Download Imperialism / New Manifest Destiny: from 1880s

Imperialism /
New Manifest Destiny:
from 1880s
Previous Expansion

Expansion after Independence: Appalachian Mts.,
Louisiana Purchase, Florida…

Manifest Destiny of 1840s: “Sea to Shining Sea”;
Polk: Texas, Oregon, Mexican Cession: Treaty of
Guadalupe Hidalgo; Gadsden Purchase….Far West /
Great Plains

Imperialist, but Continental, not overseas

Tradition of non-intervention / isolation overseas…
Washington, Hamilton, Jefferson…yet War of 1812
and then Monroe Doctrine of 1823 (hands off warning
to Europe/in return US would not intervene in Europe)
U.S. Emerges as a World Power 1.2A
Motives for Overseas Expansion after the Civil
War

1. Cultural Imperialism

Racial Superiority: Superiority Complex: White
Man’s Burden (Kipling): responsibility to civilize and
Christianize, bring Progressive reforms (Progressive
Imperialism)

Rev. Josiah Strong combined White Man’s Burden,
Social Gospel, and Social Darwinism in his book Our
Country: It’s Possible Future and its Present Crisis
(1885)

2. Economic (and Social) Imperialism

Raw Materials, but esp. Markets for goods: huge
overproduction / surplus in industry and agriculture in
the US in decades after Civil War; opportunities for
investments (land, farming / fruit, transportation,
(Panama Canal), utilities (electricity) ….find raw
materials / resources (coal, oil….)..exploit resources

Prevent more Depressions such as the ones in 1873,
1893..

Outlet for Social Unrest: Frederick Jackson Turner; The
Turner Thesis: with the closing of the frontier (1890) a
new outlet for land was needed for the discontented
farmers and workers; need for a new “safety valve”

3. Political Imperialism

To achieve Great Nation Status an overseas empire
was necessary (like Britain, France…)

Social Darwinism: inevitability and naturalness of
strong nations dominating weak

A strong Navy – another badge of Great Nation status
– should be developed to establish and maintain an
Overseas Empire…colonies would provide naval
bases

Becoming a world power, dominating overseas
territories, building a large navy as the best method of
expanding overseas – all promoted in Captain Alfred T.
Mahan’s book, The Influence of Sea Power on History
Advocates of Imperialism

Rev. Josiah Strong, Missionaries, Preachers

Industrialists: Beveridge

Politicians: Mahan, Lodge, TR: Republican Party

Press: Yellow Journalism / Tabloids: Hearst, Pulitzer
Opponents of Imperialism

Sen. Schurz (Read Documents), Twain, Gompers, Carnegie,
Thomas Nast

Their arguments:

Against the Spirit of America, Dec. of Independence…govt.
by consent of governed

Dangerous to move away from isolationism…drawn into
international wars / conflicts

Navy too small to maintain an empire, and too costly to
build up

Racism (racism on either side, for and against
imperialism) – US didn’t want contact with inferior
groups, didn’t want to absorb inferior peoples

Some Progressives: US was far from perfect – needed
more reforms, more Progressivism first
Beginnings of Imperialism…a new
aggressive overseas approach

Latin America
1889: Harrison’s Sec. of State James Blaine promoted
Economic Imperialism in Latin America (his “Big Sister
Policy”): organized a Pan American Congress – hoped
to bully Latin American into favorable trade
arrangements: but delegates from the 19 countries in
attendance refused to agree to an inter American
customs union, fearing US dominance

Samoa

Used as a “way station” (stop-over – refuel, re-supply) by
US ships, naval and commercial

Treaty with Samoa in 1879 gave the US the port of Pago
Pago as a naval station, and gave the US the right to
intervene to settle differences between Samoa and foreign
powers

Dispute between US, Britain, Germany over control of
Samoa almost led to war: avoided through 1889 agreement
to a tripartite protectorate

Venezuela

1895: Sec. of State Richard Olney opposed British plans to expand
British Guiana at expense of Venezuela (border dispute / gold..); Sec
of State Olney aggressively warned Britain about violations of the
Monroe Doctrine and insisted on arbitration…(more about the
Monroe Doctrine – though US wanted to protect and expand its trade)

Annoyed, the British refused both…Cleveland threatened
war…though the US had only 5 warships to Britain’s 35

