NOTES CH 29 Part 1 Text
Questions to consider:
-What were the main issues in the election of 1912 and how was Woodrow Wilson a minority president?
-What was “New Freedom” and the “triple wall of privilege” that Wilson set out to deal with in his first term as president?
Brief Overview:
-Wilson and his New Freedom defeated Roosevelt and his New Nationalism in a contest over alternative forms of
progressivism. After winning a three-way election, focused on different theories of progressivism, Woodrow
Wilson successfully pushed through a sweeping program of domestic economic and social reform in his first term.
Eloquent, idealistic former professor [Princeton} Wilson successfully carried out a broad progressive economic
reform of the tariff, finances, and the trusts. He also achieved some social reforms that benefited the working
classes, but not blacks.
Wilsonian progressivism at Home and Abroad 1912 -1916 CH 29 Textbook – 29 DE
“American enterprise is not free; the man with only a little capital is finding it harder and harder
to get into the field, more and more impossible to compete with the big fellow. Why? Because the
laws of this country do not prevent the strong from crushing the weak.
Woodrow Wilson – The New Freedom – 1913
Intro –“Schoolmaster in Politics” –“Minister President”
Dr. Woodrow Wilson was a reforming Democrat and tailor made to take advantage of the Republican
split…. Former Professor and President of Princeton University and then Reforming Progressive
Governor of New Jersey…who like TR in 1900 was considered a neophyte politically and the bosses
thought he could be controlled…wrong….under WW’s leadership NJ goes from being a conservative to
progressive state…Born in Virginia…he will attempt to be the 1st Southern Born President in a long long
time…a child of a Presbyterian minister he will bring the ideal of “Moral Diplomacy” to America and his
influence in FP is still felt today and throughout the 20th-American Century.
The “Bull Moose” Campaign of 1912****
The unlikely candidate, chosen on the 46 th ballot by the Democrats…Wilson has an advantage from the
beginning….a Southerner (he becomes the 1st President elected from the South in 64 years-Zachary
Taylor), Progressive, AND MOST SIGNIFICANTLY….the Republicans split…never good in American
History…
Wilson’s Ideas for America was called The “New Freedom” and he would ATTACK the “Triple-Wall
of Privilege”…including reforming ANTI-TRUST LEGISLATION, BANKING REFORM, AND TARIFF
REDUCTIONS.
TR – Runs for a new political party, Bull-Moose/Progressive Party…his ideas were announced in
1910 and called New Nationalism…(seen in a doc—very forward thinking –leads liberal reform for
the century) one delegate inspired by TR stated, “Roosevelt bit me and I went mad.”
I want to be a Bull Moose,
And with the Bull Moose stand
With Antlers on my forehead
And a Big Stick in my hand.
William Howard Taft was the Republican nominee and was the representative of the conservative “OLD
GUARD” wing of the party…
***The WINNER IN THE ELECTION OF 1912 CLEARLY WOULD BE PROGRESSIVISM….BUT WHICH
VERSION: TR’S OR WW’S?
Both favored a more active government role in economic and social affairs…but disagreed about
strategy…
TR (new nationalism-see doc) preached from Herbert Croly’s book, The Promise of American Life,
(1910). Both TR and Croly believed that when it came to trusts…”Bigness was not necessarily Badness,”
Regulatory Agencies in Government, Women’s Suffrage…and a broad Social Welfare program…including
Minimum-Wage laws and a Social Insurance.
WW (New Freedom/attack Triple Wall of Privilege) favored small businesses (big was bad?) and no
governmental regulatory agency-“small govt”- and laissez-faire (hands off) unregulated and
unmonopolized markets…no social welfare….and supported “competition” Adam Smith’s
approach -the “invisible hand” would regulate better if the government enforced the anti-trust
laws that already existed…
****The voters in a rarity in American History…. had a real choice between three different
candidates who had distinctly different approaches to governing…
Note: TR is shot in the chest in Milwaukee while giving a campaign speech…(see doc) TR suspended
campaigning for two crucial weeks…after he continued speaking after being shot !
