Stick And Dollar: Diplomacy's Dark Arts

Big Stick diplomacy and Dollar diplomacy were political approaches used by the United States in the early 20th century. Big Stick diplomacy was popularized by President Theodore Roosevelt, who described it as negotiating peacefully while also having the military strength to enforce demands if needed. This approach was used in Latin America and the Caribbean, with Roosevelt advocating for increased naval preparation to support the nation's diplomatic objectives. On the other hand, Dollar diplomacy was characterized by President William Howard Taft and his Secretary of State, Philander C. Knox, from 1909 to 1913. This policy aimed to use America's economic might to resolve diplomatic issues and promote American commercial interests abroad, particularly in the Caribbean and Central America. While Big Stick diplomacy emphasized the use of military strength as a negotiating tool, Dollar diplomacy sought to achieve stability and order through financial influence and investments.

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Big Stick Diplomacy was used during the Canal Diplomacy

The "big stick" ideology, or "big stick diplomacy", was a political approach used by the 26th president of the United States, Theodore Roosevelt. The term is derived from the phrase, "speak softly and carry a big stick; you will go far", which Roosevelt claimed was a West African proverb, although there is little evidence to support this.

Big Stick diplomacy had five components. First, it was essential to possess serious military capability that would force the adversary to pay close attention. At the time, this meant having a world-class navy. Roosevelt never had a large army at his disposal until the 1900s. The second component was negotiating peacefully but also having strength in reserve in case things went wrong. The third component was to use military muscle to complement diplomatic policies. The fourth component was enforcing the Monroe Doctrine throughout multiple interventions in Latin America. The fifth component was to peacefully illustrate the United States' rising yet neutral prestige under Roosevelt's direction.

Dollar Diplomacy was a foreign policy created by US President William Howard Taft (served 1909-1913) and his secretary of state, Philander C. Knox, to ensure the financial stability of a region while protecting and extending US commercial and financial interests. It grew out of President Theodore Roosevelt's peaceful intervention in the Dominican Republic, where US loans had been exchanged for the right to choose the Dominican head of customs (the country's major revenue source). It was evident in extensive US interventions in the Caribbean and Central America, especially in measures undertaken to safeguard American financial interests in the region.

Dollar Diplomacy was used to protect American investments

Dollar diplomacy was a foreign policy approach employed by President William Howard Taft and Secretary of State Philander C. Knox from 1909 to 1913. It was characterised by the use of economic power and financial incentives to promote American commercial interests and exert influence abroad, particularly in Latin America and East Asia.

One of the key motivations for dollar diplomacy was indeed the protection of American investments overseas. In Central America, for instance, Taft was concerned about the debts that several nations had incurred to European countries. He feared that debt holders might leverage these debts to justify military intervention in the Western Hemisphere. To prevent this, Taft used American dollars to pay off these debts, effectively shifting the indebtedness of Central American countries from Europe to the United States. While not all nations welcomed this arrangement, Taft was willing to use military force to achieve his objectives, as seen in the case of Nicaragua's refusal to accept American loans to repay its debt to Britain.

Dollar diplomacy was also employed in the Caribbean, where Taft believed that American investors could stabilise the region's shaky governments. In Haiti, the State Department persuaded four U.S. banks to refinance the country's national debt, ensuring American financial interests in the country. Similarly, in Honduras, the United States urged its bankers to invest, outcompeting potential foreign funds and protecting American financial interests.

In Asia, dollar diplomacy was directed towards China, where the United States sought to limit the influence of other powers. Taft and Knox facilitated the entry of American banking conglomerates, such as the one headed by J.P. Morgan, into the construction of railways in China. This move sparked a "Railway Protection Movement" revolt against foreign investment, which ultimately contributed to the overthrow of the Chinese government.

Despite its intentions, dollar diplomacy faced criticism and was ultimately deemed a failure. It led to increased conflict, nationalist movements, and mistrust among other powers. When Woodrow Wilson became president in 1913, he immediately cancelled all support for dollar diplomacy, marking a shift in American foreign policy.

Dollar Diplomacy failed to relieve Central American countries of their debt

Big Stick Diplomacy and Dollar Diplomacy were foreign policies of the United States during the presidencies of Theodore Roosevelt and William Howard Taft, respectively. Dollar diplomacy was a foreign policy approach that used America's economic power to coerce countries into agreements that benefited the United States.

