Taft’s Dollar Diplomacy & Wilson’s Moral Diplomacy

William H. Taft and Dollar Diplomacy Taft’s foreign policy depended more on investors’ dollars than aggressive militarism His policy of promoting U.S. trade by supporting American enterprises abroad came to be known as “dollar diplomacy”

Dollar Diplomacy in East Asia & Latin America Taft believed private American financial investment in China and Central America would lead to greater stability in those regions Also promoted U.S. business interests Taft’s policies met one big obstacle: growing anti-imperialism in America and abroad America was able to participate in joint construction of railroads in China, but Russia and Japan excluded America from building railroads in northern Manchuria Direct defiance of the U.S. Open Door policy U.S. also had to intervene in a civil war in Nicaragua to protect American investments

The Lodge Corollary Sen. Henry Cabot Lodge (R-MA) was responsible for further alienating Latin America and Japan Group of Japanese investors wanted to buy a large part of the Baja Peninsula Fearing a secret scheme by Japan, Congress passed the Lodge Corollary to the Monroe Doctrine Non-European powers were excluded from owning territory in the Western Hemisphere Taft opposed the corollary, which also offended Japan and angered Latin American countries

Woodrow Wilson & Foreign Affairs Wilson promised a moral approach to foreign affairs Said he opposed imperialism the big-stick and dollar- diplomacy policies of his predecessors

Wilson’s Moral Diplomacy Wilson took specific steps to correct what he thought were wrongful policies of the past: Philippines- Jones Act of 1916 granted full territorial status, guaranteed a bill of rights and universal male suffrage, promised independence as soon as a stable govt. was established Puerto Rico- an act of Congress granted U.S. citizenship and provided for limited self-government Panama Canal- Wilson persuaded Congress to repeal an act that exempted U.S. ships from paying standard canal tolls Conciliation Treaties- Sec. of State William Jennings Bryan tried to negotiate treaties that submitted disputes to international commissions and observe a one-year-cooling-off period before taking military action Bryan arranged 30 of these types of treaties with other nations

Military Intervention under Wilson Wilson’s moral policies and commitment to democracy were not applied to Mexico and other countries in Central America and the Caribbean Went far beyond his predecessors in using U.S. marines to straighten out financial and political troubles in the region Wilson argued keeping U.S. troops in these countries maintained regional stability and would help protect the Panama Canal Wilson’s moral approach was severely tested by a revolution and civil war in Mexico Refused to recognize the military dictatorship of Gen. Victoriano Huerta who seized power in 1913 by having the former president killed

Tampico Incident To aid revolutionaries fighting against Huerta, Wilson called for an arms embargo against Mexico and sent a fleet to blockade the port of Vera Cruz 1914- several U.S. sailors went ashore at Tampico and were arrested by Mexican authorities The sailors were released but Huerta refused to apologize as demanded by a U.S. naval officer Wilson retaliated by ordering the navy to occupy Veracruz War seemed imminent until South America’s ABC powers (Argentina, Brazil, Chile) offered to mediate the dispute First dispute in the Americas to be settled through joint mediation

Pancho Villa & The U.S. Expeditionary Force Huerta fell from power in 1914; replaced by a more democratic regime Almost immediately, the new democratic govt. was challenged by a band of rebels loyal to Pancho Villa Villa led raids across the U.S.-Mexican border and murdered several people in Texas and New Mexico

Pancho Villa & The American Expeditionary Force March 1916- Wilson ordered Gen. John J. Pershing and an “expeditionary force” to pursue Villa Failed to capture him The Mexican president protested U.S. presence in Mexico January 1917- growing possibility of U.S. entry into WWI caused Wilson to withdraw Pershing’s troops

? What was the basis of William H. Taft’s “dollar diplomacy?” What did the Lodge Corollary to the Monroe Doctrine state? Give an example of how Wilson tried to correct the foreign policies of his predecessors. What happened during the Tampico Incident? Why did Wilson eventually pull Pershing’s men out of Mexico?