Roosevelt Corollary
Dominican Republic

U.S. intervention in the Dominican Republic is generally seen as the first true use of the Roosevelt Corollary. The case in the Dominican arose due to the San Domingo Improvement Company (SDIC), a New York company, taking over the Dominican’s finances in 1893. This brought the interests of the U.S. and Dominican closer together and so, when in 1897 the SDIC defaulted on its payments to European bondholders, the Dominican fell into economic disaster, leading to the U.S. calling for arbitration on the case. The arbitration established a payment schedule from the Dominican to the SDIC, with the U.S. being able to collect the money from the Dominican Republic for the SDIC if it failed to pay- expanding U.S. interests in the Dominican even further. The U.S. did end up having to become involved in debt collection from the Dominican when they defaulted on payments and European powers threatened to intervene should the U.S. not. In 1905, the U.S. sent in warships and demanded the customs house be turned over to U.S. negotiators, who used proceeds to pay foreign creditors.
change_case:english_lowercase