%581.  Public Measures adopted in 1901-1904.%—­The events connected with our large island possessions had directed much attention to our military and naval forces.  As a result, Congress passed several measures to increase the efficiency of the army, and appropriated large sums for additions to the navy.  For the reclamation of the arid parts of the Far West an important law was enacted (1902), setting aside the money received from the sales of public land in that part of the country and appropriating it for the planning and construction of irrigation works.  In 1903 a ninth member was added to the President’s cabinet in the person of the Secretary of Commerce and Labor.  The new department was made to include the Department of Labor established fifteen years before, and a number of other bureaus already existing; at the same time the Bureau of Corporations was newly established, and was given the power to investigate the organization and workings of any trust or corporation (except railroads) engaged in interstate or foreign commerce, and, with the President’s approval, to publish the information so obtained.

A long-standing dispute as to the eastern boundary of southern Alaska was referred to a British-American tribunal, which decided chiefly in favor of the United States (1903).  By a reciprocity treaty with Cuba which went into effect in 1904, the duties on Cuban trade were somewhat lowered.

%582.  The Isthmian Canal.%—­A French company many years ago began to dig a ship canal across the Isthmus of Panama, but it failed through bad management before the work was half done.  A United States commission made a survey of this route and also of the Nicaragua route across Central America, estimated the cost of building each canal, and gave careful consideration to the advantages of each route.  The owners of the French canal having offered to sell for $40,000,000, Congress in 1902 authorized the President to buy and complete it, provided satisfactory title and permanent control of the route could be secured.  In all, about $200,000,000 was provided for this work.  In 1903 a treaty was negotiated with Colombia, giving the United States a permanent lease of a six-mile strip across the isthmus, for an annual rental of $250,000 and the payment of $10,000,000, but Colombia rejected the treaty.  The Colombian province of Panama thereupon seceded (November 3), and its independence was recognized by the United States and other nations.  A treaty was soon made whereby the United States guaranteed the independence of Panama, and Panama ceded to the United States a ten-mile strip across the isthmus for the sums rejected by Colombia.  The rights of the French company were then bought, and a United States commission began the work of completing the canal (1904).

%583.  Election of Roosevelt.%—­There were almost as many parties as ever in the campaign of 1904.  The Republicans indorsed the existing administration, demanded the continuance of the protective tariff and the gold standard, and nominated Roosevelt for President and Charles W. Fairbanks for Vice President.  The Democrats nominated Alton B. Parker and Henry G. Davis, and declared for a reduction of the tariff and against militarism and trusts, but were silent on the money question.  Roosevelt and Fairbanks were elected by a large majority.