Woodrow Wilson: A Minority President – wins a majority of electoral votes…but not a majority of
Popular votes…like Lincoln.
Results of the Election of 1912***one of those you need to be familiar with on the AP Exam*** See
Election Map p.690 in Digital Edition WW – 435 electoral votes – 6.3 million pop votes (41%) won a smaller % than Bryan’s 3 losses…
TR – 88 electoral votes – 4.1 million pop. votes
Taft – 8 electoral votes – 3.4 million pop. votes
Debs –Socialist Party- 1million votes (2X what he won 4 years ago)
Wilson wins due to the split of the Republican Party… Progressive Candidates TR and WW easily
dominate –Progressivism wins as well**** The Progressive Party although does not do well
locally..and begins its slow decline…
Republicans were in the minority in Congress… a rarity in the last 50 years (they will rebound and
dominate again…from 1920-1932)
Wilson: The Idealist in Politics
WW becomes only the 2nd Democratic President since 1861 (Grover Cleveland in 1884 & 1892) The
Democrats control the Presidency and the Congress both for the 1st time since the Civil War**** AND the
1st Southern Born Man elected President in 64 years, before the Civil War….quite a change from 1789 and
the Virginia Dynasty…
***********(IMPORTANT)Wilson’s progressivism only went so far…some historians claim he was a
member of the growing KKK…and even sponsored the premier of the 1st “blockbuster” movie—The Birth
of a Nation [SEE DOC] – in the White House---a story about how the South and White Women were saved
from the rapacious Black Man during Reconstruction…he even became THE 1ST PRESIDENT TO
SEGREGATE THE WHITE HOUSE AND FEDERAL GOVERNMENT BUILDINGS…BLACKS-CATHOLICSMINORITIES DO NOT BENEFIT FROM WW’S BRAND OF PROGRESSIVISM**** A GLARING WEAKNES OF
THE MOVEMENT…
Wilson Tackles the Tariff – attacking the Triple Wall of Privilege****
WW’s attack on the Triple Wall of Privilege
1 – Lower the Tariff (income tax is passed in this bill) Underwood Tariff Bill
2- Attack the Banks – The Federal Reserve Act (this still manages the US Economy)
3- Attack the Trusts – The Clayton-Anti-Trust Act is called the Magna-Carta for Labor by Gompers
(AFofL)
The Tariff- ****1st of the Triple Wall of Privilege
WW summons Congress into special session to pass THE UNDERWOOD TARIFF BILL****… in early
1913.
It substantially reduced rates AND IT INCLUDES THE 1ST INCOME TAX IN OUR HISTORY***made
possible by the recently ratified 16th amendment (a deal is made in Congress that this will be allowed to
pass if Prohibition is passed…the only way to make up the $$$ lost in excise taxes on alcohol  )
The Progressive/Graduated Income Tax began with taxing incomes over 3,000$ [check inflation
calculator for XC]*** This gradually replaces the tariff as a $$$ maker for the US Government, surpassing
the Tariff revenue by 1917…and will be larger every year still today…. (remember that until 1917 the US
Government relied on Tariff revenues for the $$$ to run the Federal Government)
Wilson Battles the Bankers*** 2nd of the Triple Wall of Privilege
The Banking and Currency systems were antiquated… The last bill regulating the economy/banks was
passed during the Civil War- the National Banking Act…(1907 panic showed the “inelasticity” of our
currency) and why the Aldrich-Vreeland bill is passed to allow the Federal Government to print more
paper $$$ to respond to shortages in currency….which in an expanding industrial economy was
dangerous…and currency was heavily concentrated in large urban areas and therefore could not respond
nationwide to the shortages…
Congressman Arsene Pujo had traced the problems to the monopolization of the Banking Industry- the
Money Monster…famed attorney and Wilson confidant, Louis Brandeis, wrote a book, “Other people’s
money and How the Bankers Use it (1914) together this drives Wilson and congress to reform the banking
system…
***The Landmark/Epochal ---Federal Reserve Act, 1913 – ****huge***
The Republicans had suggested a 15 branch Bank co-owned by the government and private interests….
