7th of January Senores Waldo Silva,
Barros Luco and a number of senators and deputies embarked on board the
Chilean warship "Blanco Encalada," accompanied by the "Esmeralda" and
"O'Higgins" and other vessels, sailing out of Valparaiso harbour and
proceeding northwards to Tarapaca to organize armed resistance against
the president (see CHILEAN CIVIL WAR). It was not alone this action of
Balmaceda in connexion with congress that brought about the revolution.
He had alienated the sympathy of the aristocratic classes of Chile by
his personal vanity and ambition. The oligarchy composed of the great
landowners have always been an important factor in the political life of
the republic; when President Balmaceda found that he was not a _persona
grata_ to this circle he determined to endeavour to govern without their
support, and to bring into the administration a set of men who had no
traditions and with whom his personality would be all-powerful. The
Clerical influence was also thrown against him in consequence of his
radical ideas in respect of Church matters.

Immediately on the outbreak of the revolution President Balmaceda
published a decree declaring Montt and his companions to be traitors,
and without delay organized an army of some 40,000 men for the
suppression of the insurrectionary movement. While both sides were
preparing for extremities, Balmaceda administered the government under
dictatorial powers with a congress of his own nomination. In June 1891
he ordered the presidential election to be held, and Senor Claudio
Vicuna was duly declared chosen as president of the republic for the
term commencing in September 1891. The resources of Balmaceda were
running short on account of the heavy military expenses, and he
determined to dispose of the reserve of silver bullion accumulated in
the vaults of the Casa de Moneda in accordance with the terms of the law
for the conversion of the note issue. The silver was conveyed abroad in
a British man-of-war, and disposed of partly for the purchase of a fast
steamer to be fitted as an auxiliary cruiser and partly in payment for
other kinds of war material.

The organization of the revolutionary forces went on slowly. Much
difficulty was experienced in obtaining the necessary arms and
ammunition. A supply of rifles was bought in the United States, and
embarked on board the "Itata," a Chilean vessel in the service of the
rebels. The United States authorities refused to allow this