Some Marxist groups have also looked to Alfaro; although his political program was in no way socialist, it did prove to be revolutionary in the extent to which it stripped the Roman Catholic Church of the power and privileges previously granted to it by García Moreno.
A fullfledged bloodbath may well have been averted only through the magnanimous efforts of the outstanding historian and Archbishop Federico González Suárez, who urged the clergy to abandon the pursuit of politics.
These and other limited social benefits gained by the Native Ecuadorians and the mixed-blood montuvio (coastal mestizo) working class were overshadowed by the ruinous economic decline worldwide and the severe repression of the nascent labor movement at the hands of the Liberals during the early 1920s.
Alfaro and a second military strongman, General Leónidas Plaza Gutiérrez, maintained a bitter rivalry over party leadership for almost two decades.
Alfaro returned from his exile in Panama to lead the Guayaquil garrison in its challenge to the Quito-based interim government, which was under the military authority of General Plaza.
It was not only the political fortunes of the party that fell victim to their financial activities, however, but also the national economy, which experienced runaway inflation as a result of the printing of money by the private banks.
With real wages, for those lucky enough to have jobs, eaten away by inflation, workers responded with a general strike in Guayaquil in 1922, and a peasant rebellion in the central Sierra the following year.
Popular unrest, together with the ongoing economic crisis and a sickly president, laid the background for a bloodless coup d'état in July 1925.