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Early History through U.S. Occupation
The country probably takes its name from Nicarao, the leader of an indigenous community inhabiting the shores of Lake Nicaragua that was defeated in 1522 by the Spanish under Gil GonzAlez de Avila. Under Spanish rule Nicaragua was part of the captaincy general of Guatemala. After declaring independence from Spain (1821), Nicaragua was briefly part of the Mexican Empire of AgustIn de Iturbide and then (1825–38) a member of the Central American Federation. Nicaraguan politics were wracked by conflict between Liberals and Conservatives, centered respectively in LeOn and Granada; Managua was founded as the capital in 1855 as a compromise. British influence had been established along the east coast in the 17th cent., and in 1848 the British seizure of San Juan del Norte opened a period of conflict over control of the Mosquito Coast.
The United States was interested in a transisthmian canal (see Nicaragua Canal), and its interest was heightened by the discovery of gold in California. In 1851, Cornelius Vanderbilt opened a transisthmian route through Nicaragua for the gold seekers. The Clayton-Bulwer Treaty (1850) settled some of the issues between Great Britain and the United States concerning the proposed canal, but Nicaragua remained in a state of disorder that culminated in the temporary triumph (1855–57) of the filibuster William Walker.
After Walker's defeat there was a long period of quiet under Conservative control until the Liberal leader, JosE Santos Zelaya, became president in 1894. He instituted a vigorous dictatorship, extended Nicaraguan authority over the Mosquito Coast, promoted economic development, and interfered in the affairs of neighboring countries. His financial dealings with Britain aroused the apprehension of the United States and helped bring about his downfall (1909).
In 1912, U.S. marines were landed to support the provisional president, Adolfo DIaz, in a civil war. The Bryan-Chamorro Treaty, giving the United States exclusive rights for a Nicaraguan canal and other privileges, was ratified in 1916. (It was terminated in 1970.) The Liberals opposed the U.S. intervention, and there was guerrilla warfare against the U.S.-supported regime for years. American occupation ended in 1925 but resumed the next year, when Emiliano Chamorro attempted to seize power. Augusto CEsar Sandino was a leader of the anti-occupation forces. The U.S. diplomat Henry L. Stimson succeeded in getting most factions to agree (1927) to binding elections, although Sandino continued to fight.
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