The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-11-30
ATTITUDE AT WASHINGTON.
Government View of Venezuelan
Debt-Refunding Project.

WASHINGTON, Nov 29.-The appearance
in Washington Of 1. Seligman, a member
of New York financial house which has
engaged extensively in international syndi-
cation, taken in connection with the AS
ISOLATED Press dispatches printed in this
mornings paper relative TO Venezuelan
finances, was viewed in official circles here
to-day as indicating the existence of a
syndicate with the purpose of floating all
of Venezuela's many debts and thus avert
ing the imminent danger that country
now stands in of the seizure of her customs
houses by foreign powers. The assump-
ton is that the prospective syndicate
wishes to ascertain before closing a bar
gain with Venezuela whether or not the
United States will insure the meeting by
Venezuela of the obligations she would
assume in the matter of repayment of the
loan.
The United States government, it can be
stated on authority. is extremely DESTROYS
that Venezuela settle her troubles with
Great Britain, Germany and other foreign
countries without mourning the seizure OF
for it is realized that while the United
States could not consistently object TO the
seizure of Venezuelan customs houses by
a foreign power as means of collecting
just debts, this is regarded as the contin-
gency TO be avoided If possible, for il is
realized that serious friction might follow
between the foreigners and the Venezue-
lans and what in the beginning might be
declared to be merely temporary occupation
would end by claim of permanence, of
which the United States must take notice
and which il must contest. Therefore, if
any responsible body is willing to pay off
VeneZuela's foreign claims and relieve the
country of danger OF occupation such a
move would be welcomed by the State De-
partment. But it is known that the propo-
sition touching the guarantee by the
United States government of the syndi-
Gates Venezuelan loan would be unfavor-
ably considered. The Department of State
objects very strongly to giving any guar
antee of this kind and its official practice
has been to extend TO an American holding
foreign bonds such protestation as it would
accord to any other citizen, but allow him
10 bear the risk Of his venture holding
that he takes the bonds OF a foreign gov
eminent subject to the vicissitudes of that
government and cannot expect the United
that his speculation does not turn out as
well as he expected.
Mr. Seligman lost no time in bringing his
business to the attention of the government
here. and before noon he appeared at the
executive Office with Senator Hanna. and
promptly admitted to the Presidents
room. The conference did not last very
long and when he came away Mr.. Seligman
declined 10 make any statement as 10 the
reason for his call. beyond the remark that
IL was friendly visit 1t Is understood,
however. that he did sound the President
the line indicated above. and that the
President could not his way clear to
involve the United States in the financial
difficulties of the American republics that
might follow from the acceptance of Mr..
Seligman's proposition. IL may be that the
matter will later take a form that will
make il possible for the State Department
10 favorably entertain IL. AT any rate, Mr..
Seligman returned 10 his hotel from the
executive office. postponing a visit he had
projected to the State Department. and