A world safe for capitalism

www.ebook3000.com A World Safe for Capitalism www.ebook3000.com This page intentionally left blank www.ebook3000.com A World Safe for Capitalism Dollar Diplomacy and America’s Rise to Global Power Cyrus Veeser c o l u m b i a u n i v e r s i t y p r e s s www.ebook3000.com n e w y o r k Columbia University Press Publishers Since 1893 New York, Chichester, West Sussex Copyright ᭧ 2002 Columbia University Press All rights Reserved Library of Congress Cataloging-in-Publication Data Veeser, Cyrus A world safe for capitalism: Dollar diplomacy and America’s rise to global power / Cyrus Veeser p cm Includes bibliographical references and index ISBN 0-231-12586-0 (cl) — ISBN 0-231-12587-9 (pa) United States—Foreign economic relations— Dominican Republic Dominican Republic— Foreign economic relations—United States San Domingo Improvement Company (New York, N.Y.) Debts, Public—Dominican Republic—History Loans, American —Dominican Republic—History United States—Foreign relations—Dominican Republic Dominican Republic—Foreign relations—United States I Title HF1502.Z4 U57 2002 337.7307292Ј09Ј034—dc21 2002019283 Columbia University Press books are printed on permanent and durable acid-free paper Printed in the United States of America c 10 p 10 www.ebook3000.com Dedicated to the memory of my parents, Harry Veeser and Elise Karagozian Veeser and to my favorite Dominicanists, Lilian, Gaby and Minerva www.ebook3000.com This page intentionally left blank www.ebook3000.com Contents List of Illustrations ix Acknowledgments xi List of Abbreviations xiii Introduction: Economic Interests and U.S Expansion, 1892—1907 1 The Gilded Age Goes Abroad The San Domingo Improvement Company and the Political Economy of the 1890s 10 Remapping the Caribbean U.S Caribbean Interests and the Mission of the SDIC Peasants in the World Economy The Dominican Republic in the Late 1800s 30 43 Dictating Development Ulises Heureaux and the SDIC Remake the Dominican Republic 58 The Cash Nexus Economic Crisis and the Collapse of the Heureaux-SDIC Regime 76 www.ebook3000.com viii Contents Old Wine in New Skins The U.S Government Champions the SDIC, 1899—1904 A Reign of Law Among Nations John Bassett Moore and the Vindication of the SDIC, 1904 A World Safe for Capitalism Stabilizing the Dominican Republic, 1901—1905 126 From The Gilded Age to Dollar Diplomacy The SDIC and the Roosevelt Corollary, 1904—1907 Conclusion 155 Notes 163 Bibliography Index 239 227 www.ebook3000.com 143 98 110 List of Illustrations Map: The Dominican Republic, 1900 xv Following page 78 [1] Santo Domingo harbor in 1901, with colonial-era buildings used as residences in foreground (Library of Congress, Prints & Photographs Division, Detroit Publishing Company Collection, reproduction no LC-D4–10540R) [2] Smith M Weed, president of the San Domingo Improvement Company (Courtesy Special Collections, Feinberg Library, Plattsburgh State University) [3] Dominican President Ulises Heureaux (Coleccio´n Garcı´a, Archivo General de la Nacio´n, Santo Domingo) [4] Commercial street of a provincial Dominican city in the early 1900s (Archivo General de la Nacio´n, Santo Domingo) [5] A Dominican peasant and his daughter, early 1900s (American Museum of Natural History Library, image no 247947) [6] Rural home or bohio near Puerto Plata, early 1900s (American Museum of Natural History Library, image no 229075, photo by C.R Halter) [7.1 & 7.2 ] A two-peso note and a one-peso “silver” coin, both issued www.ebook3000.com 236 Bibliography pu´blica Dominicana a los Estados Unidos en el siglo XIX.” Jahrbuch fuăr Geschichte von Staat, Wirstschaft und Gesellschaft Lateinamerikas, 23 (1986) Peynado, Francisco Jose´ “Por la inmigracio´n,” in Papeles y Escritos de Francisco Jose´ Peynado, ed Juan Daniel Balca´cer Santo Domingo: Fundacio´n Peynado Alvarez, 1994 Pletcher, David M The Diplomacy of Trade and Investment: American Economic Expansion in the Hemisphere, 1865–1900 Columbia: University of Missouri Press, 1998 Pletcher, David M “Rhetoric and Results: A Pragmatic View of American Economic Expansionism, 1865–98.” Diplomatic History (Spring 