Your editorial “Peonage in Panama” published in the December number, was read by me with a great deal of interest, as I have lived for seven years in Central America and am thoroughly familiar with labor conditions there, having during my residence there had constantly in my employ on plantation work from 15 to 50 laborers, or mozos, as they are called. Of course, I do not know the exact conditions under which these laborers were contracted in Martinique, but am confident the conditions were similar to those under which all labor in that country is contracted. The employer of labor signs up a number of men and the men ask for, expect and receive an advance of money against their future services of an amount equal to from two to four months’ wages. There is a form of contract signed in which the laborer acknowledges the receipt of so much money paid him for future work to be done by him under the contract, by which he also agrees to work for the employer for a specified time at the rate of so much per month. This is the general custom in those countries and with the class of labor available is the only way in which the employer can be reasonably certain of securing and retaining his laborers, as the law forces the mozo to live up to his contract and also makes him secure in obtaining his money after he has worked out the amount advanced. It was unquestionably the case with the Martinique negroes that they had all received advances of money against their future services, and that the money had all been spent before leaving their homes and, such being the case, where would the employer have found himself if he had submitted without any resistance and allowed the laborers to nullify their contracts and return home? The Martinique and Jamaica negroes are as a rule a very unruly, unreliable and impertinent class and it requires strenuous measures to keep them in subjection and make them live up to their contracts. They cannot be compared to the American negro, who is much easier to manage. I appreciate your feelings in the matter, but do not think you thoroughly appreciate the conditions of affairs as they exist in regard to the relations of employer and employee. When the Martinique negro claims he does not know conditions as they exist at Panama, or other points on the Central American coast, he is lying, as they are all of them more or less familiar with the entire coast from personal visits to it or information acquired from friends who have been on the coast. I know nothing from personal observation of the Peonage system in the Southern States but I do know that the contract labor system is the only way to handle labor in Panama, for you cannot get them without the advance of money and if you do not protect yourself by the contract, the chances are 9 out of 10 that your man will never show up to work it out.