1. Taft’s Dollar Diplomacy & Wilson’s Moral Diplomacy

2. 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”

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. Pancho Villa & The American Expeditionary Force
March 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 growing possibility of U.S. entry into WWI caused Wilson to withdraw Pershing’s troops

11. ? 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?