1. Progressive Presidents Unit 2: Notes #7 Mrs. Willis 10/18/12

2. Theodore Roosevelt He believed that big business was essential to the nation’s growth, but he also believed that companies should behave responsibly He believed that big business was essential to the nation’s growth, but he also believed that companies should behave responsibly He focused on regulating large corporations In 1901, J.P. Morgan, James Hill, and E.H. Harriman joined their railroads together to eliminate competition In 1901, J.P. Morgan, James Hill, and E.H. Harriman joined their railroads together to eliminate competition They created the Northern Securities Company

3. Trust-busting In 1902, President Roosevelt had the U.S. Attorney General sue the Northern Securities Company for violating the Sherman Anti-Trust Act In 1902, President Roosevelt had the U.S. Attorney General sue the Northern Securities Company for violating the Sherman Anti-Trust Act In 1904 the Supreme Court ruled that the company did violate the Sherman Anti-Trust Act and ordered the company to be dissolved In 1904 the Supreme Court ruled that the company did violate the Sherman Anti-Trust Act and ordered the company to be dissolved Roosevelt then launched a trust-busting campaign Roosevelt then launched a trust-busting campaign His administration filed dozen of lawsuits against trusts that sold inferior products, competed unfairly, or corrupted officials His administration filed dozen of lawsuits against trusts that sold inferior products, competed unfairly, or corrupted officials Their goal was to protect the interests of the consumer Their goal was to protect the interests of the consumer

4. Square Deal The Square Deal was Roosevelt’s campaign slogan in 1904 and the framework for his entire presidency The Square Deal was Roosevelt’s campaign slogan in 1904 and the framework for his entire presidency He believed that the needs of workers, business, and consumers should be balanced He believed that the needs of workers, business, and consumers should be balanced Roosevelt called for limiting the power of trusts, promoting public health and safety, and improving working conditions Roosevelt called for limiting the power of trusts, promoting public health and safety, and improving working conditions Roosevelt easily defeated his opponent in the 1904 Presidential election Roosevelt easily defeated his opponent in the 1904 Presidential election

5. William Howard Taft In 1908 Roosevelt did not seek re-election instead he supported the candidacy of William Howard Taft In 1908 Roosevelt did not seek re-election instead he supported the candidacy of William Howard Taft Believing that he would carry on his progressive work Believing that he would carry on his progressive work With Roosevelt’s strong backing he won, and pledged to continue with TR’s programs With Roosevelt’s strong backing he won, and pledged to continue with TR’s programs

6. Taft’s Accomplishments The 16 th Amendment was passed in 1913 The 16 th Amendment was passed in 1913 This granted Congress the power to levy taxes based on an individual’s income This granted Congress the power to levy taxes based on an individual’s income Progressives supported a nationwide income tax as a way to pay for government programs Progressives supported a nationwide income tax as a way to pay for government programs Taft actively prosecuted monopolies and trusts throughout his presidency Taft actively prosecuted monopolies and trusts throughout his presidency Almost twice the number of antitrust cases were brought up in Taft’s 4-year term, than Roosevelt 7 years as president Almost twice the number of antitrust cases were brought up in Taft’s 4-year term, than Roosevelt 7 years as president

7. Woodrow Wilson Wilson came to office with a reputation as a reformer Wilson came to office with a reputation as a reformer During the 1912 Presidential Election, Woodrow Wilson proposed his plan for reform known as the New Freedom During the 1912 Presidential Election, Woodrow Wilson proposed his plan for reform known as the New Freedom This called for tariff reductions, banking reform, and stronger antitrust legislation This called for tariff reductions, banking reform, and stronger antitrust legislation

8. Wilson’s Reforms Wilson established the Federal Reserve Act in 1913, which created a central fund from which banks could borrow to prevent collapse during a financial panic Wilson established the Federal Reserve Act in 1913, which created a central fund from which banks could borrow to prevent collapse during a financial panic This created a 3-tiered banking system This created a 3-tiered banking system Top Level: Federal Reserve Board (Officials appointed to run the system) Top Level: Federal Reserve Board (Officials appointed to run the system) Second Level: 12 Federal Reserve banks (Serve other banks) Second Level: 12 Federal Reserve banks (Serve other banks) Third Level: Private banks (Could borrow from Federal banks) Third Level: Private banks (Could borrow from Federal banks)

9. Stronger Anti-trust Laws In 1914, Congress passed the Clayton Anti-trust Act In 1914, Congress passed the Clayton Anti-trust Act This clarified and extended the Sherman Anti-trust Act This clarified and extended the Sherman Anti-trust Act It prohibited companies from buying stock of competing companies in order to form a monopoly. It prohibited companies from buying stock of competing companies in order to form a monopoly. It also supported workers by making strikes, boycotts, and peaceful picketing legal for the first time It also supported workers by making strikes, boycotts, and peaceful picketing legal for the first time