strictest neutrality, and had the good fortune to escape being mixed up in that trouble. The country being at peace, both at home and abroad, the government was enabled to devote its whole attention to the finances, which were in an unsatisfactory state, owing to a marked decrease of the revenues in the two last fiscal years.[XXIII-23] The general situation, if not good, was nevertheless far from discouraging. But a new element was now ushered in, which was destined to become erelong an agent of disturbance. I refer to the coming of seventy members of the society of Jesus, who on their expulsion from Guatemala landed unopposed at Realejo, and journeyed to Leon, where a portion of the inhabitants gave them a warm reception. Discussions ensued; some were in favor of giving the new-comers convents, turning over to them public education, and allowing them every privilege as they had had at their late field; others demanded that they should be sent away. The government took no action, other than permitting them to remain, and they soon ingratiated themselves with the masses.[XXIII-24] [Sidenote: PARTIES AND PRINCIPLES.] Toward the end of the year rumors of an impending revolution were rife. There was no cause for it. Quadra's administration certainly was deserving of public support.[XXIII-25] But it seemed the fashion of Nicaragua either to be on the eve of or in the throes of revolution, or at least to talk of one.[XXIII-26] At the present time there were three political parties, and a club aspiring to that rank. The party in power was called by some of its members liberal conservador, and by others republicano. This party had a large following of well-to-do and sedate citizens. It had no monarchical, aristocratic, or theocratic tendencies; on the contrary, its principles were liberal and progressive, but it moved slowly, from fear of disturbing peace and order. Another party was formed, of men who at one time used to call themselves democrats, but had lately taken a conservative for a leader, become associated with the clergy, and adopted the name of moderado. The third party, hardly entitled to the rank, was made up of young men anxious for the greatest development of liberty and progress. Its members were scattered, or affiliated with other parties. Then there was the club, composed of a few hot-heads who insisted on being the mountain, and parodying the French Jacobins of 1793. The fears of revolution were on the increase in the first part of 1872. The self-styled moderados of the five states were working together in Leon, the native clergy and the jesuits being the common centre of the revolutionary propaganda, and the government of President Medina of Honduras encouraging them.