General Roca entered upon his second presidential term in the beginning of 1898. One of his first acts was to intervene in Buenos Aires province and put an end to a deadlock between the governor and the Provincial Assembly. The boundary dispute with Chile, a question which, in spite of the earnest desire of both governments for peace, might at any time precipitate a ruinous war, was submitted for settlement by arbitration. W. J. Buchanan, the United States Minister at Buenos Aires, named as arbitrator for the northern frontier, quickly announced a decision which was promptly accepted by both parties. The more complicated southern frontier could not so easily be prepared for submission; a serious misunderstanding arose, and both countries felt compelled to spend large sums for armaments which they knew they could ill afford. Happily, a decision was at last rendered in 1902. No question now remains open which is likely to involve the external peace of Argentina. [Illustration: A RIVER ROAD IN ARGENTINA. [From a lithograph.]] Internal peace has not been menaced during General Roca's term. The commercial situation of the country has vastly improved. Immigration, which had largely ceased after 1890, has again risen to over a hundred thousand a year. Wheat exports rose from 4,000,000 bushels in 1897 to 61,000,000 in 1900. The total exports in 1899 were $185,000,000, twice as great per capita as the record export of the United States. There have been no issues of paper money, and the value of the currency has risen to forty cents. The government has established a new artificial par at a little more than this sum, and has begun accumulating a gold reserve. A resumption of specie payments is soon expected. Nevertheless the chief difficulties and preoccupations of the Roca administration have been with financial questions. A deficit of $70,000,000 had accumulated in the few years before 1898, and the interest on the immense public debt makes an equilibrium in the budget almost impossible. Many of the provincial governments have defaulted, and the national government has had to carry their burdens in addition to its own, to satisfy clamorous foreign creditors. In 1901 it was proposed to unify the debt, refunding the whole at a lower rate of interest, and specifically pledging certain sources of public income. This plan had the approval of the government, but the national pride was touched by the latter feature. The populace could not bear the idea of giving a sort of mortgage on the country. The passage of the bill by Congress was met with so many demonstrations of popular disapproval that it was abandoned. This change of front was accompanied by the formation of an alliance between the followers of General Mitre and those of General Roca.