Revisiting nineteenth-century U.S. interventionism in Central America: capitalism,intrigue, and the obliteration of Greytown

In October 2016 the Congressional Research Service published its latest version of “Instances of Use of United States Armed Forces Abroad.” One of the “instances” occurred in 1854, and the entry reads in its entirety: “Naval forces bombarded and burned San Juan del Norte (Greytown) to avenge an insult to the American Minister to Nicaragua.”¹1. Torreon, Instances of Use of United States Armed Forces Abroad, 1798–2016, 4.View all notes The following article posits that Greytown was not destroyed to avenge an insult to an American diplomat. Rather, two groups of prominent American businessmen used this and related events and their antecedents as pretexts to enlist the federal government in destroying Greytown. One group, representing a U.S.-owned isthmian steamboat company, sought to seize the port of Greytown as a private fiefdom; the other wanted it as the prospective capital of a new colony based on a huge, dubious land grant they owned.