The government in 1891 founded the Bank of the Nation and offered to the public a sub scription for $250,000,000, to be used as its cap ital. The public did not respond to any ex tent and the government only saved the situa tion by resorting again to the issue of fiat money. In 1892 the government founded the "Caja de (Exchange office) and in 1899 modified its organization, forming a reserve fund to change the bills in circulation at the price fixed by law of 44 cents, gold, to one peso, and pledging itself to set aside gold corresponding to this price for each new issue. See BANKING AND FINANCE.
Disquietude over the boundaries of Chile and the costs occasioned by it did not disap pear dill 1902, when the differences were re ferred to and settled by the King of England, followed by a treaty of partial disarmament, signed in Buenos Aires, in 1904, the only in stance of the kind in the history of peace, and which reflected great honor on both peoples.
The hard experience during a decade of complicity between some national and local leaders and European bankers which endan gered and discredited the country, and another decade of anxieties and expenses for the na tional defense, moved Argentine opinion to sustain the Calvo doctrine, proposed by Drago and upheld by the Argentine representative, in the Pan-American Congress at Rio de Janeiro, 1906, according to which the new nations have a right to repudiate the debts contracted with foreign banks which enter into treaties and plots with the reckless heads of government.
This was opposed to the Roosevelt doctrine according to which payments of debts con tracted by the agents of those in authority are to be coerced from the defrauded people.
The rare coincidence of the almost simul taneous disappearance of men who were most prominent in politics — ex-President Gen. Bartolome Mitre, ex-President Dr. Carlos Pel ligrini, President Dr. Manuel Quinta, ex-Gov. Dr. Barnardo Trigoyen — whose deaths oc curred in 1906, left the party of opposition without leaders, and the old political Unitary organization changed its name, substituting for it "The National Autonomistic Party," directed by ex-President Julio A. Roca.
In 1906 Dr. Figueroa Alcorta was elected President. Serious disturbances occurred dur ing the first week of May 1909, in consequence of labor troubles and anarchist agitation. On 13 March 1910 Dr. Roque Sienz Peria was the successful candidate for the presidency. Two months later Buenos Aires was thrown into great confusion by an attempt to call out a general strike. The 100th anniversary of the birth of the nation was celebrated 25 May. Dip lomatic relations between Argentina and Bo livia, which had been interrupted as a result of boundary disputes, were resumed in January 1911, through the good offices of the United States. In November 1913 Colonel Roosevelt,
ex-President of the United States, visited the Argentine Republic. On 9 Feb. 1914 the min istry resigned, after President Sienz Peria, who had been ill for a long time, turned over his functions to the Vice-President, Dr. Vic torino de la Plaza. On 25 April, four days after the United States had inaugurated hos tilities at Vera Cruz, diplomatic representatives at Washington, D. C., of the °A. B. C." pow ers, Argentina, Brazil, and Chile, offered to act as mediators between the American and Mexi can governments. (See MEXICO - HISTORY). In 1915 the first actual treaty between Argen tina, Brazil, and Chile, signed at Buenos Aires 25 May, provided for five years of peace be tween the three nations, during which time each of said nations was pledged not to make war on either of the others until the causes of con flict should have been investigated and reported upon by an impartial commission. Independ ence Day was celebrated with special ceremo nies — that being the centenary — on 9 July 1916. Argentina, after more than 80 years of distracted political life hindering its develop ment, has succeeded in the last 25 years in es tablishing its prominence among the young na tions and in bringing to itself immigrants from the European races. On 12 June 1916 Hipolito Irigoyen was elected to the Presidency. His administration was at once confronted with a national problem, which arose from the sinking of Argentine vessels by Germany. On 16 April 1917 a mob attacked the German Legation and Consulate and the offices of German journals in Buenos Aires in retaliation for the ruthless destruction of Argentine shipping and com merce. A protest was made by Germany which was answered in a conciliatory tone by Argen tina, who at the same time sought guarantees for the safety of her merchant shipping in the war zone. Many times in the course of the following months diplomatic relations were strained to the breaking point, hut a crisis was reached in September 1917, when the Depart ment of State of the United States made public dispatches from Count Luxburg, German Min ister at Buenos Aires, to his government, in which he advised °sinking without leaving a trace" of Argentine vessels. The Argentine people, now thoroughly aroused, demanded the prompt severing of relations with Germany and late in September the lower house by a sub stantial majority and the Senate almost unani mously (23 to 1) voted to sever diplomatic relations with Germany. Meanwhile Germany recalled Luxburg and he was given his pass ports. For subsequent developments see LATIN