Wilsonian Progressivism
at Home and Abroad
Chapter 29
Election of 1912
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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
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Progressive “bull moose” convention called
– Had religious revival spirit
– Included women in influential roles
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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
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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
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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
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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)
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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
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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
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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
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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
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Jones Act (1916)
– Grants Philippines territorial
status and promises independence
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US intervention in Caribbean
– Marines sent to Haiti (1915)
Dominican Republic (1916);
Virgin Islands purchased in 1917
Moralistic Diplomacy in Mexico
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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
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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
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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
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US sends General Pershing into Mexico to get Villa
Venustiano
Carranza
Pancho Villa
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US troops went deep into Mexico fighting both Carranza and Villas forces,
but Villa was never caught and WWI ends the search
Start of the Great War
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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
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Central Powers – Germany, Austria-Hungary, Ottoman
Empire
Allied Powers – Britain, France, Russia
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American Neutrality
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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
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TR was nominated by Progressive party, but
refused to run for office because he didn’t want
to split the Republican party again
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Republicans nominated Supreme Court justice
Charles Evan Hughes
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Wilson campaigned on his success keeping
America out of WWI
– “too proud to fight”
TR was pressuring Republicans to take a more
bellicose stance
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Midwest and west gave election to Wilson in
recognition of his progressive reforms