PANAMA, a republic of Central America, between Costa Rica and Colom bia, bounded on the S. by the Pacific Ocean and on the N. by the Caribbean Sea. Its extreme length is about 480 miles, with a breadth varying from 37 to 110 miles. Its total area is 13,380 square miles. The population in 1912 was 336,742, excluding the Canal Zone. The population for 1920 was given as 401,428. The inhabitants are a mixed race, comprising Spaniards, In dians, and negroes. The republic is divided into eight provinces. The Canal Zone, over which the United States has sovereign rights, by treaty, is a strip of territory extending to a width of 5 miles from either side to the middle of the Panama Canal, and excluding the cities of Panama and Colon. It has an area of 474 square miles.
Production.—The soil of Panama is exceedingly fertile. Only about one eighth is under cultivation. The most important product is the banana. Caoutchouc is collected by the Indians or is obtained from trees planted by Eu ropeans near the cost. About 130 tons is produced annually. Coffee is grown at Chiriqui to the amount of 500,000 pounds per year. The raising of cocoa is of some importance. The other prod ucts of the soil are cocoanuts, mahogany and other woods, sugar, and tobacco. The production of sugar is 40,000 quin tals. For the most part the industries of the republic are not developed.
Transportation.—There are about 200 miles of railway open to traffic, includ ing the Panama railway, which crosses the Isthmus, connecting Panama with Colon. There is communication on both sides between the Isthmus and American and European countries. Traffic with Panama and Colon is carried on through the ports of the Canal Zone. The total imports in 1918 were valued at about $8,000,000, and the exports at about $5,000,000. Practically all the imports came from the United States, and the remaining portion from the United King dom, from China, Japan, France, and Spain.
Finance.—Gold is the standard of cur rency and the unit is the balboa, which is equivalent to the United States dollar. For the two-year period, Jan. 1, 1917, to Jan. 1, 1919, the budget balanced at $7,189,170. The two years' budget for 1919-1921 was estimated at $7,220,474.
Government.—The executive power is in the hands of a president, three vice presidents, and a cabinet of five ministers. There is a National Assembly of 31 mem bers, one for each 10,000 inhabitants. Each of the provinces has a governor. The constitution was adopted on Feb. 13, 1904, and was amended on Dec. 26, 1918. The president is elected for a term of four years by direct vote, and is not eligible for re-election.
History.—Panama, until 1903, formed a province of Colombia. On Nov. 3 of that year a bloodless revolt secured its independence as an independent republic. The action of Panama in acquiring inde pendence was supported by the United States. The first president, Manuel Amador Guerrero, was elected in 1904. Largely as a result of its proximity to the Canal Zone, Panama has enjoyed peace and prosperity. The American Government practically remade the cities of Panama and Colon, so improv ing the sanitation that these cities from being among the most unhealthy in the world, are now among the most health ful. Panama followed the United States in the declaration of war against Ger many on April 7, 1917. In 1919 a gen eral population census was ordered to be held in 1920. Dr. Belisario Porras was elected president for a third term, and assumed office on Oct. 1, 1920. A bound ary dispute with the neighboring republic of Costa Rica was settled in 1921 by the arbitration of the United States.