The Wilson Years Chapter 18 Section 4

Election of 1912 Republican candidate  Taft Incumbent, conservative support Progressive candidate  Roosevelt Progressive support Democratic candidate Woodrow Wilson The election was really b/w Roosevelt & Wilson Both men were progressives, but they had different approaches to reform

Roosevelt’s Campaign New Nationalism Accepted the economic power of trusts Have a more powerful federal govt. and a strong executive to regulate them Legislation to protect women and children in the labor force Supported workers’ compensation for those injured on the job Federal trade commission to regulate industry Efficiency was more important than more freedom and a weaker govt.

Wilson’s Campaign New Freedom Criticized Roosevelt’s program … Wilson… Supported “regulated monopoly” Federal govt. had too much power in the economy Did nothing to restore competition Wilson… B/l monopolies were evil and needed to be destroyed, not regulated Wanted to restore competition and give the federal govt. less power over the economy Freedom was more important than efficiency Wilson wins!

Reforming Tariffs Lobbied Congress to support his bill to reduce tariffs High tariffs had exempted competition and made it easy to create monopolies The pressure of foreign competition would lead American manufacturers to improve their products and lower their prices

The Underwood Tariff In 1913 the Underwood Tariff was signed into law The Underwood Tariff Act… Reduced the average tariff on imported goods Created an income tax - direct tax on the earnings of individuals and corporations Income Tax Originally the constitution did not allow a direct tax on the people The 16th Amendment made an income tax legal

Reforming the Banks 1913 – Federal Reserve Act Banks would keep a portion of their deposits in a regional reserve bank Provide a financial cushion Board of Governors (appt by president) – set interest rates Gives the Board the ability to fight inflation by raising interest rates and to stimulate the economy during a recession by lowering interest rates To restore confidence in the banking system

Reforming Businesses 1914 – Federal Trade Commission (FTC) To monitor American business Not to break up big business – it was to work w/ business to limit activity that unfairly limited competition Investigate companies and issue “cease and desist” orders against companies engaging in unfair trade practices Practices that hurt competition

Reforms by Congress Congress was not satisfied w/ Wilson’s reforms Now in office Wilson agreed w/ Roosevelt about trusts and big companies Clayton Antitrust Act Banned tying agreements Required retailers who bought from one company to stop selling a competitor’s products Banned price discrimination Businesses could not charge different customers different prices

Failures of Progressivism Failed to address African American reform issues Niagara Movement W.E.B. Du Bois and 28 other African American leaders met in Niagara Falls They demanded full political rights and responsibilities for black people 1909 – National Association for the Advancement of Colored People (NAACP)