In Nicaragua the conditions were similar. Here Zelaya, restive under the limitations set by the conference at Washington, yearned to become the "strong man" of Central America, who would teach the Yankees to stop their meddling. But his downfall was imminent. In 1909, as the result of his execution of two American soldiers of fortune who had taken part in a recent insurrection, the United States resolved to tolerate Zelaya no longer. Openly recognizing the insurgents, it forced the dictator out of the country. Three years later, when a President-elect started to assume office before the legally appointed time, a force of American marines at the capital convinced him that such a procedure was undesirable. The "corrupt and barbarous" conditions prevailing in Zelaya's time, he was informed, could not be tolerated. The United States, in fact, notified all parties in Nicaragua that, under the terms of the Washington conventions, it had a "moral mandate to exert its influence for the preservation of the general peace of Central America." Since those agreements had vested no one with authority to enforce them, such an interpretation of their language, aimed apparently at all disturbances, foreign as well as domestic, was rather elastic! At all events, after 1912, when a new constitution was adopted, the country became relatively quiet and somewhat progressive.
Whenever a political flurry did take place, American marines were employed to preserve the peace. Many citizens, therefore, declined to vote, on the ground that the moral and material support thus furnished by the great nation to the northward rendered it futile for them to assume political responsibilities.
Meanwhile negotiations began which were ultimately to make Nicaragua a fiscal protectorate of the United States. American officials were chosen to act as financial advisers and collectors of customs, and favorable arrangements were concluded with American bankers regarding the monetary situation; but it was not until 1916 that a treaty covering this situation was ratified.
According to its provisions, in return for a stipulated sum to be expended under American direction, Nicaragua was to grant to the United States the exclusive privilege of constructing a canal through the territory of the republic and to lease to it the Corn Islands and a part of Fonseca Bay, on the Pacific coast, for use as naval stations. The prospect of American intervention alarmed the neighboring republics. Asserting that the treaty infringed upon their respective boundaries, Costa Rica, and Salvador brought suit against Nicaragua before the Central American Court.
With the exception of the Nicaraguan representative, the judges upheld the contention of the plaintiffs that the defendant had no right to make any such concessions without previous consultation with Costa Rica, Salvador, and Honduras, since all three alike were affected by them. The Court observed, however, that it could not declare the treaty void because the United States, one of the parties concerned, was not subject to its jurisdiction. Nicaragua declined to accept the decision; and the United States, the country responsible for the existence of the Court and presumably interested in helping to enforce its judgment, allowed it to go out of existence in 1918 on the expiration of its ten-year term.
The economic situation of Costa Rica brought about a state of affairs wholly unusual in Central American politics. The President, Alfredo Gonzalez, wished to reform the system of taxation so that a fairer share of the public burdens should fall on the great landholders who, like most of their brethren in the Hispanic countries, were practically exempt. This project, coupled with the fact that certain American citizens seeking an oil concession had undermined the power of the President by wholesale bribery, induced the Minister of War, in 1917, to start a revolt against him. Rather than shed the blood of his fellow citizens for mere personal advantages, Gonzalez sustained the good reputation of Costa Rica for freedom from civil commotions by quietly leaving the country and going to the United States to present his case. In consequence, the American Government declined to recognize the de facto ruler.
Police and fiscal supervision by the United States has characterized the recent history of Panama. Not only has a proposed increase in the customs duties been disallowed, but more than once the unrest attending presidential elections has required the calming presence of American officials. As a means of forestalling outbreaks, particularly in view of the cosmopolitan population resident on the Isthmus, the republic enacted a law in 1914 which forbade foreigners to mix in local politics and authorized the expulsion of naturalized citizens who attacked the Government through the press or otherwise. With the approval of the United States, Panama entered into an agreement with American financiers providing for the creation of a national bank, one-fourth of the directors of which should be named by the Government of the republic.
The second period of American rule in Cuba lasted till 1909.
