1. The Wilson Years
Chapter 18 Section 4

2. 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

3. 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.

4. 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!

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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)