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In Feb., 1891, Marshal Deodoro da Fonseca was confirmed as President, resigned in November, and was succeeded by Vice-President Floriano Peixoto, who held office until Nov. 15, 1894, when Prudente de Moraes, the first Brazilian President elected by a popular vote, was inaugurated. OHILI, PERU, BOLIVIA. The contest of Chili with Peru and Bolivia has attracted special notice.

Peixoto, however, determined to defend his position, and prepared himself to face the dozen or more warships which comprised the fleet of the insurgents. On September 12 the first serious fight took place, the town being bombarded heavily by the fleet, to which the guns of the forts responded on behalf of the Government.

This situation continued for the remainder of the year 1893, and, as time went on, the position of the Government became rather more strengthened, especially when it was reported that some war vessels ordered by Peixoto in Europe were on their way to Brazil. In the meanwhile, however, the position in the south became far more favourable to the insurgents.

This ended the last hope of the naval revolutionists to bring Peixoto to terms. Some of the ironclads escaped from the harbor and fled to Santa Catharina, where they were captured by the republicans. A few months sufficed to bring the revolt to an end, and republicanism was at length firmly established in Brazil.

On March 7 the vessels ordered by Peixoto from Europe arrived off Rio, and da Gama, hearing no news from Mello, took refuge, with his officers and men, on some Portuguese men-of-war.

Naturally, the blame for this fell upon Fonseca, and added itself to the autocratic methods of his government to render him unpopular. Fonseca was succeeded by the Vice-President, according to the regulations of the Constitution. This was Floriano Peixoto, who at first gave promise of a liberal and progressive government.

The liberal policy of this new Cabinet was resented by the landowners, and a serious agitation, which now began, shortly after received the support of the army. General Deodoro da Fonseca and General Floriano Peixoto placed themselves at the head of the military malcontents, and it became clear to the inhabitants of Brazil that a crisis was not far off.

Very soon, however, General Peixoto became prominent as a rival to the Presidency, and shortly a definite revolt arose in the State of Rio Grande do Sul; while in the far north the State of Pará armed itself in preparation for the struggle against the central power. The Navy declared itself against the Government.

It soon became evident that it was the purpose of Mello and his fellows to re-establish the empire and bring back Dom Pedro to the throne. But the rebel admiral found himself in a difficult situation. He hesitated about bombarding the city, which was full of his friends. Peixoto, the president, filled the forts with soldiers, and the naval officers had much trouble to obtain supplies.

It was now supposed that General Peixoto would reign unhampered as dictator, and in peaceful circles no small alarm was felt. In 1894, however, the President resigned, and was succeeded by Dr. Prudente de Moraes Barros.