Document Collection

United States and Latin America:
Dollar Diplomacy

By Juan Leets, L. Graham, New Orleans, 1912

In 1912 a book was published which attempted to amplify the thesis that the policy of the United States toward Central America, as carried out by Secretary of State Knox was actually harming the relations between the two. The book must have been written, if not published and distributed before Knox’s trip to the Caribbean and therefore assumes importance to this work as an extreme expression of the hostile attitude in existence at the time. The summary of the book, as provided early in the work by the author, Juan Leets, is therefore included at this point:

1. Under the pretext of giving aid to the small Central American republics the State Department has used what it is pleased to term “Dollar Diplomacy” to force upon these peoples loan contracts which would give to a coterie of Wall Street bankers not only millions of dollars tainted with illegitimacy, opportunity for immense graft, but an absolute license to exploit the vast resources of the countries and even administer their governmental affairs.

2. The terms of the loan which Secretary Knox has so assiduously sought to fasten upon Nicaragua and Honduras are vicious, and when truthfully revealed to the American public will produce expressions of abhorrence and indignation.

3. The Knox policy of dealing with Central America has instilled a pronounced anti-American feeling, where before naught but feelings of friendship toward the people of this great republic existed; turmoil and strife, revolution poverty have been the baneful results.

4. In one instance Mr. Knox has given active support to a revolution in Nicaragua, in another instance be has opposed a revolution and sacrificed the lives of American soldiers that he might keep in power a usurper and traitor, the poor tool of the Secretary in his scheme to deliver the country over to New York bankers.

5. Mr. Knox adjudged Zelaya a dictator in Nicaragua and drove him from power setting up a government which has brought poverty in the stead of prosperity; discord in the steed of harmony; despotism in the steed of liberty; on the other hand Mr. Knox has insistently supported the worst tyrant and dictator that Latin-America ever knew in President Estrada of Quatmala [sic].

6. With the full knowledge of the State Department filibustering expeditions have been permitted to leave Gulf ports for Central America, and in one instance the knowledge of the departure of such an expedition was used as a bludgeon in a desperate effort to force the President of Honduras to approve a Morgan loan contract, which, it was well known, was distasteful alike to the president, the congress, and the people of Honduras.

7. Designing American financiers desired intervention to the recent Nicaraguan imbroglio, on the other hand, they were wont to have the United States Government adhere to a policy of non-intervention in Mexico. In Nicaragua except for the killing of the American members of the Nicaraguan army in actual battle, American life was never endangered, nor was American property destroyed; in Mexico a number of Americans have been wantonly killed, scores of others have been wounded, some have been held for ransom, and millions of dollars of American property have been destroyed. In Nicaragua Mr. Knox intervened; in Mexico he has adhered to the policy of non-intervention. These are facts; the inference is of something un-American.

8. Facts concerning, acts of the State Department in its relations with Central America frequently have been concealed from the American public, or else distorted or exaggerated. Sometimes semi-official statements given the press in Washington for American consumption have been totally at variance with the true facts and not infrequently there has been apparent a desire to prejudice public opinion in favor of the attitude of Mr. Knox and his co-workers through such distortion.