ture. The commercial cultivation of rubber is, of course, practically only for the capitalist. The individual of small means, even though he should be able to meet the initial expense, could not afford to wait for the returns, which a rubber plantation will not begin to yield before the seventh or eighth year.

There is an ample amount of latent water power at various points in the country. In the vicinity of David a very simple and inexpensive development is possible and a sufficient demand already exists to make it economically feasible. Saw mills, leather factories, distilleries, sugar refineries, etc., might be profitably operated by such power which could be also utilized to supply the city with electric light.

All the freight in the interior is carried in bullock carts or by pack animals, by far the greater part of it, aside from the banana shipments, reaching one or other of the ports on the Pacific. Except for Bocas del Toro, the depot of the United Fruit Company, David is the principal point in the interior, but Remedios, Sona, and Aguadulce, as well as some smaller ports, have a fair export trade. The City of David has about 4,000 inhabitants and is growing apace. It is situated some nine

miles from the coast and three from the river port of Pedregal, which is the outlet for its exports. There are a number of industrial plants in the place, such as wood and leather factories, distilleries, coffee mills, etc. Two lines, each running two steamboats, maintain a regular service between David and Panama, calling at intermediate points with sufficient frequency to meet the demands of traffic. There are also a number of small luggers carrying passengers and freight up and down the coast.

The stretch of country lying to the south of the divide and to the west of the Canal Zone is much more open than that in other parts of the Isthmus. The growth is mainly what the natives term "monte," that is, plants of moderate size with here and there a large tree. Trails and cart roads can be made through it with ease and it is readily cleared with the machete. At frequent intervals this jungle gives place to extensive expanses of savana, or llano, as it is commonly called up-country. Numerous streams present almost the only difficult places in a continuous road from Aguadulce to David and beyond. Bridges, to which additions are constantly being made, span many of them. It is in this section of the coun

try only that any agricultural and industrial progress has been made. Along this stretch are several towns and hundreds of hamlets, but the population is very sparse and must increase many fold before the splendid resources of this region can be adequately exploited. This lack is the most serious disadvantage under which the country rests. The entire population of the Republic, including that of the Canal Zone, is no more than 300,000. Of these, perhaps, one half are to be found scattered over the interior. Chiriqui, the richest and most important province from the agricultural view point, has fewer than 100,000 inhabitants. The Indians can not be counted on to meet the demands of labor and only a small proportion of the Panamans are available for hire. Extensive immigration must be induced and, fortunately, an immediate source of supply is at hand. There are thousands of hardy Spaniards and Italians engaged on the Canal who will shortly be released. It is probable that a large proportion of these will be glad to remain in the country and take up land. They make excellent farmers, and will furnish a desirable new element in the general population.