Eventually, distracted by disputes with Germany, the British agreed to
arbitration – and got most of what they wanted

For the US, the prestige of the Monroe Doctrine was
enhanced…seemed like the British respected it eventually - Latin
American nations were grateful to the US for its determination to
protect them
Hawaii






A “way” station on route to China and for whaling
ships
Sailors and missionaries settled there…saw it as part
of the US
Followed by Sugar Plantation owners
Navy hoped to build a base at Pearl Harbor, Oahu
Gradually American Plantation owners dominated
economy and politics
1875: reciprocal trade agreement – US imported
Hawaiian sugar without any tariff

1877: Treaty granted US exclusive use of Pearl Harbor
as a naval station…US tightened its grip on Hawaii

1890: McKinley Tariff deprived Hawaiian American
planters of their privileged position by removing the
duty on all imported sugar (from all/any country), and
by paying a subsidy to US sugar producers

Planters felt that they would benefit if the US annexed
Hawaii: would get the subsidy and survive
economically if they were back under US jurisdiction
(like Oregon, California: appeal for annexation)

1891: the passive King Kal died: succeeded by sister
Queen Lil: nationalist, determined to restore the power
of the monarchy

1893: American residents staged a revolution against
her, charging her with suppression of democracy and
corruption: called for protection from the US navy:
marines landed and forced her to step down: planters
again called for annexation by the US

Outgoing Pres. Harrison signed an annexation
agreement / treaty but the Senate refused to ratify it:
new Pres. Cleveland also vetoed it: sent delegates to
Hawaii to find out if the Queen had popular support or
if the majority favored annexation

Conclusion was that the revolution / demand for
annexation was a minority / American Sugar
Plantation Owner movement: Cleveland withdrew the
annexation treaty

Hawaiian Americans bided their time until a proImperialist President emerged

The question of annexing Hawaii touched off the first
full-fledged imperialist debate in the US
Spanish-American War

Cubans unsuccessfully tried to overthrow Spanish
control in the Ten Year War (1868-1878)

1895: Cubans staged another revolt against Spanish
Imperialism

Spanish responded with a policy of brutality: Valerio
“Butcher” Weyler’s set up concentration camps many Cubans died from diseases in the unsanitary
conditions in these camps (some consisted of
besieged towns)
US Involvement

US newspapers took a big interest in the war: Pulitzer’s
New York World and Hearst’s New York Journal
competed for circulation: tried to out-do each other with
sensational headlines, scoops, pictures of Spanish
atrocities

They hoped the US would become involved – more
news, sell more newspapers; Sometimes exaggerated or
invented incidents: “You furnish the pictures and I’ll
furnish the war (by the US).” Wars sell newspapers

Cuban immigrants on the East Coast of the US also tried
to arouse US public sentiment against Spain

Pres. Cleveland refused to send help to the Cubans –
rejecting a resolution passed by Congress in 1896 to
recognize the justice of the revolt - though he offered to
mediate: Spain rejected the offer

Pres. McKinley renewed the offer – also rejected:
criticized the “uncivilized and inhuman conduct” of the
Spanish

Afraid that this was a signal that the US might intervene
to support the Cubans, the Spanish removed Weyler,
and indicated they might introduce some kind of self
government for Cuba

Two dramatic incidents in Feb. 1898 changed the mind
of the US gov.

1. The de Lome Letter: intercepted and published in
Hearst’s New York Journal: Spanish ambassador to
Washington called McKinley a weak man and a
“bidder for the crowd.” Was considered a national
insult: de Lome was forced to resign; US public was
outraged: upsurge in anti-Spanish feeling…fuelled by
media

2. Destruction of the US Battleship Maine in Havana
Harbor: loss of 260 Marines: sent there in case there
was a need to protect American property and lives in
Cuba from Spanish attacks / atrocities
The explosion of the U.S. battleship Maine
Newspaper
headline of the
Maine explosion
The
dehumanization
of Spain

Americans jumped to the conclusion that the Spanish
were responsible: a hasty inquiry concluded that an
external explosion / device had caused the Maine to
explode (later inquiry revealed that it was an internal
accidental explosion by a boiler in the engine room)

Fuelled by Media headlines - Remember the Maine war hysteria began to sweep the country: strong
demands for the US to declare war on Spain in Cuba to
avenge the Maine

McKinley for now decided to ask the Spanish to agree
to an armistice, followed by negotiations about a
permanent peace, and end to the Concentration Camps

Spanish agreed to end the camps, end hostilities, but no
armistice, and no negotiations, and reserved the right to
resume the war at any time

McKinley was disappointed and decided to ask
Congress for a declaration of war “in the name of
humanity” in the “name of civilization” and on behalf
of “endangered American interests”

US declared War on Spain in support of Cuba on April
25th 1898.

