New-York tribune., 1902-12-20

be given will be one of those on which the
tribunal of arbitration will be asked to pass
judgment
PRIVATE GUARANTEE SUGGESTED
The plan of having the payment of the award
of the arbitrators guaranteed by a banking
house or by a syndicate of bankers is again being
discussed, and the subject of conference
at the State Department this morning between
Secretary Hay. Ambassador Herbert and Sena-
tor Depew. who present on behalf of the
sslgmans There will be no objection on the
part of the State Department TO American
bankers undertaking to guarantee the payment
of the award. but il was said in the most posi-
tive and authoritative manner this afternoon
that the United States Government would not
guarantee such bankers against loss. on the
same authority it be said that it is extreme
ly improbable that any American bankers wish
ing to guarantee payment by Venezuela will
receive explicit assurances that the United
States Government will intervene in any way
with Venezuela to guard them against loss.
Such assurances would amount to practical
guarantee. They will however be pointed to
the long list of cases in which the United States
has sustained the claims OF It's citizens against
foreign nations and if they desire to undertake
the financing of The award they must trust to
the traditional policy of the government without
receiving any express pledges
1t is the view of some of the officials OF the
State Department that too much stress Is be-
ing placed by the allied European powers on
the necessity for an explicit financial guarantee.
They are disposed to believe that if award
should be made by The Hague tribunal it would
carry with IT so much weight that Venezuela
would be forced by the enlightened public opin-
ion of the civilized world to yield to whatever
arrangements might be necessary to insure the
payment of the award. and that the same en-
lightened public opinion would justify and sus-
tain any measures which might have TO be
adopted to enforce the award If Venezuela
should not yield willingly.
CONTROL OF vENEZUELA's FINANCES
While no exact estimate Of the total Of all
the claims against Venezuela is in the possess
sion of the State Department. it is believed that
their total Is so great that provision for their
payment would greatly embarrass the govern
ment Of the republic in meeting its running ex-
penses. and that the owners OF outstanding
Venezuelan bonds would also suffer heavy losses
from their shrinkage in value unless some pro-
vision should be made for taking care OF them
In connection with this subject provision for
foreign control of the finances Of the republic
has been suggested. and may be considered in
the negotiation of a basis for arbitration
agreement.
In these negotiations the European powers will
deal directly with the government OF the United
States Venezuela will hot be directly recognized
by them until the preliminary agreement has
been entered into. This is following the prece-
dent established in the Venezuelan boundary
controversy, when the negotiations we're con-
Quoted between the United States and Great
Britain and the heads Of treaty to be subse-
quently entered into between Great Britain and
Venezuela were arranged In this case Minister
Bowen has been clothed with full power act
for Venezuela. He will not. however. deal di-
rectly with the European governments. but will
keep the Venezuelan Government in touch with
the State Department, which will conduct the
negotiations which are expected to result in
agreement to submit all the points in COntrO-
versy The Hague tribunal for arbitration.
No confirmation OF the report that New
York syndicate. headed by j. & W. Seligman
& Co. had been formed for the purpose of float
ing an issue of Venezuelan bonds. which will
pay all outstanding Indebtedness. could be OBJ
TRIUMPHS OF 1902
Seldom If ever in any year of the history Of
the world have so many important events of uni
versaI interest taken place America, England.
Germany and France have each participated The
President of the United Stats welcomed and en-
tertained H r II. Prince Henry OF Prussia at the