PANAMA constitutes the second province of Tierra Firme, and is sometimes called Tierra Firme Proper. The most plausible conjecture which can be formed, as to the reason of its having received this name, is, that the original explorers, having an idea that a strait existed in this part of the world, by which a communication might be had from the Atlantic to the South Sea, were, after much research, disappointed in their expectations and gave the country the name of Tierra Firme (analogous to continent.) The province of Panama is bounded on the north by the Caribbean Sea, or Spanish Main; on the west, by the province of Veragua; east, by Darien; and on the south, by the Pacific Ocean. Of the discoveries of this country, we have already spoken. Tello de Guzman, in 1513, is said to have given the country the name of Panama, from having observed the natives engaged in fishing; the word denoting a place abounding in fish. _Climate, &c._--The climate of Panama is hot, as may be well supposed, from its situation, the greatest heat being felt in the months of August, September, and October, when it is almost insupportable; the brisas, or trade winds, and the continual rains, ameliorate the excessive heats during the other months; but at the same time render the climate very unpleasant. The soil of Panama is prolific, abundantly producing the tropical fruits and plants. Great part of the country is still covered with thick forests, and the land between the two seas consists generally of abrupt and broken chains of mountains, one of which chains, the _Sierra de Canatagua_, on the borders of Panamo and Veragua, divides North from South America. On the tops of these craggy mountains, the land is sterile and uninhabited; the cities, settlements, plantations, and Indian villages, being mostly along the shores of the two oceans. The trade of Panama consists in its relations with Veragua, and the ports of Peru and New Granada. From these it is supplied with cattle, maize, wheat and poultry; its exports are of no great importance or value. From Carthagena European goods are received, for which mahogany, cedar and other woods, with gums and balsams, are exchanged. The pearl fishery here is at present of little importance; it was anciently carried on amongst the small islands in the bay of Panama, and was very lucrative; an endeavour has lately been made to re-establish it, but hitherto without any beneficial results. Part of the European trade of the western shore of South America is carried on by way of Panama and Porto Bello; but since the galleons were disallowed, the trade of these two cities has been comparatively trifling. The mines of Panama produce so little gold or silver, that they are supposed not to answer the expence of working.