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== Return to factions, 1865–75 == [[File:Cerro de Montevideo desde la ciudad. Año 1865 (no watermark).jpg|thumbnail|right|Montevideo in 1865]]With the inauguration of [[Venancio Flores]] as president of Uruguay, the fusionist policy ended, once again strengthening and separating the Blanco and Colorado factions. The Colorados ruled without interruption from 1865 until 1958 despite internal conflicts, conflicts with neighboring states, political and economic fluctuations, and a wave of mass [[Immigration to Uruguay|immigration]] from Europe.<ref>{{cite web|url=https://www.nytimes.com/2004/07/15/travel/uruguay.html|title=Uruguay|date=15 July 2004|publisher=The New York Times|website=www.nytimes.com|archive-url=https://web.archive.org/web/20231118233736/https://www.nytimes.com/2004/07/15/travel/uruguay.html|archive-date=18 November 2023|url-status=dead}}</ref><!--counted as dead to encourage readers to use the archived url which doesnt require registration--> In the 1860s Uruguay was going through a period of prosperity. Montevideo became a major economic center of the region. Thanks to its natural harbor, it became an [[entrepôt]], or distribution hub, for goods from Argentina, Brazil, and Paraguay. The towns of [[Paysandú]] and [[Salto, Uruguay|Salto]], both on the [[Uruguay River]], also experienced similar development.<ref>Raúl A. Molina (1948, 151-64) emphasizes the centrality of early-17th c. colonialist explorer Hernandarias de Saavedra in his choice of settlements, up to the present day. Discussed more recently in Gustavo Verdesio, [https://books.google.com/books?id=tnw7GmI2ZCgC Forgotten Conquests: Rereading New World History from the Margins] (Phila. PA: Temple University Press, 2001), ch. 3, "The Pacific Penetration." {{ISBN|9781566398343}}</ref> In addition, new neighborhoods emerged in the city and numerous buildings began to be built. In addition, the European immigration that had begun after the Civil War continued, and Villa Cosmópolis —current [[Villa del Cerro]]— expanded.<ref>{{Cite web |title=La villa convertida en barrio y en república {{!}} Municipio A |url=https://municipioa.montevideo.gub.uy/comunicacion/noticias/la-villa-convertida-en-barrio-y-en-republica |access-date=2024-02-08 |website=municipioa.montevideo.gub.uy}}</ref> The economy saw a steep upswing after the Civil War, above all in livestock raising and export. Between 1860 and 1868, the number of sheep rose from 3 to 17 million. The reason for this increase lay above all in the improved methods of husbandry introduced by European immigrants.<ref>Johan Martin Gerard Kleinpenning, [https://books.google.com/books?id=Yf4DAQAAIAAJ Peopling the Purple Land: A Historical Geography of Rural Uruguay, 1500-1915] (Amsterdam: Centrum voor Studie en Documentatie van Latijns Amerika, 1965/1995)</ref> In 1866 the country's first railway network was built.<ref>{{Cite web |title=Trains of Uruguay – Railway Wonders of the World |url=https://www.railwaywondersoftheworld.com/trains-uruguay.html |access-date=2022-06-26 |website=railwaywondersoftheworld.com}}</ref> The Italians set up the ''Camera di Commercio Italiana di Montevideo'' ({{literally|Italian Chamber of Commerce of Montevideo}}) which played a strategic role in trade with Italy and building up the Italian middle class in the city.<ref>See A. Beretta Curi (2002), [https://www.researchgate.net/publication/298654806_The_contribution_of_Italian_emigration_to_the_formation_of_urban_entrepreneurship_in_Uruguay_The_creation_of_the_Camera_di_Commercio_Italiana_di_Montevideo_1883-1933 La Camera di Commercio Italiana di Montevideo 1883–1933]. Montevideo: Camera de Commercio Italiana. Some translated to English (2009) as essay, The contribution of Italian emigration to the formation of urban entrepreneurship in Uruguay: The creation of the Camera di Commercio Italiana di Montevideo, 1883-1933</ref> The government of General [[Lorenzo Batlle y Grau]] suppressed the [[Revolution of the Lances]], which started in September 1870 under the leadership of [[National Party (Uruguay)|Blanco]] [[Timoteo Aparicio]].<ref name="loc-9" /> After two years of struggle, a peace agreement was signed on 6 April 1872 when a power-sharing agreement was signed giving the Blancos control over four out of the thirteen [[departments of Uruguay]]—[[Canelones Department|Canelones]], [[San José Department|San Jose]], [[Florida Department|Florida]], and [[Cerro Largo Department|Cerro Largo]]—and a guaranteed, if limited representation in Parliament.<ref name="loc-9">{{cite web |url=http://countrystudies.us/uruguay/9.htm |title=Caudillos and Political Stability (Chapter 9) |work=Uruguay: A Country Study |editor1=Rex A. Hudson |editor2=Sandra W. Meditz |year=1990 |publisher=Library of Congress Country Studies |location=Washington DC |access-date=23 February 2011}}</ref> This establishment of the policy of coparticipation represented the search for a new formula of compromise, based on the coexistence of the party in power and the party in opposition.<ref name="loc-9" />
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