There is no doubt that the first establishment of the Brazilian Republic was followed by measures of severe repression, not directed against the Royalists—for this party, to all intents and purposes, disappeared from existence as soon as the Emperor had left the shores of Brazil—but against the dissatisfied citizens who were clamouring against the autocratic methods pursued by the Government. Some definite accusations were shortly brought against the President. He was accused of several acts which much exceeded the authority vested in him; he was charged in particular with numerous deeds of tyranny, violence, and corruption.
Following on so many precedents of the kind in South America, Fonseca retaliated by the inauguration of more stringent methods than any which he had hitherto employed. A state of siege was declared in the capital, and Fonseca caused himself to be invested with every right and privilege of a dictator. These methods of terrorism he justified by the pretext of monarchical plots. Very soon, however, General Peixoto became prominent as a rival to the Presidency, and shortly a definite revolt arose in the State of Rio Grande do Sul; while in the far north the State of Para armed itself in preparation for the struggle against the central power.
The Navy declared itself against the Government. On November 23, 1891, the fleet, commanded by Custodio de Mello, took up its position in front of Rio de Janeiro, and actually fired a shot or two into the town. President Fonseca was now convinced that the powers against him were too strong to be successfully coped with; he resigned his office, and retired into private life, surviving his fall only by a few months, since he died in August of the following year.
Fonseca’s fall was due not only to the measures employed in the government of the country, but also to the financial state of Brazil at the time of his election. Reckless extravagance and unscrupulous handling of the public funds by the various political parties, together with a too liberal use of the printing-press for the purpose of turning out paper money when funds were needed, had caused a condition of affairs which was very near bankruptcy. This condition, moreover, was largely artificial, since Brazil is almost the first among the States of South America in the matter of natural resources and general aptitude for prosperity. Nevertheless, the costly wars carried on under the Monarchy had left a large burden for the Republic to manage, and in spite of the strictest economy, the people of the country found that the inauguration of the Republic did not bring about the establishment of so prosperous a paradise as they had hoped. Naturally, the blame for this fell upon Fonseca, and added itself to the autocratic methods of his government to render him unpopular.