1981) Plummer, Brenda Gayle Haiti and the Great Powers Baton Rouge: Louisiana State University Press, 1988 Presidential Addresses and State Papers of Theodore Roosevelt, Part Three New York: Kraus Reprint Co 1970 Quiroz, Alfonso W Domestic and Foreign Finance in Modern Peru Pittsburgh: University of Pittsburgh Press, 1993 Resumen General del Activo y Pasivo de la Sucesio´n Heureaux Santo Domingo: Garcia Hermanos, 1900 Rippy, J Fred “Antecedents of the Roosevelt Corollary of the Monroe Doctrine.” Pacific Historical Review (1940) Rippy, J Fred “The British Bondholders and the Roosevelt Corollary of the Monroe Doctrine.” Political Science Quarterly 49: (June, 1934) Rippy, J Fred British Investments in Latin America, 1822–1949 New York: Arno Press, 1977 Roseberry, William Coffee and Capitalism in the Venezuelan Andes Austin: University of Texas Press, 1983 Roseberry, William “Hegemony and the Language of Contention,” in Gilbert M Joseph and Daniel Nugent, eds., Everyday Forms of State Formation Durham: Duke University Press, 1994 Rosenberg, Emily S Financial Missionaries to the World: The Politics and Culture of Dollar Diplomacy Cambridge: Harvard University Press, 1999 Rosenberg, Emily S and Normal L Rosenberg “From Colonialism to Professionalism: The Public-Private Dynamic in United States Foreign Financial Advising, 1898- 1929.” Journal of American History 74 (June 1987) Sahlins, Marshall “Cosmologies of Capitalism: The Trans-Pacific Sector of ‘The World System,’” in Nicholas B Dirks, et al., eds., Culture/Power/History Princeton: Princeton University Press, 1994 Said, Edward Orientalism New York: Random House, 1979 San Miguel, Pedro “The Dominican Peasantry and the Market Economy: The Peasants of the Cibao, 1880–1960.” Unpublished Ph.D diss., Columbia University, 1987 Bibliography 237 Sang Ben, Mu-Kien Adriana Ulises Heureaux Santo Domingo: Editora Corripio, 1987 Scott, James C Comparative Political Corruption Englewood Cliffs, N.J.: PrenticeHall, 1972 Scott, James C The Moral Economy of the Peasant New Haven: Yale University Press, 1976 Scott, Rebecca J Slave Emancipation in Cuba Princeton: Princeton University Press, 1985 Simpson, J L and Hazel Fox International Arbitration London: Stevens & Sons, 1959 Sklar, Martin The Corporate Reconstruction of American Capitalism New York: Cambridge University Press, 1988 Sklar, Martin “Dollar Diplomacy According to Dollar Diplomats: American Development and World development” in The United States as a Developing Country New York: Cambridge University Press, 1992 Skowronek, Stephen Building a New American State New York: Cambridge University Press, 1982 Smith, Joseph Illusions of Conflict Pittsburgh: University of Pittsburgh Press, 1979 Smith, Joseph The Spanish American War New York: Longman, 1994 Smith, Tony The Pattern of Imperialism New York: Cambridge University Press, 1981 Socolofsky, Homer E and Allan B Spetter The Presidency of Benjamin Harrison Lawrence: University Press of Kansas, 1987 Spanish American Commercial Union, Proceedings at the Banquet New York: El Avisador Hispano-Americano Publishing Co 1889 Stead, William T The Americanisation of the World, or the Trend of the Twentieth Century London: Review of Reviews, 1902 Stuyt, A M Survey of International Arbitration, 1794–1989 Boston: Martinus Nijhoff, 1990 Tansill, Charles Callan The United States and Santo Domingo, 1798–1873 Gloucester, MA: Peter Smith, 1967 Tansill, William Raymond “Diplomatic Relations Between the United States and the Dominican Republic, 1874–1899.” Unpublished Ph.D diss., Georgetown University, 1951 Tate, Merze Hawaii: Reciprocity or Annexation East Lansing: Michigan State University Press, 1968 Taussig, F W The Tariff History of the United States New York: Capricorn, 1964 Tejada, Adriano Miguel El Ajusticiamiento de Lilı´s Santo Domingo: Editora Corripio, 1995 Terrill, Tom E The Tariff, Politics, and American Foreign Policy Westport, CT: Greenwood, 1973 238 Bibliography Trask, David F The War with Spain in 1898 New York: Macmillan, 1981 Trouillot, Michel-Rolph “Discourses of rule and the acknowledgment of the peasantry in Dominica, W.I., 1838–1928.” American