Starting in 1878, the Chilean state increased the issuing of new banknotes (fiat currency) causing the Chilean peso to devaluate. When the War of the Pacific began in 1879 the government issued more fiat currency in order to afford the costly war, and continued to do so in 1880 and 1881. In 1881 the country prepared for a return to the gold standard and to gradually eliminate fiat currency. However, during the Chilean Civil War in 1891 the government of José Manuel Balmaceda issued more fiat money to finance this new war. By 1891 a dispute begun between those who supported a return to gold convertibility of money ("oreros") and those who opposed convertibility ("papeleros"). In 1892 the "oreros" succeeded in having the convertibility of currency approved by law and in December 1895 non-convertible legal tender was pulled out of circulation. In 1898 the convertible regime collapsed once again in the face of severe economic instability (crop failure, war scare) and was abolished. Issuing of fiat money then continued until 1907 but from there on currency was issued with convertibility to gold or saltpetre mining related legal titles.