It was not at first seen as an imperialist war – the US / Congress had
no designs on Spanish territories: the Teller Amendment disclaimed
any intention on the part of the US to annex Cuba, stating that it was a
war to liberate, not to annex… a humanitarian mission….Cuba would
get its freedom after the Spanish were driven off

Features of War:
 US incompetence; outdated weapons, tactics,…
 Rough Riders / voluntary brigade of TR’s, led by Col Leonard
Wood
 Loss of 460 troops in battle, 5,200 from disease (malaria, typhoid,
dysentery, yellow fever, typhoid fever) and food poisoning……
Upton Sinclair, The Jungle
 Cuban rebels were the decisive factor in defeat of Spanish
 Delay in unifying US navy because of distance: Pacific and
Atlantic fleets…….need for an isthmian Canal
Teddy Roosevelt and the
Rough Riders

Goals changed during the war when Commander Dewey
was ordered to attack the Spanish fleet in Manila Bay
and occupy the Philippines

US forces were then sent also to occupy Puerto Rico and
Guam….the war to liberate Cuba had become a war to
strip Spain of all its possessions in the Caribbean

Imperialist advocates in the US were excited: took
advantage of the nationalism, patriotism, jingoism
during the war to propose the annexation of Hawaii:

Media, Congress and McKinley supported this proposal:
Hawaii was annexed / became a US territory in 1898:
(not a state until 1959)….first overseas colony
Battle of Manila
Philippines

Huge debate in the US about what the status of the
Philippines should be when the war ended; should it
be liberated or should the US annex it / turn it into a
colony?

McKinley did not want to give it back to Spain, yet
felt it was not ready to govern itself…if left alone it
would fall into anarchy, and also feared that Germany
might take it over

Imperialists - Mahan, Lodge, Hay, TR, –
supported annexation; argued that;
Would provide economic benefits to the US and a
link with the Orient
 US missionaries could help Christianize and civilize
these primitive people (Benevolent Imperialism)
 This could be the beginning of an empire, of
becoming a world power
 If US didn’t take control, some other country would


Anti-imperialists – Twain, Gompers, Carnegie,
Cleveland, Bryan (eventually voted for the treaty as a means
of later giving the Philippines its freedom) – argued that
Annexation of Philippines would draw the US into
disputes with Russia, Japan, China
 Betrayed US principle of government by consent
 Would add to immigration, overpopulation problems
if Filipinos were admitted to the US


McKinley was swayed by the Imperialists (and the inner
voice of his prayers) and instructed delegates at the
peace talks to negotiate to buy the Philippines, as well as
Puerto Rico and Guam, which would then be annexed
and become US territory….goals had changed again

The Treaty of Paris: Spain recognized Cuban
independence, and sold the Philippines, Puerto Rico and
Guam to the US for $20m: US Congress ratified the
Treaty

Filipino resistance to US annexation was led by Emilio
Aguinaldo: felt one imperial power had replaced
another: three year war: 4,300 Americans and 50,000
Filipinos killed: US used brutal tactics of Spanish – inc.
concentration camps – to defeat the guerilla fighters

Howard Taft app. US governor of Philippines

Announced that his goal was to prepare the Philippines
for eventual independence (would not come until
1945/6)

US build roads, bridges, schools: administrative and
financial reforms; estd. Public health system
(benevolence)…. Philippines would have preferred to do
without these and instead be free / independent (India,
Gandhi….)
Cuba

US military forces remained in Cuba after the Spanish
left

Because of growing Imperialist sentiment in the US the
promises of the Teller Amendment were not fulfilled

US Government demanded that the new Cuban
constitution make provision for US involvement in
Cuban affairs…..(new goals)

