Stories of the great wealth of Old Panama in the day of its glory are not hard to find. With the complete destruction of all this magnificence, the present city was founded with due ceremonies in 1673 and much stone was transported from the old city and built into the new. The cathedral was soon built and stands to-day as solid as when first erected. The queen of Spain sent detailed instructions for the building of the city, and among other things directed that a safe wall for defense should be provided. This was so well done that some of it still stands, an interesting relic of the vigor and thoroughness of the civilization that produced it. Many years passed in building these walls, and they were said to have cost ten millions of dollars, most of which came from Peru. The story is told of a Spanish king, who stood one day looking out of his palace window. When asked what he was looking for he replied, "I am looking for those costly walls of Panama; they should be visible even from here." A little knowledge of the business methods of those days may throw some light on the whys and wherefores of the high cost of the old walls.

RUINS OF OLD PANAMA. THE MOST ROMANTIC SPOT IN THE NEW WORLD

Twenty-six years after the founding of the present city of Panama an effort was made to establish an English colony in Darien, but fever and discouragement aided the Spanish in ending the venture.

The eighteenth century is a monotonous one in Panama annals, marked mainly by frequent encounters between the Spaniards and the Indians. Several piratical expeditions ended in the scattering and murdering of the pirates and restoration of Spanish sovereignty.

When the great movement in South America for political independence swept as far north as Colombia, and the decisive battle of Boyaca was fought in 1819, Panama was very strongly held by Spain as a place of maintenance for her armies, and the city was at all times in a good state of defense. In this same year, however, the first junta was formed for the purpose of bringing about independence from Spain, and sentiment in favor of the revolution grew very rapidly. Early in 1821 General Murgeon arrived with the promise of high reward if he could compose the difficulties in Panama and save the Isthmus to Spain. This he saw to be impossible, and after having appointed José de Fabrega as coloner, he left for Quito. Fabrega, being Isthmian born, cast his lot with the revolutionists and on November 28th, 1821, a large and enthusiastic crowd assembled with representatives from all military and ecclesiastical organizations, and Panama was declared to be forever free from Spanish dominion. A few loyal troops, seeing their helpless position, laid down their arms, and the change of government was effected without the shedding of a drop of blood—something new in Panamanian affairs. Simon Bolivar sent over help for the independents, but found the work done before his men arrived.

After this political upheaval Panama slept on, and would still be dormant to-day but for the discovery of gold in California in 1849. With a six months' overland journey between the gold-hungry men of the Eastern States and the gold-filled mountains of the West, the Isthmus suddenly came into prominence as an easier way of reaching California. For seven or eight years after the finding of gold not less than forty millions of dollars of gold, twelve millions in silver, and twenty-five thousand passengers were transported across the Isthmus annually. In 1853 the high-water mark was reached, when sixty-six millions of dollars of gold were carried across to the Atlantic side and shipped to New York.

This sudden development of the pack train business brought to the Isthmus a horde of Chileans, Peruvians, Indians, and mixed breeds, among whom were the inevitable plunderers and spoilers. The trail was again marked by blood and treachery. Many an unhappy pilgrim lost his riches, and not a few lost their lives on the way. At last the authorities were aroused to the necessity of making safe this highway suddenly become so important to the world.

INDIAN WOMAN AT THE FOUNTAIN