Economy
By Dean Penner
The Economy of the Progressive Era was overall affected positively due to the reform of the
nation's banks, the ridding of monopolies and trusts, and the creation of an income tax allowing
for a reduction of tariffs.
Important Terms
___ Act that created 1st income tax
A. Panic 1907
___ Created HUGE decrease in tariffs
B. Federal Reserve Act 1913
___ Created a “Search and Destroy” board for trusts
C. Boll Weevil
___ J. P. Morgan saved US from worse financial collapse
D. President Taft
___ Gave the Interstate Commerce Commission true power
(strengthened & expanded it)
___Raised fines for rebates
E. Underwood Act 1913
___Most important piece of legislation between Civil War and
WWI
___ Had no “good trust/bad trust” sense
G. Alrich-Vreeland Act 1908
___Allowed for the Underwood tariff Act
I. Calyton Anti-trust Act
___ Helped the Sherman Anti-Trust Act fit a capitalist economy,
lengthened list of “don’ts”
___ Allowed banks to issue emergency currency
J. 16th amendment
___Cotton-eating beetle that caused economic crash for many
Cotton farmers
___ Started the efficiency movement
L. Hepburn Act 1906
F. Underwood Act 1913
H. Elkins Act 1903
K. Federal Trade Commission Act 1914
M. Fredrick Taylor
Fill in the Blank
The idea of the Efficiency Movement (or ____________________) was started by ___________
_____________, but he could not start the movement alone. The manufacturer ___________
_____________ was also a major contributor to the new systems of this movement, and popularized
inventions like the ____________________ and paved the way for the ____________________ of the
1920s.
“Short Answer”
* Indicates at least one sentence required
*1. In one sentence, explain how the Panic of 1907 showed a need for a bank reform.
2. Watch the video above the heading “Federal Reserve Act 1913”. It is a video of excerpts from
Woodrow Wilson’s book The New Freedom. (Make sure you can hear the music. It’s pretty sweet)
a. When Wilson talks about the “Invisible Empire” to which the government has “submitted its control”,
who is he talking about?
b. Later on, is Wilson saying he supports or condemns the middle class?
*3. What piece of banking legislation is called the “most important economic legislation since the Civil
War”? Why was this new system so important to the US economy?
4. Who filed more anti-trust suits: Theodore Roosevelt the “Trust Buster” or William Taft his successor?
*5. Using the Wikispace area “Trusts” what was the major difference between the Clayton Anti-Trust Act
(1914) and Sherman's Act (1980)?
6. The Underwood Act did two major things. What were they?
*7. How are the Underwood Act and 16th amendment related?
8. Look at the political cartoon of Woodrow Wilson underneath the “Tariff” heading.
*a. Do you think a friend or enemy of Wilson made the cartoon?
*b. Explain the significance of the different pails.
9. What war was good for the farmers’ economy?