Stealing Gold From Haiti – The 1914 U.S. Invasion

Did you know that the U.S. Government actually stole gold from Haiti? I was surprised when I first heard that. I mean, how does that work? And, how could that not be common knowledge?

Well, after reading this post, you’ll understand the how and why. The United States stole Haitian gold worth millions of dollars in today’s money.

How much gold did the U.S. take from Haiti in today’s money? Let’s put it this way. At the time, in 1914, it was worth about $500,000. That’s equal to about $14,185,800 in purchasing power today. In other words, an increase of $13,685,800.00 during 108 years between then and now (1914 – 2022). With an average inflation rate of 3.15% per year between 1914 and today, each dollar would have grown to become $2,737.16. When the United States stole gold from Haiti, it wasn’t thousands, it was millions.

So, what happened?

Think of Haiti and what took place. We need to look at the big picture. So, we’ll look at Haiti. And, the international community.

Gold From Haiti

Christopher Columbus first landed on the island in December of 1492. Eventually, he established a coastal base of operations in what is now the Dominican Republic. He called the settlement La Isabela (after Queen Isabella). It became the first permanent Spanish settlement in the Americas.

It wasn’t long before the Spanish began mining the islands gold. They used slave labor to do it. As a result, their actions reduced the indigenous Taino population from nearly a million people to about 32,000. All within around 25 years of first landing there.

Fun fact: Columbus’ flagship, the Santa Maria sunk of the coastal inlet of the island. 😂

This was of the first record of the extraction of gold from the island. In essence, the first time another country stole gold from Haiti. It gives us a glimpse of how both European and American powers view foreign lands. They are but targets of opportunity. Ultimately, their only value is derived from the resources that they can provide.

As a side note, gold often simply refers to anything of extreme value. Stealing Haiti’s gold came in more than one form. Later, we’ll touch on that with the connection to the Haitian “white gold”. It held another form of great value. The U.S. took both forms of “gold” from Haiti. It used the brute force of its Navy and Marines.

Haiti

For a country to “become independent”, it must first be subject to another. This is the story of Haiti. Colonial domination of the Central America and the Caribbean lies at the root of Haiti’s struggle for independence. And, ultimately it was the reason that Haiti was first labeled a debtor nation and the focus of mistreatment to this very day. Let’s look at some general facts about Haiti.

Geography

Haiti, a jewel of the western hemisphere, gets its name from the the indigenous Taíno language. It translates as “land of high mountains” and initially referred to the entire island of Hispaniola. Haitian revolutionary Jean-Jacques Dessalines restored the name as the official name of independent Saint-Domingue, as a tribute to the rich Amerindian history.

Location

Haiti is situated on the Isle of Hispaniola. The island is the second-largest in the Caribbean (after Cuba), with an area of 76,192 square kilometers (29,418 sq mi). It shares the island with the Dominican Republic. Haiti is the smaller of the two countries occupying the western 27,750 square kilometers (10,710 sq mi) with its capital at Port Au Prince. The remaining 48,440 square kilometers (18,700 sq mi) to the west is occupied by the Dominican Republic with its capital at Santo Domingo.

Haiti is positioned, generally, between Cuba and Puerto Rico. Cuba, the Caribbean’s largest island, lies around 50 miles (80 km) west of Haiti’s northern peninsula. Puerto Rico lies to the east at around 650 kilometers (403.89 mi) away.

Land and Climate

The climate of the island varies considerably. This is because of the mountainous features of the land. Temperature differences depend on the altitude and the amount of rainfall that the area receives. In fact, most people wouldn’t guess that, during the dry season, it’s common to find frost on the highest peaks.

Another surprising fact is that the island features four distinct eco-regions. Approximately 50% of the island is covered by moist forest, especially in the north and the east. Dry forests cover approximately 20% of the land. Pine forests cover another 15% of the island. And, the remaining area in the south consists of flooded grasslands and savannah. Again, Haiti lies on the western side of the island.

People

To understand how the U.S. was able to openly steal Haiti’s gold without consequence, we must understand the people. Not only the people themselves but also how the world viewed them.

We’ve established that the indigenous Taino population was all but wiped out. It’s not hard to understand why when you consider the attitude the Spanish had towards them. Read the letter which King Ferdinand sent to the governor of Hispaniola. He ordered it to be communicated to the Taino/Arawak Indians. In short, he wanted them to acknowledge Christianity and God, and to accept his authority. The letter was a mix of promises and direct of threats in the event of a failure to comply.

