Crumbling ruins are all that's left of Panamá Viejo (sometimes called Panamá la Vieja), the country's first major Spanish settlement, which was destroyed by pirate Henry Morgan in 1671. Panamá Viejo was founded in 1519 by the conquistador Pedroarias Dávila. Built on the site of an indigenous village that had existed for centuries, the city soon became a busy colonial outpost. Expeditions to explore the Pacific coast of South America left from here. When Francisco Pizarro conquered the Incan empire, the copious gold and silver he stole arrived in Panamá Viejo, where it was loaded onto mules and taken across the isthmus to Spain-bound ships. For the next 150 years Panamá Viejo was a vital link between Spain and the gold and silver mines of South America. Year after year, ships came and went; mule trains carried precious metals to Panama's Caribbean coast and returned with Spanish goods bound for the southern colonies. The city's merchants, royal envoys, and priests accumulated enough gold to make a pirate drool. At the time of Morgan's attack, Panamá Viejo had a handful of convents and churches, one hospital, markets, and luxurious mansions. The fires started during the pirate attack reduced much of the city to ashes within days. The paucity of the remaining ruins is not due entirely to the pirates' looting and burning: the Spanish colonists spent years dismantling buildings after they decided to rebuild their city in the neighborhood now known as Casco Viejo or Casco Antiguo, on the peninsula to the southwest, which was deemed easier to defend against attack. The Spanish carried everything that could be moved to the new city, including the stone blocks that are today the walls of the city's current cathedral and the facade of the Iglesia de la Merced. Panamá Viejo is part of all city tours, which can be a good way to visit the site, if you get a knowledgeable guide. There are also sometimes guides at the Plaza Mayor who provide free information in Spanish. The collections of walls that you'll pass between the Visitor Center and Plaza Mayor are all that remain of several convents, the bishop's palace, and San Juan de Dios Hospital. Plaza Mayor is approximately 1 km (½ mile) from the visitor center, so you may want to drive or take a cab. Try to visit this site before 11:00 am or after 3:00 pm.
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