Congress passed the Platt Amendment: as a condition
of US troops leaving Cuba, Cuba would have to include
in its constitution the following provisions:
Cuba would not make any treaties with any foreign
country or contract a debt beyond their resources,
without the consent of the US
 The US had the right to intervene in the internal
affairs of Cuba “to preserve life, liberty, property”
 Cuba had to give the US a permanent lease of 28,000
acres at Guantanamo Bay to serve as a naval base; to
be terminated only by mutual agreement


Cuba had no other option but to agree to the demands: the
Platt Amendment turned Cuba into a virtual protectorate
(lower level colony) of the US

Cubans felt betrayed: US had not liberated them from
Spain, but just replaced the Spanish (as in Philippines): US
troops invaded / intervened on many occasions…became a
Protectorate

The US built roads, hospitals, schools, reorganized legal,
financial, and administrative systems (benevolence)…

US investments increased from $50m to $220m by 1902
(Economic Imperialism….cultural imperialism /
playground for rich and famous….until Castro’s
revolution in 1959)
Impact of Spanish-American War

The US had become an Imperial / World Power during the “splendid
little war” (John Hay) (a colossal “coming- out party”)…Mahan’s
“big navalism” seemed vindicated – US navy defeated Spanish navy

Had acquired its first overseas colonies (Hawaii, Philippines, Guam,
Puerto Rico….Cuba / a Protectorate)….led to much celebration,
something that unified North and South after the bitter Civil War: ….

But this would come with responsibilities and commitments – esp. in
the Far East

Latin America became suspicious of US intentions / of “Yankee
Imperialism”….of what they called America’s “Bad Neighbor Policy”

TR, Taft, Wilson would continue with and expand the Imperialist
policies of the McKinley administration
Political
cartoon of
Uncle Sam
after the
SpanishAmerican
War, 1988
Insular Cases

One question that arose after the new acquisitions: did the
Constitution apply to the new territories?

The Supreme Court’s solution came in the Insular Cases
(De Lima v Bidwell, Downey v Bidwell):

The Constitution didn’t automatically follow the flag: it
was up to Congress to decide case by case if the new
territories had the rights of American citizens…. Not
automatic….constitutional rights were not given to any of
these territories at this time
China and Open Door

US began to assert itself in Asia around this time as part
of the New Imperialism

US was late in taking an interest in trade with China:
Britain, Germany, Russia, Japan had a head start – had
carved out “spheres of influence”

US now insisted on Open Door in China: all nations
freely trading in all parts of China – no specific spheres
of influence / partition: no exclusion of any country
from any part of China: equal access for all foreign
nations

John Hay sent the Open Door notes to foreign countries:
they replied asking for certain demands before agreeing:
Hay announced that since they hadn’t objected then they
were in favor of the new policy

When the US and other countries combined to defeat the
Boxer Rebellion (anti-foreign rebellion) in China in
1900, the improved relations after the cooperation led to
widespread acceptance of the Open Door policy

Later, Japan accepted this policy in the Root-Takahira
Agreement
Foreign troops storming Peking during
Boxer Rebellion
Imperialist policies of
Progressive Presidents; TR,
Taft, Wilson:
1902-1917
TR

Strong Imperialist before becoming President:
supported ideas of Mahan: as Assistant Sec. of
the Navy he favored expanding navy; gave
orders to liberate the Philippines

Supported Political Imperialism (Great Nation
Status): also believed in ideas of Strong: White
Mans’ Burden, humanitarianism….Cultural
Imperialism .

And believed in Economic Imperialism….find
resources, markets (Supported Open Door in
China)

Enjoyed involvement in Foreign Affairs:
believed they should be handled exclusively by
the President: Modern Presidency again (as
with Progressive domestic policies)

Believed an expanded Navy would act as a Big Stick:
impress / intimidate nations (esp. Latin America) into
accepting US policies / wishes: then force would not be
needed– “Speak softly and carry a big stick.”…. But
occasionally, force would have to be used…..led to
“gunboat diplomacy” or “cowboy diplomacy?

Big Stick at work; Great White Fleet to Japan after
Gentleman’s Agreement, 1907…..to intimidate

Advocated Corollary (extension) of the Monroe
Doctrine (hands off warning to Europe): now the US
would had the right to intervene in / to police the affairs
of Latin America

US took the responsibility of intervening in Latin America
to make sure debts were paid back to Europe to avoid the
need for them to return: “Preventive Intervention” through
assistance with creating economic and social
stability…collecting debts (taxes, tariffs….)

