Foundation and First Mentions
The history of Panama City as an independent administrative entity began in the early 20th century. The city was officially incorporated in 1909. Its emergence is closely linked to the activities of entrepreneur and developer George Mortimer West, who recognised the strategic potential of the territory along St. Andrews Bay.
The name of the city was chosen not by chance, but as a marketing move. At that time, the construction of the Panama Canal was being actively discussed worldwide. The founders wanted to emphasise that the Florida city lies on a direct geographical line between Chicago and the capital of Panama, hoping to transform it into a key transit point for trade between the USA and Central America.
Key Factors of Formation
- Geographical Location: The city is situated on the shores of the vast and deep-water St. Andrews Bay, which provides natural protection for vessels and direct access to the Gulf of Mexico.
- Transport Development: The extension of railway lines in the early 1900s connected the isolated coast with major industrial centres of the north, which stimulated an influx of population.
- Resource Base: The surrounding pine forests became the foundation for a thriving timber industry and the production of naval stores (resin and turpentine).
Early Cultural and Economic Features
Initially, the region's economy rested on "three pillars": fishing, logging, and agriculture. Until the Second World War, Panama City retained the atmosphere of an important but provincial port hub. A significant stage was the merger in 1927 with neighbouring historic settlements—St. Andrews and Millville—which significantly expanded the city's boundaries and influence.
The culture of early Panama City was formed under the influence of Southern hospitality and the rugged lifestyle of fishermen and lumberjacks. Gradually, thanks to the mild climate and beautiful beaches, the city began to attract the first tourists, laying the foundation for the future leisure industry.