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Dollar diplomacy of the United States, particularly during the presidency of William Howard Taft (1909–1913) was a form of American foreign policy to minimize the use or threat of military force and instead further its aims in Latin America and East Asia through the use of its economic power by guaranteeing loans made to foreign countries. [1]
By 1912 the ongoing political conflict in Nicaragua between the liberal and conservative factions had deteriorated to the point that U.S. investments under President Taft's Dollar Diplomacy including substantial loans to the fragile coalition government of conservative President Juan José Estrada were in jeopardy.
[1] [2] Wartime diplomacy focused on five issues: subversion and propaganda campaigns to weaken the morale of the enemy; defining and redefining the war goals, which became harsher as the war went on; luring provisionally neutral countries (Italy, the Ottoman Empire, Bulgaria and Romania) onto one's side by offering slices of enemy territory
Dollar diplomacy was designed to avoid military power and instead use American banking power to create a tangible American interest in China that would limit the scope of the other powers, increase the opportunity for American trade and investment, and help maintain the Open Door of trading opportunities of all nations.
The foreign policy under the presidency of Woodrow Wilson deals with American diplomacy, and political, economic, military, and cultural relationships with the rest of the world from 1913 to 1921. Although Wilson had no experience in foreign policy, he made all the major decisions, usually with the top advisor Edward M. House .
Thomas Woodrow Wilson (December 28, 1856 – February 3, 1924) was the 28th president of the United States, serving from 1913 to 1921.He was the only Democrat to serve as president during the Progressive Era when Republicans dominated the presidency and legislative branches.
Allen, Debra J. Historical Dictionary of U.S. Diplomacy from the Revolution to Secession (2012) excerpt and text search; Anderson, Frank Maloy and Amos Shartle Hershey, eds. Handbook For The Diplomatic History Of Europe, Asia, and Africa, 1870–1914 (1918) online; Bailey, Thomas A. A Diplomatic History of the American People (10th edition 1980 ...
McKinley was assassinated in September 1901 and was succeeded by Vice President Theodore Roosevelt. He was the foremost of the five key men whose ideas and energies reshaped American foreign policy: John Hay (1838-1905); Henry Cabot Lodge (1850-1924); Alfred Thayer Mahan (1840-1914); and Elihu Root (1845-1937).