To prevent “Chronic Wrongdoing” (disorder, chaos,
instability, overthrow of govs, intervention by European
nations)

He turned Latin America in a virtual protectorate (like
Cuba): into a “Yankee Lake” using “gunboat diplomacy” or
“cowboy diplomacy”…. In the process the US would
civilize, gain economic benefits, and become a Great Power
through this new role in Latin America.

1902: sent navy and army to Venezuela to prevent the
Germans from invading to collect their debts.

The US offered to mediate when the British, Italians,
and Germans complained about non-payment of debts,
but then the Germans had gotten impatient and had
begun to bomb some Venezuelan ports:

Roosevelt then insisted that the Germans back off and
promised to restore economic stability to Venezuela and
to oversee the payments of debts.

1904: he sent navy and troops to Haiti, also to stabilize
the economy and ensure payments of debts to Europe, to
avoid invasion, and to prevent social revolution….then
the Dominican Republic

1906: Roosevelt sent the navy and troops to Cuba,
under the Platt Amendment, to prevent the government
there from being overthrown.

In general, Latin American countries resented
Roosevelt’s / US interference – it became known as the
US Bad Neighbor Policy towards Latin America
(continuation of policy began with Platt Amend).

His anti imperialist critics in Latin America and in the
US accused him of engaging in “Yankee Imperialism”


Colombia / Panama
For economic and military reasons (joining Atlantic
and Pacific fleets), the US hoped that a canal would be
built somewhere in Central America to link the
Caribbean and the Pacific.

Nicargua had been discussed as a suitable location but
frequent earthquakes there shifted attention to the
Colombia / Panama area.

The US had an agreement that such a canal would be a
joint project with the British but now the US wished to
pursue this on its own. In the Hay-Pauncefote Treaty of
1901, the British agreed that the US could opt out of
their earlier agreement.

Roosevelt bought out a French Company’s rights to
build a Canal across Panama: for $40m

Panama was controlled by / part of Colombia: TR tried
to persuade Colombia to accept a payment of $10m and
an annual payment of $250,000 for the canal zone / strip.

Colombian Gov demanded more – TR refused to
improve his offer, feeling he had an agreement with
their President, Marroquin (the Hay-Herran Treaty).

He then encouraged the Panamanians to pursue their
demands for independence from Colombia, hinting that
they would receive US assistance if they did so.

The Panamanians rebelled in Nov. 1903, with help from
the US who prevented the Colombian army and navy
from getting to the rebels – and declared independence.

The new independent Panama accepted the offer he had
made Colombia for the canal zone.

The Hay-Buneau-Varilla-Treaty gave the US a perpetual
lease on the land / zone (10 miles by 51 miles).

The new Panamanian Constitution gave the US the right
to intervene in the internal affairs of Panama
Political Cartoon of
Uncle Sam taking
control of the Canal
Zone
Building of the
Panama Canal

Latin American countries were again critical of US
interference in the internal affairs of Colombia, saw this
as further evidence of the US Bad Neighbor policy…of
Big Stick…Yankee Imperialism

Canal was a huge construction project (Erie Canal,
Transcontinental RR, previous huge projects) took 10
yrs to build, completed in 1914, cost of $400m,
hundreds of lives were lost due to yellow fever / malaria
from the mosquito bites in the swamps.

Reduced the distance from US west coast to east coast
from 13,000 miles to 5,000 miles; huge advantage to
trade and to navy…and made it easier to dominate Latin
America…..Big Stick facilitated

In China Roosevelt supported the Open Door Policy. To
facilitate the Open Door he hoped to stabilize Asian
politics….feared that the war between Russia and Japan
1904 – 1905...would de-stabilize the area

When the war ended he brought delegates from both
countries to New Hampshire where they signed the
Treaty of Portsmouth which settled their differences

For his role in the Treaty he was regarded as a global
statesman – and was awarded the Nobel Peace Prize

(Remember Gentleman’s Agreement and Root-Takahira
Agreement).
Political Cartoon of Roosevelt as the
world constable
Taft

He agreed with Roosevelt on the need for Economic
and Political Stability in Latin American

But he rejected Big Stick – intimidation through the
show of or use of force -and preferred that the US
should bring stability through controlling the economies
of Latin American countries – he encouraged more US
investors to invest in Latin American countries – set up
banks, buy mines, buy land, start businesses, buy out
European loans, bail out L.A. Governments…make
them dependent on the US / US Banks

with US businesses bringing economic stability, then
political stability would follow

US investment would replace European investment and
this would help protect the Monroe Doctrine. This
policy came to be known as Dollar Diplomacy – more
focused on economic issues than on political, on
investment over force.