Ethnologist 16: (Nov 1989) Tyler, Alice Felt The Foreign Policy of James G Blaine Hamden, CT: Archon Books, 1965 Vanderwood, Paul J Disorder and Progress: Bandits, Police, and Mexican Development Wilmington, DE: Scholarly Resources, 1992 Vilas, Carlos “El Estado Dominicano.” Estudios Sociales Latinoamericanos 24 (Sept–Dic 1979) Waller, Altina “The Political Economy of the New York State Prison System.” Unpublished paper, Special Collections, Feinberg Library, SUNY/Plattsburgh Wallerstein, Immanuel The Politics of the World-Economy New York: Cambridge University Press, 1984 Welch, Richard E., Jr The Presidencies of Grover Cleveland Lawrence: University Press of Kansas, 1988 Wells, Sumner Naboth’s Vineyard New York: Payson & Clarke, 1928 Werking, Richard Hume The Master Architects Lexington: University of Kentucky Press, 1977 Wilkins, Myra The Emergence of Multinational Enterprise: American Business Abroad from the Colonial Era to 1914 Cambridge: Harvard University Press, 1970 Williams, William Appleman The Tragedy of American Diplomacy New York: Dell, 1962 World Bank Judicial Reform in Latin America and the Caribbean Washington, D.C.: World Bank, 1995 Wynne, William H State Insolvency and Foreign Bondholders New Haven: Yale University Press, 1951 Younger, Edward John A Kasson Iowa City: State Historical Society of Iowa, 1955 Zakaria, Fareed From Wealth to Power: The Unusual Origins of America’s World Role Princeton: Princeton University Press, 1998 Index Abbott, John T (SDIC representative), 5, 99, 106, 126, 132, 135, 148–149, 151, 155–156; appointed as SDIC financial agent, 120, 121, 215n34, 36; arrives on U.S warship, 124, 217n56; objections to Hollander plan, 152, 224n37 Abreu Licairac, Rafael (Heureaux opponent), 64, 65 agrarian reform, 50–51, 63, 67–68, 192n47; opposition to, 68–69, 193nn51, 55–56; suspension of, 69 Allen, Charles (financier), 150–151 apartados, 91, 205nn81–82 arbitration, 111, 210n27 arbitration hearing (1904), 110–119; tribunal’s bias, 117–118; European creditors and, 119; ruling, 118–119, 215n28 Archivo General de la Nacio´n, Argentina, 21, 32, 119 Arias, Desiderio (Dominican rebel leader), 128, 144 authoritarianism: justification for, 61, 75, 188n12 Ba´ez, Buenaventura (Dominican president), 52, 53, 54 Baird, Alexander (railroad builder), 45 Banco Nacional de Santo Domingo, 46, 67, 72, 85–86, 104, 152, 180n22; issue of paper money, 87– 89, 203nn60–62 Banque Nationale de Saint Domingue See Banco Nacional de Santo Domingo Baring Brothers, 21, 55, 76 Bass, William (sugar planter), 48–49, 69 Battle, Cosme (merchant), 81, 82, 198nn22, 25, 199n33 Bidlack Treaty of 1846, 105 Bischoffsheim, 54 Blaine, James G (Secretary of State), 3, 20, 23, 24, 30, 31, 32 Bono´, Pedro Francisco, 48, 90 240 braceros, 49, 66, 182n38 Bradstreet’s, 22 Brazil, 32 Brown, Willard (attorney), 22 Brown Janson & Co., 196n12 Bureau of the American Republics, 178n3 business, influence on U.S government of, 6, 14, 24–25, 27, 28–29, 30, 37, 40, 41, 101, 103, 105–107, 109, 112, 116, 119, 121–124, 127, 133–134, 136–140, 144, 146–150, 152, 156, 159 cacao, 47, 49 Ca´ceres, Ramo´n (Dominican president), 160 Caja General de Recaudacio´n de Aduanas See Regie Caribbean: American predominance in, 2, 30–31, 38, 39–40, 94–95, 134–135, 137–140, 150–151 Caribbean Squadron, U.S Navy, 4, 128–132 Cazneau, William (adventurer), 35 Central Dominican Railroad, 45, 46, 59, 65–67, 76, 83, 104, 152, 181n23, 192n42, 195n78; opening of, 89; SDIC-sponsored loans and, 77 centrales, 48 Chateaugay Ore and Iron Company, 17 Chile, 32 Cibao region, 44, 45, 47, 49, 50, 51, 59, 65–66, 96 Cleveland, Grover, 3, 5, 9, 17, 20, 21, 38, 41, 92; Smith M Weed and, 3, 10, 18, 20, 38, 40, 41, 118, 168nn36, 40, 41; 177n65 coffee, 47, 49 Cohen, William, 151 Index Collin, Richard (historian), 5, 173n21; 176nn53, 54; 202n54; 216nn47, 52; 225n6 Colombia: Panama Rebellion, commercial interests, U.S.: European competition, 31, 172n11; in Latin America, 30–31, 171n5; trade agreements, 32; see also reciprocity communal properties See terrenos comuneros Company of the Central Dominican Railroad, 78 Conant, Charles A (economist), 22, 27, 