New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-07-07
Carranza Invited to
Suggest Border
Solution.
WILSON PROPOSES
JOINT INQUIRY
Federal Reserve Head
Consulted on Financing
de FaCto Government.

Washington. July b.-fresldeh'
Wilson's answer to Csrranza will be
g, invitation to the First Chief to
suggest q solution of the present
harder problem that will permit the
withdrawal Of the Pershing eXpedl-
.iop without sacrificing the safety Of
American interests. The reply was
drafted tonight by Secretary Lans-
ing ard will be dispatched immedl-
a-elv after the Cabinet meeting TO-
morrow.
Counsellor Polk Of the State De-
nartment held a conference late to-
dav with Henry T. Fletcher. deslg-
mated 20 be Ambassador TO Mexico,
and Paul ". Warburg, Of the Fed
usl Reserve Board. Great signih-
,arce was attached to the confer
enee as indicating that the State
DEPARTMENT had found it convenient
lust AZ this time 70 inquire as TO the
probaple attitude Of American bank
ers and as to the disposition Of the
Federal Reserve Board itself toward
lending such financial aid as might
he in its power to the Mexican gov
eminent.
NJ Warburg is a recognized au-
.bortv on all matters Of American
finance. and his advice probably
would be sought, even if the Federal
Reserve Board was in no way in
volved
Needs sloOooO,Ooo.
II is realized that until Car
-arza is able to negotiate a loan
Of al least S1OO,Ooo,OOO in this
country there is little prospect OF
stable conditions. Bankers have re-
used 10 deal with the First Chlef
without some assurance from the
Administration that their invest
ments will be secured.
These snsnciers have indicated TO
..s STATE DEPARTMENT their readiness
N ,sgotia+e Mexican loan, but have
assisted that as a preliminary Car
rama must alter some OF the conts-
-s.orv tax laws that he has promul-
rated Mos, Of the banking interests
concerned have mining and oil conces-
SIMS In Mexico which have suffered
.ssvilv from taxation by the de facto
government.
There is little doubt that Mr.. Ar
re5ordo received the impression from
Secretary Lansing to-day that II aoe
ogate guarantees as 10 the security o.
American and other foreign interests
in Mexico could be secured the WASH
rgton government believes 1t possible
,bs, the financial aid so greatly needed
bv the de facto authorities could be
found Details OF the form and extent
Of the guarantees required and Of the
amount and nature % the financial aid
,ha, American bankers might be will
irg 90 furnish can be worked out only
By pro,racted discussion.
Feels Pinch of Poverty.
ONE time ago. it is understood. a
suggestion that the Washington gov
eminent would encourage American
bankers 10 20 to the rescue Of the de
facto government was made through
indirect channels. At that time Gen
ersl Carranza had not felt the pinch OF
poverty which now threatens his gov
eminent with collapse. He rejected the
suggestion. as he believed he could re-
store financial stability without foreign
aid. He is known 70 hold radical views
on the question Of foreign concessions
and is understood to have been actu-
a,ed by a desire TO leave himself free
o' any obligations in this regard.
Events clearly have proved the fail
ure of the First Chiefs hopes to re-
establish orderly government unaided'
ohcials here believe. and with the war
abroad shutting off every other source
OF assistance he is thought 70 have
reached the point where he will make
proper guarantees IN order to secure
American capital.
President Wilson, in conference
Continued on page o. column