War with Spain was imminent. The United States sent the battleship USS Oregon from California to Cuba. But, the journey was so long that by the time the ship reached its destination, war had already been declared.

There was one very strategic move the United States could now make. An efficient way to get through from the Atlantic to Pacific Ocean was needed. A canal created in Central America, specifically Panama, could expedite the trip, increase cargo movement, and boost world trade.

The United States had already built the Panama Railway, making the country a perfect candidate for the canal. However, Panama was still under Colombian rule. The Colombian government had already made a deal with a french company to build a canal, meaning the United States had little chance.

The French company leading the canal efforts experienced severe struggles. The project soon became bankrupt, leading to Roosevelt stepping in and purchasing the assets by the Spooner Act. After the purchase, the Colombian government refused to comply with the United States on the project.

This, however, was not a setback for the eager United States. Panama rebels had been planning to revolt against the Colombian government and Roosevelt caught news of it. The United States then became an important player in the formation of Panama as it’s own country. The U.S. backed the rebels and therefore were granted the right to build the canal and a permanent lease on the land of the new free Panamanian state.