The Panama Canal

The Panama Canal was a great idea indeed. In fact a French company in the 1800s started to dig in the same place that the canal is located today, but were forced to stop because of bankruptcy.

There was some despute about where the best location would be to build the canal, but was finally decided to in Panama (then Colombia) where the French company started severel years before.

The French company, needing money, sent a representive, Philippe Bunau-Varilla to negotiate with the United States. The 1stmain canal act was passed in June 1902, authorizing the purchase of the French land in Panama (then Colombia) for 40 million, provided that Colombia give full control to the United States over the future canal zone.

In 1903 the U.S. Senate accepted a treaty that Secertary of State, Hay had negotiated with Colombia's Tomas Herran, that offered 10 million initially with continued yearly payments of $250,000 in return for total sovereignty over the canal zone. But while the U.S. Senate accepted it, the Colombian Senate rejected it, in hopes to gain more money.

By this time Theodora Roosavelt was getting antsy and was considering taking the land by force, but was convinced by Bunau-Varilla to appproach the problem with a diffrent plan.

He pointed out that a revolotion in Panama was imminent. Many Panamanians resented the Colombian government and wanted to break free.

The French company, led by Bunau-Varilla (who was still trying to ensure the sale of land) then proceeded to organize and finance the revolt.

To do his part and help further the cause, Theodore Roosevelt ordered the U.S. Navy to prevent the Colombian army from crossing the border into Panama to stop the revolt.

On November 3, 1903, Panama was free! Largly because of America's support with the Navy, the revolt succeeded.

The Panamanians appointed Bunau-Varilla as their ambassador to the United States.

Secertary of State, Hay and Bunau-Varilla, on November 18 signed an agreement promising the same payment for the canal zone that had been earlyer offerd to Colombia.

In August 1914, the Panama Canal was finally ready for use.

An approximated 40,000 workers were employed through the many years of construction on the canal. 6,000 of those 40,000 died, mainly from the disease malaria and yellow fever.

The total cost of the canal was some 400 million, but the money it saves is much more then it cost.

Go to Sarah's main page after Panama Canal.