, No. 2.

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As there are naturally no obstacles to the execution of this project, but what engineering skill, backed by the required funds, can vanquish, the advantages that will