The American people, alert, practical, keen, possessing in their press and congress admirable organisations for the collection and dissemination of exact knowledge, already fully appreciate the advantages that will accrue to the United States itself from the building of the Panama canal. Hardly less thoroughly do they understand the probable effect upon eastern Asia and the great commercial nations of western Europe. Few, however, have yet reflected upon the canal's vital importance to the peoples of the Pacific coast of South America--to four at least of the six countries whose stories I have tried to tell in this volume. Cut off from all practicable communication with the rest of the continent by those yawning ravines which lead down the inner declivities of the Andes, gullied by gigantic torrents, and choked by impenetrable forests, the narrow strip of territory stretching along the mountain tops and shore plain from Quito to Central Chile, connects with the outside world solely through ports on the Pacific Ocean. Throughout colonial times the stream of greedy Spanish office-holders flowed down the coast from the Isthmus, and a scanty trickle of trade followed the same channel. For three centuries Panama was the _entrepot_ and Lima the metropolis of all Spanish South America except Venezuela and eastern New Granada. Magellan's famous discovery did not divert these currents because the stormy straits that bear his name are practically useless for sailing ships, and even Schouten's rounding of the Horn only blazed a path which proved too perilous for the vessels of the seventeenth and eighteenth centuries. But with the nineteenth century improvements in navigation and especially with the use of steam and the freighter built of iron, all was changed. Valparaiso became nearer to London or New York than Guayaquil, and during the last seventy-five years the ports of Bolivia, Peru, Ecuador, and Pacific Colombia have been little more than remote and unimportant stations on a trade route that stretches its interminable length from the commercial emporiums in the North Atlantic through Pernambuco, Rio, Buenos Aires, and around the southern end of the continent. For centuries Spanish tyranny denied the world access to those countries, and hardly had they shaken off the political system that strangled their development, when geographical considerations and the invention of iron steamships placed them at a disadvantage compared with their competitors. Their commercial, and therefore their industrial and political progress, has been ten-fold slower than it should have been.