Morgan was blamed for fire, but it is unlikely that he was responsible. The rich homes were filled with most expensive furniture money could buy. Rugs, tapestries and family plate destroyed by flames were far more valuable than gold and silver captured in raid. Morgan, who had counted on becoming rich from attack, left with one-tenth value he had expected. Some say Spaniards set fire to cheat pirates. Others think a lit stove was knocked over in a skirmish. Whatever reason, most of what is now Panama Viejo was wiped out. Only stone buildings, remnants of which can be seen today, remained standing.

Morgan also lost advantage of being able to threaten to torch city if ransom was not paid.

Ironically, greatest damage to stone buildings was done in 20th century by locals scavenging material to build homes.

Interrogating prisoners, Morgan learned that treasure galleon Trinity had left Panama Viejo day before his raiders arrived, bound for Peru. It carried half of Panama’s wealth and 1,500 members of richest families, families that have means to pay hefty ransoms. The cargo was probably worth millions, and ship was so heavily laden and sailing so slowly it should have been easy for pirates to overtake it.

Morgan sent Captain Daniel Searles to find ship, which had headed in direction of Taboga Island, not far from Panama Viejo. Searles and his crew landed on island, unaware that Spanish were taking on water and provisions on other side. The townspeople plied Searles and his crew with wine, getting them so drunk that Spanish vessel was able to make its escape.

The next morning, staggering back to consciousness, Searles and his merry band discovered what had happened, but it was then too late to catch treasure ship. Instead, they brought back a lovely woman, Maria Eleanora Lopez y Ganero, hoping that Morgan would be so smitten he would forgive them loss of ship. Morgan was disinterested but, ever practical, he did manage to ransom woman for $30,000.

It took just 175 pack mules to carry spoils of Panama Viejo across isthmus to Caribbean side. Morgan had expected to use 10 times that number. Instead of anticipating riches to last a lifetime, pirates now knew how slim pickings had been. They were morose, ill tempered, rebellious. And grueling journey back did nothing to improve their disposition. Morgan was focal point of much of his men’s anger, and eventually he heard that some were plotting to kill him.

Back at mouth of Chagres River, he called a secret meeting of some of his most loyal followers, quietly prepared three of most seaworthy ships, and had loot sorted into separate piles of gold and bullion, jewels, and merchandise. He then announced that following day spoils would be shared and that this night there would be a grand celebration.

Morgan opened first keg and proposed a toast to spoils of Panama and those of their next adventure, but Morgan and his select followers drank little. The rest of men drank until they dropped. As they snored loudly, gold, jewels and most valuable of merchandise was stowed aboard three vessels, other vessels were disabled sufficiently that it would take several days to repair them, and Morgan and his crew pushed out into river’s current which quietly carried them away.

While Morgan sailed off to his base in Jamaica, remaining buccaneers freed all Panama Viejo prisoners. Most of Spaniards headed toward Portobelo. The black slaves headed toward Panama Viejo. They stopped short of continental divide and founded town of San Juan, which still stands today.

Panama Viejo was never rebuilt. What is now modern, bustling Panama City was founded about five miles west, near area of Presidential Palace. Pirates never again attacked city.

But remaining stones of Panama Viejo – stones you can touch today – saw and heard it all, just as you will if you listen carefully enough.

Each lock chamber is 110 feet wide and 1,000 feet long, and each gate weighs 700 tons. When Panama Canal was completed in 1914, locks were large enough for largest vessel in world to pass through. And since then, most marine architects have been careful to design hulls with canal's measurements in mind. That changed in 1934 when Queen Mary was launched. She was 118.5 feet wide, but it didn't matter: she was built for transatlantic service, like Queen Elizabeth, launched a little later.

But shipping economics call for ever larger loads. There has been talk for a number of years about widening canal, one possibility being construction of wider parallel locks beside existing ones. One limiting factor could be availability of water in greater volume. Other options that have been discussed, including building a canal at sea level that would need no locks. One problem with this is current that would be created because oceans are at different levels.

Another option that Panamanians don't even want to think about is original idea: to build a canal through Nicaragua.

All naval vessels except aircraft carriers can squeeze through Panama Canal, and do so without damage, though occasional battleship loses some paint. The flight deck on aircraft carriers is angled to give greater runway length, and they cannot clear canal. The world's largest oil tankers cannot make it, either, and have to offload their cargoes to smaller vessels at terminals on either end.

Apart from being crossroads of world's shipping, Panama Canal is a great attraction for tourists. There are daily cruises that ply either whole length or part of it. It's an excellent way to view part of Panama's history, past and present.

To learn more about some of interesting places to see in Panama, visit http://www.yourpanama.com/travel-to-panama.html

Sydney Tremayne publishes http://www.yourpanama.com, a leading website for tourists and for potential ex-pat retirees in Panama. His team of experts gives regular Q&A teleseminars that can save costly mistakes. To find out more, go to http://www.yourpanama.com/fear.html