=The Monroe Doctrine Applied to Germany.=—­Less spectacular than the Russo-Japanese settlement but not less important was a diplomatic passage-at-arms with Germany over the Monroe Doctrine.  This clash grew out of the inability or unwillingness of the Venezuelan government to pay debts due foreign creditors.  Having exhausted their patience in negotiations, England and Germany, in December 1901, sent battleships to establish what they characterized as “a peaceful blockade” of Venezuelan ports.  Their action was followed by the rupture of diplomatic relations; there was a possibility that war and the occupation of Venezuelan territory might result.

While unwilling to stand between a Latin-American country and its creditors, President Roosevelt was determined that debt collecting should not be made an excuse for European countries to seize territory.  He therefore urged arbitration of the dispute, winning the assent of England and Italy.  Germany, with a somewhat haughty air, refused to take the milder course.  The President, learning of this refusal, called the German ambassador to the White House and informed him in very precise terms that, unless the Imperial German Government consented to arbitrate, Admiral Dewey would be ordered to the scene with instructions to prevent Germany from seizing any Venezuelan territory.  A week passed and no answer came from Berlin.  Not baffled, the President again took the matter up with the ambassador, this time with even more firmness; he stated in language admitting of but one meaning that, unless within forty-eight hours the Emperor consented to arbitration, American battleships, already coaled and cleared, would sail for Venezuelan waters.  The hint was sufficient.  The Kaiser accepted the proposal and the President, with the fine irony of diplomacy, complimented him publicly on “being so stanch an advocate of arbitration.”  In terms of the Monroe Doctrine this action meant that the United States, while not denying the obligations of debtors, would not permit any move on the part of European powers that might easily lead to the temporary or permanent occupation of Latin-American territory.

=The Santo Domingo Affair.=—­The same issue was involved in a controversy over Santo Domingo which arose in 1904.  The Dominican republic, like Venezuela, was heavily in debt, and certain European countries declared that, unless the United States undertook to look after the finances of the embarrassed debtor, they would resort to armed coercion.  What was the United States to do?  The danger of having some European power strongly intrenched in Santo Domingo was too imminent to be denied.  President Roosevelt acted with characteristic speed, and notwithstanding strong opposition in the Senate was able, in 1907, to effect a treaty arrangement which placed Dominican finances under American supervision.