US investments in Latin Am, esp. in Nicaragua, Haiti,
Honduras, and Mexico, increased by $72m – Americans
invested in mining, banana and coffee plantations,
railroads etc.

Gave loans to Latin American Gov’s, bailed out Latin
American Gov’s by paying off their European
debts…..controlled them in this way

He also encouraged investment in China…Open Door,
esp. in Railroads,

However, though Taft preferred Dollar Diplomacy, he
reluctantly felt the need to resort to military intervention
/ Big Stick on several occasions sending the marines to
put down disorder in Cuba, Honduras, the Dominican
Republic, and Nicaragua.

Used gunboat diplomacy to complement Dollar
Diplomacy
Wilson

Wilson hoped to bring his idealism to foreign policy – he
rejected Imperialism, both Big Stick and Dollar Diplomacy
and advocated what he called “Moral Diplomacy” which
included recognition of the right of foreign nations to “self
determination.”

He wanted the US to be less aggressive in its foreign
policy….advocated respect for Self Determination for all
nations….and that the US encourage and support
Democracy there

Guided by Moral Diplomacy he tried to correct what he
considered were past wrongs

The Jones Act of 1916 granted full territorial status to the
Philippines, deciding that citizenship / Constitution
etc…followed the flag in this case.

The Philippines was also given more autonomy than
before, and was promised independence in the near future,
when it was considered that they had a stable govt.

In 1917, Wilson granted inhabitants of Puerto Rico the
status of full citizens and gave Puerto Rico limited self
govt.

With regard to Panama he decided that US ships would
pay the same tolls as any other ships using the canal

But eventually, he too, like Taft, felt
the need for economic and political
stability in Latin America, and
ended up compromising his
principles and supporting both Big
Stick and Dollar Diplomacy to
maintain stability.

He sent the marines to Haiti to
suppress a revolt - the US took
control of its finance system and its
police force

sent marines to Dominican Republic in 1916 (remained
there until 1934) to put down a revolt – again, the US took
control of its financial system, as with Haiti

sent troops to Cuba to put down an anti-gov. revolt

purchased the Virgin Islands from Denmark

Also encouraged US investments in Latin America: so
successfully that it was said that he made Taft’s Dollar
Diplomacy look like Ten Cents Diplomacy

Wilson’s foreign policy in Latin American is
remembered most for his interference in the internal
affairs of Mexico, during the Mexican Revolution

Supported the overthrow of the dictator Huerta: assisted
Villa, Zapata, and Carranza (arms, moral support)
against him

Occupied Vera Cruz / Tampico demanding a 21 gun
salute and apology for accidental arrest of marines:
refused: US occupies port: tried to undermine Huerta’s
regime: backfired, actually fuelled Mexican nationalism;
Wilson realizes his mistake: withdrawal negotiated by
ABC powers

Offered US support to Carranza in return for promise to protect US
investments from nationalization: Wilson trying to control
revolution / constitution. Carranza would not agree

Seemed like US switched its support to Villa, then back again to
Carranza

Furious, Villa killed 19 Americans in Mexico and then invaded the
town of Columbus, New Mexico, killing another 18 Americans

Eventually Huerta is overthrown…Carranza succeeds him

Wilson sent Gen. John J. Pershing to Mexico to search for Villa ( 2nd
invasion): no success…really trying to manipulate Carranza….to
stop him applying the 1917 Constitution, to stop him confiscating /
nationalizing US owned property
Woodrow Wilson
negotiates with
Mexico

