Indeed, his became one of the most accommodationist voices in the political spectrum, perhaps as a result of his extensive business connections to Chile, where he sold much of his silver, invested his profits, and sought financing for his projects.

[2][3][6] Despite this minority position, what rang more clearly in the ears of most Bolivians was Arce's steadfast call for the establishment of a conservative democratic order, with the primacy of law, regular elections, and rule by enlightened pro-business elites such as himself.

[11] Arce's pro-Chile stance clashed with those of the patriotic President and retired General, who favored rearmament and a sustained diplomatic offensive against Chile, perhaps leading to a mediation of the conflict and if not, to a reinsertions of Bolivian troops in Peru's aid.

[2][5] Arce, as explained, favored a "realistic" policy of recognition that Bolivia had indeed lost its access to the Pacific, and that the best that could be done was to reach a modus vivendi with Santiago (which had the upper hand), even if this meant abandoning the hitherto sacrosanct alliance with Lima.

[3] Even more so than Pacheco, Arce ruled repressively, but also consolidated many advances, including the completion of the first intra-Bolivian railway (leading from the Chilean border to Oruro) and the electrification of a number of Bolivian cities.

[12] Unabashedly pro-capitalist, devoted to practically unrestricted free entrepreneurship in the English tradition, and pro-insertion into the international economy under the aegis of foreign investment, he faced many pro-Liberal rebellions but somehow managed to hold on to power by the force of his assertive personality.

Finding the party he founded demoralized, vilified, and acephalous, the combative Arce accepted the difficult challenge of running against the officially supported, popular Liberal candidate Ismael Montes.

He is best remembered for his assertive temperament and firm stance in favor of a civilian democratic (although oligarchic) order and for having laid the foundation for the functioning of a modern party system in the country.