As that population was dying of abuse and disease, the Spanish began importing slaves from Africa. The first 15,000 African slaves arrived in 1517. At this time, the island was not their primary concern. Like another imperial power of the time, Spain had other colonies in the New World. In addition, many of those other colonies were more prosperous at the time.

Spain and France fought over Haiti for decades.

In 1697, Spain ceded the western part of the island to the France. They named that part of the island Saint-Domingue. France then developed Saint-Domingue into a highly lucrative french colony. French colonists took advantage of an enslaved population to build their wealth.

Government

Governmental rule in Haiti has always been tumultuous. Ruthlessness was the rule from its founding in the early 17th century to the revolutions in the late 18th century. And even after that, leaders were never able to establish a strong, fair, and efficient government. And, as you will see, further problems came from the international community. The United States was but one of many culprits.

Colonial Rule

Centuries worth of colonial rule decimated the Native American indigenous population. Both Spain and France capitalized on slave labor. Spain, first with the Taino and then African slaves. And France with more and more slaves imported. France, by far, leveraged the power of an enslaved workforce. In fact, before its independence, Haiti (Saint-Domingue) became the wealthiest French colony in its entire empire. It may have even been the richest colony in the world.

It’s important to note that gold was not the source of this wealth. France did not become wealthy because it stole gold from Haiti. It was nothing of the sort. Most of the economic development in Haiti was due to the Europeans’ demand for sugar. The Haitian plantation owners used their slave labor force to produce sugar as a commodity crop from cultivation of sugarcane. The colony also had a lot of coffee, cocoa, and indigo plantations. However, those plantations were smaller and less profitable than the sugar plantations.

Colonial powers controlled Haiti for 300 years up until the time of Napoleonic France. After a revolution, Haiti became an independent republic and only the second nation in the Americas to gain its independence from colonial rule. It was also the first former colony in the Americas governed by people of African descent.

Haitian Revolution

Under the french government, planters, merchants, shopkeepers, and their families were vastly outnumbered by slaves. Slaves outnumbered them by more than ten to one. Most of the slaves were concentrated on the northern plantations.

Horrible Conditions

Due to the obvious mistreatment of the slaves, whites lived in constant fear of a rebellion. The French slave masters were brutal regularly torturing them with whipping, castration, and burning.

The island was ripe for a revolution…

“Whites, mulattos and blacks loathed each other. The poor whites couldn’t stand the rich whites, the rich whites despised the poor whites, the middle-class whites were jealous of the aristocratic whites, the whites born in France looked down upon the locally born whites, mulattoes envied the whites, despised the blacks and were despised by the whites; free Negroes brutalized those who were still slaves, Haitian born blacks regarded those from Africa as savages. Everyone—quite rightly—lived in terror of everyone else. …Haiti was hell, but Haiti was rich”.

– Paul Fregosi, French Historian

The Slave Revolt

The French Revolution, beginning in 1789, was major factor in the Haitian Revolution. French instability at home made it difficult to exercise control in other parts of the world. The removal of the last French King inspired revolution in the Caribbean. The Haitian Revolution would begin in 1791. It lasted until 1804. During that time, thousands of former slaves fought for freedom. The former slave owners were unable to maintain their dominance and lost control of the island.

The revolution was actually responsible for the continued expansion of the United States. The U.S. had been trying to buy the Louisiana territory to no avail. The French refused to sell it. That was, until the Haitian Revolt did great damage to France and Napoleon’s ambitions. In the end, circumstances forced him to sell the land. That deal became known as the Louisiana Purchase.

The International Community

The international communities continued to either make things worse for Haiti. Most countries took a hands-off approach. Some just ignored Haiti. Others openly refused to recognize them as a country.

German merchants controlled about 80% of Haiti’s economy. Obviously, that gave them a near monopoly position. However the laws, for the most part, prevented them from owning land.

Germany was limited with what they could and couldn’t do on the island. It was largely the French government and the United States that kept Haiti in a near powerless state.

The French

France saddled Haiti with what we call an independence debt. In other words, the Haitian government supposedly owed France for becoming independent. Think about that.

Essentially, France was saying that since we can no longer brutalize you, you owe us money. If you really think about, it won’t take long to realize how sick that is. France’s position was that the debt resulted from their losses due to the revolution.

In 1825, France agreed to recognize Haiti’s independence. In return for recognition, France demanded an indemnity of 150 million francs. That amount is equal to around $21 billion dollars in today’s money. Haiti struggled to develop and grow under the weight of servicing that debt.

