After the Spanish War was over, Mr. John Hay, Secretary of State, began the negotiation of a new treaty with Great Britain, which, after many hitches in the process of coming to terms, was finally ratified by the Senate in December, 1901. This agreement, known as the Hay-Pauncefote treaty, set aside the old Clayton-Bulwer convention, and provided that a canal might be constructed under the supervision of the United States, either at its own cost or by private enterprise subject to the stipulated provisions. The United States agreed to adopt certain rules as the basis of the neutralization of the canal, and expressly declared that "the canal shall be free and open to the vessels of commerce and of war of all nations, observing these Rules, on terms of entire equality, so that there shall be no discrimination against any such nation, or its citizens or subjects, in respect of the conditions or charges of traffic or otherwise."[67] A proposal to forbid the fortification of the canal was omitted from the final draft, and provision was made for "policing" the district by the United States. The canal was thus neutralized under a guarantee of the United States, and certain promises were made in behalf of that country.
The exact effect of this treaty was a subject of dispute from the outset. On the one side, it was said by Mr. Latané that "a unilateral guarantee amounts to nothing; the effect of the Hay-Pauncefote treaty, therefore, is to place the canal politically as well as commercially under the absolute control of the United States."[68] On the other hand, it was contended that this treaty superseded a mutually binding convention, and that, although it was unilateral in character, the rules provided in it were solemn obligations binding upon the conscience of the American nation. Whatever may be the merits of this controversy, it is certain that the Hay-Pauncefote agreement cleared the way for speedy and positive action on the part of the United States with regard to the canal.
The great question then confronting the country was where and how should the canal be built. One party favored cutting the channel through Nicaragua, and in fact two national commissions had reported in favor of this route. Another party advocated taking over the old French concern and the construction of the waterway through Panama, a district then forming a part of Colombia. As many influential Americans had become interested in the rights of the French company, they began a campaign in the lobbies of Congress to secure the adoption of that route. At length in June, 1902, the merits of the Panama case or the persistency of the lobby, or both, carried through a law providing for the purchase of the French company's claims at a cost of not more than $40,000,000 and the acquisition of a canal strip from the republic of Colombia—and failing this arrangement, the selection of the Nicaragua route.
On the basis of this law, which was signed June 28, 1902, negotiations were begun with Colombia, but they ended in failure because that country expected to secure better terms than those offered by the United States. The Americans who were interested in the French concern and expected to make millions out of the purchase of property that was substantially worthless, were greatly distressed by the refusal of Colombia to ratify the treaty which had been negotiated. Residents of Panama were likewise disturbed at this delay in an enterprise which meant great prosperity for them, and with the sympathy if not the support of the American administration, a revolt was instigated at the Isthmus and carried out under the protection of American arms on November 3, 1903. Three days later, President Roosevelt recognized the independence of the new revolutionary government. In his message in December, Mr. Roosevelt explained the great necessity under which he labored, and convinced his friends of the wisdom and justice of his course.
By a treaty proclaimed on February 26, 1904, between Panama and the United States, provision was made for the construction of the canal. The independence of the former country was guaranteed, and the latter obtained "in perpetuity the use, occupation, and control" of a canal zone, and the right to construct, maintain, and operate the canal and other means of transportation through the strip. Panama was paid $10,000,000 for her concession and promised $250,000 a year after the lapse of nine years. The full $40,000,000 was paid over to the French concern and its American underwriters; the lock type instead of the sea-level canal was agreed upon in 1906; construction by private contractors was rejected in favor of public direct employment under official engineers; and the work was pushed forward with great rapidity in the hope that it might be completed before 1915.
The country had not settled down after the Panama affair before popular interest was again engaged in a diplomatic tangle with Santo Domingo. That petty republic, on account of its many revolutions, had become deeply involved in debt, and European creditors, through their diplomatic agents, had practically threatened the use of armed force in collecting arrears, unless the United States would undertake the supervision of the Dominican customs and divide the revenues in a suitable manner. In an agreement signed in February, 1905, between the United States and Santo Domingo, provisions were made for carrying such an arrangement into effect. The Senate, having failed to sanction the treaty, Mr. Roosevelt practically carried out the program unofficially and gave it substantial support in the form of American battleships.
Against this independent executive action there was a strong protest in the Senate. The spirit of this opposition was fully expressed by Mr. Rayner in a speech in that chamber, in which he said: "This policy may be all right—perhaps the American people are in favor of this new doctrine; it may be a wonderful accomplishment—Central America may profit by it; it may be a great benefit to us commercially and it may be in the interest of civilization, but as a student and follower of the Constitution, I deprecate the methods that have been adopted, and I appeal to you to know whether we propose to sit silently by, and by our indifference or tacit acquiescence submit to a scheme that ignores the privileges of this body; that is not authorized by statute; that does not array itself within any of the functions of the Executive; that vests the treaty-making power exclusively in the President, to whom it does not belong; that overrides the organic law of the land, and that virtually proclaims to the country that, while the other branches of the Government are controlled by the Constitution, the Executive is above and beyond it, and whenever his own views or policies conflict with it, he will find some way to effectuate his purposes uncontrolled by its limitations."
Notwithstanding such attacks on his authority, the President had not in fact exceeded his constitutional rights, and the boldness and directness of his policy found plenty of popular support. The Senate was forced to accept the situation with as good grace as possible, and a compromise was arranged in a revised treaty in February, 1907, in which Mr. Roosevelt's action on material points received official sanction from that authority. The wisdom of the policy of using the American navy to assist European and other creditors in collecting their debts in Latin-American countries was thoroughly thrashed out, as well as the constitutional points; and a new stage in the development of the Monroe Doctrine was thus reached. Those who opposed the policy pointed to another solution of the perennial difficulties arising in the countries to the southward; that is, the submission of pecuniary claims to the Hague Court or special tribunals for arbitration.[69]
Another very dramatic feature of Mr. Roosevelt's administration was his action in bringing Russia and Japan together in 1905 and thus helping to terminate the terrible war between these two powers. Among the achievements of the Hague conference, called by the Tsar in 1899, was the adoption of "A Convention for the Peaceful Adjustment of International Differences" which provided for a permanent Court of Arbitration, for international commissions of inquiry in disputes arising from differences of opinion on facts, and for the tendering of good offices and mediation. "The right to offer good offices or mediation," runs the convention, "belongs to Powers who are strangers to the dispute, even during the course of hostilities. The exercise of this right shall never be considered by one or the other parties to the contest as an unfriendly act."