On November 3, 1903 Panama declared independence from Columbia. The revolution lasted 4 hours.
Preceding the bloodless revolution, the Columbian Senate had held up the ratification of a treaty to allow the U.S. to build a canal through its territory in Panama, for a significant amount of money (with a significant cut given to the French). The French had tried in 1881 and failed by 1889, they wanted some return on their investment and Columbia wanted a nice piece of the pie as well. The Columbian Senate decided they wanted an extra $10 million and couldn’t understand why the French deserved anything; after all they had tried and failed. Never known for his patience, it was time for Roosevelt’s big stick; he sent the USS Nashville to the coast of Panama blocking any Columbian military from reaching Panama by sea. The Panamanian jungle was too thick to traverse (particularly since Columbian Soldier’s pockets were newly burdened with $50 dollar bills) and so on November 3, 1903 Panama declared its independence, Columbia had overplayed its hand and Roosevelt got his canal.
Attempts to build the canal date back to 1532 and the King of Spain; in 1698 the Kingdom of Scotland 
attempted to create an overland trade route; in 1855 (with the help of many Chinese immigrants) a Panama railway was built. The French effort came off the heels of their success with the Suez Canal but failed because of a tiny enemy: the mosquito. In 1880 the French were unaware of the cause of Malaria and Yellow Fever and lost 22,000 workers by 1889, when they gave up.
Roosevelt bought all of the remaining French equipment and hired John Frank Stevens to be the chief engineer. Stevens laid down a detailed infrastructure, which was lacking in the French attempt, and he sent in Walter Reed to set up a mosquito elimination program. Recent advances in sanitation and hygiene greatly reduced deaths from Malaria and Yellow Fever as did improved housing and working conditions. Stevens also successfully argued that because of the topography, the design should utilize a dam and lock system, rather than attempting a sea level canal.
The construction took 10 years and was completed two years ahead of schedule, formally opening on August 15, 1914. 5,609 workers died in that 10 year span. 
The canal consisted of 3 sets of locks and a series of artificial lakes and channels. Improvements were made throughout the 1930s including building new dams and locks in order to accommodate large ships (specifically American Warships).
After Wold War II, Panama became increasingly upset with the US control of the canal. Years of protests led to the Torrijos-Carter Treaty which was signed by president Carter in 1977. This treaty gradually gave control of the canal back to Panama so long as the canal itself remained neutral, and always allowed the U.S. acess. Full authority was handed to the Panamanian Government Dec 31, 1999. This is a huge source of income for Panama, the average toll is $54,000; the largest toll recorded was given to a Norweigen Cruise Ship for $313,000; the smallest toll was given to Richard Halliburton in 1928 (he swam through the canal) for 36¢. In 1934 the estimated capacity was 80 tons/year; in 2005 the capacity was estimated at 278.8 million tons/year! The canal is beginning preparation to begin a large expansion of the locks which is set to be complete in 2015, 101 years since it’s formally opening.
The same year work on the canal began Roosevelt delivered an address now known as the Roosevelt Corollary to the Monroe Doctrine,
” All that this country desires is to see the neighboring countries stable, orderly, and prosperous. Any country whose people conduct themselves well can count upon our hearty friendship. If a nation shows that it knows how to act with reasonable efficiency and decency in social and political matters, if it keeps order and pays its obligations, it need fear no interference from the United States. Chronic wrongdoing, or an impotence which results in a general loosening of the ties of civilized society, may in America, as elsewhere, ultimately require intervention by some civilized nation, and in the Western Hemisphere the adherence of the United States to the Monroe Doctrine may force the United States, however reluctantly, in flagrant cases of such wrongdoing or impotence, to the exercise of an international police power.”
This corollary gave the United States unprecedented imperial power in Latin America. The Dominican Republic had recently gone bankrupt and Teddy was worried about European influences. This statement led to our ‘intervention’ in Cuba (1906-1910), Nicaragua (1909-1911, 1912-1925 and 1926-1933), Haiti (1915-1934), and the Dominican Republic (1916-1924). His Corollary was reversed in 1928 under President Coolidge. Coolidge’s face, however didn’t make it on Mount Rushmore. 
Roosevelt’s legacy is complicated and we tend to ignore his tendency towards imperialism and militarism. In many ways I imagine he’s what Bush would like to be. Roosevelt was a Nobel Peace Prize winner and a Rough Rider, he was Trustbuster and a Power-mongerer, he was a man who conserved huge portions of America with National parks—and a man who through preparation and power tore a hole through a continent.
Sourcelinks:
