The province of Panama contains three cities, twelve villages, and numerous settlements of converted Indians. The capital is _Panama_, a city and sea-port, built near the bottom of a large bay of the Pacific which bears the same name. From this city, the isthmus of Darien has frequently taken its appellation; but at present is indifferently styled the isthmus of Panama, or of Darien. It stands in 9° 0ʹ 30ʺ north latitude, and 79° 19ʹ west longitude. Tello de Gusman gave the country its name from this spot. In 1518, Pedro Arias de Avila, governor of Tierra Firme, settled a colony here, and in 1521, it was constituted a city by the Emperor Charles the Fifth. In 1670, it was sacked and burnt by Morgan, an English adventurer, who had already reduced Porto Bello and Maracaybo; he debarked at the mouth of the Chagre, reducing the fort there after an obstinate defence, and ascending the river, landed again at Cruces and marched to Panama, where after several skirmishes, he entered the city; the inhabitants flying to the woods. Soon after he left the place it was burnt down, but whether by accident or design is not known. The inhabitants resolved to rebuild the town at about a league and a half distance from where it first stood, and in a more convenient situation. It was then enclosed with a regular stone rampart; the houses were chiefly of wood with tiled roofs, having but one story, but of a very handsome appearance; and outside of the walls was a large suburb. In 1737, a fire commenced in a house where tar, naptha, and brandy, were stored; the devouring element was so rapid in its progress, that the city of Panama was entirely consumed in a very short time, with the exception of the suburb, which was saved, it being totally detached from the town. Panama was rebuilt shortly afterwards a second time, and the inhabitants having excellent quarries in the vicinity, erected their houses chiefly of stone; but it suffered again from fire in 1756, and in 1784 it was nearly destroyed by another dreadful conflagration. The governor of Panama was formerly captain-general of Tierra Firme, and president of a court of royal audience, which has lately been removed to Santa Fé de Bogota. The city of Panama is the see of a bishop, who is subject to the control of the archbishop of Lima; but as he receives no tithes, is paid out of the royal coffers. A municipal council governs the district of the city; a treasury, custom-house, &c. are established there, and when the galleons came from Lima, Panama, and Porto Bello, might be said to have been the Acapulco and Vera Cruz of South America. The cathedral is a handsome edifice of stone, as are the churches, convents, monasteries, and an excellent hospital.