Trading Dollars for Bullets: Dollar Diplomacy in Nicaragua 1909-1913
Academic Level at Time of Presentation
Junior
Major
History
Minor
Sports Communications
List all Project Mentors & Advisor(s)
Dr. Olga Koulisis
Presentation Format
Oral Presentation
Abstract/Description
United States businesses began to increase their activities in Nicaragua in the 1890s after news of gold being discovered there reached the U.S. At the same time, Jose Zelaya was gaining power in Nicaragua and Britain was ending its protectorate over the eastern part of the country known as the Mosquito Coast. Jose Zelaya began offering concessions to foreigners, in hopes of further developing the country's economy. Zelaya also hoped that Nicaragua would be chosen for the canal that would connect the Atlantic and Pacific oceans but ultimately Nicaragua would lose out to Panama. This would create tension between Zelaya and US president, Theodore Roosevelt. Zelaya responded by becoming more nationalistic and advocated for replacing the United States as an influential power in Nicaragua. He also decreased concessions to U.S. business firms and began taxing them significantly more than local firms. In Roosevelt’s eyes it was becoming necessary “to clip Zelaya’s wings” before he left office as he told his Secretary of State, Elihu Root. Roosevelt would then insist on using the navy to put pressure on the Zelaya government, something that would continue even after he left office in 1909. Relations between Nicaragua and the United States would cease in late 1909 after two Americans were killed on Zelaya’s orders. More pressure would be put on Zelaya over the closing months of 1909, and he would step down on December 21st, opening the door to the United States’ first protectorate over a Latin American country and the increase of Dollar Diplomacy in Nicaragua.
This paper will have three specific sections. The first section will discuss what led to the establishment of dollar diplomacy. Specifically, details will be focused on Jose Zelaya’s presidency and the events that occurred that would ultimately lead to his overthrow. The second section will focus on the specific history of dollar diplomacy in Nicaragua, particularly in the years 1909-1913. The paper will conclude with how newspapers covered the events taking place in Nicaragua. This section will give insight into how the people of the United States and other countries around the world reacted to the events that were occurring in Nicaragua.
Spring Scholars Week 2026
History Department Symposium
Trading Dollars for Bullets: Dollar Diplomacy in Nicaragua 1909-1913
United States businesses began to increase their activities in Nicaragua in the 1890s after news of gold being discovered there reached the U.S. At the same time, Jose Zelaya was gaining power in Nicaragua and Britain was ending its protectorate over the eastern part of the country known as the Mosquito Coast. Jose Zelaya began offering concessions to foreigners, in hopes of further developing the country's economy. Zelaya also hoped that Nicaragua would be chosen for the canal that would connect the Atlantic and Pacific oceans but ultimately Nicaragua would lose out to Panama. This would create tension between Zelaya and US president, Theodore Roosevelt. Zelaya responded by becoming more nationalistic and advocated for replacing the United States as an influential power in Nicaragua. He also decreased concessions to U.S. business firms and began taxing them significantly more than local firms. In Roosevelt’s eyes it was becoming necessary “to clip Zelaya’s wings” before he left office as he told his Secretary of State, Elihu Root. Roosevelt would then insist on using the navy to put pressure on the Zelaya government, something that would continue even after he left office in 1909. Relations between Nicaragua and the United States would cease in late 1909 after two Americans were killed on Zelaya’s orders. More pressure would be put on Zelaya over the closing months of 1909, and he would step down on December 21st, opening the door to the United States’ first protectorate over a Latin American country and the increase of Dollar Diplomacy in Nicaragua.
This paper will have three specific sections. The first section will discuss what led to the establishment of dollar diplomacy. Specifically, details will be focused on Jose Zelaya’s presidency and the events that occurred that would ultimately lead to his overthrow. The second section will focus on the specific history of dollar diplomacy in Nicaragua, particularly in the years 1909-1913. The paper will conclude with how newspapers covered the events taking place in Nicaragua. This section will give insight into how the people of the United States and other countries around the world reacted to the events that were occurring in Nicaragua.