Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-07-07

eminent was made through indirect
channels. At that time, Gen. Carran
"a had not felt the pinch of poverty
which now threatens his government
with collapse. He rejected the sugges-
ton as he believed he could restore
financial stability without foreign aid.
He is known to hold radical views on
the question of foreign concessions and
is understood to have been actuated 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
esta blsh orderly government, officials
here believe and with the war abroad
shutting off every other source of as
sistance. he is thought now to have
reached the point where he will make
proper guarantees in order to secure
American capital.
Warburg in Conference
Couns~ Tor Folk held a conference to-
day with Henry F. Fletcher, designated
to be ambassador to Mexico and PAU
NJ. Warburg of the Federal Reserve
Board. The object o. the meeting was
not disclosed, but great significance
was attached to it as indicating that
the State department had found it con-
\enlent just a this time to inquire as
10 the probable attitude of American
bankers and as to tn" disposition of the
ederai Reserve Board itself toward
roaming such sums as is in its power
10 the Mexican government
NO statement could be obtained as to
the nature of the financial project that
may be in contemplation. Mr. Warmurg
is recognized authority on all matters
OF American finance and his advice prob
ably will be sought even If the federal re-
serve board was in no way involved. Sec
rotary Lansing would not discuss the
terms of the note which he will forward
to the de facto government approving the
suggestion for direct diplomatic negotia-
tons to find solution of the differences
in which the governments have become
involved. 1t is believed, however. that it
will lay great stress upon the friendly
purposes of the United States and init
mate that any plan of action that may be
! suggested which will insure the security
of the American border will find ready
acceptance in Washington.
General Carranzas note succinctly stat
ed the issue which almost brought the
war. 1t pointed out that the reasonable
anxiety of the United States for the safety
of its frontier, on the one hand. and the
de facto governments feeling, on the otn-
err that the presence of American troops
in Mexico was one of the causes of fric-
ton, were the questions to be settled
1t appeared probable tonight that Sec
rotary Lansing's reply would make an
equally clear definition of the issue as it
is seen by the Washington government.
These formal statements of the case will
serve later as a guide to the negotiators
who will seek A solution by Informal dis
cussion of all the elements involved.
There is no question that the Mexican
government will contend forcefully for
the withdrawal of American troops from
Mexico. Since the purpose to compel their
withdrawal has been abandoned. however.
officials 10 not look for another deadlock
on that issue. President Wilson is said to
he ready to order the troops out of Mex
leo when he has any assurance that it will
not mean merely a renewal of the CON
ditions that caused them to be sent in
But no plans of action now agreed upon
can be based upon an agreement to with
draw them.
Mobilization of the national guard con-
tinued to go forward on schedule today,
according to war department reports and
the state soldiers are certain to get val
liable experience upon the border before
they are released from the federal service.
Just how long it will be necessary t.
maintain all or part of the force to aid
the regulars in patrol duty cannot now
be predicted with accuracy.
Publication today of Secretary Baker g
order that members of the guard with de-
pendent families be discharged from the
service was the first sign at the war de-
partment that tension on the border had
relaxed. 1t is regarded as making I'M
necessary any legislation on the subject
of relief for soldiers families and also
carries out the expressed desire Of Pres
ident Wilson that the border patrol duty
be arranged so as to work as little in
convenience for the citizen soldiers as
possible.