To this subject Hay now devoted himself, and as he encountered no serious difficulties, a treaty was drawn up in 1900 practically as he wished it.

It was not, however, popular in the United States.

Hay preferred and arranged for a canal neutralized by international guarantee, on the same basis as the Suez Canal; but American public sentiment had come to insist on a canal controlled absolutely by the United States.

The treaty was therefore rejected by the Senate, or rather was so amended as to prove unacceptable to Great Britain.
Hay believed that he had obtained what was most desirable as well as all that was possible, that the majority of the American people approved, and that he was beaten only because a treaty must be approved by two-thirds of the Senate.

He therefore resigned.