Having well careened our ships by the 14th February, and provided a stock of wood and water, we sailed on the 18th, and came to anchor in the great channel between the isles and the continent, in fifteen fathoms, on soft ooze, and cruised next day towards Panama, about which the shore seemed very beautiful, interspersed with a variety of hills and many small thickets. About a league from the continent there are several small isles, partly ornamented with scattered trees, and the _King's Isles_ on the opposite side of the channel give a delightful prospect, from their various shapes and situations. The 18th we went towards Panama, and anchored directly opposite Old Panama, once a place of note, but mostly laid in ashes by Sir Henry Morgan, and not since rebuilt. New Panama is about four leagues from the old town, near the side of a river, being a very handsome city, on a spacious bay of the same name, into which many long navigable rivers discharge their waters, some of which have gold in their sands. The country about Panama affords a delightful prospect from the sea, having a great diversity of hills, vallies, groves, and plains. The houses are mostly of brick, and pretty lofty, some being handsomely built, especially that inhabited by the president; the churches, monasteries, and other public edifices, making the finest appearance of any place I have seen in the Spanish West Indies. It is fortified by a high stone wall, mounted by a considerable number of guns, which were formerly only on the land side, but have now been added to the side next the sea. The city has vast trade, being the staple or emporium for all goods to and from Peru and Chili; besides that, every three years, when the Spanish _armada_ comes to Porto Bello, the _Plate fleet_ comes here with the treasure belonging to the king and the merchants, whence it is carried on mules by land to Porto Bello, at which time, from the vast concourse of people, everything here is enormously dear.