Firstly, the canal would help open up trade through the Americas. Before the Panama canal, trading ships travelling from Eastern Asia to Europe would have to go all the way under South America. The opening of the canal allowed smaller trading ships to pass through with less of a distance only if approved by the USA, saving fuel costs. Another reason is that Chile's navy was powerful at the time and had naval control across the western coast all the way up to California. The canal would allow the USA to help control naval superiority across the Americas.