.

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.

In the course of the debate over this settlement, a number of
interesting questions arose. It was pertinently asked whether the
American navy should be used to help creditors collect their debts
anywhere in Latin-America. It was suggested also tha