1. The Battle for National Reform
Chapter 22

2. Theodore Roosevelt and the Modern Presidency
The “loveable” president
Changed the powers, role and perception of the president
The Accidental President
“that damned cowboy!” Mark Hanna
reputation of substance, rather than of style
New York Legislature: energy among lethargy
Rancher and peace authority in Dakota Territories
San Juan Hill (useless but heroic)

3. Theodore Roosevelt Never rebelled against leaders of his party
TR philosophy on reform / gov’t
Reform = protecting the gov’t from more radical challenges
Gov’t = not an agent of a particular interest, but as the mediator of public good with the president at its center

4. Government, Capital and Labor
TR allied himself with progressives who urged regulation, but not destruction, of the trusts
wanted to investigate the activities of corporations and publish them
believed an educated public would eliminate most corporate abuses
gov’t could legislate those that remained
Department of Commerce and Labor

5. TR: Trust Buster?
1902 ordered the Justice Department to invoke the Sherman Antitrust Act against Northern Securities Company (J.P Morgan)
J.P. Morgan “fix it up”
1904 Supreme Court ordered the NSC
Roosevelt assured Morgan that he did not wish to dissolve trusts
40 anti-trust suits filed during the TR presidency
but no serious commitment to reverse the prevailing trend toward economic concentration
J.P Morgan

6. TR: Friend of Labor? 1902 United Mine Workers Strike
threatened to send in troops
federal arbitration awards 10% wage increase and 9 hour day
no recognition of union
TR viewed himself as a champion of management and labor

7. The Square Deal
Through skillful politicking, Roosevelt wins re-election in 1904
After re-election, free to display extent and limits of reform
Hepburn Railroad Regulation Act of 1906 sought to restore regulatory authority to government (empower the I.C.C.)
cautious
Senator Robert LaFollette never would forgive Roosevelt

8. Square Deal Acts Pure Food and Drug Act
Meat Inspection Act (Upton Sinclair, The Jungle)

9. The Square Deal Continued
eight-hour day for workers
broader compensation for victims of industrial accidents
inheritance and income taxes
regulation of the stock market
TR criticized conservatives who obstructed these programs
Lead to stalemate in agenda
Widening gap between president TR and the conservative members of his party

10. Conservation
TR life time sportsman and naturalist, was the first president to take an active interest in the new and struggling American conservation movement
Spent four days hiking in the Sierras with John Muir, founder of the Sierra Club
Sierra Club: “aesthetic” value of forest
TR administration: supported rational and efficient human use of the wilderness… “scientific management”

11. Gifford Pinchot
Gifford Pinchot was TR chief forester… 1907 worked furiously to seize all the forests and many of the water power sites till in the public domain before a Conservative Congress restricted president’s authority.

12. Conservation Continued
TR’s administration: established government’s role as “manager” of the continuing development of the wilderness
Pleasing the opposition: Newlands Act… provided federal funds for the construction of dams, reservoirs, and canals in the West
open new lands for cultivation
cheap electric power
greater impact would not be felt for twenty years later

13. The Panic of 1907
despite reforms gov’t had little control over the economy
Same three mistakes as 1893
supply production out runs the capacity of demand
banking system inadequate
financial mismanagement
Roosevelt falsely blamed for “mad” economic policies

14. The Panic of 1907 Continued
Roosevelt and Morgan make a deal: Morgan “props up shaky financial institutions” in return for protection from anti-trust action
TR does not run again in 1908
conservative backlash, might not have gotten party bid
panic of 1907
promised not to run again in 1904
retired from public life, briefly, at age 50

15. The Troubled Succession
Hand-picked by Roosevelt to succeed him
Attention to law and detail instead of aggressive like Roosevelt
Came to office as the “darling” of both progressives and conservatives… soon found he could not please both

16. Taft and the Progressives
Payne-Aldrich Tariff
called Congress to a special session to lower protective tariff rates
Taft made no effort to influence Congress, arguing it was unconstitutional for him to do so
P-A Tariff was weak and angered progressives

