The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-20

-Caracas AnxiOusly Awaiting Reply.
WASHINGTON. Dec. l9.-Enough has been
learned by the State Department Of the
views held by Germany. England and Italy
in regard to President Castro's offer TO ar
bitrate. to justify the Administration in
feeling encouraged over the outlook for
having Venezuela's differences with the
Powers referred for settlement to the perma-
| nent international tribunal OF arbitration
at The Hague. The European Governments
are now aware that such an arrangement
will be regarded with hearty approval BY
the United States
NO GUARANTEE, BUT A PROMISE OF AID
Meanwhile, the President and the Secre-
tary Of State are endeavoring to adjust
certain considerations. One OF these is the
important question Of a sufficient guarantee
that Venezuela will observe the obligations
which the tribunal may impose upon her.
Confirmation was given to-day to the
statement printed in THR SUN this morning
that the Seligmans had renewed their efforts
toward securing a guarantee by the United
States of the payment Of money loaned TO
Venezuela for the purpose OF meeting the
demands Of the European Powers. Az was
said in that stat ement the President adheres
TO his refusal to pledge this Governments
word that the persons who advance the loan
will suffer no loss. but he Ii willing To make
the concession Of using the good Offices Of
the United States to induce Venezuela to
meet her obligations 20 the Seligman synd-
cate should that course become necessary.
In other words, this Government has vir-
tually promised the agents for Che loan
syndicate that II Venezuela does not paw
interest or principal at the appointed times.
the diplomatic efforts Of the State Depart
ment will be directed to bringing about an
observance by the South American Republic
of its obligations.
The syndicate has been assured that an ar
rangement by it of plan whereby Venezuela
will be enabled to meet the demands OF her
European creditors, will be regarded by
the United States as a great public benefit
and display Of Of patriotic spirit.
II the syndicate has any representative
in Washington he is keeping very quiet
and has ehectually concealed his connection
with the loan proposal. One report had
IL that Senator Depew was acting as the
intermediary between the syndicate and
the Government. This grew out Of visit
paid 10y Senator Depew to Secretary Hay
to-day. The Senator denied that his bust
ness with Mr.. Hay had any connection with
the Venezuelan difficulties.
The fact that Benz amin F. Tracy OF Brook
Ign was guest at the Cabinet dinner
last night also brought his name into prom
inence in the same affair. Another guest at
this function, who has been suspected OF
being the mysterious envoy Of the peope
who have the money to assist Venezuela,
was Lyman j, Gage former Secretary OF
the Treasury He went back to New York
to-day.
ASswEIs TO ARBITRATION PROPOSAL.
Answers have been received by the State
Depart ment to the proposal transmitted to
Germany. England and Italy in behalf of
President Castro that their claims against
Venezuela be submitted to arbitration.
None of the European Governments alb
solutely accepts Castro's offer. England
expresses willingness to arbitrate IL certain
considerations, which are not regarded az
of very serious concern, can be arranged
Germany recognizes arbitration az a prn-
ciple, but insists on conditions precedent
to the acceptance Of Castro's proposal with
which it may be impossible for Venezuela
to comply. One Of these considerations il
the import ant matter of a guarantee that
Venezuela will pay the award made by the
arbitrator, and also that she will meet
regularly the interest payments on the
loan made by the Berlin Bank of Discount,
default Of which IL one of the reasons for
the application Of the present coercive
measures by Germany The Imperial
Government also wants an apology from
Venezuela for the attack by mob on the
German legation in Caracas.
The answer Of Italy is rather encourage
ing than otherwise. She expresses prefer
ence for a act Element through arbitration,
but. being he junior member of the Europ-
can partnership, will he guided by the atti-
tude Of England and Germany in the ar
duration proposal.
OUR ARGUMENT FOR ARBITRATION.
II is in the favorable disposition OF the
allies toward arbitration as n principle