70, 150 Corporation of Foreign Bondholders (CFB), 9, 54, 104, 209nn18, 26; backs the SDIC, 105, 151–152, 211n40; see also Council of Foreign Bondholders corruption, 83–84, 113, 167n21 Council of Foreign Bondholders, 107, 195n4, 196n12; accepts Hollander plan, 153; John Bassett Moore and, 146, 223n13; see also Corporation of Foreign Bondholders crianza libre, 63, 72; restrictions on, 67–69 Crowninshield, Capt A.S., 38–39, 93, 177nn59, 69 Cuba, 97, 99, 158; achieves independence, 2; American intervention in, 92–94, 207n111; American investment in, 14; becomes U.S protectorate, 2; instability in, 91–93, 205n87, 206n88; monetary reform, 194n67; rebellion of 1895, 32; sugar production in, 181n31 Curtis, Mallet-Prevost & Colt, 111 Dawson, Thomas C (U.S minister), 121, 132, 133, 135, 215n37; becomes first U.S minister to San Do- Index mingo, 130; defends Dominicans, 123, 216n52 Day, William Rufus (Secretary of State), 94 debt collection, international laws of, 119–129, 126, 137–138, 221n47 Dewey, Adm George, 130 Diaz, Porfirio (Mexican leader), 65, 66 Dillingham, Commander Albert, 128, 129, 135, 218nn8, 10 Dingley Tariff of 1897, 93 Dollar Diplomacy, 5, 14, 30, 70, 73, 76, 117, 125, 127, 140, 155, 156; genesis of, 6, 23, 116–117, 134– 140, 150–151; see also Dominican intervention, U.S Dominican debt: national vs international borrowing, 81–83, 197nn19– 20, 198nn21, 23–24; provisions of 1906 loan, 151; see also Hartmont loan Dominican intervention, U.S.: as alternative to colonialism, 2; as alternative to SDIC, 158–159; American opposition to, 136; arrival of warships, 128; cost of, 130, 219n21; customs house seizures, 121, 124, 132, 144, 217n53; formalization of takeover, 135, 220nn40, 43; future U.S foreign policy and, 7; justification for, 139–140; as political alliance, 132, 219n29; precursors to, 103; role of Dominicans in, 129– 130, 131, 218n15; Roosevelt Corollary and, 97; turns into peacekeeping mission, 130–132; see also foreign policy, U.S Dominican Republic: in the 19th century, 43–44; after 1906, 160–161; annexation of by U.S., 25–26, 53– 54, 185n58; arbitration of 1904, 108, 110–119, 214n15; centraliza- 241 tion of power, 160; Congress ratifies Hollander refunding treaty, 153; custom house takeovers, 121, 124, 132, 144, 217n53; customs collections, 184nn51–52; decline of food production, 51, 184nn49–50; demographics of, 44–45, 178nn4–5, 179n6; dependence on loans, 185n54 (see also Hartmont Loan); economic collapse of, 87–97, 204nn76–77; economy of, 44–45, 47–53, 72, 182n40 (see also agrarian reform; gold standard); European bond sales of, 77; European pressure for tariff reductions, 33; expansion of cash crops, 49–50, 183nn42–45; finances of, 163n9; foreign concessions in, 46, 180n20; geography of, 44; hostility toward SDIC, 99, 101–102, 208n11; imports and exports of, 89, 204nn70– 71; invalidates arbitration agreement, 147; merchant class, 179nn11–12; modernization attempts, 7–8, 62; negotiations with SDIC (1901), 103–104, 209n26, 210n27; non-U.S trading partners, 46, 181nn24–26; political uses of U.S intervention, 131–132, 157, 219nn27–28; post-Heureaux governments, 99–100, 208nn5, 8–9; power disparity with U.S., 157, 255n4; reaction to arbitration ruling, 119; SDIC contract (1900), 101–102; settlement offer of 1903, 108; settlement terms with SDIC (1901), 104, 210n29; tax exemption for sugar planters, 133; trade with the U.S., 32–33, 46; transportation in, 45–46; uprising against SDIC takeover, 13, 166n14; U.S Marine occupation of 1916, 160 242 Douglass, Frederick (U.S minister), 35, 65 Drago, Luis (Argentine minister), 119, 120, 215n33, 219n21 Durham, John S (U.S minister), 34, 35, 36, 37 economy, U.S.: post-Civil War, 15, 166nn18–19; reaction against unbridled capitalism, 15, 166n20 Egypt, 26, 115 election of 1876 See presidential election of 1876 Elkins, Stephen B (Secretary of War), 24, 25 Europe: bondholders agree to Hollander plan, 152; complaints against arbitration ruling, 122–123, 216nn46, 48, 52; creditors’ complaints, 132–133, 138, 219n30, 220n31, 221n48; opposition to U.S influence in Caribbean, 40–41 Farmers Alliance, 39 Federal Reserve Act, 71 F H