[2] In 1864 he became secretary to Manuel Montt,[4] who was one of the representatives of the Chilean government at the general South American congress at Lima, and after his return obtained great distinction as an orator in the national assembly.

[citation needed] He was proclaimed a candidate to the presidency on the Odeon Theater of Valparaíso on January 17, 1886, with the support of the Nacional, Liberal and part of the Radical Parties.

On assuming office President Balmaceda endeavoured to bring about a reconciliation of all sections of the Liberal Party in Congress and so form a solid majority to support the administration, and to this end he nominated representatives of the different political groups as ministers.

The new president initiated an unparalleled policy of heavy expenditure on public works, school building, and the strengthening of the naval and military forces of the republic.

Contracts were given out to the value of £6,000,000 for the construction of railways in the southern districts; some $10,000,000 were expended in the erection of schools and colleges; three cruisers and two seagoing torpedo boats were added to the Navy; the construction of the naval port at Talcahuano was actively pushed forward; new armament was purchased for the infantry and artillery branches of the Army, and heavy guns were acquired for permanently and strongly fortifying the ports of Valparaíso, Talcahuano, and Iquique.

[5] In 1889 Congress became distinctly hostile to the administration of President Balmaceda, and the political situation became grave, and at times threatened to involve the country in civil war.

Balmaceda now found himself in the impossible position of being unable to appoint ministers that would be supported by a majority in the Senate and Chamber of Deputies and at the same time be in accordance with his policies.

At this juncture the President assumed that the constitution gave him the power of nominating and maintaining in office any ministers he might consider fitting persons for the purpose, and that Congress had no right of interference in the matter.

In response to the action of President Balmaceda, the vice-president of the Senate, Waldo Silva, and the president of the Chamber of Deputies, Ramón Barros Luco, issued a proclamation appointing Captain Jorge Montt as commander of the Navy, and stating that the Navy could not recognize the authority of Balmaceda so long as he did not administer public affairs in accordance with the constitutional law of Chile.

On 7 January Waldo Silva, Barros Luco, and a number of senators and deputies embarked on the Chilean warship "Blanco Encalada," accompanied by the "Esmeralda" and "O'Higgins" and other vessels, and sailed out of Valparaiso harbor and proceeded northwards to Tarapacá to organize armed resistance against the president, launching the civil war.

[5] On 23 May 1891, London Times correspondent in Chile Maurice Hervey alleged British intervention as having been key to the overthrow of Balmaceda, writing, "Beyond the possibility of contradiction, the instigators, the wire-pullers, the financial supporters of the so called revolution were and are the English or Anglo Chilean owners of the nitrate deposits of the Tarapacá.

"[6] After Balmaceda's forces were overwhelmed and destroyed in the Battle of La Placilla, it was clear that he could no longer hope to find a sufficient strength amongst his adherents to maintain himself in power, and in view of the rapid approach of the rebel army, he abandoned his official duties to seek an asylum in the Argentine legation.