THE UNITED STATES AND LATIN AMERICA

[1905-1906]

Looking toward the completion of the Panama Canal, there has been a revival of interest on the part of the United States in the republics of South America.  From the time of the promulgation of the Monroe Doctrine, there has been a distant friendship on our part for these nations.  The plan inaugurated by James G. Blaine when Secretary of State is much better understood to-day than in his time.  In 1881, with the desire of emphasizing the leadership of the United States in the western hemisphere, he proposed a congress of all the American nations.  Nothing came of the proposal at the time, but in 1888 Congress passed a resolution providing for such an international conference.  The meeting was in Washington the following year, and Secretary Blaine, as chairman, exercised great influence.  While the direct results of the meeting were not great-principally a declaration in favor of the arbitration of all disputes among these nations-the indirect benefits were considerable.  In 1901 a second Pan-American congress was held in the city of Mexico.

In the meantime the trade with these countries has been largely monopolized by England, France, and Germany.  During the year 1905, the total exports and imports of the Latin-American countries amounted to $2,000,000,000.  Of this foreign trade the United States bought 35 per cent of the exports and sold to these countries only 27 per cent of their imports, producing an unfavorable balance of trade amounting to $200,000,000.  Of the goods imported from this country, over one-fourth went to Mexico and Cuba.  In that year Brazil bought from the United States only 11 per cent of its imports.  Argentina, with a larger foreign trade than either Japan or China, bought only 14 per cent of its imports from the United States.  With the exception of Mexico, the foreign commerce of the Latin-American states with European countries has increased more rapidly than with the United States.  Various reasons have been given for this situation.  The sensitive South American resents the air of superiority assumed toward them by the people of the United States.  In our newspapers there is a seeming disregard for the real evidences of their national development.  Revolutions and boundary disputes have been exaggerated.  In general, citizens of the United States have no comprehension of the advancement of these countries within recent times and appreciate but slightly that their economic future is as fully assured as our own.  Argentina constitutes an excellent example of this progress.  This country has an area of 1,135,840 square miles.  Splendid rivers water the immense plains.  The chief of these, the Parana, which flows 2,000 miles through the country, carries a volume of water to the sea one and one-half times that of the Mississippi, and is capable of floating ships having a draught of 18 feet for 600 miles into the interior.  Buenos Ayres, with a population of 1,000,000, in 1906 had a volume of foreign trade amounting to $562,000,000, constituting it the twelfth port in the world.  In 1905 over 10,000,000 acres of land were cultivated in Argentina, an increase of fourfold within fifteen years.  The cereals, cotton, fruits, and meats produced amounted to $350,000,000.

That the volume of trade between this country and the South American states has been so small has been due also to the fact that so few vessels flying the stars and stripes are engaged in this trade.  According to the report of Secretary Root, in 1906, there were in the harbor of Rio Janeiro the previous year, 1,785 ships flying the flag of Great Britain; 657 the flag of Germany; 349 the French; 142 the Norwegian, and 7 sailing vessels (two of them in distress) the flag of the United States.  The bulk of goods from this country to South America goes by the way of European ports and on foreign ships.

July 4, 1906, the third Pan-American conference was opened at Rio Janeiro.  Among the leading questions discussed were:  (1) the right of creditor nations to enforce by war on the debtor nations contractual obligations, or the right to use gun-boats as collection agents; and (2) those relating to commercial intercourse.  Besides the regular delegates from the United States, Elihu Root, Secretary of State, was present at the opening session.  His address at this meeting, together with his visit to the leading cities, served to inaugurate a new understanding between these countries and the United States.  The true American policy was set forth by Secretary Root in the following toast:  “May the independence, the freedom, and the rights of the least and weakest be ever respected equally with the rights of the strongest, and may we all do our share toward the building up of a sound and enlightened public opinion of the Americas which shall everywhere, upon both continents, mightily promote the reign of peace, of order, and of justice in every American republic.”  He went as Ambassador Extraordinary representing the President of the United States.  In order to emphasize his official position, he travelled on an American war-ship.  His addresses made in the various cities were intended to be an official declaration from the government of the United States, and that position was outlined in his formal address before the congress.  “We wish for no victories,” he said, “but those of peace; for no territory except our own; for no sovereignty except the sovereignty over ourselves.  We deem the independence and equal rights of the smallest and weakest member of the family of nations entitled to as much respect as those of the greatest empire, and we deem the observance of that respect the chief guaranty of the weak against the oppression of the strong.  We neither claim nor desire any rights or privileges or powers that we do not freely concede to every American republic.  We wish to increase our prosperity, to expand our trade, to grow in wealth, in wisdom, and in spirit, but our conception of the true way to accomplish this is not to pull down others and profit by their ruin, but to help all friends to a common prosperity and a common growth, that we may all become greater and stronger together.”

