The herald and news. [volume] (Newberry S.C.) 1903-1937, 1916-07-11

First Chiefs Poverty coming t"
Front as Reason Why He Should
Above All Things Avoid Break
With America.

Washington, July 6.-The de facto
government of Mexico was informalIE
notified tonight through Eliseo Ar
redondo, ambassador designate, that
the United States welcomed Gen. Car
ranza's proposal to adjust all pending
differences between the two govern
ments by direct diplomatic negotia-
tions.
Mr. Arredondo was informed Of the
american governments attitude in
conversation today with Secretary
Lansing after the latter had confer
red with President Wilson. Later
formal note will confirm the ambas-
sador's report.
Immediately after the cabinet meet
ing tomorrow Secretary Lansing
plans to leave for months vacation.
Counselor Polk will administer the
affairs of the state department in his
absence and meet Mr. Arredondo in
the informal discussions at which
solution of the Mexican problems
will be sought.
Chance for Adjustment.
It was evident at the state depart
ment today that officials believe an
onnortunity now has been presented
out of which may come means Of
giving the de facto government ma
terfial aid in restoring order through
out Mexico. 1t is known that the
pacific nature of the Mexican note
which brought the crisis, between the
governments to an end is construed
here as indicating that Gen. Carranza,
besides being impressed by American
military preparations, has been deep
~ Influenced by friends in the United
States, by European diplomats in
Mexico City, and particularly by rep
resentatives of many of the Latin
American powers.
While the INN iiate purpose Of the
negotiations in which Secretary Lam
sings note is to be the first step will
DE the evolution of some plan for
tranquilizing the border regions, the
discussions may take on a wider
scope. There is little doubt that MIR.
Arredendo received the impression
from Secretary Lansing today that II
adequate guarantees as to the secur-
ity of American and other foreign
interests in Mexico could be secured,
the Washington government believes
it possible that the financial aid so
greatly needed by the de facto au-
4horities could be found.
Has No Money Now.
Some time ago, it is understood, a
suggestion that the washington gov
ernment would encourage American
bankers to go to the rescue of the de
facto government was made through
indirect channels. At that time Gen.
aCarranza had not felt the pinch of
poverty which now threatens his gov
ernment with collapse. He rejected
the suggestion, as he believed he
could restore financial stability with
out foreign aid and was understood
TO have been actuated by a desire to
leave himself free of any obligations
in this regard.
Events clearly have proved the
failure of the first chiefs hope to re-
establish orderly government unaid-
ed. ofhcials here believe, and with the
war abroad shutting Off every other
source of assistance, he is thought
now to be ready to make proper
guarantees to secure American capi-
tai.
Counselor Polk conferred late to-
day with Henry p. Fletcher, designat-
Led to be ambassador to Mexico, and
Paul M. Warburg of the federal re
serve board. The object of the meet
ing was not disclosed but great sig
nifcance was attached to it as sindi-
eating that the state department had
found it convenient just at this time
to inquire as to the probable attitude
of American bankers and as to the
disposition of the federal reserve
board itself toward lending such aid
as might be in its power to the Mexi-
can government
Kept a Secret.
No statement could be obtained as
to the nature of the financial project
that may be in contemplation. Mr..
Warburg's advice probably would be