Another tale of failed dreams was the attempted settlement of the Darien by the Scots in 1698. Wanting to expand their influence, the Scottish government financed an ambitious plan to establish a colony on the isthmus of Panama in the hope of establishing trade with the Far East. Unfortunately, due to opposition by the British government, disease and inadequate provisions, out of the original 2,500 settlers that set off, only a few hundred survived. With a loss of over £500,000, the Scottish economy was almost bankrupted. It has been argued that the Darien Scheme crippled the country’s economy to such an extent that it was the cause of the union of Scotland with England.

In the mid-1800’s, Panama once again moved to the forefront due to its location, when the California Gold Rush precipitated the construction of the first transcontinental railroad connecting Colon with Panama City. After the first 20 months of work, only 7 miles of track had been built with an untold cost in lives of the imported workers. Initial gold rush bound ‘49ers paid an astronomical $25.00 to travel these 7 miles and another $10.00 to walk the remaining distance on the right of way. This bonanza allowed the company to escape bankruptcy and complete the track for a total cost of over $7,400,000. On January 28, 1855 the world’s first transcontinental train ran from ocean to ocean and when combined with steamship service it reduced travel times from the east coast to California from 6 months to just over two.

As early as the 16th century, Panama had been considered as a potential route for a canal to join the oceans and facilitate trade but it wasn’t until 1880 when, fresh from his success with the Suez Canal, Frenchman Ferdinand de Lesseps began his attempt to join the two oceans. His downfall was trying to build a sea-level canal like the Suez. After 8 years, technical difficulties, tropical disease, financial mismanagement and corruption caused the Panama Canal Company to declare bankruptcy.

The adventure story that is the history of Panama tells of vast treasures; of conflicts between empires; of daring fortune-hunters; of dreams both realized and unfulfilled; of tremendous success and total failure.

Fort San Jeronimo, one of the many Spanish forts established on the Caribbean coast.

After Columbus set foot on the isthmus during his fourth voyage in 1502, the Spanish claimed the area for the Spanish crown and in 1510 created the first permanent settlement in the New World at Nombre de Dios on the Caribbean coast. Shortly afterwards, Vasco Nuñez de Balboa fought his way through the thick jungle to arrive on the Pacific coast where in 1519 the original city of Panama was founded becoming the first Spanish city on the western coast of the Americas and the launching point for the conquest of Peru. It was from here that the Camino Real or Royal Road was built linking the two coasts. A few years later another road was built, El Camino de Cruces linking Panama with the Caribbean using the Chagres River. At the terminus this route Fort San Lorenzo was built and the ruins of this fort can still be visited today. This road served the Spanish for over 300 years hauling plundered treasure in one direction and trade goods in the other.

Throughout this time the Spanish were beleaguered by English and Dutch pirates, especially Sir Francis Drake and Henry Morgan. Drake was responsible for sacking Nombre de Dios and causing the Spanish to move to Portbelo in 1597 as this was a more easily defended harbor. Portobelo flourished as the main port of the Spanish Main and until the early 18th century was the site of an annual trading fair that took place when the fleet arrived from Spain. Today you can visit the old forts and the reconstructed Customs House where millions of dollars worth of plundered gold and silver were stored before being loaded onto the galleons and shipped to Spain.

In 1671, Henry Morgan crossed the isthmus and ransacked and burned Panama resulting in the building of a new town site on what is now called Casco Antiguo or Colonial Panama. Within its heavy stone walls religious, military and civilian buildings were constructed along with seven bastions to protect against pirate attacks. The area has seen many architectural influences over the years with many classic buildings that have been or are being renovated. Along with Panama Viejo, this area has been classified as a World Heritage site by UNESCO.