CHAPTER XV.
PANAMA AND THE ISTHMUS.
It may be convenient to deal here with a few detached questions before inquiring into the commercial and maritime changes likely to be produced by the canal. The reader understands the position of the United States at the isthmus. They control a zone of territory ten miles wide running across from Panama to Colon. These two towns are, however, not included politically, though they are geographically, within the zone. This narrow strip of territory with its precious canal runs right through a foreign country in which the social and political conditions existing must be a matter of importance to the canal-owners. One cannot help wondering how long this state of things is likely to continue. Panama, the youngest of the South and Central American republics, is no better than the rest in its governmental principles. Indeed, the republic had scarcely got into being when it was threatened with a military revolution. A pompous and polysyllabic self-importance, coupled with a levantine standard of business and financial ethics, scarcely promises a long continuance of the present political relations with a great republic which is not likely to see its achievement at the isthmus in the smallest degree prejudiced or endangered.
Some interesting little details of Panamanian manners have been reported. For example, Chinese immigration is forbidden by law, yet, strange to say, most of the retail trade of the isthmus is in Celestial hands. This is because the law against immigration gave the opportunity for the formation of a syndicate with the collusion of the authorities, by which Chinese were introduced at a rate of $200 entrance fee. The judicial standards which prevail in this little Bumbledom may be gathered from another story. The mate of a British ship was recently sentenced to twelve years' hard labour for manslaughter, because he was held responsible on no evidence whatever for the loss of a ship and the lives of several relatives of those serving on the jury.
It is scarcely to be expected that a people for whom ideals and standards of this kind are good enough will take much trouble to develop their country. An efficient and responsible administration might make a good deal of these narrow lands between the two oceans, a territory of 33,000 square miles, larger, that is, than Scotland or Ireland. It is perhaps as well that the construction of the canal has not made many Panamanian fortunes or produced any great boom in trade. Otherwise the withdrawal of the industrial army from the zone might have had the effect produced when the French canal works were shut down. A grievous famine desolated the whole country. This is not likely to happen again. The zone has been largely an independent and detached enclave, such as never existed during the French occupation, when the Panamanians became dependent for work and wage on the industrial invaders. The American canal employees have done very little shopping in Panama and Colon, because they could buy every necessity and luxury duty-free in the United States government stores. Some trade may be lost owing to the departure of the workers, but it is hoped that this will be more than replaced by the growing stream of tourists who will come to visit the "big ditch," and increased business brought by the shipping which will pass through the canal.
With a little thrift and enterprise the Panamanians might have profited much more from the long period of construction. They might have supplied the zone with a good many more articles. As it was, the only contribution the country made to the zone or to the towns was about 28,000 head of cattle killed annually. The country is almost entirely dependent on imported supplies, only a small fraction of which it pays for by exports. Here is a little instructive table of the Panamanian commerce:—
| Imports. | Exports. | |
| 1908 | £1,561,362 | £365,410 |
| 1909 | £1,751,261 | £300,495 |
| 1910 | £2,008,679 | £353,866 |
| 1911 | £1,980,488 | £179,941[18] |
The excess of imports over exports looks rather alarming, but it is adequately explained by the British Consul at Colon as "a measure of the commercial value to Panama of its transit trade and of the trade with canal employees and tourists." The great bulk of the imports is consumed in the two towns of Panama and Colon, for, as in most of the South American republics, the interior is undeveloped and therefore self-supporting, being still in the "pack-mule" stage of civilization.