The Democrats said no to a repeat of the 1st National Bank design…(Hamilton’s Idea) and Created a
massive Banking system COMPLETELY MANAGED*** BY THE FEDERAL GOVERNMENT….****
THE FR-ACT created a nationwide system of 12 regional banks-managed by THE FEDERAL RESERVE
BOARD – appointed by the President- - The Banks were owned by the banks who join the system
BUT**** THE BOARD, appt. by the President, controlled the decisions made at each regional branch.
To solve the “elasticity” issue…EACH regional BRANCH…was authorized to issue “FEDERAL RESERVE
NOTES” –PAPER $$$--thus the amount of $$$ in circulation at any given time in each region could be
increased or decreased in response to the often changing financial situation –thus solving the
“elasticity” issue.
Note: You would think that due to the FR existing that the amazingly damaging financial crisis that led to
the Great Depression from 1929 until WW2…could have been minimalized…BUT…if the people managing
the economy –federal reserve board –do not act or act improperly---it won’t matter. That is why during
the GD…FDR finally regulating and reforming the agencies that manage the economy prevents
another massive collapse for over 50 years…until 2008 ish ( and that happens because the
conservatives had removed most of the protections put in place during the new deal…they did not
believe they were necessary anymore…they were wrong…very wrong….)
The President Tames the Trusts – 3rd of the Triple Wall of Privilege***
Congress passed the FEDERAL TRADE COMMISSION ACT, 1914 – created a commission to monitor all
businesses who participated in “inter-state” commerce…The commission was set up to crush unfair trade
practices , unlawful competition, false advertising, mislabeling, adulteration of products, and bribery.
******Congress passes the CLAYTON ANTI-TRUST ACT, 1914 – this bill actually improves the former,
1890, Sherman Anti-Trust Act ….increasing the # of business practices that were objectionable…including
price discrimination and inter-locking directorates…AND EXEMPTED LABOR UNIONS, finally, FROM
ANTI-TRUST PROSECTUTION*** SAMUEL GOMPERS –leader of the AF of L, called it the “magna-carta
of Labor….for the 1st time the Federal Government protects labor unions**** Remember: that the
Sherman Anti-Trust Act had been used most to attack Labor Unions before TR 
Wilsonian Progressivism at High Tide
Woodrow Wilson, glad to have a Democratic Congress with which to work, had personally gone to
Congress three times to accomplish his program…his vigorous leadership allowed for these laws to be
passed….another “Imperial President” just a little different from TR but using his “bully pulpit” equally
effectively gaining huge popular support.
Other Progressive Acts passed by Congress with Wilson’s support:****
Farmers Benefit1 The Federal Farm Loan Act, 1916 (a populist wish) – made credit available to farmers at low
rates of interest.
2 The Warehouse Act, 1916 (another populist wish) – authorized loans on the security of crops
stored.
3 Acts built new highways (less dependence on rr) and Agricultural Colleges.
Labor
1 Lafollette Seaman’s Act, 1915 – required higher wages and better treatment for Merchant
Seamen.
2 Workingmen’s Compensation Act, 1916- assistance during disability for Civil Service Workers
3 Keating-Owen Child Labor Law, 1916 – restrictions on child labor in businesses that use interstate commerce… influenced by the photography of Lewis Hine….overturned by Supreme Court
(Hammer v. Dagenhart, 1917 – Charlotte case…)
4 Adamson Act, 1916 – RR Workers – get 8 hour day and extra pay for overtime (1.7 million
affected)
Supreme Court –
1 Louis Brandeis becomes the first Jewish Supreme Court justice when Wilson appoints him in
1916
Limits of Wilson’s Progressivism
1 began and expanded the segregation of Blacks in Federal jobs.
2 increased membership in KKK (against immigrants, Catholics, Hispanics, Asians…etc) Largest
membership #’s in American History…
3 Women still were waiting for the Vote.
4 Native Americans promise of citizenship from the Dawes Act…was supposed to occur in 1912
but was delayed until 1934…