then, it occurred in a slow way, until 1892. On January 20, 1891, Rui Barbosa stepped down as finance secretary to head two companies that were created during the Encilhamento and which he had partnership with Counselor Mayrink. General Deodoro da Fonseca resigned on 23 November of that year, during the 1st naval revolt, under imminent threat of deposition by the Republicans, represented by Vice President Floriano Peixoto, who "naturally" assumed the presidency. Aftermath The success of the new stage of economic development that Encilhamento was intended to be depended on being able to create an enabling environment for both the relocation of domestic savings and introduction of foreign investments. However, due to the extraordinary powers conferred to monetary authorities, the private interests in Encilhamento overtook the public interest. So, instead of a slow and steady promotion of development, economic growth, distribution of wealth, financial literacy & confidence; what occurred was an increase in concentration of wealth, overvaluation of profiteering at expense of productive activity, widespread bankruptcy, as well as ignorance and distrust regarding how politics and markets work, in addition to the geometric increase of debt and economic stagnation. The three main reasons for the failure of the movement as a lever for development are as follows: Lack of a broader statesman to coordinate, correct and adjust the process in its progress; The choice of politicians and financiers who led the process, as their personal interests overlapped the country one; The fascination with "get-rich-quick schemes", both by the monetary authorities of that time, who worked to benefit themselves, as well as by the crowd of average amateurs who acted more like daydreaming gamblers rather than sober speculators, hurting themselves by letting themselves be manipulated, helping to inflate a financial bubble, participating in the process without having the least vocation, knowledge and experience required to not neglect legal details and use personal trading strategies with proper risk and money managements, which would have prevented countless bankruptcies and their harmful consequences. Following the effects of the bust, came the usual period of "witch hunt" that lasted until 1895, when especially during the tenure of Floriano Peixoto, some prominent figures in the Encilhamento period had their assets frozen, seized and have been prosecuted publicly and administratively. Among these was Rui Barbosa, who had to go into exile in Europe. The legislation concerning financial markets in Brazil, in a vain attempt to control