[169] Hay and the British ambassador, Julian Pauncefote, agreed that the United States could control a future canal, provided that it was open to all shipping and not fortified.[170] McKinley was satisfied with the terms, but the Senate rejected them, demanding that the United States be allowed to fortify the canal.[170] Hay was embarrassed by the rebuff and offered his resignation, but McKinley refused it and ordered him to continue negotiations to achieve the Senate's demands.[170] He was successful, and a new treaty was drafted and approved, but not before McKinley's assassination in 1901.[170] The result under Roosevelt was the Panama Canal.

Tariffs and bimetallism
1900 reelection poster with the theme that McKinley has returned prosperity to America
McKinley had built his reputation in Congress on high tariffs, promising protection for American business and well-paid American factory workers. With the Republicans in control of Congress, Ways and Means chairman Dingley introduced the Dingley Act which would raise rates on wool, sugar, and luxury goods. McKinley supported it and it became law.[171]
American negotiators soon concluded a reciprocity treaty with France, and the two nations approached Britain to gauge British enthusiasm for bimetallism.