A little coin from a pivotal time in Panama

The Panama Canal

In writing about the 1916 2 1/2 Centésimos coin, we looked at the history of Panama up until that year. It is next to impossible to talk about the history of Panama without covering the Panama Canal. In the 1880s, the French attempted to build a canal through Panama. This effort ultimately failed, but it prompted Theodore Roosevelt to negotiate with Colombia for the rights to continue.

When this effort also stalled, in 1902, with Colombia in the middle of a civil war, the US promised Panama military support for independence. In return, the new Republic of Panama gave the US control of what became the “Panama Canal Zone”.

One of the greatest engineering feats in history, the canal was completed in 1914. Extending across the Isthmus of Panama, it connects the Atlantic and Pacific oceans. It is about 82 km (50 mi) long from deepwater to deepwater, with an average depth of 13 m (43 ft) through the Gaillard (Culebra) Cut. The width varies between 150 to 300 m (500 to 1,000 ft).

These dimensions spurred construction of “Panamax” ships. That is, ships which will fit through the locks in the Panama Canal:

(Image of a ship barely able to fit in the lock. 13 Shipping containers wide across the deck, it is being assisted by “Mule” locomotives on either side. Photo: CanalMuseum.com)

As a fan of railways, one of the most interesting things which catches my eye are the locomotives either side of the canal. Called “mules”, these are used for side-to-side and braking control in the locks, which are narrow relative to modern-day ships. Forward motion into and through the locks is provided by the ship’s engines and not the mules. With large ships, there are two mules on each side at the bow, and two each side at the stern, eight in total, allowing for precise control of the ship. Each mule has a powerful winch, which controls two cables to help keep the ship centred with as little as 60cm (2ft) of clearance either side. The locomotives run on third rail electric power. They run on a “rack” and gear system to help them traverse steeper terrain than would otherwise be possible.

(Towing locomotive “79” at the Gatun Locks, on a very steep section of track, Photo by Angela Wilczynski, from PanamaRailroad.org)

In return for annual payments to Panama, the US had exclusive rights to operate and control the Panama Canal Zone, which extended about 8km (5 miles) either side of the Canal. Like other offshore administrative territories, the zone was an entire community. United States Senator and 2008 Presidential candidate, John McCain was born in the Zone. This caused some argument around citizenship. The lack of control of their own territory began to cause tensions in Panama. They saw a canal that divided their country in two and for which they received none of the profits. In 1977, the United States and Panama signed a treaty, giving control of the Panama Canal Zone back to Panama.

Today roughly 5% of the world’s seaborne trade passes through the Canal. This includes 40% of U.S. container traffic.

Obverse

The obverse features the denomination written under an arc of 9 stars. These represented the nine provinces at the time, there are now ten. A wreath and date below complete the design. Six different variants of the 1 Centesimo coin have been issued since 1935, with the obverse and reverse designs both remaining largely similar.

Reverse

The reverse features a bust of Chief Urraca, with name above.

Urraca was an indigenous chief who battled with Spanish conquistadors in the 16th century. Known as the “Lord of Wind, Rain, and Thunder,” Urraca bravely resisted the Spanish for nine years. He led his people proudly and defeated the Spanish on several occasions.