Isabella Carter
President Taft and President Wilson reshaped US diplomacy in the early 20th century, each guided by their respective beliefs about US involvement in world affairs. Taft, president from 1909 to 1913, favoured an imperialistic approach, later dubbed dollar diplomacy, which encouraged American investment in foreign nations to stabilise struggling economies and open new markets for US businesses. Wilson, who succeeded Taft as president from 1913 to 1921, opposed this expansionist policy and worked to reverse it. Instead, he favoured moral diplomacy, which focused on withdrawing American investments from foreign lands and protecting people from oppressive governments.
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What You'll Learn
Taft's Dollar Diplomacy
William Howard Taft, who became president in 1909, followed a foreign policy approach that came to be known as "dollar diplomacy". Taft's dollar diplomacy was an extension of Theodore Roosevelt's "big stick" policy, which involved using military force or the threat of it to coerce countries into agreements that benefited the United States. However, Taft was less inclined to use military force and instead relied on America's growing economic power as a diplomatic tool. He urged Wall Street investors to invest in foreign markets, especially in regions where the US had strategic interests, such as the Far East and the Panama Canal region. The goal of dollar diplomacy was to create stability and order abroad that would promote American commercial interests and financial opportunities.
Overall, dollar diplomacy was criticised for being a heedless manipulation of foreign affairs for strictly monetary ends. Historians agree that it was a failure everywhere. Despite this, Woodrow Wilson, who succeeded Taft as president, acted vigorously to maintain US supremacy in Central America and the Caribbean, although he did cancel all support for dollar diplomacy. Wilson's foreign policy, dubbed "moral diplomacy", aimed to reduce American involvement overseas and restore what he saw as a loss of American credibility in the world. However, he faced pressure from imperialists and American industrialists, and his interventions in Latin America exceeded those of his predecessors.
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Wilson's Moral Diplomacy
Woodrow Wilson's "moral diplomacy" aimed to redefine American foreign policy in terms of ideals, morality, and the spread of democracy, rather than economic interests. Wilson's diplomacy was based on the belief in American exceptionalism and the idea that the US had a world mission to spread liberty and democracy. He frequently intervened in the affairs of other countries, especially in Latin America, to curb the growth of imperialism and promote democratic governments, which he believed to be superior.
Wilson's primary goal was to stabilize the Caribbean and Latin America with minimal American involvement. He wanted to reverse Roosevelt's "big stick" policies and remove all elements of Taft's "dollar diplomacy", which relied on economic power and coercion to secure markets and opportunities for American businesses. However, despite his intentions, Wilson intervened in Latin America more than any other president, sending troops to Nicaragua, Haiti, and the Dominican Republic, and ensuring a long-term US military presence in the region.
In Haiti, Wilson initially withdrew some of America's involvement. However, when the Haitian people rebelled against their oppressive leader in 1914-1915, Wilson sent troops to protect American citizens and investments. He then agreed to a treaty with Haiti, in which the US would help police the nation and supervise its finances, resulting in a 19-year-long US presence in the country. Wilson also intervened in Mexico, refusing to recognize the authoritarian government of Victoriano Huerta, who had seized power illegally in 1913. He used the arrest of American sailors in Tampico in 1914 as a justification for ordering the US Navy to occupy the port city of Veracruz, ultimately leading to Huerta's downfall.
Wilson's other interventions in Latin America included the Dominican Republic in 1916, Cuba in 1917, and Panama in 1918. He also signed the Jones Act of 1916, promising independence for the Philippines upon the formation of a stable government, and Puerto Rico achieved territorial status in 1917, with its residents becoming US citizens. Wilson's belief in the superiority of democratic governments and his desire to spread democracy led him to intervene in foreign nations on multiple occasions, often through aggressive moral diplomacy.
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US intervention in Latin America
William Howard Taft's "dollar diplomacy" was a strategy to use America's economic power as a diplomatic tool. Taft urged American investors to invest in foreign markets, especially those in which the US had strategic interests, such as the Far East and the Panama Canal region. This was done to increase American influence abroad and create stability that would promote American commercial interests.
Taft's "dollar diplomacy" was evident in extensive US interventions in Latin America, specifically in Central America and the Caribbean. He sought to use US economic might as leverage to coerce countries into agreements that benefited the United States. For example, in Nicaragua, when the country refused to accept American loans to pay off its debt to Great Britain, Taft sent a warship with marines to pressure the Nicaraguan government to agree. Similarly, when Mexico considered allowing a Japanese corporation to gain significant land and economic advantages, Taft urged Congress to pass the Lodge Corollary, stating that no foreign corporation could obtain strategic lands in the Western Hemisphere.
