In the history of Panama, the earliest known inhabitants were the Cueva and Coclé tribes, but they were drastically reduced by disease and fighting when the Spanish arrived in the 16th century.
Vasco Núñez de Balboa's torturous trek from the Atlantic to the Pacific in 1513 demonstrated that the Isthmus was, indeed, the path between the seas, and Panama quickly became the crossroads and marketplace of Spain's empire in the New World.
The Guaymí, of the highlands near the Costa Rican border, are believed to be related to Indians of the Nahuatlan and Mayan nations of Mexico and Central America.
[1] Although the Cuna, now found mostly in the Comarca de San Blas, an indigenous territory or reserve considered part of Colón Province for some official purposes, have been categorized as belonging to the Caribbean culture, their origin continues to be a subject of speculation.
[1] Lines of affiliation have also been traced to the Cueva and Coiba tribes, although some anthropologists suggest that the Cuna might belong to a largely extinct linguistic group.
Some Cuna believe themselves to be of Carib stock, while others trace their origin to creation by the god Olokkuppilele at Mount Tacarcuna, west of the mouth of the Río Atrato in Colombia.
[1] Vasco Núñez de Balboa, a member of Bastidas' crew, had settled in Hispaniola (present-day Dominican Republic and Haiti) but stowed away on a voyage to Panama in 1510 to escape his creditors.
[1] On September 1, 1513, Balboa set out with 190 Spaniards — among them Francisco Pizarro, who later conquered the Inca Empire in Peru — a pack of dogs, and 1,000 Indian slaves.
Meanwhile, Balboa's enemies had denounced him in the Spanish court, and King Ferdinand appointed a new governor for the colony, then known as Castilla de Oro.
In the same year, Nombre de Dios, a deserted early settlement, was resettled and until the end of the 16th century served as the Caribbean port for trans-isthmian traffic.
[1] The increasing importance of the isthmus for transporting treasure and the delay and difficulties posed by the Camino Real inspired surveys ordered by the Spanish crown in the 1520s and 1530s to ascertain the feasibility of constructing a canal.
Hundreds of Spaniards died of disease and starvation in their brocaded silk clothing; thousands of Indians were robbed, enslaved, and massacred.
[1] The regulations for colonial administration set forth by the Spanish king's Council of the Indies decreed that the Indians were to be protected and converted to Christianity.
An official census of Panama City in 1610 listed 548 citizens, 303 women, 156 children, 146 mulattoes, 148 Antillean blacks, and 3,500 African slaves.
[2] Beginning early in the 16th century, Nombre de Dios in Panama, Vera Cruz in Mexico, and Cartagena in Colombia were the only three ports in Spanish America authorized by the crown to trade with the homeland.
A slave called Felipillo founded a village of Africans and Indians in the mangroves of the Gulf of San Miguel that lasted two years before being wiped out in 1551.
Spanish efforts to retain their monopoly on the rich profits from trade with their colonies provided a challenge to the rising maritime nations of Europe.
This was the time of the famous ferias (fairs, or exchange markets) of Portobelo, where European merchandise could be purchased to supply the commerce of the whole west coast south of Nicaragua.
The Council of the Indies dissuaded the king, arguing that a canal would draw attack from other European nations—an indication of the decline of Spanish sea power.
Such footholds in the West Indies encouraged the development of the buccaneers—English, French, Dutch, and Portuguese adventurers who preyed on Spanish shipping and ports with the tacit or open support of their governments.
[2] Influenced by buccaneer reports about the ease with which the isthmus could be crossed—which suggested the possibility of digging a canal—William Paterson, founder and ex-governor of the Bank of England, organized a Scottish company to establish a colony in the San Blas area.
Fewer merchants came to the Portobelo feria to pay Spain's inflated prices because the foreign suppliers furnished cheaper goods at any port at which they could slip by or bribe the coastal guards.
After 1740 the Pacific coast ports were permitted to trade directly via ships rounding Cape Horn, and the Portobelo feria was never held again.
After the suppression of its audiencia in 1751, Panama became a quiet backwater, a geographically isolated appendage of New Granada, scarcely self-supporting even in food and producing little for export.
Incomplete and doubtless omitting most of the Indian and cimarrón population, specifically excluding soldiers and priests, the census recorded 71,888 inhabitants, 7,857 of whom lived in Panama City.
General Francisco de Miranda of Venezuela, who had been attracting support for revolutionary activities as early as 1797, offered a canal concession to Britain in return for aid.
Thomas Jefferson, while minister to France, also showed interest in a canal, but the isolationist policies of the new United States and the absorption of energies and capital in continental expansion prevented serious consideration.
[4] Patriots from Cartagena attempted to take Portobelo in 1814 and again in 1819, and a naval effort from liberated Chile succeeded in capturing the island of Taboga in the Bay of Panama.
When Simón Bolívar's victory at Boyacá on August 7, 1819, clinched the liberation of New Granada, the Spanish viceroy fled Colombia for Panama, where he ruled harshly until his death in 1821.
Raising troops locally, he soon sailed for Ecuador, leaving a native Panamanian, Colonel José de Fábrega, as acting governor.