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284 and independent. The people of that State wanted the canal built by the United States, and were very angry when the rest of the Colombian States would not agree to the treaty which had been made.

At once there were strong rumors of war, and a few slight attacks were really made. The United States forbade the transportation of soldiers on the Panama railroad, and a few days later recognized Panama as an independent republic. The new republic was likewise recognized by France, and, later still, by England. On November 9, Panama appointed a commission to negotiate a canal treaty with our country, and this treaty was signed and sealed at Washington by Secretary of State Hay, acting for the United States, and M. Bunau-Varilla, acting for Panama.

The President's next message to Congress went at great length into the question of the Panama Canal, and in defence of the recognition of the new republic. It also told of what the new Department of Commerce and Labor had accomplished, especially the branch devoted to corporations.

"We need not be over-sensitive about the