NICARAGUA 1091 



endorse the President's act, and rejected Representative Sulzer's resolution providing 

 for Estrada's recognition as the legitimate President of Nicaragua. 



On February 10, 1909, the revolutionists, 1200 strong, among whom were many 

 United States citizens, under Generals Emiliano Chamorro and Masis, captured Mala- 

 galpa, a town of 9000 inhabitants, the Government troops having evacuated it. On 

 February 22, 1910, an encounter took place between the forces of General Chamorro and 

 the government troops at Tisma, when the former were completely defeated, Chamorro 

 barely escaping with a handful of his followers. His loss in killed, wounded and cap- 

 tured was 600; that of the Government about 300. 



Some sensation was occasioned by the publication of a cablegram from the German 

 Emperor addressed to President Madriz, in which His Majesty expressed a desire " for 

 the continuance of the strong friendship which had always animated the relations be- 

 tween the two governments." Although intended to strengthen the hand of the 

 government, the publication of the telegram hid little or no effect, for the revolution 

 continued in several different directions, being materially assisted by the continued 

 refusal of the United States government to recognise President Madriz, in spite of the 

 fact that England, France and other European nations had extended such recognition. 



The principal leader of the revolutionary faction and candidate for the presidency, 

 General Juan J. Estrada, appealed to the United States to intervene actively; but, while 

 that government failed to respond directly, General Estrada was greatly assisted in his 

 campaign by a large number of American citizens who fought under his banner. Presi- 

 dent Madriz was finally defeated and compelled to retire, seeking refuge in the neigh- 

 bouring state of Costa Rica, where he shortly afterwards died. 



General Estrada was then elected provisional president under a law issued on 

 September 15, 1910, and was succeeded in October 1911 by Senor Adolfo Diaz as Consti- 

 tutional President for the full term. 



In the early days of August 1912 a further revolution was promoted by General Luis 

 Mena, minister of war and marine, who refused to resign his portfolio when requested to 

 do so by the president. General Mena seized the forts at Managua, cut the telegraph 

 lines, and took possession of the city of Granada. Here he was engaged by General 

 Chamorro, and later a truce was effected whereby General Mena agreed to resign the po- 

 sition of minister of war in favour of Dr. Barbarossa. Troubles however broke out afresh, 

 the rebels bombarding the capital and causing many casualties among the natives; no 

 foreigners were injured. United States sailors, guarding the presidential palace and the 

 Legation, took part in the repulse. A sanguinary battle occurred August 3d when 

 1000 dead were counted on the field. A pestilence broke out and the situation became 

 extremely serious. The United States gunboat " Annapolis " visited the port of Corin- 

 to, and on August 6th landed 100 marines, quartering them at the capital, Managua. 

 The Nicaraguan government was said to have consented. On August 22d the Nicara- 

 guan army, composed of 7500 men, was almost annihilated at Leon. On August 24th 

 additional American troops were landed both at Bluefields and Corinto, 75 in the first 

 named and 2000 in the second named place. On the same day United States Senator 

 Bacon introduced a resolution into the Senate providing for an investigation into the 

 United States interference in Nicaragua, which he declared " was unwarranted." On 

 August 26th 120 Nicaraguan non-combatants were slain during the bombardment of 

 Managua. Peace was, however, re-established on October gth. 



The financial and economic conditions of the state naturally suffered severely in 

 consequence of the complicated political situation, and in January 1912 the government 

 defaulted in regard to the coupon due upon the 6 per cent (1909) Loan. In June a 

 provisional agreement was entered into for the settlement of the external debt of Nicara- 

 gua, through the houses of Messrs. Brown Brothers & Co., and Messrs. J. & W. Seligman 

 & Co., of New York, by which the interest of the 1909 loan was reduced from 6 per cent 

 to 5 per cent, and the entire customs receipts of the republic were given over as security. 

 Considerable improvements took place in the customs revenue, dating from the time 

 when the United States appointed a collector-general (Dec. 1911), to commence his 



