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Of the leading principle of Francia’s political system we have already spoken. It had been the policy of the old Jesuit missions to isolate the people and keep them in strict obedience to the priesthood, and Francia adopted a similar policy. Anarchy prevailed without, he said, and might penetrate into Paraguay. Brazil, he declared, was seeking to absorb the country. With these excuses he forbade, under the severest penalties, intercourse of any character between the people of Paraguay and those of neighboring countries and the entry of any foreigner to the country under his rule.

In 1826 he decreed that any one who, calling himself an envoy from Spain, should dare to enter Paraguay without authority from himself should be put to death and his body denied a burial. The same severe penalty was decreed against any native who received a letter speaking of political affairs and did not at once present it to the public tribunals. These rigid orders were probably caused by some mysterious movements of that period, which made him fear that Spain was laying plans to get possession of the country.

In the same year the dictator made a new move in the game of politics. He called into being a kind of national assembly, professed to submit to its authority, and ratified a declaration of independence. Just why this was done is not very clear. Certain negotiations were going on with the Spanish government, and these may have had something to do with it. At any rate, a timely military conspiracy was just then discovered or manufactured, a colonel was condemned to death, and Francia was pressed by the assembly to resume his power. He consented with a show of reluctance, and only, as he said, till the Marquis de Guarini, his envoy to Spain, should return, when he would yield up his rule to the marquis. All this, however, was probably a mere dramatic move, and Francia had no idea of yielding his power to any one.

The dictator had a policy of his own–in fact, a double policy, one devoted to dealing with the land and its people; one to dealing with his enemies or those who questioned his authority. The one was as arbitrary, the other as cruel, as that of the tyrants of Rome.

The crops of Paraguay, whose wonderful soil yields two harvests annually, were seized by the dictator and stored on account of the government. The latter claimed ownership of two-thirds of the land, and a communal system was adopted under which Francia disposed at will of the country and its people. He fixed a system for the cultivation of the fields, and when hands were needed for the harvest he enlisted them forcibly. Yet agriculture made little progress under the primitive methods employed, a broad board serving for a plough, while the wheat was ground in mortars, and a piece of wood moved by oxen formed the sugar-mill. The cotton, as soon as picked from the pods, was spun on the spinning-wheel, and then woven by a travelling weaver, whose rude apparatus was carried on the back of an ox or a mule, and, when in use, was hung from the branch of a tree.

Commerce was dealt with in the same way as agriculture. The market was under Francia’s control, and all exchange of goods was managed under rules laid down by him. He found that he must open the country in a measure to foreign goods, if he wanted to develop the resources of the country, and a channel of commerce was opened on the frontier of Brazil. But soldiers vigilantly watched all transactions, and no one could act as a merchant without a license from him. He fixed a tariff on imports, kept them in a bazaar under military guard, and sold them to the people, limiting the amount of goods which any of his subjects could purchase.

As a result of all this Francia brought about a complete cessation of all private action, the state being all, and he being the state. All dealing for profit was paralyzed, and agriculture and commerce alike made no progress. On the other hand, everything relating to war was developed. It was his purpose to cut off Paraguay completely from foreign countries, and to be fully prepared to defend it against warlike invasion.