The silver market dropped sharply in 1898, hurting Bolivia's income.
The entire mining business was in decline as a result of destruction, flooding, and abandonment of mines. Lack of investment and insufficiency of labor contributed to a pointy drop by silver production. Agricultural production was low, and Bolivia had to import food, even the essential staples consumed by the Indian population. the government had serious money difficulties as a result of the massive military expenditures and debt payments to the Republic of Peru as compensation for the military of liberation. of these issues were aggravated by the isolation of the new republic from the skin world and therefore the difficulties of securing its borders.