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e matter was referred to the King of Great Britain for decision。 Though the award was a compromise； Chile was the actual gainer in territory。
By their treaties of 1902 both republics declared their intention to uphold the principle of arbitration and to refrain from interfering in each other's affairs along their respective coasts。 They also agreed upon a limitation of armamentsthe sole example on record of a realization of the purpose of the First Hague Conference。 To commemorate still further their international accord； in 1904 they erected on the summit of the Uspallata Pass； over which San Martin had crossed with his army of liberation in 1817； a bronze statue of Christ the Redeemer。 There； amid the snow…capped peaks of the giant Andes； one may read inscribed upon the pedestal： 〃Sooner shall these mountains crumble to dust than Argentinos and Chileans break the peace which at the feet of Christ the Redeemer they have sworn to maintain！〃 Nor has the peace been broken。
Though hostilities with Argentina had thus been averted； Chile had experienced within its own frontiers the most serious revolution it had known in sixty years。 The struggle was not one of partisan chieftains or political groups but a genuine contest to determine which of two theories of government should prevailthe presidential or the parliamentary； a presidential autocracy with the spread of real democracy or a congressional oligarchy based on the existing order。 The sincerity and public spirit of both contestants helped to lend dignity to the conflict。
Jose Manuel Balmaceda； a man of marked ability； who became President in 1886； had devoted much of his political life to urging an enlargement of the executive power； a greater freedom to municipalities in the management of their local affairs； and a broadening of the suffrage。 He had even advocated a separation of Church and State。 Most of these proposals so conservative a land as Chile was not prepared to accept。 Though civil marriage was authorized and ecclesiastical influence was lessened in other respects； the Church stood firm。 During his administration Balmaceda introduced many reforms； both material and educational。 He gave a great impetus to the construction of public works； enhanced the national credit by a favorable conversion of the public debt； fostered immigration； and devoted especial attention to the establishment of secondary schools。 Excellent as the administration of Balmaceda had been in other respects； he nevertheless failed to combine the liberal factions into a party willing to support the plans of reform which he had steadily favored。 The parliamentary system made Cabinets altogether unstable； as political groups in the lower house of the Congress alternately cohered and fell apart。 This defect； Balmaceda thought； should be corrected by making the members of his official family independent of the legislative branch。 The Council of State； a somewhat anomalous body placed between the President and Cabinet on the one side and the Congress on the other； was an additional obstruction to a smooth…running administration。 For it he would substitute a tribunal charged with the duty of resolving conflicts between the two chief branches of government。 Balmaceda believed； also； that greater liberty should be given to the press and that existing taxes should be altered as rarely as possible。 On its side； the Congress felt that the President was trying to establish a dictatorship and to replace the unitary system by a federal union； the probable weakness of which would enable him to retain his power more securely。
Toward the close of his term in January； 1891； when the Liberals declined to support his candidate for the presidency； Balmaceda； furious at the opposition which he had encountered； took matters into his own hands。 Since the Congress refused to pass the appropriation bills； he declared that body dissolved and proceeded to levy the taxes by decree。 To this arbitrary and altogether unconstitutional performance the Congress retorted by declaring the President deposed。 Civil war broke out forthwith； and a strange spectacle presented itself。 The two chief cities； Santiago and Valparaiso； and most of the army backed Balmaceda； whereas the country districts； especially in the north； and practically all the navy upheld the Congress。
These were； indeed； dark days for Chile。 During a struggle of about eight months the nation suffered more than it had done in years of warfare with Peru and Bolivia。 Though the bulk of the army stood by Balmaceda； the Congress was able to raise and organize a much stronger fighting force under a Prussian drillmaster。 The tide of battle turned； Santiago and Valparaiso capitulated； and the presidential cause was lost。 Balmaceda； who had taken refuge in the Argentina legation； committed suicide。 But the Balmacedists； who were included in a general amnesty； still maintained themselves as a party to advocate in a peaceful fashion the principles of their fallen leader。
Chile had its reputation for stability well tested in 1910 when the executive changed four times without the slightest political disturbance。 According to the constitution； the officer who takes the place of the President in case of the latter's death or disability； though vested with full authority； has the title of Vice President only。 It so happened that after the death of the President two members of the Cabinet in succession held the vice presidency； and they were followed by the chief magistrate； who was duly elected and installed at the close of the year。 In 1915； for the first time since their leader had committed suicide； one of the followers of Balmaceda was chosen Presidentby a strange coalition of Liberal…Democrats； or Balmacedists； Conservatives； and Nationalists； over the candidate of the Radicals； Liberals； and Democrats。 The maintenance of the parliamentary system； however； continued to produce frequent alterations in the personnel of the Cabinet。
In its foreign relations； apart from the adjustment reached with Argentina； Chile managed to settle the difficulties with Bolivia arising out of the War of the Pacific。 By the terms of treaties concluded in 1895 and 1905； the region tentatively transferred by the armistice of 1884 was ceded outright to Chile in return for a seaport and a narrow right of way to it through the former Peruvian province of Tarapaca。 With Peru； Chile was not so fortunate。 Though the tension over the ultimate disposal of the Tacna and Arica question was somewhat reduced； it was far from being removed。 Chile absolutely refused to submit the matter to arbitration； on the ground that such a procedure could not properly be applied to a question arising out of a war that had taken place so many years before。 Chile did not wish to give the region up； lest by so doing it might expose Tarapaca to a possible attack from Peru。 The investment of large amounts of foreign capital in the exploitation of the deposits of nitrate of soda had made that province economically very valuable； and the export tax levied on the product was the chief source of the national revenue。 These were all potent reasons why Chile wanted to keep its hold on Tacna and Arica。 Besides； possession was nine points in the law！
On the other hand； the original plan of having the question decided by a vote of the inhabitants of the provinces concerned was not carried into effect； partly because both claimants cherished a conviction that whichever lost the election would deny its validity； and partly because they could not agree upon the precise method of holding it。 Chile suggested that the international commission which was selected to take charge of the plebiscite； and which was composed of a Chilean； a Peruvian； and a neutral； should be presided over by the Chilean member as representative of the country actually in possession； whereas Peru insisted that the neutral should act as chairman。 Chile proposed also that Chileans； Peruvians； and foreigners resident in the area six months before the date of the elections should vote； provided that they had the right to do so under the terms of the constitutions of both states。 Peru； on its part； objected to the length of residence； and wished to limit carefully the number of Chilean voters； to exclude foreigners altogether from the election； and to disregard qualifications for the suffrage which required an ability to read and write。 Both countries； moreover； appeared to have a lurking suspicion that in any event the other would try to secure a majority at the polls by supplying a requisite number of voters drawn from their respective citizenry who were not ordinarily resident in Tacna and Arica！ Unable to overcome the deadlock； Chile and Peru agreed in 1913 to postpone the settlement for twenty years longer。 At the expiration of this period； when Chile would have held the provinces for half a century； the question should be finally adjusted on bases mutually satisfactory。 Officially amicable relations were then restored。
While the political situation in Bolivia remained stable； so much could not be said of that in Peru and Ecuador。 If the troubles in the former were more or less military； a persistence of the conflict between clericals and radicals character