Actually, it would have been more practical to build a canal across Nicaragua instead of Panama.  However, the inopportunely-timed issuing of a one-cent postage stamp showing an erupting volcano and the caption: Nicaragua, Land of Volcanoes, lost Nicaragua the opportunity.

The United States was actually considering building a canal across Nicaragua instead of Panama.  However, the inopportunely-timed issuing of a one-cent postage stamp showing an erupting volcano  lost Nicaragua the opportunity.

An American senator in favor of building it through Panama purchased enough stamps to mail each senator a one of the stamps with a note showing the reason against building it through Nicaragua.

David McCullough has written a detailed historical work called THE PATH BETWEEN THE SEAS: The Creation of the Panama Canal – 1870-1914.  It is available at your local library.  Call # 986.3 McCullough.