The opening of the canal has greatly increased the effectiveness of the Navy of the United States. It has reduced the distance between the central points of the Atlantic and Pacific coasts from 13,000 to 5,000 miles and greatly reduced the problem of coaling on a cruise from coast to coast. It has made possible the concentration of a fleet at either entrance of the canal which, with a cruising speed of fifteen knots, could reach the center of the Pacific coast in nine days and the center of the Atlantic coast in five days.

Where, formerly, the fleets stationed opposite the middle of each coast were, from a cruising point of view, as far apart as opposite sides of the world, they are now as near as if one were off New York and the other off Buenos Aires.

With regard to the monetary saving to the United States resulting from the availability of the canal for naval use, it is apparent that the distance and time between the coasts have been reduced to less than two-fifths of the former figures. The cost of coast-to-coast movements is reduced accordingly, for though vessels of the Navy pay tolls, such payment is in effect a transfer of money from one branch of the government to another.

The strategic importance of the canal is inestimable from a monetary standpoint.