Morris, 95 Fish, Hamilton (Secretary of State), 53 Foreign Office (U.K.), 9, 33, 104, 106, 107 foreign policy, U.S.: abandoning of sugar planters, 134, 220n36; backing of 1906 loan, 151; backing of SDIC, 3–4, 8, 107, 109; Cuban intervention, 92–94; evolution of interventionism, 4–5; executive control of, 159–160; expectations of SDIC, 13; under Harrison, 30, 32, 171n4; impact of Dominican intervention on, 7; Marine occupation of Dominican Republic (1916), 160; merger with SDIC interests, 27, 121–125, 126– 127; occupation of custom houses, Index 121, 124, 132, 144, 217n53; suspicion of Germany, 31, 172n9; see also business, influence on U.S government of; Dominican intervention; Roosevelt Corollary to the Monroe Doctrine Foster, John W (Secretary of State), 36, 37 France: overtures from Heureaux, 95 French foreign ministry, 9, 140 Frontier Guard, 157 Galva´n, Manuel (Dominican negotiator), 35, 118 Germany, 24, 26, 31, 33, 34, 46, 47, 172nn9–11; reaction to reciprocity, 33, 174n26 Gilded Age: business practices during, 15–19 gold standard, 8, 59, 70–72, 193n60, 194n69; failure of, 72–73, 195nn73–74 Go´mez, Ma´ximo (Cuban rebel), 205n87 Grant, Ulysses S., 12, 26 grazing, unrestricted See crianza libre Great Britain: moves ships out of Caribbean, 141, 221n59; reciprocity and British trade, 174n23; see also Corporation of Foreign Bondholders; Foreign Office (U.K.) Gresham, Walter Q (Secretary of State), 20, 41, 85–86 Grimke, Archibald (U.S consul), 94 Guanta´namo Bay, 39; U.S acquisition of, 94 Haiti: Moˆle St Nicolas, 35, 37; prohibition on investment and ownership, 64–65, 191n38; Western view of, 63–65, 191n36 Handbook of Santo Domingo, 178n3 Harrison, Benjamin, 3, 20, 23, 30, 38 Index Hartmont, Edward Herzberg, 52; see also Hartmont loan Hartmont loan, 52–54, 75, 185nn55– 56, 60, 186nn61–64, 68–69, 195n4 Hawaii, 32, 38 Hay, John (Secretary of State), 4, 5, 76, 103, 120, 121, 122, 127, 132, 147, 164n11, 213n10, 216n47; authorizes naval support, 124; death of, 147 Henrı´quez y Carvajal, Francisco (Dominican statesman), 101, 107, 198n27; 1901 talks with U.S., 103– 104; resignation of, 210n30 Heureaux, Ulises, 3, 10, 11, 21, 42, 128, 132, 165n10, 172n14; agrarian reform and, 67–69; agreement with SDIC (1893), 13; assassination of, 96; Banco Nacional and, 78; collapse of Dominican economy and, 85–97; correspondence of, 9, 58; Cuban instability and, 92–93; definition of progress, 65, 66; description of, 12– 13; European lenders and, 54, 186n66; financial maneuvers of, 81, 83, 198nn23–24, 27, 29–30, 199nn33, 36, 38; governing style of, 60–62, 188n11; need for money, 54, 56–57; overtures to France and Spain, 95; patronage of, 83–84, 200n39; perception of global power, 34, 174n31; preference for foreign companies, 188n7; prejudice of whites against, 191n33; private wealth of, 201n46; proposed war against Haiti, 26, 64, 170n64; reform attempts, 14 (see also agrarian reform); regime of, 51–52; relationship with SDIC, 14, 40–41, 76–81, 91, 96–97, 205n85; relations with U.S., 39–40; and Samana´ Bay lease, 7, 35–39, 175nn38–40; and SDICarranged loans, 76–80; threatens 243 merchants and farmers, 90, 204n75; views of Haiti, 63–65, 191n35; visit to Puerto Plata, 59–61, 188n13 Hill, Sen David B., 18 History and Digest of International Arbitrations (Moore), 111, 212n3 Hobson, John A (economist), 6, 22, 27, 28 Hollander, Jacob H (economist), 70, 145, 156, 165n9; investigates SDIC, 148–149; refunding plan of, 150– 153; report on SDIC, 149–150; reputation tarnished, 154 Holls, Frederick William (SDIC attorney), 9, 10, 12, 24, 45, 62, 63–64, 73, 74, 155–156, 195n78 Imperialism (Hobson), imperialism, investment: 27–28, 158, 160, 187n3 International Assets Company, 106 International Harvester, International Monetary Fund, 7, 140 Jimenes, Juan Isidro (Dominican president), 99, 100, 101–102, 103, 128; overthrow of, 108 J S Morgan, 54 Kasson, John A (U.S negotiator), 93 Keith, Minor (railroad builder), 83, 199n35 Knox, Philander K (Secretary of State), 127 Kuhn, Loeb & Co., 150, 151, 152; withdrawal from 1906 loan, 154 labor, imported See braceros Languasco, Carlos Morales See Carlos Morales Latin America: