The special congress summoned to consider the treaty already signed by the executive failed to ratify the agreement and adjourned, after empowering the president to try and negotiate a new one which would give Colombia a larger bonus and revenue. But the rejection of the treaty was followed by a declaration of independence on the part of the people of Panama, who believed that the United States would pay no larger sum than that already agreed upon and who saw their own interests being sacrificed for the sake of a far-distant interior region with which they had few commercial ties and whence invasion and coercion need not be feared because of the lack of practicable routes of communication. The United States and other powers promptly recognised the new nation, which at once made a canal treaty similar to that rejected by the Bogota congress. At Bogota the first impression was one of profound dismay. The executive offered to declare martial law, suspend the Constitution, and ratify the rejected treaty in spite of the Senate. General Reyes, the foremost living Colombian, immediately departed for Panama as a special envoy to endeavour to persuade the people there to return to their allegiance, but his overtures were rejected, and he went to Washington on the hopeless errand of inducing the United States Government temporarily to abandon its policy of forbidding fighting on the Isthmus, so that Colombia might reduce the people of Panama to obedience. Meanwhile many Colombians blamed the Marroquin administration for the irreparable loss of Panama and ten million badly needed dollars. Some popular demonstrations occurred, and the hot-headed demanded that war be declared against the United States and an army marched across the Atrato swamps to attack Panama from the land. But the financial and topographical difficulties were so evidently insurmountable that the war talk soon died down, the demonstrations against the Government ceased, and most elements seem to have acquiesced in the election of General Reyes to the presidential term which begins in 1904. It will be under his able guidance that Colombia will start on the tedious road leading to internal peace and regeneration, to financial rehabilitation, and to the reconcilement of those fierce factions whose wars have drenched their country's soil with blood for so many decades. PANAMA PANAMA THE EVENTS LEADING TO INDEPENDENCE The history of Panama is for the most part identified with that of Colombia, which is narrated elsewhere in the present volume. It will, however, be convenient to review certain movements and tendencies of the last half-century in order to obtain a just understanding of the position and prospects of the new republic.