Defaulting Debtors, American Public Opinion, and U.S. International Relations, 1900 to 1940

In the first half of the twentieth century, debt played an unexpectedly large role in shaping public views of American foreign relations. Debt—specifically, the public debt of other sovereign states—seems far removed from the everyday experience of Americans seeking credit from butchers and grocers or, in the global arena, decidedly dull in contrast to headlines about wars and assassinations. Yet if articles in thousands of local newspapers are an indicator, before World War I millions of Americans had been exposed to detailed coverage of the problematic indebtedness of the nearer nations of Latin America. To engaged readers in every corner of the United States, the financial entanglements of Cuba, the Dominican Republic, Nicaragua, and Honduras must have been a familiar trope—a sign of weakness if not immorality—and, as the policy of Dollar Diplomacy emerged after 1904, a harbinger of U.S. intervention.