The Liberal Party was established by Policarpo Bonilla in January 1891 in order to oppose president Luis Bográn. At its founding congress, Bonilla was selected as the party's presidential candidate.[1] Bográn subsequently founded the National Party later in January, which consisted of moderate liberals and supporters of former president José María Medina.[1] However, he did not run for re-election. In February the Progressive Party was established, with Ponciano Leiva as its presidential candidate.[1]
During the campaign, Bonilla called for the granting of women's suffrage.[1] However, his campaign was disrupted by the government invoking emergency powers on the pretext of an uprising.[1]