arbitration with U.S., 111–112, 212n5, 213nn6, 8–9; 244 Latin America (continued) financial instability of, 12, 169n46; modernization in, 62–63, 191n32; monopolistic trade practices of, 168n44; Roosevelt Corollary and, 139–142 Laughlin, J Laurence (economist), 8, 65, 71–72, 74, 194nn63, 65 La Vega-Sa´nchez railroad, 45, 180n16 Lenin, Vladimir, 27, 28 Lipson, Charles, 127, 217n6 loans: linked to financial advice, 140; see also Dominican debt London Stock Exchange, 79, 195n4, 196n12 London Trust, 106 Loomis, Francis B (Under Secretary of State), 112, 121, 213n10, 215n36; discussions with Roosevelt, 136–139; trip to Dominican Republic, 130 Lo´pez, Jose´ Ramo´n, 180n18 L’Ouverture, Toussaint See Toussaint L’Ouverture, Pierre Dominique Machias, U.S.S., 99 Maritime Canal Company, 19, 20 Marshall Plan, Martı´, Jose´ (Cuban patriot), 172n14, 205n205 McKinley, William, 93, 94, 105 Mendel, Isidor (Dominican financial agent), 91 Merin˜o, Fernando A de, 180n19 Mexico: American investment in, 14; stability of, 64 Mills, Rep Roger Q., 18 modernization, 62–63, 73–75, 77, 191n32 Moˆle St Nicolas, 35, 37 Monroe Doctrine, 31, 120, 135; see also Roosevelt Corollary to the Monroe Doctrine Index Moore, John Bassett (SDIC attorney), 5, 6, 8, 105–106, 107, 122, 127, 135, 142, 151, 153, 155–156; advocates U.S intervention, 115–117, 120; after SDIC, 154; analyzes foreign claims, 216nn46, 48; arbitration arguments of, 113–117, 214n24; conflict of interest of, 112, 136, 213n10; correspondence of, 9; description of, 105, 111, 210nn31–32, 211n34; discussions with Roosevelt, 136–139, 156; Dominican treaty (1905) and, 144–145, 222n4; meeting with Hollander, 148–149; press attacks on SDIC and, 145–146; reaction to Roosevelt Corollary, 138, 221n50; recommends Dominican government restructure, 110; requests U.S naval support, 124; as SDIC representative, 105–106; signs new contract with SDIC, 124; State Dept correspondence, 147 Morales, Carlos (Dominican president), 100, 109, 119, 121, 124, 126, 128; compared to Heureaux, 132; defends U.S intervention, 135–136; letters of, 123; political uses of American presence by, 131–132, 219nn27–28; U.S intervention and, 129 Morton, Rose & Company, 54 Morton Trust Company, 150; assembles new loan package, 153 Nashville, U.S.S., National Bank of Santo Domingo See Banco Nacional de Santo Domingo National City Bank, 150 National Union Society, 106 Navy, U.S.: build-up, 31, 38, 172n7; policy of, 175n37; as prop of Dominican state, 131; strategy of, 35; Index support of SDIC by, 3–4; warships as stabilizing force, 128 neutrality standards, 128–129 Nicaragua Canal Construction Company, 20 Nicaraguan Canal, 19–22, 35, 168n37 NSC-68 (U.S planning document), 7, 140 O’Beirne, Hugh (British ambassador), 145, 146, 147 Olney, Richard (Secretary of State), 38, 42, 86 Open Door Policy, 164n11 pacification, 60, 129–130, 188nn9–10 Panama: proclaims independence, 2; see also Colombia; Panama Canal Panama Canal: agreement signed for, 2; first attempts at, 19; funding for, 19–20; see also Nicaraguan Canal Pan-American Conference of 1889–90 (first), 31–32, 172n14, 178n3 Pauncefote, Lord J (British ambassador), 34, 38, 107 peasantry, 43, 48–51, 63, 190n23; agrarian reforms and, 67–69, 192n44; in British East Africa, 192n43 Peirce, Herbert H D (acting Secretary of State), 148 Penfield, W L (State Dept counsel), 137, 147 Peru, 14 Platt Amendment, 2, 163n5 Populists, 39 Port Arthur, 141 Powell, William F (U.S minister), 107, 109, 134, 214n22, 218n8 presidential elections: of 1876, 16–17, 167nn26–27; of 1892, 38; of 1896, 40 245 Progressive Era, 4; private interests vs public good, 159–160 Puerto Rico, 39, 97, 99; monetary reform in, 194n67; U.S acquisition of, 2, 94–95, 207n111 reciprocity, 31–33, 56, 174n26, 187nn73, 75; Dominican tariff reductions, 173n19; end of, 32, 39; European opposition to, 33–34, 174n28, 177nn61, 63; with Hawaii, 32; Samana´ Bay and, 93–94; settlement of controversy about, 34–35, 174n33; treaty with Cuba, 173n17; treaty with Hawaii, 173n15 Regie, 55, 56, 81, 83, 186n71, 199nn34, 37–38, 200nn41–42; Belgian overseer appointed to, 91, 205n80 Roosevelt, Theodore, 2, 4, 5, 