Dollar Diplomacy
- Created by: mel.maharjan
- Created on: 18-10-14 13:57
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- Dollar Dimplomacy
- Ideology behind Dollar Diplomacy
- Taft preferred to use economic influence rather than military force
- Believed better-run economies in Latin America would give Europeans less excuse to intervene
- Indirectly strengthened the Monroe Doctrine
- Wanted more markets for American goods
- America's economy growing continuously
- Felt economic influence would increase America's political influence
- Said to Congress: "This policy has been characterised as substituting dollars for bullets
- Philander Knox fully supported the President's emphasis on trade and investment as central to foreign policy
- What Dollar Diplomacy did in practice
- Taft assisted American businessmen in protecting and expanding trade and investment in places like Latin America and the Far East
- US lent Latin America money to pay off European debts
- Advisers sent to help organise their economics in a way that benefited US
- Costa Rica and Guatemala rejected the 'help'
- American banks took over financial control in Honduras, Haiti, and Nicaragua
- Done to protect American trade and investment; however, also brought stability to country
- Nicaragua
- October 1909 - civil war broke out
- Between dictator José Santos Zelaya and conservative politicians led by General Juan J. Estrada
- US supported Estrada financially
- But acted when Zelaya executed two Americans captured while fighting with the rebels
- 2,700 marines sent to protect American interests
- Removed shortly afterwards but a small group remained until 1925
- October 1909 - civil war broke out
- The Far East
- Taft and Knox increased US financial involvement in Japan
- E.g. loans for the Hukuang railway
- Proposed loans to China to try and keep South Manchuria open to US investment
- The proposals pushed Russia and Japan together to cooperate in Manchuria to keep other powers out
- Taft and Knox increased US financial involvement in Japan
- Ideology behind Dollar Diplomacy
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