USA HISTORY

Detailed explanation-1: -From 1909 to 1913, President William Howard Taft and Secretary of State Philander C. Knox followed a foreign policy characterized as “dollar diplomacy". It was a policy whereby American influence would be exerted primarily by American banks and financial interests, supported in part by diplomats.

Detailed explanation-2: -Dollar diplomacy was meant to secure the financial prosperity of the United States and secure its superiority over other nations. In dollar diplomacy foreign policy, the United States lent money to foreign countries in return for the ability to make decisions for the governments of those countries.

Detailed explanation-3: -President Taft, like RooseveltPresident from 1901-1909, favored an imperialistic approachprocess whereby stronger nations attempt to dominate weaker nations, but with dollars instead of guns.