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27th President of the United States
Presidential campaigns
10th Chief Justice of the United States
Post-presidency
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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] In his message to Congress on 3 December 1912, Taft summarized the policy of Dollar diplomacy:
Dollar diplomacy was not new, as the use of diplomacy to promote commercial interest dates from the early years of the Republic. However, under Taft's presidency, the State Department was more active than ever in encouraging and supporting American bankers and industrialists in securing new opportunities abroad.
The concept is relevant to both Liberia, where American loans were given in 1913, and Latin America. Latin Americans tend to use the term "dollar diplomacy" disparagingly to show their disapproval of the role that the U.S. government and U.S. corporations have played in using economic, diplomatic and military power to open up foreign markets. When Woodrow Wilson became president in March 1913, he immediately canceled all support for Dollar diplomacy. Historians agree that Taft's Dollar diplomacy was a failure everywhere. In the Far East, it alienated Japan and Russia and created a deep suspicion among the other powers hostile to American motives.[3][4]