Taft's policies created difficulties for the United States, both during his presidency and in the future. Central American countries became indebted to the United States, fostering nationalist movements in countries resentful of American interference. Additionally, his efforts to expand the Open Door policy in Manchuria met with resistance from Russia and Japan, exposing the limits of America's influence and knowledge about diplomacy.
Woodrow Wilson, who succeeded Taft, immediately rejected "dollar diplomacy" and instead pursued ""moral diplomacy,"" which aimed to spread democracy and curb imperialism. However, Wilson intervened in Latin America more than any other president. He sent troops to Nicaragua, Haiti, the Dominican Republic, and Mexico. In Haiti, for example, Wilson sent troops to protect American citizens and investments during a rebellion against the country's oppressive president. He agreed to a treaty to help police the nation and supervise its finances, and US troops remained in Haiti for 19 years. Wilson also practiced imperialism by buying the Virgin Islands from Denmark for $25 million.
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Withdrawal of US involvement in Haiti
William Howard Taft's "dollar diplomacy" sought to use America's economic might as a diplomatic tool. Taft encouraged American investors to invest in foreign markets, particularly those in which the US had strategic interests, such as the Far East and the Panama Canal region.
Haiti, an exceptionally poor nation even by Caribbean standards, was a key target of Taft's "dollar diplomacy". In 1910, Taft granted Haiti a large loan in an attempt to help the country pay off its international debt and lessen foreign influence. However, this attempt failed due to the enormity of Haiti's debt and its internal instability.
When Woodrow Wilson took office, he began withdrawing much of America's involvement and influence in Haiti. However, in 1914, Haiti experienced increased instability, with the Haitian people outraged by the oppressive nature of their president, leading to a rebellion. In response to this, and fearing foreign intervention, Wilson reluctantly sent troops to Haiti in 1915 to restore order and protect American citizens and investments. This marked the beginning of a 19-year-long occupation of Haiti by the United States.
The US occupation of Haiti was marked by mismanagement, torture, and a lack of direction. The US gained complete control over Haitian finances and the right to intervene in Haiti whenever it deemed necessary. The US also forced the election of a new pro-American president, Philippe Sudré Dartiguenave, who ordered the dissolution of the senate and enforced new legislative elections. The US attempted to strong-arm Haiti into adopting a new constitution that allowed foreign land ownership, which had been outlawed since the Haitian Revolution.
The continued mismanagement of the occupation eventually led to strikes and riots in 1929, marking a turning point in setting plans for American withdrawal in motion. American forces officially withdrew from Haiti on August 15, 1934. Overall, the occupation did little to benefit Haiti, and the country continued to struggle with poverty and political instability.
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US involvement in the Mexican Revolution
William Howard Taft was elected in 1908, and his foreign policy philosophy reflected America's economic power at the time. Taft's "dollar diplomacy" aimed to “substitute dollars for bullets” and use foreign policy to secure markets and opportunities for American businessmen. He encouraged American investment in poor nations like Haiti to provide financial assistance and improve their economies.
Taft wanted to keep the Díaz government in power in Mexico to prevent issues with US access to Mexican resources, especially oil. During the Mexican Revolution, which began in 1910, the US sent troops to occupy Veracruz in 1914 and northern Mexico in 1916 to capture Pancho Villa. However, they were unsuccessful in this mission. President Wilson also sent troops to protect Americans in Haiti and remained involved in the country for 19 years.
Woodrow Wilson, Taft's successor, became president in 1913. He initially tried to reduce American involvement overseas and opposed intervention in Mexico. However, he did not recognize Huerta as the legitimate head of the Mexican government and pressured him to resign. Wilson also imposed an arms embargo on Huerta's regime. Despite his intentions, Wilson intervened in Latin American affairs more than any other president, including sending troops to Nicaragua and the Dominican Republic.
Wilson's "moral diplomacy" aimed to stabilize the Caribbean and Latin America with minimal American involvement and reverse Roosevelt's "big stick" policies and Taft's "dollar diplomacy." However, his beliefs often guided his foreign policy decisions, and he intervened in foreign nations on multiple occasions, especially in Latin America.
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Frequently asked questions
Dollar Diplomacy was President Taft's foreign policy approach, which encouraged American investment in foreign nations to stabilise struggling nations and open new markets for US businesses. Taft used the threat of economic power to coerce countries into agreements that benefited the US.
Moral Diplomacy was President Wilson's foreign policy approach, which focused on pulling American investments out of foreign lands and protecting people from oppressive governments. Wilson believed that US intervention in foreign nations bred distrust and dislike of the US.
Taft's Dollar Diplomacy faced criticism for its aggressive use of economic coercion and military force. While Wilson's Moral Diplomacy aimed to reduce American involvement overseas, he ultimately intervened in Latin America more than any other president, sending troops to Nicaragua, Haiti, and the Dominican Republic.
