Question

What was the name of the canal built by the United States in the late 1800s that divided South America and created a waterway passage?

Answer 1

I would say that the answer is the Panama Canal. Even though construction began in 1904, it is the only canal I can think of which fits the description given. 

The canal cuts across the isthmus of Panama and it connects the Atlantic and the Pacific Oceans.

Answer 2

The Panama Canal,  they built it for travelers to go through there so they dont have to go all the way down to the bottom for South America. it was easier to pass through there than anywhere else in the world to get from the Atlantic Ocean than the Pacific Ocean.