17. The Pinchot-Ballinger Controversy
Taft replaces Roosevelt’s secretary of the interior who was a conservationist with a conservative corporate lawyer, Richard Ballinger
Ballinger removes 1 million acres of public forests and mineral reserves to private enterprises
Louis Glavis, Interior Department Secretary, finds evidence that Ballinger was selling areas of Alaska for personal profit
Glavis, shows case to Gifford Pinchot (still head of Forest Service) and Pinchot takes case to president
Ballinger cleared by Taft’s attorney general
Glavis fired by Taft
Pinchot, not happy takes the case to the Press and asks Congress to investigate the issue
Pinchot fired for insubordination
Conservative Congressional Committee exonerates Ballinger
Symbolic
Taft separates himself from Roosevelt supporters completely
Big business vs. progressive managed control

18. The Return of Roosevelt
Gone for two years on an African Safari
Return to America, a major public event: turned down an invitation to the White House to meet with Pinchot
Announced a public speaking tour
believed Taft had “completely twisted around” his policies
believed that he alone was capable of reuniting the Republican Party

19. New Nationalism
made clear he had moved a considerable way from the cautious conservatism of the first years of his presidency
social justice only possible through a strong federal government
inheritance taxes
workers compensation in industrial accidents
regulation of the labor of women and children
firmer regulation of corporations

20. Spreading Insurgency 1910 Congressional Elections
Conservatives ousted, Progressives elected
Democrats beginning to make their mark in Congress
Roosevelt says he does not want to run for President, but rather urge Taft to return to progressivism… two things changed his mind
1911 antitrust decision by the Taft Administration: TR takes it personally
1912 Progressive Candidate LaFollette suffers a public breakdown in response to his daughter’s illness
“Fighting Bob”

21. The Republican Schism
Roosevelt wins almost every primary election at the individual state level
Republican Party leaders override the primary and refuse to admit Roosevelt’s delegates
Roosevelt marches out of the convention with his delegates
In August of that year, Roosevelt creates a new Progressive Party to nominate him as president
“fit as a bull moose” = Progressive becomes “Bull Moose” Party

22. Woodrow Wilson and The New Freedom
The Rise of Wilson
Born and raised in the South
Author of books on the American political system
President of Princeton University 1902 (New Jersey)
Governor of New Jersey 1910
Reputation for progressivism and unwillingness to compromise
Woodrow Wilson

23. Election of 1912 traditional Republicans split Roosevelt Impaired
Taft – Republican Party
Roosevelt – Progressive / Bull Moose Party
Roosevelt Impaired
Many Republicans refused to leave the party
Roosevelt shot by a would be assassin during the last weeks of the elections
Democrats nominated a strong candidate
Wilson’s “New Freedom” vs. Roosevelt’s “New Nationalism”
two opposing progressive perspectives
proper response to monopolies was to destroy them (Wilson / Brandies) rather to regulate them (Roosevelt)

24. The Scholar as President
Wilson more bold and forceful that both Roosevelt and Taft
demanded fierce loyalty
used Presidential powers to mold together a coalition of conservatives and progressives who would support his program
Democrat majorities in both houses helped his platform
elected candidates realized they would have to enact progressive reform to stay elected

25. The Scholar as President Continued
Tariffs
substantial lowering of the protective tariff
Underwood-Simmons Tariff
many Americans believed this act introduced real competition into American markets
help break the power of trusts
graduated income tax
imposed a 1% tax on individuals and corporations earning over $4,000
ii. rates went up to 6% on incomes over $500,000

26. The Scholar as President Continued Again
Banking Reform
gov’t would have substantial control at the national level
bankers would retain control at the local level
Federal Reserve Act = most important piece of domestic legislation during Wilson’s administration
created 12 regional banks, each to be controlled by the individual banks of it’s district
new paper currency: Federal Reserve Notes
central institutions able to shift funds quickly into troubled areas

27. Problem of the Trusts
During 1912 Campaign, Wilson promised to attack economic concentration (aka monopolistic trusts) but his philosophy began to change into one of regulation, like Roosevelt

28. Federal Trade Commission Act
created a regulatory agency that would help businesses determine in advance whether their actions would be acceptable to the government
would have authority to launch prosecutions against “unfair trade practices”
increased government’s regulatory authority significantly

29. Wilson’s conclusion: supervision over dismemberment
Clayton Antitrust Act
originally reflected the ideals of 1912 campaign
Wilson did not back it strongly, weakened in Congress
Promises of 1912 election never materialized
Wilson’s conclusion: supervision over dismemberment

