Topic 4, Lesson 1: How progressive was Woodrow Wilson?

Topic 4, Lesson 1: How progressive was Woodrow Wilson?

The 1912 Election

• There were 4 candidates for the 1912 presidential election. Name them. Which party did each candidate represent?

• How many electoral votes and what percentage of the popular vote did the Republican, Democrat and Progressive parties receive?

• How did the Republican party feel the impact of the progressive movement during the 1912 election?

• How did the election result of 1912 give Wilson a unique opportunity?

The 1912 Election

Republican Party

William H Taft

8 Electoral College Votes

23.2% of Popular Vote

Democratic Party

Woodrow Wilson

435 Electoral College Votes

41.8% of Popular Vote

Progressive Party

Theodore Roosevelt

88 Electoral College Votes

27.4% of Popular Vote

Socialist Party

Eugene Debs

Votes from the Republican party had been split between the Republican and Progressive parties. If the votes had not been split, the Republican party would have won the 1912 presidential election.

The election result of 1912 gave Wilson an opportunity no Democrat in the previous 50 years had been given. Wilson had been awarded with a mandate due to the huge majority the democrats had in voters and electoral college votes. This meant that Wilson had the right to rule and have his policies passed because the Houses of Representatives and the Senate were under Democratic control.

Topic 4, Lesson 1: How progressive was Woodrow Wilson?

Wilson’s ‘New Freedom’

• How did Wilson’s ‘New Freedom’ differ from Theodore Roosevelt’s ‘New Nationalism’?

• What was Wilson’s ‘New Freedom’ a reference to?

• What were the main aims of Wilson’s ‘New Freedom’?

Wilson’s domestic, progressive policies became known as his ‘New Freedom’.

Wilson’s ‘New Freedom’

• Favoured small businesses

• Wanted an unmonopolized, free market

• Active government intervention

• Focused on tackling the ‘triple wall of privilege’ - the banks, trusts and tariffs

• Combat trusts by strengthening the 1890 Sherman Act

Roosevelt’s ‘New Nationalism’

• Continuation of his ‘Square Deal’ to help the common man

• Active government

• Direct elections of senators

• Tariff reduction

• Presidential Primaries [an election where political parties select their candidates for a presidential election. these candidates will then run against each other in the presidential election]

• Regulation of monopolies

• End child labour

• Women’s suffrage

Topic 4, Lesson 1: How progressive was Woodrow Wilson?

The Federal Reserve Act (1913)

• What British body is the Federal Reserve similar to?

• Summarise how the federal reserve act impacted the banking system in the US.

• What 4 things does the Federal Reserve do?

• How would the federal reserve react to inflation?

• By 1923, roughly what percentage of the nation’s banking resources were part of the federal reserve system?

The Federal Reserve is similar to the bank of England. It was introduced in the 1913 Federal Reserve Act and is still in practise today.

The Federal Reserve:

1. Manages inflation

2. Supervises the banking system

3. Maintains the stability of the financial system

4. Provides banking services

This act created the first central banking system in the USA.

It required all national banks wanting to participate in the system to invest 6% of their capital and surplus in the reserve bank.

The system meant that the US’ supply of money was no longer reliant on gold.

When inflation threatened, banks could increase their interest rates, discouraging borrowing and therefore reduce the amount of money in circulation.

By 1923, roughly 70% of the nation’s banking resources were part of the federal reserve system.

Topic 4, Lesson 1: How progressive was Woodrow Wilson?

Wilson’s Anti-Trust Policies

• Federal Trade Commission

  • When was it introduced?

  • Why was this commission formed?

  • How effective was the FTC? Give a statistic.

• Clayton Anti-Trust Act

  • When was it introduced?

  • What did it do?

  • What did Samuel Gompers call this act?

  • Reminder: Who was Samuel Gompers?

  • What did the Clayton Act do which no other progressive president had managed to do?

• Federal Trade Commission

Formed in 1914 to investigate corporations and stop “unfair” practices.

The word “unfair” was never defined.

A regulatory body for businesses that covered every dubious business action.

Many felt this was not strong enough.

Under Wilson, the FTC administered almost 400 cease-and-desist orders to companies engaged in illegal activity.

The FTC is still in operation today.

• The Clayton Anti-Trust Act

Introduced in 1914.

Gave more powers to those enforcing the Sherman Anti-Trust Act

Made certain business practices illegal. For example:

Price discrimination selling a product to different customers for different prices depending on a number of factors

‘Tying arrangements’ an agreement by a party to sell one product but only on the condition that the buyer also purchases a different (or ‘tied’) product, or at least agrees that he will not purchase that product from any other supplier

Creation of interlocking directories when a member of a company’s board of directors also serves on another company’s board or within the company’s management.

Samuel Gompers (founder of the American Federation of Labour) described this act as “a Magna Carta for labour”.

The Clayton Act legalised labour unions. This was something that no other Progressive president had managed to do.

Topic 4, Lesson 1: How progressive was Woodrow Wilson?

Wilson’s Support for Workers & Farmers

• What form of tax (which was the first of its’ kind to be introduced) was created under Wilson?

• Who did Wilson appoint as the first secretary of the Department of Labour?

• How did Wilson’s reorganisation of the Department of Agriculture help farmers?

