The Panama Canal

by Frederic J. Haskin

CHAPTER XXVIII

THE REPUBLIC OF PANAMA

The Republic of Panama is one of the smallest countries in the world, its territory being about equal to that of the State of Indiana. It has no national debt, and has $7,000,000 invested in mortgages, on real estate in New York City.

When it received $10,000,000 from the United States, in payment for the rights under which the Panama Canal was built, it immediately invested about 75 per cent of it, using the remainder for paying the expenses of the revolution, and for setting the new government on its feet. It now receives $250,000 a year from the United States as rental for the Canal Zone, and this, with the $350,000 received as interest from its real estate mortgages in New York, gives it an annual income of $600,000 outside of money raised by the usual processes of taxation.

Under the treaty with the United States, Panama has its independence guaranteed, and recognizes the right of the United States to maintain order within its boundaries. This entirely does away with the necessity of maintaining an army and navy. The result is that with no appropriations required for military purposes, and with a $600,000 income from the Canal Zone, it enjoys one of the lowest tax rates in the world.

Although the Republic of Panama has its Declaration of Independence and its Glorious Fourth, the former was written by a foreigner, and the latter occurs in November. There is some dispute as to who wrote the declaration of independence, but the best information points either to Philippe Bunau-Varilla, a Frenchman, or to William Nelson Cromwell, an American. These two gentlemen differ upon this subject, each claiming that he was the Thomas Jefferson of Panama.

When the $10,000,000 was paid to Panama by the United States, one of the first things done was to build a university, locally known as the National Institute. Some $800,000 was spent in the construction of the buildings, which are located near the line of the Canal Zone. But it so happens that Panama has few teachers qualified to hold university chairs, and fewer students qualified to pursue university courses; and the result is that the university is more a place of buildings than a seat of learning.

No other country in the world calls in another nation to superintend its elections. When the first presidential election was held the United States took the initiative and demanded the right to supervise the balloting. Before the second election was held the President became ambitious to succeed himself, although the constitution provided that he could not do so. He thereupon decided to resign for a period of six months, in favor of one of his partisans, thinking that this would allow him to live up to the letter of the constitution even though he were violating its spirit in becoming a candidate for reelection. This situation was brought to the attention of the United States, and the President was politely but firmly informed that the subterfuge would not be permitted. When the election approached each side thought that the other was trying to win by fraud, and the United States was asked to referee the political battle.

The City of Panama is famous for its wickedness. Men who have seen the seamy side of life in all of the big cities of the world declare that Panama is as bad as the worst of them. Until a few years ago bull-fighting was permitted, but the bulls were so poor and the fighters were such butchers that the Government finally outlawed this form of entertainment. Cock-fighting persists, and numerous cock pits are popular resorts every Sunday. Nowhere else can one witness a greater frenzy in betting than at one of these cocking mains. The backers of the rival birds nod their heads and place their bets so rapidly that it is more bewildering to the onlooker than the bidding at an auctioneer's junk sale.

The prize ring has succeeded the bull ring in gratifying the Spaniard's thirst for gore, and scarcely a Sunday passes that there is not a prize fight in Panama. Few Americans who attend them come away without a feeling of disgust over the poor fighting, the brutality, and the trickery resorted to.