6, 8, 9, 14, 23, 29, 31, 73, 76, 105, 109, 120, 129–130, 156; executive control of foreign policy, 159–160; global vision of, 5, 8, 29, 117, 127, 134–135, 137–140, 150–151; as mediator in European and Asian conflicts, 141; meetings with John Bassett Moore, 105, 124, 136–139, 145; suspicions about SDIC, 148 Roosevelt Corollary to the Monroe Doctrine, 4, 6, 14–15, 31, 73, 97, 127, 137, 139–142, 164n10, 220n46, 221n47, 221n51; American reaction to, 140, 221n58; European reaction to, 141–142, 222n60; formulation of, 134–135; 139–142; opposition in Senate to, 144; as shift in U.S foreign policy, 155; see also foreign policy, U.S Root, Elihu (Secretary of State), 149, 151, 154; foreign policy of, 159 Russo-Japanese War, 141 246 Salomon, William (financier), 150 Samana´ Bay, 7, 11, 25, 26, 56, 129, 165n4, 207n102; becomes irrelevant, 95, 99; negotiations for lease of, 35–37, 93–94, 206nn94, 98 Sa´nchez, Juan F (Minister of Finance), 11, 165n7 San Domingo Finance Company, 78 San Domingo Improvement Company See SDIC Sarmiento, Domingo (Argentine president), 65 Schiff, Jacob (financier), 150, 151 SDIC, 3, 4, 5, 10, 11, 12, 21, 27, 35– 36 —under Heureaux regime: adoption of gold standard and, 70–72, 193n60, 194n62; agreement with Dominican government (1893), 13; description of, 7; Dominican economic conditions and, 50–51; effect on the Dominican Republic of, 160–161, 226n11; European views of, 80; financial stewardship of, 73; flaws in, 28; goals vs results, 74–75; government ties with, 6, 8; Heureaux regime and, 84–87, 200nn43–44, 201n45; influence on U.S government of, 6, 14, 23, 25, 28–29, 37, 40, 41, 103, 107, 109, 112, 116– 124, 133–134, 136–140, 146–150, 152, 156, 159; as instrument of U.S foreign policy, 14–15; loan of 1897, 79, 91, 95, 196nn13–14; loans arranged by, 76–81; merger with U.S strategic goals, 27; policies in common with Heureaux, 51, 185n53; provisions for Dominican default, 26–27, 170n66; purchase of Banco Nacional by, 78, 85–86; purchase of Dominican debt by, 23–24; reform attempts, 14, 70–73 (see also agrar- Index ian reform); relationship with Dominican Republic, 9, 164n19; relationship with Heureaux, 14, 96–97; Samana´ Bay negotiations and, 37; setting up the company, 24–25; spinoffs of, 78; U.S government and, 41–42; U.S support for, 86–87 —after Heureaux, 98–109, 208n4; accepts Hollander plan, 152–153, 224n40; arbitration hearing, 110– 120; attacks in the U.S press on, 145; changing position of, 101; as colonial substitute, 158; conflict with bondholders, 102, 209n19; dissolution of, 153–154; Dominican intervention and, 155–156; effects of Roosevelt Corollary on, 144; European bondholders and, 106, 211nn36–37; expulsion from custom houses, 102–103; loses U.S government support, 14, 137, 146– 150; refusal to help new government, 100–101; settlement negotiations with Dominicans, 107–108, 211n42; as spur to Roosevelt Corollary, 141 Senate, U.S.: Dominican annexation (1870) and, 53; objects to customs receivership, 144, 151; ratifies Hollander repayment treaty, 153; treaty power of, 136 Sherman, Sen John, 19 Sigsbee, Adm Charles, 128, 129, 130, 131, 144 silver: decline in value of, 70 Spain: overtures from Heureaux, 95 Spanish-American War, 94; effect on the Dominican Republic of, 99 State Dept., U.S., 12, 23, 26, 30, 31, 36–39, 41–42, 76, 80, 85–87, 93– 94, defends SDIC at arbitration, 110, 112, 116–118; disillusionment Index with SDIC, 127, 137; supports SDIC claims, 103–104; 105–106, 107–109; 121–125, 132–134 Steel, U.S., sugar, 11, 47–49, 66, 182n34; Cuban production of, 181n31; exemption from taxes on, 133; imported labor (braceros) and, 49, 66, 182n38; planters oppose SDIC, 133–134 Taft, William Howard, 146, 147 tariff bill of 1890, 32 Tariffs and Trade, General Agreement on, Tejera, Emiliano (Dominican minister), 67, 131, 193n53 terrenos comuneros, 63, 68, 190nn26– 27; proposed reform of, 69–70 Tilden, Samuel J., 16, 17 tobacco, 47, 49 Toussaint L’Ouverture, Pierre Dominique (Haitian leader), 64 Tracy, Benjamin (Secretary of the Navy), 25, 175n37 Trujillo, Rafael, 11, 60, 160 Tyler, Sen John, 41 United Fruit Company, 15 United States See Dominican