Americans on the Zone are depressed over the seeming lack of vigor on the part of the home government. They say that the apparent immunity enjoyed by the assailants of the marines has only enhanced the contemptuous hatred of the natives for the Americans. “Let them step on our side of the line”, says the swashbuckling native with a chip on his shoulder, “and we’ll show ’em”. Among the Americans on the Zone there is almost universal regret that the troops were not marched into Panama on the day of the riot. Authority existed under the treaty with the Republic of Panama. The troops were ready. The lesson need not have been a severe one, but it was deserved and would have been lasting. Furthermore those best equipped to judge say that the event is only deferred, not averted. “Spiggotty” and “Gringo” will not continue long to make faces over an imaginary line without a clash. [Illustration: SANTA ANA CHURCH, 1764] Despite the feeling against the Americans, all classes of Panamanians must admit receiving a certain amount of advantage from the activities of the Canal builders. Moreover the $10,000,000 paid over by the United States for the Canal Zone has not been squandered, nor has it been dissipated in graft. We are inclined to laugh because one of the first uses to which it was put was to build a government theater, which is opened scarce thirty days out of the year. But it is fair to take the Latin temperament into consideration. There is no Latin-American republic so impoverished as not to have a theater built by the public. The Republic of Panama, created overnight, found itself without any public buildings whatsoever, barring the jail. Obviously a national capitol was the first need and it was speedily supplied. If one wing was used to house a theater that was a matter for local consideration and not one for cold-blooded Yankees to jeer about. The Republic itself was a little theatrical, rather reminiscent of the papier-mâché creations of the stage carpenter, and might be expected to vanish like a transformation scene. At any rate with the money in hand the Panamanians built a very creditable government building, including a National Theater, and an imposing building for the National Institute as well. They might have done worse. It showed that the revolution was more of a business affair than most Central-American enterprises of that sort. The average leader of so successful an enterprise would have concealed the greater part of the booty in a Paris bank account to his own order, and used the rest in building up an army for his own maintenance in power. Panama has her needed public buildings--let us wink at the theater--and $7,500,000 invested in New York against a time of need. [Illustration: _Photo by Underwood & Underwood_ THE PANAMA NATIONAL INSTITUTE In the background is the Canal administration building and the residence of Col. Gorgas]