30. Retreat and Advance
Fall of 1914 Wilson decides Reform Movement is complete and that agitation for reform would end
refused to support the movement for national woman’s suffrage
condoned re-imposition of segregation in the agencies of federal government
dismissed efforts from Congress to support new reform legislation
Congressional elections of 1914 shattered President’s complacency: Democrats ousted by re-united Republicans
With 1916 on his mind, Wilson began to push for a second flurry of reforms
Nominated Louis Brandies to the Supreme Court
Supported a measure to make it easier for farmers to receive credit
Workers compensation for federal employees
Keating-Owen Act: first federal law regulating child labor / struck down by Supreme Court

31. The Big Stick”: America and The World, 1901 – 1917 (Pre-WWI PPT)
Little public involvement in country’s international affairs prior to World War I

32. Roosevelt and “Civilization”
TR believed in the value and importance of using American power in the world (Proverb: “Speak softly, but carry a big stick”)
Clear distinction between “civilized” and “uncivilized” nations
civilized = Anglo-Saxon or Teutonic
uncivilized = non-white, Latin or Slavic
Economic development also important American interests
civilized = producers of industrial goods
uncivilized = sources of raw materials
relationship between the two viewed as vital
Roosevelt believed in order to preserve order and stability, build a strong navy

33. Protecting the Open Door in Asia
TR was concerned with military tensions between Japan, Russia, Germany, France and Asia
Mediated conflict between Russia and Japan in 1905
part of deal stated US could trade freely in the region
Roosevelt wins Nobel Peace Prize in 1906
Russian Fleet destroyed by Japan… Japan begins to exert authority in Pacific
Domestic issues
extension of Chinese Exclusion Act
“Oriental School”
Hearst Papers: “Yellow Peril”
“The Great White Fleet” on world tour

34. The Iron-Fisted Neighbor
Principal Sphere of interest: Latin America
1902 Venezuela: European powers converge off Venezuelan coast, TR uses threat of US naval power to force Germany to withdrawal
“Roosevelt Corollary”: TR states that US has the right to intervene in domestic affairs of its neighbor if they proved unable to maintain order on their own
Dominican Republic: debts to Europe
Cuba: Platt Amendment

35. The Panama Canal
Roosevelt: determined to achieve dream of connecting Atlantic to Pacific
Original site was Nicaragua
French originally tried and failed in Panama…uneven ground would require locks
US chose Panama when French lowered their price of their prior holdings from $109 mil. To $40 mil.
1901 Hay-Pauncefote Treaty eliminated Britain from the deal
Trouble with closing deal with Columbia
John Hay and suspicious deal with Columbian official
TR upset when Columbians change their mind, calls them “inefficient bandits” and “blackmailers”

36. The Panama Canal Continued
US and French organize and support revolution in Panama
U.S.S Nashville off the coast in Panama to “maintain order”
US military presence kept Colombia from suppressing the rebellion
Independent Nation of Panama officially recognized by the US
1914 Panama Canal opens TR exclaims “I took the Canal Zone and let Congress debate!”

37. Taft and “Dollar Diplomacy”
Taft also worked to expand the nation’s economic interest overseas, but little interest in world stability
P.C. Knox worked to expand US investments into less developed regions
Failure and greed of Taft-Knox diplomacy: Asia
Taft expands America’s economic influence in Manchurian region, counter to Roosevelt policy
Constructing railroads
Russians loose alliance with Japanese and American railroad project quickly collapses
Failure and greed of Taft-Knox diplomacy: Caribbean
Nicaragua 1909, American corporate inspired revolt
American seize customs houses
Knox encourages American bankers to offer substantial loans to the new government, thus increasing US financial leverage

38. Diplomacy and Morality
Dominican Republic
Mexico
Porfirio Diaz, corrupt leader in Mexico, but friendly to American Businessmen
Victoriano Huerta seizes leadership, Wilson calls him a “government of butchers”
Battle at Veracruz: US on brink of war
Carranza takes leadership, unfriendly to US
US supports coup by Poncho Villa, then abandons
PV retaliates: attack on US soil
General John Pershing chases Villa and attacks Mexico on Mexican soil
Never find Villa