The detachment of Peña from political parties had been expected to prove advantageous, but in practice this was not the case, for the President, having no party, had no supporters in the Congress, and matters approached a deadlock. At the beginning of 1895 the President found it impossible to induce the Congress to vote the Budget, and there was also a split in the Cabinet about the fate of two naval officers condemned for participation in the Santa Fé outbreak. Peña wished to confirm the death sentence; there was strong opposition, and Peña was probably glad of the excuse to resign and disappear from political life. This took place on January 21, 1895. The sentence upon the two officers was commuted to one of imprisonment.

He was succeeded by the Vice-President Uriburu, who had also been chosen on account of his neutrality; but he was more successful, and he had the powerful support of Roca and Pellegrini. During his first year of office it seemed probable that a foreign war would be added to all the other troubles of the Republic, for the boundary dispute with Chile was assuming a threatening attitude and continued to disturb public tranquillity for seven years. This subject can be treated more conveniently in the history of the next administration, when it was settled. In this year a boundary dispute with Brazil about the Misiones was settled by the arbitration of President Cleveland in favour of the latter country.[54]

Little progress in settling the nation's difficulties was made under Uriburu, but internal and external peace was maintained. In 1898 General Roca succeeded him as President, and it was generally felt that a man had appeared who was competent to steer the ship of State into smoother waters. He had been of great service during the troubles which had attended the resignation of Celman, and had kept the disorderly elements in check. He had, all through the troubles of ten years, been on the side of law and order, and he was practically the leader of a national party.

In May, 1898, the President in his message to Congress denounced judicial corruption, and the publicity which he gave to these abuses resulted in several improvements; but there is still much matter for adverse criticism in the administration of justice in Argentina. The improvements in Government methods led to gradual general improvement, which, however, was also the result of natural causes, and Argentina became undoubtedly the most prosperous country in South America. The fear of political disintegration has become a thing of the past, owing to the preponderance of the capital in wealth and influence, but neither Roca himself nor any other successor has been able to banish a serious evil from which Argentina suffers, and which, though not causing civil war on a large scale, brings about disquieting strikes and riots. This is due to defective methods of government. The President may be said to have been the "saviour of his country" in the sense that a weaker or dishonest man would probably have plunged the country into both domestic and foreign war, and neutralised all the progress of a generation. But he could not bequeath political capacity to his colleagues, nor could he eradicate many bad traditions of long standing.

His last work was the settlement of the boundary dispute with Chile. It is not necessary to go into the history of the subject previous to the Treaty of 1881. In the old Spanish days there had been uncertainty about the boundary, and during the existence of the two Republics the quarrel had never slept. "During the whole of its progress the Argentine Republic contended that her western boundary from north to south was the Cordillera de los Andes, and that, in consequence, she had dominion over all the territory eastward of the crest of the Cordillera, the greater part of the Straits of Magellan, and the whole of Tierra del Fuego. Chile on her part accepted the natural boundary of the Cordillera, to a great extent, but maintained that this boundary did not rule in the southern part of the continent; that in Patagonia the territory on both sides of the Andes were Chilian, from the Pacific to the Atlantic; that the Straits of Magellan were Chilian; and that Tierra del Fuego was also Chilian."[55]

The two Republics made a Treaty in 1881. They agreed that down to 52° S., i.e., to the Straits of Magellan, the boundary was to be the Cordilleras de los Andes. The line was to pass over the highest points of the watershed. The southern boundary was also determined. The Treaty represents a concession on the part of Chile, who gave up her extravagant claims to the east of Patagonia. But she still claimed that the line should follow the highest points in the watershed, while the Argentine Government insisted that the line should run from highest peak to highest peak.

This Treaty was ratified, but not carried out. In 1883 the Argentine Government informed its Ambassador at Santiago that the time had come to trace the boundary line. But procrastination is a South American characteristic, and the affair drifted on until, in 1888, a Convention was made. In accordance with the Treaty of 1881, this Convention appointed experts to trace the line. The matter, in fact, was one of great difficulty, for unfortunately it turned out that the watersheds and the highest summits did not coincide, and the experts disagreed hopelessly.

The question of the rivers had raised fresh obstacles, and the experts had brought matters to such a tangle that it was necessary in 1893 to draw up a Protocol to explain them further. The main principle which it fixed was that in case the high peaks of the Cordillera should be crossed by any river, that river should be cut by the boundary line. The experts continued their work, which was extremely arduous, for the boundary line ran through unexplored forests and mountains. But in 1895 feelings ran to a dangerous height in both countries, and the people of Argentina declared that the Chilians were assuming an aggressive attitude and were likely to attack them. They were made the more uneasy by the discovery that the army and stores had, like everything else, suffered from long years of misrule, and Congress voted fifty million gold dollars for military preparations. In July, 1898, a further controversy arose. The Puna de Atacama is a great salt waste of rugged tableland, volcanic, grassless, and inhospitable. Working from the north, the experts had found no great difficulty until they reached this savage territory. Here there was a deadlock, and the Chilians claimed the whole district. Possibly the belief that the disputed territory contained considerable borax deposits accentuated the quarrel, but the main source of it was national pride, for the majority of the Andine territory was of small value. The experts south of the Atacama waste proceeded more smoothly till they reached Patagonia. "Here,[56] indeed, the fundamental condition of identity between the "highest crest" and the "water parting" (or "divide," as it is called in North America), existed in full force, and no ground for dispute presented itself, the "main range" of the Andes being exceptionally well adapted by position and structure for an international boundary. It was the divergence of these two essential conditions in Patagonia which imperilled the peace of South America. The Patagonian rivers were found to flow from east to west right athwart, or transverse to, the general trend of the Andine mountain system from north to south. They were found to break across the great mountain masses, and to intersperse wide valleys, across which the boundary must either be carried from one mass of peaks to the next or else be made to skirt the indefinite edge of cordillera and pampas, where the two insensibly combine and where the rivers rise. A very little examination proved the incompatibility of "higher crests" with "water parting" as a fixed principle of demarcation in these parts."[57]

With this fruitful field of dispute before them it is not surprising that angry feelings were engendered, especially among the Chilians, who have narrow territory, and were unwilling to give up a square mile without a struggle. In August Chile despatched an ultimatum demanding arbitration, and Roca induced his Cabinet to assent to the demand.