William Howard Taft, who became president in 1909, adapted Roosevelt's "Big Stick" foreign policy philosophy to one that reflected America's economic power at the time. Taft's goal was to "substitute dollars for bullets" and use foreign policy to secure markets and opportunities for American businessmen.

Taft and his Secretary of State, Philander C. Knox, believed that the goal of diplomacy was to create stability and order abroad, which would promote American commercial interests. They wanted to use private capital to further US interests overseas and exert American influence through American banks and financial interests. This policy was known as "Dollar Diplomacy".

Dollar diplomacy also spurred nationalist movements in Central America as people resented American interference. It failed to counteract economic instability and the tide of revolution in countries like Mexico, the Dominican Republic, and Nicaragua. In Asia, it sowed seeds of mistrust as Pre-Soviet Russia and Japan viewed American actions in China as imperialist forays.

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Big Stick Diplomacy was used to threaten military force

Big Stick Diplomacy was a political approach used by the 26th President of the United States, Theodore Roosevelt. The term "big stick" was derived from the proverb "speak softly and carry a big stick; you will go far", which Roosevelt claimed was West African. The policy was based on the theory that the United States could use force to maintain stability in Latin America.

Roosevelt believed that it was unnecessary to use force to achieve foreign policy goals, so long as the military could threaten force. This rationale rested on his philosophy, which he termed the "strenuous life", which prized challenges overseas as opportunities to instill American men with the resolve and vigour they allegedly once had in the Trans-Mississippi West. Roosevelt's foreign policy had five components. Firstly, it was essential to possess a serious military capability that would force the adversary to pay close attention. At the time, this meant a world-class navy; Roosevelt never had a large army at his disposal until the 1900s.

Roosevelt used military muscle several times throughout his two terms with a subtle touch to complement his diplomatic policies. This included the Great White Fleet, 16 battleships that peacefully circumnavigated the globe as an illustration of the United States' rising yet neutral prestige. Roosevelt also used the "big stick" during "Canal Diplomacy", the diplomatic actions of the US during the pursuit of a canal across Central America. In 1901, Secretary of State John Hay pressed the Nicaraguan Government for approval of a canal. Nicaragua would receive $1.5 million in ratification, $100,000 annually, and the US would "provide sovereignty, independence, and territorial integrity". However, after the US accepted the deal, a problem of court jurisdiction arose as the US did not have legal jurisdiction in the land of the future canal.

In another instance, Roosevelt sent in warships to support the Panamanian rebellion against Colombia. The US presence made Colombia scared to suppress the uprising. Roosevelt also supported Japan's position in the Russo-Japanese War in 1904, angered by the massing of Russian troops along the Manchurian border. However, when the Japanese fleet achieved victory after victory, Roosevelt grew concerned over the growth of Japanese influence in the region.

Dollar Diplomacy was used to expand the Open Door policy

Big Stick Diplomacy and Dollar Diplomacy were used in the early 20th century, with the former being employed by President Theodore Roosevelt and the latter by his successor, William Howard Taft.

In East Asia, Dollar Diplomacy was employed to use American banking power to create tangible American interests in China, limiting the influence of other powers and increasing trade and investment opportunities for the United States. This policy was based on the assumption that American financial interests could be mobilized in East Asia. However, the American financial system was not well-equipped to handle international finance, and it had to rely primarily on London.

Taft's administration focused on two key regions: Central America and Asia. In Central America, several countries owed significant debts to European nations, which Taft sought to repay with American dollars. This strategy, however, led to resentment and the rise of nationalist movements in the region. In Asia, Dollar Diplomacy faced resistance from Russia and Japan, particularly in Manchuria, as both countries sought to expand their influence in the region.

Dollar Diplomacy aimed to promote stability and order abroad while advancing American commercial interests. This approach was influenced by Taft's Secretary of State, Philander C. Knox, a corporate lawyer who believed in using private capital to further U.S. interests overseas. Despite its intentions, Dollar Diplomacy ultimately failed to achieve its goals and was discontinued by Woodrow Wilson when he became president in 1913.

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