Dollar Diplomacy
Dollar Diplomacy is the effort of the United States mainly under President William Taft to which it aims in Latin America and East Asia through use of its economic power by guaranteeing loans made to foreign countries. The idea was thought up of by former President Theodor Roosevelt used the money to pay soldiers without having to fight.
Theodor Roosevelt laid the foundation of this diplomacy in 1904 with his Roosevelt Corollary to the Monroe Doctrine. Which frequently sent United States Marines to Central America. It maintained that any nation in the western hemisphere that appeared unstable (politically or financially) that they were vulnerable to Europe control. Then the United States had the right to intervene.
During Taft's Presidency he continued this foundation, and expanded it. Where he started by protecting the Panama Canal. In 1909 he Unsuccessfully attempted to buy out Honduras by buying up it's debt to British bankers. If he had succeeded we would have established control over Honduras.
William Taft Theodor Roosevelt.
http://en.wikipedia.org/wiki/Dollar_Diplomacy
http://www.thefreedictionary.com/dollar+diplomacy
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