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→Roosevelt Corollary
The '''Roosevelt Corollary''' to the [[Monroe Doctrine]] was a substantial expansion in 1904. Roosevelt asserted the right of the United States to intervene to stabilize the economic affairs of small nations in the Caribbean and Central America if they were unable to pay their international debts and were at risk of intervention by European powers. The new policy primarily prevented intervention by Britain and Germany, which loaned money to the countries that did not repay. The catalyst of the new policy was Germany's aggressiveness in the Venezuela affair of 1902-03. The intervention took the form of takeover of the customs collection, and disbursement of the funds to the debtors and claimants. The policy was unpopular abroad.<ref>Serge Ricard, "The Roosevelt Corollary." ''Presidential Studies Quarterly'' 2006 36(1): 17-26. Issn: 0360-4918, online </ref>
The '''Roosevelt Corollary''' to the [[Monroe Doctrine]] was a substantial expansion in 1904. Roosevelt asserted the right of the United States to intervene to stabilize the economic affairs of small nations in the Caribbean and Central America if they were unable to pay their international debts and were at risk of intervention by European powers. The new policy primarily prevented intervention by Britain and Germany, which loaned money to the countries that did not repay. The catalyst of the new policy was Germany's aggressiveness in the Venezuela affair of 1902-03. The intervention took the form of takeover of the customs collection, and disbursement of the funds to the debtors and claimants. The policy was unpopular abroad.<ref>Serge Ricard, "The Roosevelt Corollary." ''Presidential Studies Quarterly'' 2006 36(1): 17-26. Issn: 0360-4918, online </ref>
Mitchener and Weidenmier (2006) show the economic benefits to the small countries. The average debt price for countries under the US "sphere of influence" rose by 74% in response to the pronouncement and actions to make it credible. That is, their bonds rose 74% because buyers now believed they would be repaid. The increase in financial stability reduced internal conflict because political factions could not count on winning control of the national treasury if they won a civil war. The program spurred export growth and better fiscal management, but debt settlements were driven primarily by gunboat diplomacy.<ref>Kris James Mitchener and Marc Weidenmier, "Empire, Public Goods, and the Roosevelt Corollary." ''Journal of Economic History'' 2005 65(3): 658-692. Issn: 0022-0507; online</ref>
Mitchener and Weidenmier (2006) show the economic benefits to the small countries. The average debt price for countries under the US "sphere of influence" rose by 74% in response to the pronouncement and actions to make it credible. That is, their bonds rose 74% because buyers now believed they would be repaid. The increase in financial stability reduced internal conflict because political factions could not count on winning control of the national treasury if they won a civil war. The program spurred export growth and better fiscal management, but debt settlements were driven primarily by gunboat diplomacy.<ref>Kris James Mitchener and Marc Weidenmier, "Empire, Public Goods, and the Roosevelt Corollary." ''Journal of Economic History'' 2005 65(3): 658-692. Issn: 0022-0507; online</ref>
<blockquote>
''“Speak softly and carry a big stick; you will go far.”'' The phrase was initially used by Roosevelt to explain his relations with domestic political leaders; later the phrase was associated with him and came to refer particularly to his foreing policy with Latin America. <ref> [http://www.britannica.com/EBchecked/topic/65006/Big-Stick-Policy Big Stick Policy.] </ref>
</blockquote>
====Panama Canal====
====Panama Canal====
[[Image:Panam2.JPG|thumb|350px|Roosevelt builds the canal—and shovels dirt on Bogota, the capital of Colombia]]
[[Image:Panam2.JPG|thumb|350px|Roosevelt builds the canal—and shovels dirt on Bogota, the capital of Colombia]]