Evening star., 1951-05-20

came forward with a report which
revealed gross miSmanagement
The report also went on to re-
veal that the bank continued
lending large sums to various in.
dividuals and enterprises as if il
were making rich profits. when
lin fact, it had been losing money
each month.
Hotel Had Overdraft
The New Hotel Ell Panama, one
of the most ambitious tourist
projects in the nation, was largely
financed through this organiza-
tion. Many of the banks officials
held large blocks of stock in the
enterprise. At the time the run
on the bank started. the hotel was
reported to have had a large
overdraft. incidentally. the Ex-
port Import Bank had advanced
large credits to the hotel, amount
ing to $2.5 million. At least a
portion of these credits had been
handled through the Compania
Fiduciaria de Panama.
Eventually the condition of thi:
bank gave rise to doubts about the
stability of other banking institu.
tions, such as the Cajae AhorraS
or savings bank. and even the OF.
fetal National Bank. Tt appears
however, that both of these in.
stitutions were thoroughly sound
Even American banks offered tt
supply cash to bolster them.
Casting about for scapegoats
the president blamed the Com.
munists for provoking the runs OF
the banks. But there is no evil
dence to prove, or even indicate
that they were responsible for tht
situation. He suddenly scrappee
the 1946 constitution and REIN
posed his old 1941 totalitariar
document. which not only gav'
him dictatorial power, but Woule
have extended his term of Office
beyond 1852 when there is to b,
another presidential election. Ap'
parently this action had the ap.
|proval of Remon.
Arias Impeached
! A paralyzing general strike wa!
called. The National Legislature
assembled and impeached tht
president. The Supreme Cour
ratified this action. In a despe.
rate effort to save himself. Aria.
agreed to re-establish the 194t
constitution, but this was too late
The strike continued. Civil wal
broke out and the police finally
took the side of the public anc
marched on the palace. Aftel
numbers of people were killed anc
scores wounded, the embattlec
Arias was marched off to jail ant
is now to be tried for treason by
the National Assembly. and prob.
ably murder in the criminal courts
At the last minute, he proved
that his belated. not to say posec
friendship for the United States
and his condemnation of the
Communists was not entirely
without an ulterior motive. Al
the height Of the public demon.
strations against him, he made
an unsuccessful attempt to gel
the commanding general of tht
United States forces in the Cana
Zone to call upon the chief o1
police and request him to dispense
the rioters. Failing in this, h,
tried to telephone State Depart.
ment officials in Washington, anC
even President Truman himself
apparently In a further effort tt
enlist the support of this Gov.
ernment. But Washington re,
manned aloof from any inter.
ference.
When Col. Remon and hi
forces Joined the demonstration
in the attack on the palace, h,
made the final effort to escap,
the consequences. He directed
an aide to telephone officials il
the Canal Zone that he had beer
, desperately wounded and bel
them to send an ambulance tt
, remove him to a hospital. Sine,
he had suffered no injury at all
this move can hardly arouse mucl
sympathy for him.
); The Vice President, Alcibiade
Arosemena, was sworn in. Fo
the time being at least order ha
been restored. Although a mem
ber Of Arias' old revolutionar,
/ party, the new President has no
) been an extremist. He never open
ly adhered to the anti Unite
, States policies of the Arias party.
He has appointed a cabine
which represents nearly all of tn
political groups in the countr
except the Communists. Severa
:. of them are able and experience
, men. The minister of foreign af
| fairs, Ignacio Molino. is a libera
and held cabinet position unde
the o-American President, Do
: Imingo Diaz. Unfortunately tn
ministry of education is now il
charge of Ricardo Bermudez, VIII
: has at least been completed
i friendly with the extreme leftist
, and the Communists. His reputa
: ton as leftist was such that h
, had been denied a visa to visl
, the United States.
But the new administration i
completely a creature of the all
!, powerful chief of police. Col. Re
mon is still the strong man of tn
country. So far as we are con
cerned, there is every indication
that the new regime will not onl
live up to all the agreements an
responsibilities for the joint oper
alton of the canal, but will foste
the most friendly attitude towar'
the United States. ..