A counter revolution followed at once and swiftly attained large proportions. It became the most serious unsuccessful revolution the Republic had seen. At one time the whole country was in the hands of Jimenez except Santo Domingo City and the small port of Sosua, near Puerto Plata. The government forces were able to retake Puerto Plata, but the siege of the capital continued uninterruptedly from December to February. Attacks and sallies were frequent, every house along the walls and in the suburbs soon showed bullet marks and the town of San Carlos was again partially destroyed by fire. Finally Morales defeated the besiegers, and in March, Macoris was taken by the government forces and the backbone of the revolution was broken. The insurrection had spent itself on account of lack of supplies and efficient leaders. Jimenez, financially ruined by his attempts to reestablish himself in power, again withdrew to Porto Rico. The government forces were unable to retake the Monte Cristi district, but an agreement was reached by which the Jimenista authorities remained in full control and the district became practically independent. An election was held, as a result of which Carlos F. Morales became president and Ramon Caceres vice-president, and they were inaugurated on June 19, 1904. The new president, Morales, was an unusually clever man, although his conduct sometimes betrayed that he came from a family in which there had been mental derangement. He was born in Puerto Plata, studied for the priesthood, took orders, and held the office of parish priest in various places in the Cibao. After the death of a brother who participated in Jimenez' ill-fated "Fanita" expedition and was killed in the attack on Monte Cristi, Morales took an interest in public affairs and during the administration of Jimenez became a member of Congress. At this time he laid aside his religious habit, married, and devoted himself exclusively to politics. During the Vasquez administration he was an exile in Cuba, but on the ascendancy of Woss y Gil he was made governor of Puerto Plata, and in this capacity initiated the revolt against the Gil government. CHAPTER VI HISTORICAL SKETCH.--AMERICAN INFLUENCE.--1904 TO DATE (1918) Financial difficulties.--Fiscal convention with the United States.--Caceres' administration.-Provisional presidents.--Civil disturbances.--Jimenez' second administration.--American intervention. The enormous foreign and internal debt left by the Heureaux administration had been constantly increased by ruinous loans to which the succeeding governments were obliged to resort during the years of civil warfare, until the country was in a condition of hopeless bankruptcy. In the beginning of 1904 every item of the debt had been in default for months.