History
Early Explorers
Balboa led an expedition across Panama Looking for gold, but discovered the Pacific Ocean instead. It took 24 days for his group of 190 Spaniards and 1,000 natives to cross the 45 miles of jungle. On September 29, 1513 they reached the Pacific Ocean and claimed all the land that touched the Pacific Ocean for Spain.
Beginning early in the sixteenth century, Nombre de Dios in Panama, Vera Cruz in Mexico, and Cartagena in Colombia were the only three ports in Spanish America authorized by the crown to trade with the homeland. Shipments of bullion and goods were to be delivered to Panama on the Pacific side for transport over the isthmus and return to Spain.
From 1572 to 1597, Francis Drake was associated with most of the assaults on Panama. Drake’s activities demonstrated the indefensibility of the open roadstead of Nombre de Dios. In 1597, the Atlantic terminus of the trans-isthmian route was moved to Portobelo, one of the best natural harbors anywhere on the Spanish Main (the mainland of Spanish America).
France and the Canal
Colombia’s attempt to attract canal interest finally brought French attention to bear on Panama. A company was formed in 1879 to construct a sea-level canal, generally along the existing transcontinental railroad route. Ferdinand de Lesseps, of Suez Canal fame, headed the company. The company also purchased most of the stock of the Panama Railroad Company, which, however, continued to be managed by Americans.
De Lesseps had to contend not only with enemies who hampered financing by spreading rumors of failure and dumping stocks and bonds on the market, but also with venal French politicians and bureaucrats who demanded large bribes for approving the issue of securities. The end result in January 1889 was the appointment of a receiver to liquidate the company, whereupon all work stopped.
U.S. Influence in Panama
Even before the United Stated acquired California after the Mexican War (1846-48), many heading for California used the isthmus crossing in preference to the long and dangerous wagon route across the vast plains and rugged mountain ranges of the Continental U.S. Discovery of gold in 1848 increased traffic greatly. In 1847, a group of New York financiers organized the Panama Railroad Company. The first train from the Atlantic to the Pacific side ran on the completed track on January 28, 1855.
In November 1903, Panama proclaimed its independence and concluded the Hay/Bunau-Varilla Treaty with the United States. The treaty conceded rights to the United States “as if it were sovereign” in a zone roughly 10 miles wide and 50 miles long. In that zone, the U.S. would build a canal, then administer, fortify, and defend it “in perpetuity.” In 1914, the United States completed the existing 83-kilometer (50-mile) lock canal, which today is one of the world’s greatest engineering triumphs.
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