capital of $10,000,000 equivalent to about $30 for every man, woman and child of its population. Instead of creating an army, buying a navy and thus wasting the money on mere militarism which appeals so strongly to the Latin-American mind, they organized a civil government, equipped it with the necessary buildings, established a university and laid the foundation of a national system of education. [Illustration: COFFEE PLANTATION AT BOUQUETTE] The thoughtful traveler will concede to the Republic of Panama great natural resources and a most happy entrance to the family of nations. It is the especial protégé of the United States and under the watchful care of its patron will be free from the apprehension of misuse, revolution or invasion from without which has kept other Central American governments in a constant state of unrest. About the international morality of the proceedings which created the relations now existing between the United States and Panama perhaps the least said the better. But even if we reprobate the sale of Joseph by his brethren, in the scripture story, we must at least admit that he did better in Egypt than in his father’s house and that the protection and favor of the mighty Pharaoh was of the highest advantage to him, and in time to his unnatural brethren as well. [Illustration: WORK OF INDIAN STUDENTS IN THE NATIONAL INSTITUTE] At present the Republic suffers not only from its own checkered past, but from the varied failings of its neighbors. Its monetary system affords one illustration. The highest coin of the land is the peso, a piece the size of our silver dollar but circulating at a value of fifty cents. If a man should want to pay a debt of $500 he would have to deliver 1000 pesos unless he was possessed of a bank account and could settle by check. No paper money is issued. “Who would take paper money issued by a Central American republic?” ask the knowing ones scornfully when you inquire about this seeming lack in the monetary system. Yet the Republic of Panama is the most solvent of nations, having no national debt and with money in bank. [Illustration: THE CRATER OF THE CHIRIQUI VOLCANO] Probably the one obstacle to the progress of the Republic to greatness is the one common to all tropical countries on which Benjamin Kidd laid an unerring finger when he referred to the unwisdom of longer permitting the riches of the tropics to “remain undeveloped with resources running to waste under the management of races of low social efficiency”. The Panamanian authorities are making apparently sincere endeavors to attract new settlers of greater efficiency. In proportion to the success that attends the efforts the future of Panama will be bright. [Illustration: COPYRIGHT, 1913, BY F. E. WRIGHT VENDOR OF FRUIT AND POTTERY Like all tropical towns Panama displays interesting bits of outdoor life in its street markets and vendors. The sidewalks are the true shops and almost the homes of the people.] CHAPTER XVI