The United States

The Haitian revolution took place during three different United States presidencies. The first presidency was the Washington presidency from 1789 to 1797. Fighting continued during the Adams presidency. And finally, the revolution came to an end during the Jefferson presidency. During that time, the U.S. went from favoring slave owners, to supporting Louverture, and on to claiming to neutrality.

U.S. interests make it impossible for the U.S. to truly maintain a neutral position. America is always going to do what’s best for America. That’s in both the short and long term. The two countries were connected by culture, to an extent. For instance, white slaveowners way up in South Carolina were living in fear over the Haitian Revolution. They feared that word of, and the desire for, freedom would spread to the United States as it did to other former colonial powers.

Stealing Gold from Haiti

White Gold From Haiti

The lesser known gold stolen from Haiti was “White Gold”. White gold, in reality, isn’t gold at all, at least not how most of us think about it. The term refers to centuries’ worth of accumulated bird drops called “guano”. It is a powerful fertilizer and there were large amounts of the stuff available on the island of Navassa. It just so happens that Navassa is about 30 miles off the coast of Haiti.

American farmers were itching to gain access to the guano. The main source of the fertilizer was Peru and its near monopoly position on it drove the prices sky high. In fact, the $76 per pound price tag in 1850 was equal to a quarter of the price of gold at the time. It was so important that President Millard Fillmore referenced it in his 1850’s State of the Union address.

In typical U.S. fashion, Congress passed the Guano Islands Act of 1856. The act authorized American entrepreneurs to mine on any “unclaimed” islands that they found guano. This also meant that the full might of the U.S. Navy would back these entrepreneurs up.

Like many other islands that the entrepreneurs claimed, the rocky island of Navassa already belonged to another country. The U.S. gave many of the islands back to their rightful owners. They refused to do so with Navassa. Although Haiti was not mining on the island, they did have ownership. And, they issued a protest.

Upon Haiti’s protest, the U.S. answered with force. They sent warships to the area warning the Haitians to stand down. As Americans robbed the island of its resources, Haiti was powerless to stop them.

Yellow Gold From Haiti

The U.S. Invasion

The four years before 1915 were without doubt unstable for Haiti. Seven Haitian presidents were either killed or overthrown between 1911 and 1915. In addition to that, the U.S. feared the possibility of foreign interference on the island. Their solution was a “military intervention”.

President Woodrow Wilson claimed to be following the Monroe Doctrine. The doctrine originated in 1823 under President James Monroe. Under it, intervention by external powers in American politics is potentially viewed as hostile against the US.

In 1914, President Wilson sent the U.S. Marines to Haiti. The claim was that it was to prevent anarchy, protect U.S. assets, and prevent a possible German invasion. Marine Corps General Smedley Butler received the Medal of Honor for military valor while leading United States marines during the Campaign. He was a Major at the time.

Beginning the U.S. occupation of Haiti, American marines came from the U.S. South. Along the way where anti-Haitian sentiment and racism were at high levels. The Marines forced rural farmers into work gangs to build roads, bridges and dams. There wasn’t much they could do against an armed force bent on military occupation.

The Haitian-american treaty of 1915 brought the need for the american occupation to an end. However, that didn’t end the need for American control over the island. One solution was to create the Haitian Gendarmerie.

First National City Bank

American big business interests played a significant role in the occupation and related events. For instance, just look at the establishment of the National Bank of the Republic of Haiti (BNRH) in 1910. A consortium of French, German, and American business were actually behind it. However, the Americans were primarily directing it.

A select group of American bankers stoked fears that Haiti would default on debt payments. However, Haiti was consistently compliant with loan conditions. Nevertheless, they pushed for the seizure of Haiti’s national bank. These National City Bank boys made demands that the State Department use military force to take possession of Haiti’s national reserves.

In response, on December 17th of 1914, the United States Marines took custody of Haiti’s gold reserve. The value of the gold in the reserve, at that time, was about $500,000. The Marines loaded the gold onto the the USS Machias. The gunship then transported the precious metal to New York City. Upon arrival, they took the gold to Wall Street and placed it into National City Bank’s vault.

That gold, today, would have been valued at over $14,185,800.

Even after that, American big business wanted more. Apparently, the financial control that holding the gold reserves brought wasn’t enough for them. That got what they wanted as part of the Haitian-American Treaty of 1915.

