Dollar Diplomacy

Dollar Diplomacy was led by President William Howard Taft, who for many years had 

served as Teddy Roosevelt's Secretary of War. When Taft won the election, Roosevelt had 

thought Taft would continue to carry out his plans. Taft had no intentions of fulfilling 

Roosevelt's plan, and soon he was appointing corporate lawyers instead of activist 

reformers to his cabinet. Roosevelt's foreign policy was also abandoned and Taft replaced 

it with "Dollar Diplomacy," substituting ballots for bullets. This appealed to the public and it 

made money for investors. Taft wanted to ensure financial stability of a region while 

protecting and extending America commercial and financial interests. 

Did Dollar Diplomacy work?

It did increase the level of U.S. financial involvement abroad but it was not always right 

for profit. Taft had persuaded bankers to invest in railroad projects in China, Russia, and Japan. 

However Russia and Japan became united in efforts to block the influence of America.

Many investments were lost in China when the Revolutionary movements had opposed 

U.S. influence. Dollar Diplomacy had also created some enemies  in Latin America when local 

revolutionary movements opposed U.S. influence. 

Imperialism is the state policy, practice, or advocacy of extending power and dominion, 

especially by direct territorial acquisition or by gaining political and economic control of 

other areas. This is what Taft was trying to do with Dollar Diplomacy. So in the end, 

Roosevelt and Taft had produced anti-colonialism abroad and anti-imperialism at home.

Sources:

-www.blueladder.com/education/ushistunit9notes5.html

-Novik Frank."Imperialism and Anti-imperialism."The United States and Imperialism. 

Blackwell Publishers Inc, 2001. Online Book, 2010. Web. 2 Oct.2010.