History of Panama (1821–1903) facts for kids

Panama is a country that connects North and South America. It's a narrow strip of land, famous for its important canal.

Panama's Road to Independence

Panama was a Spanish outpost until 1821. That year, the city of Los Santos declared its freedom from Spain on November 10. This led to a big meeting in Panama City on November 28, which is now celebrated as Panama's official Independence Day.

After gaining independence, people in Panama debated whether to join Colombia (which then included Venezuela) or Peru. They decided to join Colombia. Panama became a department with two provinces: Panamá and Veraguas. The larger country was known as Gran Colombia. Panama even sent soldiers to help Simón Bolívar in the Peruvian War of Independence.

In 1826, Bolívar chose Panama as the location for a special meeting. Leaders from newly free Spanish colonies gathered there. They hoped to create a single, united government for all the former Spanish lands. Bolívar wanted to unite these countries to protect them from Spain. He also wanted to discuss important issues like ending the African slave trade.

The meeting, called the Congress of Panama, happened in June and July 1826. Representatives from Mexico, Central America, Colombia, and Peru attended. They created a treaty for mutual defense and peaceful problem-solving. However, only Colombia approved this treaty, so it never fully started.

Over the years, Panama tried to separate from Colombia three times between 1830 and 1840. These attempts didn't last long, and Panama remained part of Colombia.

Gold Rush and the Railroad

In the mid-1800s, many people wanted to travel to California because of the California Gold Rush. Crossing Panama was much faster and safer than going by wagon across North America.

In 1847, a group of New York financiers started the Panama Railroad Company. They got permission from Colombia to build a railway across the isthmus. The first train ran on January 28, 1855.

The gold rush brought a lot of money to Panama. Between 1848 and 1869, about 600,000 people crossed the isthmus. Food and lodging prices were very high, creating huge profits.

The railroad also led to a new city and port on the Atlantic side. Americans called it Aspinwall, but Panamanians named it Colón after Columbus. Colón became the second-largest city in Panama.

The gold rush also brought some problems. Travelers were often rowdy. In 1856, a serious clash between different groups, known as the Watermelon Riot, resulted in several deaths.

In 1869, the First transcontinental railroad was finished in the United States. This meant fewer people and goods traveled through Panama. However, the Panama Railroad Company still made a lot of money from other trade.

The French Canal Attempt

For many years, countries like the United States, Britain, and France were interested in building a canal across Central America. Two main locations were considered: Nicaragua and Panama.

In 1846, Colombia and the United States signed a treaty. This agreement allowed the United States to have free passage for people and goods across any road or canal built in Panama. The United States also promised to protect Panama's neutrality and Colombia's control over it. This was called the Mallarino–Bidlack Treaty.

Later, in 1850, Britain and the United States signed the Clayton–Bulwer Treaty. They agreed that neither country would build a canal in Nicaragua or anywhere else in Central America without the other's involvement.

Finally, France became very interested in Panama. In 1879, a French company led by Ferdinand de Lesseps, who had built the Suez Canal, got permission to build a sea-level canal in Panama. Work officially started on January 1, 1880.

However, building the canal was much harder than expected. Engineers realized a sea-level canal was almost impossible. De Lesseps, who was a promoter, not an engineer, took six years to agree. Work on a canal with locks began in late 1888, but the company was already in deep financial trouble.

The French company faced many challenges. There were rumors of failure, and some French politicians demanded bribes. The United States also blocked efforts for the French government to support the project. In January 1889, the company went bankrupt, and all work stopped.

Despite the failure, the French company had completed about two-fifths of the digging needed for the future canal. Many buildings and some machinery were left behind. Thousands of unemployed workers, mostly from the Caribbean, also remained. Many of them later worked on the United States canal project.

Turmoil in Colombia and Panama

During the late 1800s, there were many violent conflicts between the Liberal and Conservative political parties in Colombia. This caused constant problems in Panama. Local self-government in Panama changed depending on which party was in power.

This period saw many changes in leadership, rebellions, and violence. The United States intervened thirteen times under the Bidlack-Mallarino Treaty to protect transit across the isthmus. These conflicts made people in Panama more unhappy with the central government in Colombia.

In 1885, a major revolt happened in Panama City. The city of Colón was almost completely destroyed by fire. United States forces landed to help, but they were too late to save Colón.

In 1886, a new Colombian constitution made departments like Panama clearly under the central government's control. The United States consul reported that most Panamanians wanted independence from Colombia.

Panama was also pulled into Colombia's Thousand Days' War (1899–1902). Rebels from Nicaragua invaded Panama, and fighting spread across the isthmus. By 1902, the Colombian government asked the United States to help arrange a peace agreement in Panama. This agreement was made aboard the USS Wisconsin battleship.

Throughout this time, the United States still wanted to build a canal. In December 1901, the United States and Britain signed the Hay–Pauncefote Treaty. This treaty allowed the United States to build and control a canal by itself.

The 1903 Treaty and Independence

After the Spanish–American War (1898–1901), U.S. President Theodore Roosevelt was convinced that the United States needed to control a canal. In 1902, the United States decided to build a canal through Panama.

On January 22, 1903, the Hay–Herrán Treaty was signed. This treaty would have given the United States a 100-year lease on a 10-kilometer-wide area in Panama. However, the Colombian government did not approve this treaty.

Because Colombia refused the treaty, the United States strongly encouraged a movement for Panama to separate from Colombia. By July 1903, a revolutionary group was formed in Panama. José Augustin Arango led this group, which included other important Panamanian families.

With financial help from Philippe Bunau-Varilla, a Frenchman representing the old French canal company, the Panamanian leaders planned an uprising. In October and November 1903, the revolutionary group successfully revolted against Colombia. The United States Navy helped by preventing Colombian forces from crossing the isthmus to stop the uprising. This was done under the 1846 Mallarino–Bidlack Treaty, which allowed the U.S. to intervene to ensure open transit.

President Roosevelt recognized the new Panamanian government on November 6, 1903. Five days later, Bunau-Varilla, acting as Panama's representative, signed the Isthmian Canal Convention with U.S. Secretary of State John Hay. Bunau-Varilla had not lived in Panama for 17 years and never returned. He even wrote Panama's declaration of independence and constitution and designed its flag from New York City.

Panamanians were unhappy with how quickly Bunau-Varilla signed the treaty. However, with no other choice, Panama approved the treaty on December 2. The United States Senate approved it on February 23, 1904.

The Hay–Bunau-Varilla Treaty gave the United States extensive rights. It granted the U.S. "in perpetuity" (forever) the use and control of a 16-kilometer-wide strip of land for the canal. The United States could also acquire more land if needed and had full authority over the Canal Zone, as if it were the sovereign power.

Panama became a kind of protectorate of the United States. The U.S. guaranteed Panama's independence and, in return, gained the right to intervene in Panama's internal affairs. For these rights, the United States paid Panama US$10 million and an annual payment of US$250,000. The U.S. also bought the French canal company's rights and property for US$40 million.

Colombia strongly criticized the United States' actions. A treaty between the U.S. and Colombia in 1921 finally settled things, with the U.S. paying Colombia US$25 million.

However, the events of 1903 caused friction between the United States and Panama itself. Panama argued that the treaty's clauses were unclear. It believed the U.S. authority was only for building, operating, and defending the canal, not for complete control over the Canal Zone.