The Prescott daily news., 1916-07-07
UNCLE SAM ACCEPTS
 OFFER OF MEXICO
CarranZa Told That Direct Ne gOtiatiOnS Preferred-If Mex icO Guarantees Our Interest We will Help Her.

ally HoCIlleu lOilSHI, through EllSe0 Arredondo, ambassador designate, that the United States welcomed Gen. Carranza's proposal to adjust all pending differences between the two governments by direct diplomatic ne- gotiations.
 MT. Arredondo was informed of the American governments attitude in a conversation today with Secretary Lansing after the latter had conferred with President Wilson. Later a formal note will confirm the ambas- sador's report. Mr. Lansing virtu- ally had completed the communica- tion tonight, but it may be read to | livered
 Immediately after the cabinet meet | ing Secretary Lansing plans to leave | for months vacation. Counsellor Polk will administer the affairs of the State Department in his absence and meet Mr. Arredondo in the informal discussion at which a solution of the Mexican problem will be sought.
 It was evident at the State Depart ment tonight that officials believe an opportunity has now been presented out of which may come a means of giving the de facto government ma terial aid in restoring order through out Mexico. It is known that the pacific nature of the Mexican note which brought the crisis between the i governments to an end, is construed here as indicating that Gen. Car ranza, besides being impressed by ] American military preparations, has been deeply influenced by the pressure and argument brought to bear on him l by friends in the United States, by European diplomats in Mexico City and particularly by representatives of many of the Latin American powers The latter have eXerted themselves to the utmost to avert war and to foster in Gen. Carranza's mind the idea of Pan-American unity.
 Would Give Financial Aid
 While the immediate purpose of the negotiations in which Secratary Lam sings note is to be the first step will be the evolution of some plan for trauquihzing the border regions, the discussions may take on a wide. scope There is little doubt that MT Are dondo received the impression from Secretary Lansing today that if ade- Quate guarantees as to the security of American and other foreign inter ests in Mexico could be secured the Washington government believes it possible that the financial aid so greatly needed by the de facto author ities could be found.
 Some time ago, it is understood, suggestion that the Washington gov ernment would encourage American l bankers to go to the rescue of the de ! facto government was made through l indirect channels At that time Gen. 1 Carranza 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 lo have been actuatei by a desire to leave himself free of any obligations in this regard.
 Events clearly have proved the fail ure of the first chiefs hopes to re- establish orderly government un- &.ded, officials here believe. an4 vith the war abroad shutting off every other source of assistance, h. is thought now to have reached the point where he wilf make proper guarane tees in order to ccure American cap iJal
 Counselor Polk conferred lata today with Henry F. F!atch,r, designated tl be ambassador to 1'Ixico, and Paul NJ Warburg of the Federal Reserve Poard. The object Of the meeting was not disclosed. but great signif- canoe was attached to t as indicating l that the State Department had found Int convenient just at this time to in .oa.re as to the probable attitude of American bankers, and as to the dis Ip2sition of the Federal Reserve Board itself toward lending such aid as might be in its power to the Mexican government.