Republican ideas and principles made a great advance when Dr. Moraes was inaugurated as president, on the 15th of November, 1894. He was a lawyer by profession, and a native of the progressive state of São Paulo; was a little past fifty years of age, and from the earliest days of his career had been an ardent advocate of republican principles. Furthermore, the new President was opposed to the use of force in enforcing public administration. He had been a member of the provisional government of his state, and was the first governor of that state under the republic, as well as the first president of the national senate. He lived a simple life, free from all ostentation, and his straightforwardness and integrity brought to him the respect of all classes of Brazilians. Thus it was with a thorough equipment that this new civilian President met the responsible duties of his high office. The revolutionists insisted that the election was invalid, on the ground that no voting had taken place in the states of Rio Grande do Sul, Santa Catharina and Paraná, although they had no objection to the new President personally. After peace was restored the President granted amnesty to all who had borne arms against the republic. The natural consequence of the early days of extravagance began to be felt. The national and state government seemed to have vied with each other in multiplying the number of official employees, and in spending money on public buildings and other works. To meet the deficits paper money had been issued, and now the effects of this, together with the fall in the price of coffee, were being experienced by the nation at large, and retrenchment became necessary. Enemies both in official and private circles grew up. The ruling party became split over retrenchment policies, and an attempt was made to assassinate the President in broad daylight, which, it was strongly believed, was the result of a political plot. He would have been killed, had not a brave general thrown himself in front of the President and received the fatal wound himself. The effect of this conspiracy was to increase the admiration of the people for the President, and to condemn the methods of his enemies. An insurrection arose in the state of Bahia which required federal assistance; and this was believed by many to be backed by monarchical sympathizers, for it required an army of several thousand to quell it. A _coup d’etat_ which had been planned early in 1897 by the vice-president, who was in power during the temporary absence of the President to recuperate his health, and who was backed by the discontented military, was nipped in the bud by his sudden and unexpected return to the capital. The boundary line with Argentina was settled during his administration, by the arbitration of President Cleveland who determined the contention in favour of Brazil.