contracted the new sewerage system for Santiago, and the water reservoir of Peñuelas, which still provides the water for Valparaíso. He faced his biggest problems in the area of monetary policy. The much-wanted return to the metallic conversion, to which he was opposed but which was favored by the parliamentary majorities, was shelved due to the threat of a war with Argentina. The delay of the measure until 1902 pushed the banking system to near collapse, forcing the government to issue and circulate paper money. Argentine problem The biggest problem that the administration had to face was on the international area. Chile and Argentina were on the brink of war, due to long-standing border disputes stemming from the peace treaty of 1881, the situation of the Puna de Atacama (a disputed territory formerly owned by Bolivia and claimed by both countries) and an ongoing naval arms race. President Errázuriz was avowedly pacifist, but at one point both countries got to the point of calling up their reserve soldiers. The final solution was to submit the problem to an arbitration by the King of England, the adjudication of which was not resolved until 1902, during the administration of Germán Riesco, President Errázuriz's cousin and successor. To celebrate the decision to arbitrate and avoid war, President Errázuriz and Argentinian President Julio Argentino Roca held an international meeting in the Strait of Magellan. This meeting, known as the , took place in front of the city of Punta Arenas on February 15, 1899. Succession controversy Like most presidents of the time, he became involved early in the election of his successor. The Liberal-Conservative Coalition that supported him went on to proclaim Germán Riesco, cousin and brother-in-law of President Errázuriz, as their candidate on March 8, 1901. The President responded in a public letter: [...] as I have the firm purpose of not intervening in any political campaign and I don't have or want to have any candidate, I am firmly resolved to prevent the participation of any member of this administration in the upcoming elections. Health problems and death Errázuriz's ill-health continued to plague him during all his period. Before his election, he already had had to travel to Germany in 1893 for treatment, and the death of his oldest son from tuberculosis in 1897 weakened him further. On June 11, 1900, he had to delegate his mandate to Elías Fernández Albano, the