was shot in the jaw. Faced with mounting health and economic problems, he resigned on 18 November 1886, and Tajes was then elected president. During this authoritarian period, the government took steps toward the organization of the country as a modern state, encouraging its economic and social transformation. Pressure groups (consisting mainly of businessmen, hacendados, and industrialists) were organized and had a strong influence on government. In a transition period during the Tajes Presidency, politicians began recovering lost ground and some civilian participation in government occurred. Immigration After the "Guerra Grande" there was a steady increase in the number of immigrants, which led to the creation of large Italian Uruguayan and Spanish Uruguayan communities. Within a few decades, the population of Uruguay doubled and Montevideo's tripled as most of the recent immigrants settled there. The number of immigrants rose from 48 percent of the population in 1860 to 68 percent in 1868. In the 1870s, a further 100,000 Europeans arrived, so that, by 1879, about 438,000 people were living in Uruguay, a quarter of them in Montevideo. Due to immigration, Uruguay's population reached one million in the early 20th century. Economy The economy saw a steep upswing after the "Guerra Grande", 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. In 1857, the first bank was opened: Montevideo's Banco Comercial. Three years later, a canal system was begun and the first telegraph line was set up. In 1868 rail links were built between the capital and the countryside. The Italians set up the Camera di Commercio Italiana di Montevideo (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. In 1896, the state bank, Banco de la Republica, was established. 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, both on the Uruguay River, also experienced similar development. Social Despite the dictatorships and political turmoil of the 19th century, a number of positive social davcnes nevertheless took place. A law of 1838 required “the deduction of one day’s pay per