Dollar Diplomacy

What did Taft say concerning Dollar Diplomacy?

"Substituting dollars for bullets"

What did Taft do before being handpicked as TR's successor?

-Governor General of the Philippines -Superior Court/Court of Appeals judge -Secretary of War

What were some characteristics and accomplishments of Taft's presidency?

-Taft didn't get along with the press or get good publicity -Passed the 16th amendment (Fed. power over income tax)

When did the US first develop an interest in the banana trade?

1870, when Lorenzo Baker brought bananas from the Caribbean to Boston.

When did dollar diplomacy formally end?

1933 (FDR)

Who was Adolfo Diaz?

Adolfo Diaz was the US' handpicked ruler of Nicaragua A conservative businessman Non-militaristic

How did Zemurray become an example of dollar diplomacy?

After failing to make a tax deal with the Honduran govt. he simply arranged a coup, with Michael Bonilla as president.

Who coined the term banana republic?

American writer William Sydney Porter/ O Henry Porter

How did the US work to destroy Zelaya?

By sending in 400 marines to aid revolt against Zelaya

How did the US support Adolfo Diaz?

By shutting down rebellions against him with US troops

What sorts of systems did the US often take control of in its dollar diplomacy occupations?

Customs clearing houses, banking system, ministries of finance, buildings, and railroads

What often resulted from dollar diplomacy?

Dictatorships and the formation of militaries

Guatemala-UFCo relations

Different Guatemalan governments for a time gave tax benefits and concessions to UFCo, supporting their influence.

Cons of UFCo?

Difficult for natives to own land, made democracy impossible

How did the Cuyamel Fruit Company come to an end?

During the Great Depression, Zemurray sold CFC to the UFCo for over 30 million dollars.

What was UFCo's nickname in Honduras?

El Pulpo, the octopus

What did Taft do after his presidency?

He became the Supreme Court's Chief Justice

How did Zemurray do stuff in Honduras?

He purchased 5000 acres by 1910, forming the Cuyamel Fruit Company.

What was TR's main issue with Taft?

He was a little bit too progressive

what was the first banana republic?

Honduras

UFCo Merger 1899

In 1899, the Tropical trading and transport company merged with the Boston Fruit Company to form the United Fruit Company.

Decree 900

In June 1952, Arbenz enacted a law that allowed Guatemala to nationalize unused lands to redistribute amongst poor, landless families.

1954 Coup

In June 1954, US forces and Armas' small army took over the government, and Arbenz resigned in under 2 weeks of fighting.

What was an area of contention in Nicaragua?

It's Caribbean coast was contested by Nicaragua, natives, the UK, and the US

Pros of UFCo?

Made uncultivated land productive, benefited infrastructure

What were the three stages of US foreign policy?

Neutrality Proclamation, Monroe Doctrine, Roosevelt Corollary

PB-Success

PB Success was a CIA operation to depose Arbenz and install Castillo Armas as president.

What were some differences between Taft and TR?

TR was more exuberant and constitutionally liberal, Taft was more of a Constitutionalist

Who broke up more monopolies, Taft or TR?

Taft, by about 100-50

What was the basic formula for dollar diplomacy?

Take over an indebted country, pay their debt, take their means of making money

What did Taft say about his presidency?

That he didn't remember ever being president

What company did Captain Baker found in 1885?

The Boston Fruit Company, which was the first fruit company in the Caribbean

What was the opposition to UFCo in Guatemala?

The PAR or Revolutionary Action Party demanded minimum wage and other social reforms.

1950 Guatemalan Election and impacts

The PAR's candidate, Jacobo Arbenz, wins and becomes president, tries to enact land and labor reforms

What was dollar diplomacy a fundamental extension of (In LAm)

The Roosevelt Corollary

What really ended up happening with Dollar Diplomacy?

The US had to frequently use force to back up the use of dollars

How did the US make Zelaya angry, what did he do?

The US ruined Zelaya's plans by choosing Panama over Nicaragua, so Zelaya asked Euros/Japan to finance the canal instead.

What gave the US an excuse for intervention?

The execution of 2 US mercenaries led to Taft sending in warships and demanding Zelaya's exile to Spain

What did Arbenz and his govt do in 1953?

They nationalist a massive piece of UFCo land, and gave UFCo a fraction of the deserved compensation.

What was the role of American bankers in dollar diplomacy?

To flood money into latin american nations to keep out European influences.

What company did Minor Keith establish in the 1890's?

Tropical Trading and Transport Company, which shipped from Panama/Colombia to the US

What was UFCo's influence in Guatemala?

UFCo had complete control over society, politics, and the economy, as it was by far its largest employer.

1958 UFCo split

UFCo was forced by Eisenhower to split, forming multiple companies, the largest of which is Chiquita international

How did UFCo get rid of Arbenz?

Under the guise of the Cold War, UFCo accused Arbenz of communism, saying he could destabilize other Latin American countries.

What was dollar diplomacy?

Using diplomacy and investments to advance economic and political stability

What was Jose Santos Zelaya's goal, and why did the US oppose it?

Zelaya wanted a unified Central America, which would be hazardous to US interest.