Pershing withdrawn: sent to Europe after US entered
WWI, April 1917

So much for Moral Diplomacy, or for SelfDetermination for all (small) nations – his stated goal
for the US entering WWI……under Wilson the US had
interfered / intervention in the affairs of Haiti, Cuba,
DR, Mexico….and promoted Dollar Diplomacy
U.S. Emerges as a World Power 1..2J
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Dollar Diplomacy" in the Americas
The outgoing President Theodore Roosevelt laid the foundation for this approach in 1904 with his
Roosevelt Corollary to the Monroe Doctrine (under which United States Marines were frequently
sent to Central America) maintaining that if any nation in the Western Hemisphere appeared
politically and fiscally so unstable as to be vulnerable to European control, the United States had
the right and obligation to intervene.
Taft continued and expanded the policy, starting in Central America, where he justified it as a
means of protecting the Panama Canal. In 1908, he attempted unsuccessfully to establish control
over Honduras by buying up its debt to British bankers. Dollar Diplomacy was not always peaceful.
In Nicaragua, U.S. "intervention involved participating in the overthrow of one government and the
military support" of another. When a revolt broke out in Nicaragua in 1912, the Taft administration
quickly sided with the insurgents (who had been instigated by U.S. mining interests) and sent U.S.
troops into the country to seize the customs houses. As soon as the U.S. consolidated control over
the country, Secretary of State Philander C. Knox encouraged U.S. bankers to move into the
country and offer substantial loans to the new regime, thus increasing U.S. financial leverage over
the country. Within two years, however, the new pro-U.S. regime faced a revolt of its own; and,
once again, the administration landed U.S. troops in Nicaragua, this time to protect the tottering,
corrupt U.S. regime. U.S. troops remained there for over a decade.
Another dangerous new trouble spot was the revolution-riddled Caribbean—now largely dominated
by U.S. interests. Hoping to head off trouble, Washington urged U.S. bankers to pump dollars into
the financial vacuum in Honduras and Haiti to keep out foreign funds. The United States would not
permit foreign nations to intervene, and consequently felt obligated to prevent economic and
political instability. The State Department persuaded four U.S. banks to refinance Haiti's national
debt, setting the stage for further intervention in the future.
[edit] Repudiation by President Wilson
The Taft-Knox approach to foreign policy was repudiated by President Woodrow Wilson within a
few weeks of his inauguration in 1913. Although he did not abstain from Caribbean intervention,
dollar diplomacy was no longer an explicit U.S. national policy.
[edit] Complete Overview
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From 1909 to 1913, President William Howard Taft and Secretary of State Philander C. Knox followed a foreign
policy characterized as "dollar diplomacy." Taft shared the view held by Knox (a corporate lawyer who had
founded the giant conglomerate U.S. Steel) that the goal of diplomacy should be to create stability abroad, and
through this stability promote American commercial interests. Knox felt that not only was the goal of diplomacy to
improve financial opportunities, but also to use private capital to further U.S. interests overseas. "Dollar
diplomacy" was evident in extensive U.S. interventions in the Caribbean and Central America, especially in
measures undertaken to safeguard American financial interests in the region. In China, Knox secured the entry of
an American banking conglomerate, headed by J.P. Morgan, into a European-financed consortium financing the
construction of a railway from Huguang to Canton. In spite of successes, "dollar diplomacy" failed to counteract
economic instability and the tide of revolution in places like Mexico, the Dominican Republic, Nicaragua, and
China.
Dollar Diplomacy, known as “[a] policy aimed at furthering the interests of the United States abroad by
encouraging the investment of U.S. capital in foreign countries,” was initiated by President William Taft. The
United States felt obligated, though the Dollar Diplomacy, to uphold economic and political stability. Taft’s Dollar
Diplomacy not only allowed the United States to gain financially from countries, but also resisted other foreign
countries from reaping any sort of financial gain. Consequently, when the United States benefited from other
countries, other world powers could not reap those same benefits.
“Taft maintained an activist approach to foreign policy. On one hand, he was the initiator of what became known as
Dollar Diplomacy, in which the United States used its military might to promote American business interests
abroad. Taft defended his Dollar Diplomacy as an extension of the Monroe Doctrine. Taft was a major supporter of
arbitration as the most viable method of settling international disputes” (MultiEducator, Inc.). Quickly becoming a
world power, America sought to further her influence abroad. President Taft realized that by instituting the Dollar
Diplomacy, it would be pernicious to the financial gain of other countries. Thus the United States would benefit
greatly.
The United States and President Taft employed economic power to gain business control over less prominent
countries. Instead of resorting to war, the United States could more effectively and less expensively gain economic
power. But equally as important, other countries could not gain financially from the countries “economically
bullied” by the United States. Therefore, while the United States was tenacious in its effort to enforce the Dollar
Diplomacy, other world powers lost out on gaining economic power over these same countries.