This tension and anomalous condition lasted for several months. As the term for which Henriquez had been elected drew to a close, it became evident that he had no idea of retiring from the presidency, but, on the contrary, intended to hold general elections, in which he expected to be the successful candidate. The deadlock thus threatened to continue indefinitely, and the American government thereupon determined to cut the Gordian knot.
On November 29, 1916, Captain (later Rear-Admiral) H. S. Knapp, of the United States navy, commander of the American cruiser force in Dominican waters, and of the forces of occupation of the Dominican Republic, issued a proclamation, declaring the Dominican Republic under the military administration of the United States. The proclamation recited that the Dominican Republic had failed to live up to the terms of the treaty of 1907; that the American government had patiently endeavored to aid the Dominican government, but that the latter was not inclined or able to adopt the measures suggested, wherefore the American government believed the time at hand to take steps to assure the execution of said Convention and to maintain domestic tranquillity in the Republic. He therefore declared that the Dominican Republic was placed in a state of military occupation by the forces under his command; that the object of the occupation was not to destroy Dominican sovereignty, but to restore order; that Dominican laws were to continue in effect so far as they did not conflict with the objects of the occupation or the decrees of the military government; that the Dominican courts were to continue in their functions, except that offenses against the military government were to be judged by military courts; and that all the revenues of the Dominican government were to be paid over to the military government, which would administer the same. He called on all inhabitants to cooperate with the forces of the United States.
The military government so established took full possession of the country. The chiefs of the executive departments not having appeared in their offices, their posts were declared vacant and filled with officers of the American navy. In the country at large, there was little open opposition, and such as appeared was suppressed without difficulty. The inhabitants quickly reconciled themselves to the situation, realizing that it was to the best interests of their country. Dr. Henriquez, the ex-president, left for Cuba in the early part of December.