Far less beneficial in the long run was a law enacted in 1894.

Instead of granting a legal title to lands held by prescriptive rights through an occupation of many years, it made such property part of the public domain, which might be acquired, like a mining claim, by any one who could secure a grant of it from the Government.

Though hailed at the time as a piece of constructive legislation, its unfortunate effect was to enable large landowners who wished to increase their possessions to oust poor cultivators of the soil from their humble holdings.

On the other hand, under the statesmanlike management of Jose Yves Limantour, the Minister of Finance, the monetary situation at home and abroad was strengthened beyond measure, and banking interests were promoted accordingly.
Further, an act abolishing the alcabala, a vexatious internal revenue tax, gave a great stimulus to freedom of commerce throughout the country.

In order to insure a continuance of the new regime, the constitution was altered in three important respects.