Michael Gismondi, Jeremy Mouat
This article will argue that a seemingly trivial dispute between the Nicaraguan government and an American lumber company operating on Nicaragua's Mosquito Coast escalated to become a major source of tension between the U.S. State Department and Nicaragua, as well as a catalyst that drew U.S. banks into Nicaragua. Despite its significance, the convoluted story of this dispute has attracted little scholarly attention. The importance of the Emery claim was widely acknowledged at the time, however. Stories about it appeared in contemporary newspapers and magazines, and it became a topic worthy of discussion by a U.S. Senate hearing. The claim was also connected to José Santos Zelaya's resignation as president of Nicaragua in the autumn of 1909, a gesture that came shortly after he had agreed to settle the Emery claim.
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