As a result of his negotiations a "funding loan" was obtained, in return for which an equivalent amount in paper money was to be turned over for cancellation at a fixed rate of exchange.

Under this arrangement depreciation ceased for awhile and the financial outlook became brighter.
The election of Campos Salles to the presidency in 1898, as a reward for his success, was accompanied by the rise of definite political parties.

Among them the Radicals or Progressists favored a policy of centralization under military auspices and exhibited certain antiforeign tendencies.

The Moderates or Republicans, on the contrary, with Campos Salles as their candidate, declared for the existing constitution and advocated a gradual adoption of such reforms as reason and time might suggest.

When the latter party won the election, confidence in the stability of Brazil returned.
As if Uruguay had not already suffered enough from internal discords, two more serious conflicts demonstrated once again that this little country, in which political power had been held substantially by one party alone since 1865, could not hope for permanent peace until either the excluded and apparently irreconcilable party had been finally and utterly crushed, or, far better still, until the two factions could manage to agree upon some satisfactory arrangement for rotation in office.