Although internal disturbances may continue to arise from time to time, the position of Uruguay is now undoubtedly consolidated to a far greater extent than has ever been the case in former years. The nation that sprang into being at the commencement of the nineteenth century had to contend with indefinite frontiers at the best of times, and with the frequent waves of turbulence that swept inwards over the land from the greater centres of disturbance without its borders. Now for many decades an undisturbed peace has characterised the foreign affairs of the nation, and such differences as have occurred from time to time with the neighbouring republics have been settled in an essentially pacific and reasonable spirit. A striking instance of this has occurred quite recently in the case of the vexed question concerning the delimitation of neutral waters in the River Plate. The rights affecting a great inland and international highway are naturally most delicate and difficult to adjust, as the past history of the entire river system here has proved on numerous occasions. In this particular instance had either Uruguay or Argentina shown any other but a fair and conciliatory spirit, the consequences cannot fail to have been serious in the extreme. As it was, the dispute was brought to a satisfactory and amicable conclusion, much to the credit of the respective diplomatists concerned. For many years now the policy of the Banda Oriental Government has been practical and deliberate. In matters of finance extreme caution has been exercised, and economy in expenditure has been rigid. The result is now evident in the very favourable financial position of the Republic, since it is now endowed with more solid monetary sinews than has ever been the case before. The nation, moreover, is free from any excessive expenditure on its army and navy. Both branches of the service are on a small scale, and in this moderation Uruguay is undoubtedly wise; since, although the race possesses its fighting instincts to the full, the population and resources of the Republic would not allow it to compete either in numbers, guns, or ships with the armies of the neighbouring countries, or with the great naval armaments that are being brought together.