The Haitian–American treaty was ratified by the United States Senate on 16 September 1915. During the convention leading up to it, the United States negotiated certain rights. The Treaty granted the United States the right to “provide security”. They also secured the right to administer Haiti’s finances for a period of 10 years.

Aftermath and Consequences

Haiti

Ever since occupying forces withdrew from Haiti, the country has struggled for economic stability. Economic prosperity has been little more than a dream. The Haitian people dream of better lives. Meanwhile, Haitian authorities seem to take every opportunity to take advantage of them.

Natural disasters and other events have damaged the country even further from time to time. At the least, they’ve helped to keep the proverbial foot on Haiti’s neck.

2010 Earthquake

On the 12th of January of 2010, a catastrophic magnitude 7.0 Mw earthquake hit Haiti. At least 52 aftershocks measuring 4.5 or greater followed. It affected an estimated three million people, 250,000 residences, and 30,000 commercial buildings. The quake destroyed many popular landmarks and killed many of the country’s leaders.

Cholera

In 2010, there was a cholera epidemic in the country. Oddly enough, cholera had been considered “beaten back” because of the implementation of modern sanitation. Scientific evidence concluded that the disease was imported into Haiti by infected Nepalese United Nations peacekeepers. The UN sent the peacekeepers there to assist with the earthquake response.

2021 Earthquake

On the 14th of August 2021, another devastating earthquake with a magnitude of 7.2 struck Haiti. The government confirmed at least 2,248 people killed as of September 1st, 2021. Over 12,200 people were injured. An estimated 650,000 people needed assistance.[And, at least 137,500 buildings were either damaged or destroyed.

It was the deadliest earthquake and deadliest natural disaster of 2021. An investigative committee determined the estimated economic loss to be over 1.5 billion US dollars. That is more than 10% of Haiti’s economy.

Haiti constantly finds itself in desperate need of international aid. The Haitian national bank has no real financial power. Part of the reason is that it doesn’t generate a significant Gross National Product (GDP). Even with a free market economy, low labor costs, and tariff-free access to the US for many of its exports, the island struggles. Two-fifths of the population depends on the agricultural sector. That only amplifies the damage of frequent natural disasters. And, unlike other islands, people don’t really see it as a decent place to visit on vacation.

assassination of the haitian president , jean-bertrand aristide , french president

United States

Throughout the 19th century and into the 20th century, U.S. leaders gave clues regarding the American attitude towards Haiti. The United States Government was highly interested in Haiti long before its occupation. It wanted more than a little bit of gold from Haiti. Its strategic location and vulnerability to foreign influence or control were always concerns.

• 1868 – President Andrew Johnson suggested the annexation of the island of Hispaniola for defensive and economic reasons.
• 1889 to 1891 – Secretary of State James Blaine sought a lease of Mole-Saint Nicolas for a naval base. He was unsuccessful.
• 1910 – President William Howard Taft loaned Haiti money to help pay off its international debt. The underlying reason was to decrease foreign influence. It failed because the debt was too large and the country was unstable.

In economic comparison, the gold that the U.S. stole from Haiti was pocket change. However, that doesn’t make the crime any less egregious. But, it was never so much about the money as it was about control.

France

The French agreed to recognize Haiti’s independence in 1825. The cost of that recognition was a supposed indemnity of 150 million francs. In 1838, France reduced the amount to 90 million francs. That’s around $21 billion in today’s money.

France’s called their demand for payments “reparations”. Does that sound familiar? The crazy thing is France’s reparations for enslaving Blacks was upheld. Meanwhile, reparations for blacks for having been enslaved were never even a consideration. In other words, for the French, it was simply “business”. The fact that they delivered the demand with several warships puts things into further context.

To make matters worse, France charged them some hefty interest on the “debt”. It took until 1947 for Haiti to pay it off. Along the way, cutting checks to the aforementioned National City Bank of New York. The same bank where marines delivered the gold from Haiti. Just as a side note, you may know National City Bank as Citibank.

Following disasters on the island, the international community finally began speaking out about Haiti’s generalized grievance regarding the French debt. They voiced the idea that restitution should be due. They suggested that the terms of international benevolence should go beyond “aid”. After all, it was the black people of Haiti that suffered under slavery. They were the ones violated, not the other way around. France owed Haiti a debt.

French President Nicolas Sarkozy took a tour of the country. While there, he acknowledge a moral duty to Haiti in his famous mea culpa. He pledged 270 million euros in reconstruction aid.