The Wilson Presidency 1912-1919

The Election of 1912 Woodrow Wilson (Democrat) was elected after Republican voters split between Roosevelt and Taft. Struggle of Control of the Republican Party Republican party members met in Chicago June 1912 to choose a candidate to run in the election of 1912 (national nominating convention). Progressive Republicans supported Theodore Roosevelt Conservative (Business) Republicans supported Taft. Taft delegates controlled the nomination= Roosevelt supporters walked out to form another party. The Progressive Party (1912) or “Bull Moose Party” formed to support Roosevelt The Election mainly a contest between Theodore Roosevelt vs. Woodrow Wilson (Dem.) Wilson was progressive Democrat– as Governor of New Jersey—pushed direct primaries, boards to regulate utilities, commission form of local gov’t. New Jersey– A model of Progressive Reform

New Nationalism vs. New Freedom The Election of 1912 was a three way race but, the two most popular candidates were Roosevelt & Wilson. A contest between two different approaches to progressive reform. New Nationalism Roosevelt’s reform plan Large businesses & trust are a fact of life—Regulate them—don’t destroy them all. Favored laws to protect women & children workers Supported worker compensation (due to injury on the job). New Freedom Wilson’s Reform Plans Criticized Roosevelt’s plan for “regulating monopolies”– Wilson wanted to destroy monopolies—not just regulate. Criticized Roosevelt’s plan for giving the federal government too much power in the economy and did not restore fair competition. Freedom more important than economic efficiency. The Election 1912 Outcome Taft & Roosevelt split the Republican vote===Democrat Woodrow Wilson won the election!

Wilson’s Progressive Reforms During the election campaign, Wilson stated he wanted to attack the “Triple Wall of Privilege” that existed in the US (High Tariffs, Banking, Monopolies). Tariff Reform 1st President to appear personally in front of Congress since John Adams. Wanted Congress to reduce tariffs to increase business competition that would lower prices and increase quality of American products. 1913- The Underwood Tariff- reduced the average tariff on imported goods by 30%. Income Tax: the Underwood Tariff also included a direct tax on income of Americans (ruled unconstitutional previously). 1913- 16 Amendment -- passed and made income taxes constitutional.

Wilson Reforms the Banking System The US had not had a central bank since the 1830’s. During economic depressions, small banks collapsed and the savings of Americans were wiped out. Wilson and Progressives wanted to create a Federal Reserve System. Bank Reform A federal reserve system would require banks to keep a portion of deposits in regional banks to be accessible during times of crisis. The Federal Reserve Act (1913) Created 12 federal reserve regional banks Supervised by Board of Governors—appointed by US presidents. Reserve Bank sets interest rates it charges other banks across the country.

Wilson Reforms Antitrust Laws Wilson wanted all businesses to have to compete which would lower prices for consumers and produce better quality products. Wilson initially wanted to do this by breaking up monopolies…but he changed views after getting into office. Federal Trade Commision( 1914) Created to monitor US businesses. Had power to investigate US companies & issue “cease & desist” orders. FTC could be sued by companies also. Wilson appointed conservative business leaders to the commision’s 1st Clayton Antitrust Act (1914) Progressives in Congress unhappy with Wilson’s “go easy” approach passed this law. The law outlawed specific business practices (like requiring a retailer to stop selling a competitor’s products, and price discrimination. Labor Unions and Farm Organizations (Grange) could no longer be considered as “restraining trade”. Labor leaders called this law the “Magna Carta” for labor.

Regulating Business 1914- members of Congress were running for re-election and Democrats suffered a major loss of seats in Congress. Wilson’s reelection in 1916 seemed uncertain. The Keating-Owen Child Labor Law (1916) 1st law federal law regulating child labor. Outlawed employment of children under age 14 in any factory producing products for interstate commerce. This helped Wilson’s reputation with Progressive voters in 1916. 1918- The Supreme Court ruled the law unconstitutional. The Adamson Act Established an 8 hour workday for railroad workers.

Impact of the Progressive Era Before the Progressives: Most Americans did not expect the government to pass laws to protect workers or regulate businesses. Most courts had ruled against such laws. End of the Progressive Era: People’s attitudes and legal ideas had changed. Americans expected government to play an active role in regulating the economy & solving problems.

Limits of the Progressive Era The Progressive Movement did not address racial or religious discrimination in the US. Instead, African- Americans inspired by the movement took matters into their own hands. The Niagara Falls Movement (1905) W.E.B. Dubois & 28 other African-American leaders met . Demanded full rights for African-Americans. Effect: led to the creation of the NAACP (National Association for the Advancement of Colored People). NAACP( 1909) Born after the race riots of 1908 Voting rights were essential to end lynching and discrimination. Niagara Movement & NAACP merged Anti- defamation League Formed (1913) To fight discrimination against Jews.