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 characterized the commotions in the latter； because of certain liberal provisions in the Constitution of 1907。 Peru； on the other hand； in 1915 guaranteed its people the enjoyment of religious liberty。
Next to the Tacna and Arica question； the dubious boundaries of Ecuador constituted the most serious international problem in South America。 The so…called Oriente region； lying east of the Andes and claimed by Peru； Brazil； and Colombia； appeared differently on different maps； according as one claimant nation or another set forth its own case。 Had all three been satisfied； nothing would have been left of Ecuador but the strip between the Andes and the Pacific coast； including the cities of Quito and Guayaquil。 The Ecuadorians； therefore； were bitterly sensitive on the subject。
Protracted negotiations over the boundaries became alike tedious and listless。 But the moment that the respective diplomats had agreed upon some knotty point； the Congress of one litigant or another was almost sure to reject the decision and start the controversy all over again。 Even reference of the matter to the arbitral judgment of European monarchs produced； so far as Ecuador and Peru were concerned； riotous attacks upon the Peruvian legation and consulates； charges and countercharges of invasion of each other's territory； and the suspension of diplomatic relations。 Though the United States； Argentina； and Brazil had interposed to ward off an armed conflict between the two republics and； in 1911； had urged that the dispute be submitted to the Hague Tribunal； nothing would induce Ecuador to comply。
Colombia was even more unfortunate than its southern neighbor； for in addition to political convulsions it suffered financial disaster and an actual deprivation of territory。 Struggles among factions； official influence at the elections； dictatorships； and fighting between the departments and the national Government plunged the country； in 1899； into the worst civil war it had known for many a day。 Paper money； issued in unlimited amounts and given a forced circulation； made the distress still more acute。 Then came the hardest blow of all。 Since 1830 Panama； as province or state； had tried many times to secede from Colombia。 In 1903 the opportunity it sought became altogether favorable。 The parent nation； just beginning to recover from the disasters of civil strife； would probably be unable to prevent a new attempt at withdrawal。 The people of Panama； of course； knew how eager the United States was to acquire the region of the proposed Canal Zone； since it had failed to win it by negotiation with Colombia。 Accordingly； if they were to start a 〃revolution；〃 they had reason to believe that it would not lack supportor at least； connivancefrom that quarter。
On the 3d of November the projected 〃revolution〃 occurred； on schedule time； and the United States recognized the independence of the 〃Republic of Panama〃 three days later！ In return for a guarantee of independence； however； the United States stipulated； in the convention concluded on the 18th of November； that； besides authority to enforce sanitary regulations in the Canal Zone； it should also have the right of intervention to maintain order in the republic itself。 More than once； indeed； after Panama adopted its constitution in 1904； elections threatened to become tumultuous； whereupon the United States saw to it that they passed off quietly。
Having no wish to flout their huge neighbor to the northward； the Hispanic nations at large hastened to acknowledge the independence of the new republic； despite the indignation that prevailed in press and public over what was regarded as an act of despoilment。 In view of the resentful attitude of Colombia and mindful also of the opinion of many Americans that a gross injustice had been committed； the United States eventually offered terms of settlement。 It agreed to express regret for the ill feeling between the two countries which had arisen out of the Panama incident； provided that such expression were made mutual； and； as a species of indemnity； it agree