The Goal of
Dollar Diplomacy
The goal of Dollar Diplomacy
was to: ● To create stability and
order abroad that would best promote American commercial
interests
● To improve financial
opportunities for US banking corporations
● To encourage the Wall
Street banks and bankers to invest their surplus dollars into
foreign areas of strategic concern to the US
The Goal of Taft's
Dollar Diplomacy
The goal of Taft's Dollar Diplomacy
was: ● To further the economic
power of the United States and promote trade in Latin America,
the Caribbean, West Africa and East Asia
● To prevent foreign powers
from gaining, or increasing, their financial foothold in key
markets
Taft's
Dollar Diplomacy
President William Taft justified his 'Dollar
Diplomacy' as a natural extension of the
Roosevelt Corollary to the Monroe Doctrine
which asserted the right of the United States to intervene to
"stabilize" the economic affairs of small states in Central America
and the Caribbean if they were unable to pay their international
debts. President Roosevelt had used diplomacy to
"speak softly and carry a big stick" in foreign affairs. President
Taft did not favor 'big stick' diplomacy preferring a more subtle
stance based on the power of the dollar rather than the might of the
military. This foreign policy did not work as well as Taft had
hoped.
Taft's
Dollar Diplomacy for kids: The Banana Wars
Following victory in the
Spanish-American War
the United States gained new world power and conducted military
interventions in Panama, Nicaragua, Honduras, Haiti, the Dominican
Republic and Mexico. The American United Fruit Company and Standard
Fruit Company dominated the key banana export sector
and it was critical to safeguard the companies trade in these
countries. The U.S. occupation and military presence in these
countries was referred to as the Banana Wars. Taft's attempts at
Dollar diplomacy was used in an attempt to stabilize the volatile
situations in these countries during the Banana Wars.
Taft's
Dollar Diplomacy in Nicaragua
The close proximity of Nicaragua to the Panama Canal
made the country's stability crucial to American interests in the
region. Taft's Dollar Diplomacy in
Nicaragua guaranteed loans to the Nicaraguan government
and supported the overthrow of Jose Santos Zelaya, setting up
Adolfo Diaz in his place. This action was deeply resented by many of
the Nicaraguan people and eventually resulted in U.S. military
intervention in the country when Taft sent in marines when Civil War
broke out. Nicaragua was occupied by the U.S. almost continuously
from 1912-1933.
Taft's
Dollar Diplomacy in the Dominican Republic
Taft's Dollar Diplomacy
in the Dominican Republic centered on reducing the levels of
corruption and to this end the U.S. took control of a country’s
customs. US intervention failed to beat the corruption and earned
the distrust of the country. The Dominican Republic was subsequently
occupied by the U.S. from 1916 to 1924.
Taft's
Dollar Diplomacy in Haiti
Taft's Dollar Diplomacy
in Haiti attempted to improve the Haitian economy through the influx
of American investment. This led to resentment by the Haitians. A
bloody revolution erupted, Civil War broke out and the United
States, under President Wilson, was forced to send troops to Haiti
to protect American citizens and investments. Haiti was occupied by
the U.S. from 1915-1934
Taft's
Dollar Diplomacy in Honduras
Taft's Dollar Diplomacy
in Honduras was a result of the massive debts owed by
Honduras to British investors. The political situation made the
investors nervous and talk began of possible British intervention.
The Taft administration sought to avoid this by sending in American
bankers to restore economic order and injecting American funds. This
action averted the immediate crisis and the American bankers
remained on site to administer the financial affairs of Honduras.
Taft's
Dollar Diplomacy in Liberia
Taft's Dollar Diplomacy
in Liberia was due to the intention to guard the American
community founded in Liberia. The two countries had shared very
close diplomatic, economic, and military ties since 1819. As part of
the Taft's dollar diplomacy in Liberia 1912 the U.S. arranged a
40-year international loan of $ 1.7 million.
Taft's
Dollar Diplomacy in China
Taft's Dollar Diplomacy
in China was aimed at strengthening the Open Door Policy and
free trade in China that had been initiated following the
Boxer Rebellion.
Another goal was to decrease Japanese
and Russian influence in China. This was achieved by forming an
alliance of American, British, French, and German investors to
invest in railroad construction in China. Russia and Japan were
excluded from the western alliance and Taft secured the American
financing, by the J.P. Morgan corporation, for the construction of a
railway from Huguang to Canton. The railroad project quickly
collapsed in 1910.
The Effects of Taft's
Dollar Diplomacy
The effects of Taft's Dollar Diplomacy
were:
●
Taft's dollar
diplomacy failed to counteract economic and
political
instability
● It failed to stem the wave of revolution in places
like Haiti, the Dominican Republic and Nicaragua
● Taft's dollar
diplomacy failed to realize profits for
American business
●
The United States had to send troops to protect
American investments.
● Other
attempts at dollar diplomacy in Mexico and China
also failed to avert revolutions in these
countries
● Taft's dollar
diplomacy was strongly opposed by the growing
tide of anti-imperialism both in the United
States and overseas resulting in animosity
against the United States
● The next
U.S. president, Woodrow Wilson, attempted to
reverse most of Taft’s foreign policy
Dollar Diplomacy for kids - President William Taft Video
The article on the Dollar Diplomacy provides detailed facts and a summary of one of the important events during his presidential term in office. The following
William Taft video will
give you additional important facts and dates about the
political events experienced by the 27th American President whose presidency spanned from March 4, 1909 to March 4, 1913.
Dollar Diplomacy
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Interesting Facts about Dollar Diplomacy for kids and schools
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Summary of "Dollar Diplomacy" in US history
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Facts about the Dollar Diplomacy
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William Taft Presidency from March 4, 1909 to March 4, 1913
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Fast, fun facts about the Dollar Diplomacy
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Foreign policies of President William Taft
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William Taft Presidency and
Dollar Diplomacy for schools,
homework, kids and children |