• When was the Federal Farm Loan introduced?

• How did the Federal Farm Loan help farmers?

• Wilson introduced the first ever income tax

• Wilson appointed the first secretary of the Department of Labour (which was created under Taft), William Wilson, who was a former miner and union leader.

• Wilson reorganised the Department of Agriculture to assist those in farming, ensuring better credit and distribution networks for farmers

• The Federal Farm Loan Act of 1916 provided low cost loans to farmers.

Topic 4, Lesson 1: How progressive was Woodrow Wilson?

The Underwood Tariff

• When was it introduced?

• What did it do to certain items?

• Give examples of these items

• How did the Underwood Tariff impact the constitution?

• Many people regarded the Underwood Tariff as an attack on who?

Introduced in 1913

Significantly reduced many duties and freed certain items from them entirely. Such items included: food, wool, iron, steel, shoes, agricultural machinery. This was because these items could be produced in the US for a cheaper price.

The Underwood Tariff required a change to the constitution (16th Amendment)

Many people regarded the tariff as an attack on big business, who favoured high tariffs.

Topic 4, Lesson 1: How progressive was Woodrow Wilson?

Wilson’s Taxation Reform (Sixteenth Amendment)

• What was the intent of the introduction of the income tax?

• When was income tax introduced?

• Initially, income tax only had to be paid by who?

• What was the typical wage at the time?

• Which act, introduced in 1916, continued the plan of taxing the rich and redistributing wealth?

• How did this act continue the income tax?

• How did the introduction of income tax impact the government?

• How does income tax impact the federal government today?

Income Tax

• Introduced in 1913

• Intended to replace the government’s lost income when tariffs were reduced or abolished

  NB: This is when the federal government’s main source of income switched from tariffs to income tax

• Initially, income tax only had to be paid by those earning over $4,000. At the time, a typical wage was $1,000.

Revenue Act (1916)

• Continued the plan of taxing the rich and redistributing wealth by expanding taxes into business profits and estates.

By 1917, the government was receiving more money on income tax than it had ever gained from tariffs.

Today, income tax on corporations and individuals represent the federal government’s main source of revenue.

Topic 4, Lesson 1: How progressive was Woodrow Wilson?

Wilson’s Social Reforms

• What positive social reforms did Wilson make during his presidency?

• What negative social reforms did Wilson make during his presidency?

• Federal Child Labour Act (1916) made a start in dealing with the 2 million children who were under 16 and known to be working and deprived of an education.

  Also barred goods made by child labour from inner-state commerce.

  2 years later, this act was ruled unconstitutional by the Supreme Court.

• In 1916 a Workmen’s Compensation Act ensured federal employees who were absent from work due to ill-health or injury received financial assistance.

• Adamson Act (1916) laid down a maximum eight-hour day for railroad workers.

• Wilson showed little sympathy or support toward trade unions

For example:

In 1913, coal miners went on strike in Ludlow, Colorado because their company refused their demands and evicted workers from company housing.

Workers set up tents outside the company.

The Colorado National Guard was sent in and fired on the tents

26 people were killed

Wilson sent federal troops to restore order and break up the strike.

Topic 4, Lesson 1: How progressive was Woodrow Wilson?

Wilson’s African American Discriminatory Policies

• On racial matters, who did Wilson appease and who did he disappoint?

• How did Wilson extend racial segregation in the federal government, the military and Washington DC?

• How did Wilson gain the support of the NAACP’s black intellectuals and white liberals during the 1912 presidential election?

• How did Wilson lose this support as president?

• Give an example of a fellow Southerner who Wilson appointed to his cabinet, and in doing so caused the NAACP to feel betrayed.

• On racial matters, Wilson appeased conservative Southern Democratic voters but disappointed his Northern white and black supporters.

• Wilson placed segregationists in charge of federal agencies thereby extending racial segregation in the federal government, the military and Washington DC.

During the Presidential campaign of 1912, Wilson won the support of the NAACP’s black intellectuals and white liberals by promising to treat blacks equally and speak out against lynching.

As president, however, Wilson opposed federal, anti-lynching legislation by arguing these crimes fell under state jurisdiction.

• Wilson appointed fellow Southerners to his cabinet who extended segregation.

For example, Secretary of the Navy, Joseph Daniels proposed to do away with common drinking fountains and towels. The NAACP felt betrayed.

Topic 4, Lesson 1: How progressive was Woodrow Wilson?

The 1916 Election

• When did Wilson serve his second term as president?

• What slogan did Wilson run under for the 1916 election?

• At the time of the 1916 election, what stance did America hold toward the First World War?

• Why were Wilson’s progressive policies limited after 1914?

• What were the results of the 1916 presidential election?

  • Party

  • Candidates

  • Electoral College Votes

  • Percentage of Popular Vote

Wilson served his second term as president between 1917 and 1921.

In the 1916 presidential election, Wilson ran under the slogan “he kept us out of the war”.

At the time of the 1916 election, America, while leaning toward the Allied forces, followed their foreign policy of isolationism and wanted to remain neutral.

Republican → Charles Evans Hughes → 254 electoral college votes → 46.1% of popular vote

Democrat → Woodrow Wilson → 277 electoral college votes → 49.2% of popular vote

Wilson’s Progressive Policies were limited after 1914 due to WW1.