The party originated in the pre-independence Cacos group, who were in favour of a free market economic system.
[5] It became the ruling party of the Federal Republic of Central America in 1830 when Francisco Morazán became president.
However, a civil war led to the dissolution of the federation and the Conservative Party taking power in Guatemala.
A series of Liberal presidents followed, including Manuel Estrada Cabrera, who ruled from 1889 until 1920 when Congress declared him insane,[5] and elected the Unionist Party's Carlos Herrera y Luna as his replacement.
However, the party regained power in 1921 when José María Orellana removed President Carlos Herrera from office.