On August 25, 1897, President Borda was assassinated in the streets of Montevideo by a respectable grocer's clerk. The vice-president, Juan L. Cuestas, succeeded peacefully to the control of the government in Montevideo, and at once entered into negotiations with the leaders of the insurrectionists in the departments. Terms were quickly agreed upon. Cuestas conceded minority representation and electoral reform, and in a very short time the rebels had laid down their arms. The few months of war had cost Uruguay dear. Thirteen million dollars had been spent by the government, the collection of the revenue had been interrupted, and internal transportation had been demoralised. Now, however, industry and commerce resumed their usual course, and, since President Cuestas's accession to power, the peace of the country has been undisturbed. Political manifestations have been confined to disputes in Congress and the press. They became so violent that in 1898 the president dissolved the chambers and declared himself dictator. He reorganised the army on a basis which insured that there would be no mutinies, and at the same time pursued a policy of administrative reform which has done much to bring order out of the financial confusion. The obligations of the government have been religiously performed, and Uruguay's currency is on a gold basis. In 1899 Cuestas was elected president according to the forms of the Constitution. He carried out the pledge he had given the blancos not to interfere with the elections, and in 1900 they made great gains and elected enough members to control the Senate. The political situation has, therefore, been somewhat strained, but there seems to be no danger that the congressional opposition will try to interfere with the executive functions of the president. [Illustration: THE CATHEDRAL, MONTEVIDEO.]