25 Centésimos

Panama's first coinage was authorized almost immediately after independence from Colombia in November 1903, with the new republic contracting the Philadelphia Mint to produce the entire inaugural series. The 25 centésimos was deliberately modeled on the Columbian peso system's proportions, easing the monetary transition for a population accustomed to Colombian silver. Philadelphia struck the 1904 issues under contract — an arrangement that persisted for decades given Panama's lack of its own minting facilities.

The timing was inseparable from the Canal Zone negotiations; U.S. officials wanted monetary stability in Panama before construction began in earnest.