3. In point 14 of its 1924 platform (Document 22-3), the Progressive Party stated, “We denounce the mercenary system of degraded foreign policy under recent administrations in the interests of financial imperialists, oil monopolists and international bankers, which has at times degraded our state department from its high service as a strong and kindly intermediary of defenseless governments to a trading outpost for those interests and concession seekers engaged in the exploitation of weaker nations, as contrary to the will of the American people, destructive of domestic development and provocative of war.” By this statement, the Progressives were condemning which of the following?
Correct. The answer is b. The Progressive Party platform was making reference to the Harding and Coolidge administrations’ cooperation with private banks that made foreign loans to stimulate growth and increase demand for American products in developing markets. Under this policy—known to its opponents as “dollar diplomacy”—American banks made high-interest loans to Bolivia, El Salvador, Nicaragua, the Dominican Republic, and Haiti in the 1920s and received government guarantees of repayment. The U.S. military then occupied Nicaragua, the Dominican Republic, and Haiti for years in order to force repayment of debt.
Incorrect. The answer is b. The Progressive Party platform was making reference to the Harding and Coolidge administrations’ cooperation with private banks that made foreign loans to stimulate growth and increase demand for American products in developing markets. Under this policy—known to its opponents as “dollar diplomacy”—American banks made high-interest loans to Bolivia, El Salvador, Nicaragua, the Dominican Republic, and Haiti in the 1920s and received government guarantees of repayment. The U.S. military then occupied Nicaragua, the Dominican Republic, and Haiti for years in order to force repayment of debt.