The International Bureau of American Republics was founded as a result of the first Pan-American conference.  The original plans of the founders were not carried out owing to a lack of interest on the part of the Department of State as well as in the foreign offices of the South American countries.  Secretary Root determined to make this bureau an efficient agency for bringing about better relations between the two continents.  He defined the main purpose to be not only to build up trade and commerce among all American nations, but to promote more friendly relations, a better understanding of each other, and the general prosperity and well-being of all the countries of the American continents.  Through gifts from Andrew Carnegie and contributions from the different South American states a splendid modern building, costing $1,000,000, was erected in Washington, 1908, as the home of the Bureau of the Pan-American Republics.  Besides other enterprises, the Bureau publishes a monthly periodical which contains information on the commerce, new enterprises, and general development of each republic.

With these new relationships came a new interpretation of the Monroe Doctrine.  At various times European nations have engaged in controversies with South American states over the payment of debts due the citizens of the former.  The question has then arisen, to what extent shall the United States permit the use of force against the debtor nations?  The wider application of the Monroe Doctrine under President Cleveland looking toward the maintenance of the rights of the weaker American nations, has been followed by recognition of our obligation to secure the performance of duties by those nations.  Said President Roosevelt (1905):  “We cannot permanently adhere to the Monroe Doctrine unless we succeed in making it evident, in the first place, that we do not intend to treat it in any shape or way as an excuse for aggrandizement on our part at the expense of the republics to the south of us; second, that we do not intend to permit it to be used by any of these republics as a shield to protect that republic from the consequences of its own misdeeds against foreign nations; third, that inasmuch as by this doctrine we prevent other nations from interfering on this side of the water, we shall ourselves in good faith try to help those of our sister republics, which need such help, upward toward peace and order.”

The immediate cause for this statement by President Roosevelt was the problem confronting our government on account of the bankrupt condition of the Republic of Santo Domingo.  Debts had accumulated for over thirty years until by the beginning of 1905 they amounted to more than $32,000,000.  Each successive ruler became a more reckless borrower and new loans were secured upon harsher terms.

Finally affairs were brought to a crisis on account of the pressure on the part of the French and Italian governments for the payment of the claims of their citizens.  The republic was on the verge of dissolution when President Roosevelt intervened.  European governments were satisfied, for it signified the payment of their claims.  An agreement was signed by representatives of the government of Santo Domingo and of the United States whereby the United States was to undertake the task of collecting and apportioning the revenues of Santo Domingo.  The stipulation was made that no plan of annexation, purchase, or permanent control on the part of the United States should ensue.  Agents were to be appointed by the United States who should take charge of the customhouses.  Forty-five per cent of the total receipts were to be used in carrying on the affairs of the republic and the balance was to go to pay the indebtedness.  In his message, February, 1905, President Roosevelt, pressing upon the Senate the urgent need for the ratification of this agreement, said:  “The state of things in Santo Domingo has become hopeless unless the United States or some other strong government shall interpose to bring order out of chaos. . . .  If the United States declines to take action and other foreign governments resort to action to secure payment of their claims, the latter would be entitled, according to the decision of the Hague Tribunal in the Venezuela cases, to the preferential payment of their claims; and this would absorb all the Dominican revenues and would be a virtual sacrifice of American claims and interests in the island.  If, moreover, any such action should be taken by them, the only method to enable the payment of their claims would be to take possession of the custom-houses, and, considering the state of the Dominican finances, this would mean a definite and very possibly permanent occupation of Dominican territory, for no period could be set to the time which would be necessarily required for the payment of their obligations and unliquidated claims.”  The Senate, in special session, shirked responsibility and refused either to ratify or reject the treaty.

With the revolutionists on the island growing stronger and the European Powers becoming more insistent, President Roosevelt, disregarding the attitude of the Senate, appointed an American as receiver of customs.  The move proved immediately successful.  The insurrection died out, trade revived, smuggling ceased, and the people were infused with a new spirit.  There was also a remarkable increase in the customs receipts, those of 1906 showing an increase of 44 per cent over the receipts of 1905 and 72 per cent over those of 1904.  Although only 45 per cent of the revenues collected were turned over to the Dominican government, this sum was almost double the amount which they had received when they had control of the collection themselves.

After two years of discussion, the treaty was ratified by the Senate, February 25, 1907, and by the Dominican Congress, May 3.  The terms were practically those which had been carried out by order of President Roosevelt.  The United States, in a sense, became the trustee of Santo Domingo, and thus established a new relation between this country and the smaller republics of the western hemisphere.