Whenever a political flurry did take place, American marines were employed to preserve the peace.

Many citizens, therefore, declined to vote, on the ground that the moral and material support thus furnished by the great nation to the northward rendered it futile for them to assume political responsibilities.
Meanwhile negotiations began which were ultimately to make Nicaragua a fiscal protectorate of the United States.

American officials were chosen to act as financial advisers and collectors of customs, and favorable arrangements were concluded with American bankers regarding the monetary situation; but it was not until 1916 that a treaty covering this situation was ratified.

According to its provisions, in return for a stipulated sum to be expended under American direction, Nicaragua was to grant to the United States the exclusive privilege of constructing a canal through the territory of the republic and to lease to it the Corn Islands and a part of Fonseca Bay, on the Pacific coast, for use as naval stations.

The prospect of American intervention alarmed the neighboring republics.