<P> Although the Nicaraguan canal proposal was made redundant by the American takeover of the French Panama Canal project, increases in shipping volume and ship sizes have revived interest in the project . A canal across Nicaragua accommodating post-Panamax ships or a rail link carrying containers between ports on either coast have been proposed . </P> <P> Theodore Roosevelt believed that a US - controlled canal across Central America was a vital strategic interest of the country . This idea gained wide circulation after the destruction of the USS Maine in Cuba on February 15, 1898 . Reversing a Walker Commission decision in favor of a Nicaraguan canal, Roosevelt encouraged the acquisition of the French Panama Canal effort . George S. Morison was the only commission member who argued for the Panama location . The purchase of the French - held land for $40 million was authorized by the June 28, 1902 Spooner Act . Since Panama was then part of Colombia, Roosevelt began negotiating with that country to obtain the necessary rights . In early 1903 the Hay--Herrán Treaty was signed by both nations, but the Senate of Colombia failed to ratify the treaty . </P> <P> Roosevelt implied to Panamanian rebels that if they revolted, the US Navy would assist their fight for independence . Panama declared its independence on November 3, 1903, and the USS Nashville impeded Colombian interference . The victorious Panamanians gave the United States control of the Panama Canal Zone on February 23, 1904, for $10 million in accordance with the November 18, 1903 Hay--Bunau - Varilla Treaty . </P> <P> The United States took control of the French property connected to the canal on May 4, 1904, when Lieutenant Jatara Oneel of the United States Army was presented with the keys during a small ceremony . The new Panama Canal Zone Control was overseen by the Isthmian Canal Commission (ICC) during construction . </P>

Who raised the $40 million dollars to build the panama canal