Lacking, however, was any immediate indication that the Carías administration was destined to survive any longer than most of its predecessors. Shortly before Carías's inauguration, dissident Liberals, despite the opposition of Vicente Mejía, had risen in revolt. Carías had taken command of the government forces, obtained arms from El Salvador, and crushed the uprising in short order. Most of Carías's first term in office was devoted to efforts to avoid financial collapse, improve the military, engage in a limited program of road building, and lay the foundations for prolonging his own hold on power.
The economic situation remained extremely bad throughout the 1930s. In addition to the dramatic drop in banana exports caused by the depression, the fruit industry was further threatened by the outbreak in 1935 of epidemics of Panama disease (a debilitating fungus) and sigatoka (leaf blight) in the banana-producing areas. Within a year, most of the country's production was threatened. Large areas, including most of those around Trujillo, were abandoned, and thousands of Hondurans were thrown out of work. By 1937 a means of controlling the disease had been found, but many of the affected areas remained out of production because a significant share of the market formerly held by Honduras had shifted to other nations.
Carías had made efforts to improve the military even before he became president. Once in office, both his capacity and his motivation to continue and to expand such improvements increased. He gave special attention to the fledgling air force, founding the Military Aviation School in 1934 and arranging for a United States colonel to serve as its commandant.
As months passed, Carías moved slowly but steadily to strengthen his hold on power. He gained the support of the banana companies through opposition to strikes and other labor disturbances. He strengthened his position with domestic and foreign financial circles through conservative economic policies. Even in the height of the depression, he continued to make regular payments on the Honduran debt, adhering strictly to the terms of the arrangement with the British bondholders and also satisfying other creditors. Two small loans were paid off completely in 1935.
Political controls were instituted slowly under Carías. The Communist Party of Honduras (Partido Comunista de Honduras--PCH) was outlawed, but the Liberal Party continued to function, and even the leaders of a small uprising in 1935 were later offered free air transportation should they wish to return to Honduras from their exile abroad. At the end of 1935, however, stressing the need for peace and internal order, Carías began to crack down on the opposition press and political activities. Meanwhile, the National Party, at the president's direction, began a propaganda campaign stressing that only the continuance of Carías in office could give the nation continued peace and order. The constitution, however, prohibited immediate reelection of presidents.
The method chosen by Carías to extend his term of office was to call a constituent assembly that would write a new constitution and select the individual to serve for the first presidential term under that document. Except for the president's desire to perpetuate himself in office, there seemed little reason to alter the nation's basic charter. Earlier constituent assemblies had written thirteen constitutions (only ten of which had entered into force), and the latest had been adopted in 1924. The handpicked Constituent Assembly of 1936 incorporated thirty of the articles of the 1924 document into the 1936 constitution. The major changes were the elimination of the prohibition on immediate reelection of a president and vice president and the extension of the presidential term from four to six years. Other changes included restoration of the death penalty, reductions in the powers of the legislature, and denial of citizenship and therefore the right to vote to women. Finally, the new constitution included an article specifying that the incumbent president and vice president would remain in office until 1943. But Carías, by then a virtual dictator, wanted even more, so in 1939 the legislature, now completely controlled by the National Party, obediently extended his term in office by another six years (to 1949).
The Liberals and other opponents of the government reacted to these changes by attempting to overthrow Carías. Numerous efforts were made in 1936 and 1937, but all were successful only in further weakening the National Party's opponents. By the end of the 1930s, the National Party was the only organized functioning political party in the nation. Numerous opposition leaders had been imprisoned, and some had reportedly been chained and put to work in the streets of Tegucigalpa. Others, including the leader of the Liberal Party, Ángel Zúñiga, had fled into exile.
During his presidency, Carías cultivated close relations with his fellow Central American dictators, generals Jorge Ubico in Guatemala, Maximiliano Hernández in El Salvador, and Anastasio Somoza in Nicaragua. Relations were particularly close with Ubico, who helped Carías reorganize his secret police and also captured and shot the leader of a Honduran uprising who had made the mistake of crossing into Guatemalan territory. Relations with Nicaragua were somewhat more strained as a result of the continuing border dispute, but Carías and Somoza managed to keep this dispute under control throughout the 1930s and 1940s.
The value of these ties became somewhat questionable in 1944 when popular revolts in Guatemala and El Salvador deposed Ubico and Hernández. For a time, it seemed as if revolutionary contagion might spread to Honduras as well. A plot, involving some military officers as well as opposition civilians, had already been discovered and crushed in late 1943. In May 1944, a group of women began demonstrating outside of the Presidential Palace in Tegucigalpa, demanding the release of political prisoners. Despite strong government measures, tension continued to grow, and Carías was ultimately forced to release some prisoners. This gesture failed to satisfy the opposition, and antigovernment demonstrations continued to spread. In July several demonstrators were killed by troops in San Pedro Sula. In October a group of exiles invaded Honduras from El Salvador but were unsuccessful in their efforts to topple the government. The military remained loyal, and Carías continued in office.
Anxious to curb further disorders in the region, the United States began to urge Carías to step aside and allow free elections when his current term in office expired. Carías, who by then was in his early seventies, ultimately yielded to these pressures and announced October 1948 elections, in which he would refrain from being a candidate. He continued, however, to find ways to use his power. The National Party nominated Carías's choice for president--Juan Manuel Gálvez, who had been minister of war since 1933. Exiled opposition figures were allowed to return to Honduras, and the Liberals, trying to overcome years of inactivity and division, nominated Ángel Zúñiga, the same individual whom Carías had defeated in 1932. The Liberals rapidly became convinced that they had no chance to win and, charging the government with manipulation of the electoral process, boycotted the elections. This act gave Gálvez a virtually unopposed victory, and in January 1949, he assumed the presidency.
Evaluating the Carías presidency is a difficult task. His tenure in office provided the nation with a badly needed period of relative peace and order. The country's fiscal situation improved steadily, education improved slightly, the road network expanded, and the armed forces were modernized. At the same time, nascent democratic institutions withered, opposition and labor activities were suppressed, and national interests at times were sacrificed to benefit supporters and relatives of Carías or major foreign interests.