Pine Bluff daily graphic., 1916-07-07
DOLLARS INSTEAD IF BULLETS FIR l ZEN. V. CARRANzA Washington Welcomes Pro posal to Negotiate All
 Differences. MAY GIVE MEXICO
 FINANCIAL HELP Following Conference Between Arre- d0ndo and Lansing, After Secretary of State Conferred with President.
 Polk Talks to Warburg.

Washington, ,Iuv 6.-The de facto government Of Mexico was informally notified tonight through Eliseo Are dondo, ambassador designate, that the United States welcomed General Car ranza's proposal to adjust all pending differences between the two govern mcnts by direct diplomatic negotia tion'
 Mr. Arredondo vas informed of the American governments attitude in a conversation today with Secretary Lansing after the latter had conferred with President Wilson. Later for mal note will confirm the ambassa- dors report. MT. Lansing had almost cCr'rletnd the communication tonight and it may be read to the cabinet to- morrow before, it is delivered.
 Immediately after the cabinet meet ing Secretary Lansing plans to leave for months vacation. Counsellor Polk will administer the affairs of the state department i'll his absence and meet Mr. Arredondo in the infor- mai discussions at which solution of the Mexican problem will be sought.
 It was evident at the state depart ment tonight that officials believe an opportunity has been presented out of which may come the means of giv- ing the de facto government aid in re- storing order
 lt is known that the pacific nature of the Mexican note which brought the crisis to an end is construed here "s indicating that General Carranza, besides being impressed by the Amer ican military preparations, has been deeply influenced by the pressure and arguments brought to bear by freinds of the United States, by Euro pean diplomats in Mexico City, and particularly by representatives of many of the Latin-American powers. The latter have eXerted themselves to avert war and to foster in General CarranZa's mind the idea of pan American unity.
 Financial Aid from U. s.
 While the immediate purpose of the negotiations in which MT. Lan- sings note is to be the first step will be the evolution of some plan for tranquiliZing the border region, the discussion may take on wider scope. There is little doubt that Mr. Are dondo received the impression in his talk with MT. Lansing today that if adequate guarantees as to the security of American and other foreign inter- es:s in Mexico are given, the Wash ington government believes it possi- ble that the financial aid so greatly needed by the de facto authorities could be found.
 Some time ago, it is understood, 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 eral Carranza had not felt the pinch of poverty which now threatens his government with collapse, and he re- jected the suggestion, as he believed he could restore financial stability without foreign aid, and is understood to have been actuated by desire 10 keep himself free of any obligations in this regard.
 Events have proved that Carranza cannot finance the government with out foreign aid, and with the war abroad shutting off every other source of assistance, he is thought now to have reached the point where he will make proper guarantees.
 Warburg Is Consulted.
 Counsellor Polk conferred late to- day with Harry Fletcher. designated to be- ambassador to Mexico. and Paul M. Warburg of the federal reserve board. The object of the conference was not disclosed. but great signifi- canoe was attached to it as indicat- ing that the state department deemed it advisable to take steps to inquire as to the probable attitude of Ameri- can bankers and as to the disposition of the federal board itself toward lending such aid as is in it's power to the Mexican government No state ment could be obtained as to the na- ture of the financial project that may be in contemplation.