Wilsonian Progressivism

at Home and Abroad

Chapter 29

Election of 1912

• Taft was elected President in 1908 as Republican with

the support of Teddy Roosevelt

– Roosevelt did not think Taft’s presidency was

progressive enough, so TR created a new political part

– Roosevelt attempted to get Republican nomination in

1912, but Taft won convention fight

• Progressive “bull moose” convention called

– Had religious revival spirit

– Included women in influential roles

• TR New Nationalism

– Based on Hebert Croly’s “The Promise of American Life”

– Consolidation of trusts, unions, government regulation

– Women’s suffrage; social welfare; minimum wage

• Republicans split their votes between Taft and Roosevelt

• Democrats nominated Woodrow Wilson

– Saw split in Republicans as way to return to Presidency

– Wilson was a progressive reformer from NJ

• Wilson wins the election only has minority vote

– Combined Progressives (Taft/TR/Debs) had 2.15 million more votes

Wilson’s Idealism

• Raised in south

– Used belief in self determination as part of

American foreign policy

– Very religious and well spoken politician

– Austere, condescending, inflexible, moralistic, had

difficult time relating to others.

• “New Freedom” –

– banking reform, stronger anti-trust; tariff

reductions; favored free market

– no government regulation;

– rejected social welfare programs

• Wilson and Big Business

– Wilson wanted to break up all big businesses

Wilson Tackles Tariff and Banking

• Underwood Tariff Bill (1913)

– Significantly reduced import fees that would facilitate

global trade but potentially hurt American

manufacturers

– Wilson appealed to public to force Congress to pass the bill

• Sixteenth Amendment (1913)

– Makes income tax legal

– gives government another form of income instead of

just tariffs

– Established a graduated income tax

Federal Reserve Act (1913)

• Created modern banking system

• Federal Reserve Board (The Fed)

– Chairman (Ben Bernake) appointed by President

• Federal Reserve Banks provide money and loans to member (local) banks

• Controls the money supply in economy by changing interest rate

– Could issue paper money (Federal Reserve notes)

– When Fed lowers interest rate, banks borrow more money

• Banks then have more money to offer people

• Creates more spending and inflation

– Allowed for swift manipulation of money supply in response to economic

crises

President Tames the Trusts

• Federal Trade Commission (1914)

– Allowed for regulation of companies involved in

interstate commerce

– Attack monopolies and unfair trade practices (false

advertising, bribery etc)

• Clayton Anti-Trust Act (1914)

– Forbid any business from substantially lessening

competition

– Forbid one company buying stock in another

– Labor Unions and Farm organizations were exempt

from law

– Limit courts ability to end strikes

– Legalized strikes, boycotts and pickets

• Wilsonian Progressivism

– Federal Farm Loan Act (1916) made credit available to

farmers with low interest

– Warehouse Act (1916) allowed loans using crops as

collateral

– LaFollette Seamen’s Act (1915) improved working

conditions of merchant sailors

– Workingman’s Compensation Act (1916) gives income

to federal workers on disability

– Adamson Act (1916) establish 8 hour day and overtime

New Direction in Foreign Policy

• TR used Big Stick and aggressive intervention; Taft

tried to use economic ties instead of military force to

influence Latin America

• Wilson ended American policy of financial support for

Latin America and China

• Panama Canal Tolls Act (1912)

– Exempted American ships from paying tolls;

Britain protested it as violation of Hay-Pauncefote

Treaty which allowed US to build canal as long as

no nation was denied access to it

– Wilson repeals Act in 1914

• Jones Act (1916)

– Grants Philippines territorial

status and promises independence

• US intervention in Caribbean

– Marines sent to Haiti (1915)

Dominican Republic (1916);

Virgin Islands purchased in 1917

Moralistic Diplomacy in Mexico

• Revolution in Mexico in 1913 led to installation of dictator

General Huerta being installed

– US refused to intervene but sent arms to Pancho Villa and

Venustiano Carranza who were revolting against Huerta

• Wilson orders seizure of Vera Cruz following Mexican arrest

of American sailors in Tampico (1914)

– Both Huerta and Carranza protested the American action

– ABC Powers (Argentina, Brazil, Chile) intervened and

mediated solution. Huerta lost power and Carranza took

power

– US formally supported (but distrusted) Carranza

government

• Pancho Villa tried to provoke war with US in hopes it would

ruin Carranza government by killing American citizens in

Mexico and invading Columbus, NM in the US

• US sends General Pershing into Mexico to get Villa

– US troops went deep into Mexico fighting both Carranza and Villas forces,

but Villa was never caught and WWI ends the search

Venustiano

Carranza

Pancho Villa

Start of the Great War

• Archduke Ferdinand of Austria-Hungary assassinated by

Serbian nationalist Gavrilo Princip in Sarajevo

– Lit fuse of “powder keg” Europe

– Complex political, economic, imperial and historical

circumstances brought Europe into the war

• Central Powers – Germany, Austria-Hungary, Ottoman

Empire

• Allied Powers – Britain, France, Russia

American Neutrality

• August 4,1914 Wilson proclaims US neutrality

– Allows US to trade with both sides

– Civil War vets don’t want more war

– America has traditional allegiance to England

– German and Irish immigrants favor Central Powers

• British cut cable between US and Germany

– so US only get propaganda from England

• Supplying Britain and France pulled America out of

recession and helped industry

– British blockade of Germany made it difficult for

American ships to reach German ports

• February 1915 Germany began submarine (u-boats)

warfare against Allies but said it would avoid neutral

ships

– May 7, 1915 Lusitania sank with 128 Americans on

board

– Wilson resisted calls for war with Germany

• Sussex pledge

– After Arabic and Sussex were sunk without warning

Wilson demanded the practice stop

– Germany agreed to stop unrestricted submarine

warfare against merchant ships

1916 Election

• TR was nominated by Progressive party, but

refused to run for office because he didn’t want

to split the Republican party again

• Republicans nominated Supreme Court justice

Charles Evan Hughes

• Wilson campaigned on his success keeping

America out of WWI

– “too proud to fight”

• TR was pressuring Republicans to take a more

bellicose stance

• Midwest and west gave election to Wilson in

recognition of his progressive reforms