intervention, U.S.; foreign policy, U.S.; State Dept., U.S Va´squez, Horacio (Dominican president), 100, 128; overthrow of, 108 Vela´squez, Federico (Dominican finance minister), 152 247 Venezuelan intervention, U.S.: 112– 113, 119 Vicini, Juan B (merchant), 81, 82, 198nn22, 25, 199n33, 205n82 Weed, Smith M (SDIC president), 3, 5, 10, 40, 41, 65, 73, 74, 86, 120, 149, 154, 155–156, 165n7; approval of intervention, 136; business career of, 17–18; business style of, 15; correspondence of, 9; defeat for U.S Senate, 18, 168n33; description of, 7; early life of, 15–16; Nicaraguan Canal project and, 19–22; politcal/ business relationships, 18–21; political career of, 16–18 Wells, Charles W (SDIC v.p.), 10, 22, 40, 61, 71, 72, 74, 83, 91, 103, 105, 123, 165n9; reaction to Roosevelt Corollary, 144–145 Westendorp & Company, 11, 12, 21, 22, 23, 75, 80, 165n10; Dominican loans of, 54–55, 56, 77, 186nn68, 70 Wharton, William F (acting Secretary of State), 174n26 White, Andrew Dickson (statesman), 12, 26 White, Horace (editor), 71 Wilhelm II (Kaiser of Germany), 141 William Salomon & Co., 150 World Bank, Woss y Gil, Alejandro (Dominican president), 100; arbitration agreement and, 108; overthrow of, 109 W R Grace, 14 This page intentionally left blank Columbia Studies in Contemporary American History Series Alan Brinkley, General Editor Lawrence S Wittner, Rebels Against War: The American Peace Movement, 1941– 1960 1969 Davis R B Ross, Preparing for Ulysses: Politics and Veterans During World War II 1969 John Lewis Gaddis, The United States and the Origins of the Cold War, 1941– 1947 1972 George C Herring, Jr., Aid to Russia, 1941–1946: Strategy, Diplomacy, the Origins of the Cold War 1973 Alonzo L Hamby, Beyond the New Deal: Harry S Truman and American 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1965– 1982 1985 David R Colburn, Racial Change and Community Crisis: St Augustine, Florida, 1877–1980 1985 Henry William Brands, Cold Warriors: Eisenhower’s Generation and the Making of American Foreign Policy 1988 Marc S Gallicchio, The Cold War Begins in Asia: American East Asian Policy and the Fall of the Japanese Empire 1988 Melanie Billings-Yun, Decision Against War: Eisenhower and Dien Bien Phu 1988 Walter L Hixson, George F Kennan: Cold War Iconoclast 1989 Robert D Schulzinger, Henry Kissinger: Doctor of Diplomacy 1989 Henry William Brands, The Specter of Neutralism: The United States and the Emergence of the Third World, 1947–1960 1989 Mitchell K Hall, Because of Their Faith: CALCAV and Religious Opposition to the Vietnam War 1990 David L Anderson, Trapped By Success: The Eisenhower Administration and Vietnam, 1953–1961 1991 Steven M Gillon, The Democrats’ Dilemma: Walter F Mondale and the Liberal Legacy 1992 Wyatt C Wells, Economist in an Uncertain World: Arthur F Burns and the Federal Reserve, 1970–1978 1994 Stuart Svonkin, Jews Against Prejudice: American Jews and the Fight for Civil Liberties 1997 Doug Rossinow, The Politics of Authenticity: Liberalism, Christianity, and the New Left in America 1998 Campbell Craig, Destroying the Village: Eisenhower and Thermonuclear War 1998 Brett Gary, The Nervous Liberals: Propaganda Anxieties from World War I to the Cold War 1999 Andrea Friedman, Prurient Interests: Gender, Democracy, and Obscenity in New York City: 1909–1945 2000 Eric Rauchway, The Refuge of Affections: Family and American Reform Politics, 1900– 1920 2000 Robert C Cottrell, Roger Nash Baldwin and the American Civil Liberties Union 2000 Wyatt Wells, Antitrust and the Formation of the Postwar World 2002 .. .A World Safe for Capitalism www.ebook3000.com This page intentionally left blank www.ebook3000.com A World Safe for Capitalism Dollar Diplomacy and America’s Rise to Global Power Cyrus... steamer to Samana´ Bay, the extraordinary harbor carved into the country’s northeast coast, which American naval strategists had coveted for decades.4 There they took advantage of a railroad line... United States the right to build an isthmian canal in an American-controlled canal zone In less than a decade Puerto Rico, Cuba, and Panama had passed under some form of U.S control Now, in January