Wilsonian Progressivism at Home and Abroad

I. The “Bull Moose” Campaign

a. Democratic National Convention

i. Wilson was nominated (William Jennings Bryan helped support this)

ii. Platform:

1. Called “New Freedom” program

2. Included:

a. Antitrust legislation

b. Banking reform

c. Tariff reductions

b. Progressive (“Bull Moose”) Republican Convention

i. Ran Teddy Roosevelt; he was eager to run because he was angry about not being accepted by the Republicans for their nomination

ii. Were for women’s rights and social justice

iii. Roosevelt said that he felt as strong as a Bull Moose. This symbolized the party

c. Roosevelt v Taft

i. Were out to get each other

ii. Roosevelt called Taft a “fathead” and said that he had the brain of a “guinea pig”

iii. Taft called Roosevelt a “dangerous egotist” and a “demagogue”

iv. This division would split the Republican Party votes, ensuring a Democratic victory

d. New Freedom or New Nationalism?

i. Both favored a more active government role in economic and social affairs, but disagreed over specific strategies

ii. Roosevelt – New Nationalism

1. Wanted continued consolidation of trusts and labor unions

2. Wanted powerful regulatory agencies in the national government

3. Campaigned for women’s suffrage

4. Wanted a broad program of social welfare, including minimum wage laws and universal insurance (wanted a welfare state – like FDR’s New Deal)

iii. Wilson – New Freedom

1. Favored small enterprise, entrepreneurship, and the free functioning of unregulated and unmonopolized markets

2. They didn’t like social welfare proposals and put their economic trust in competition

3. Wanted trusts to be fragmented through enforcement of the antitrust laws, not regulated

II. Woodrow Wilson

a. Election of 1912

i. Wilson won:

1. 435-88-8

2. 6.3 million-4.1 million-3.5 million-900,000 (less than Bryan in any of his 3 defeats)

3. Roosevelt was second, then Taft, then Eugene V. Debs (the Socialist Party candidate – who got twice as many votes as he did 4 years ago)

ii. Wilson won only 41% of the popular vote

iii. His party won a majority in Congress

iv. Roosevelt and Taft combined to get more votes than Wilson (so many approved of their progressive platforms)

b. Future of the Progressives, Socialists, and Republicans

i. Progressives –

1. The Progressive Party or Bull Moose Party was dependent on one man – Roosevelt. One he stopped running, there was no party. Few won State or local offices. However, the Democrats would enact many of their reforms

ii. Socialists –

1. The Socialists won thousands of State and local office seats. However, they couldn’t hand out patronage positions because they didn’t win governor or president

iii. Republicans –

1. Were a minority in Congress for the next 6 years

2. Were out of the presidency for 8 years

3. Taft happily became Chief Justice of the Supreme Court, which he enjoyed much more than being president

III. Wilson: The Idealist In Politics

a. Characteristics of Wilson

i. Was Thomas Woodrow Wilson

ii. Second Democratic president since 1861

iii. First southerner to become president since Zachary Taylor, who was president 64 years earlier

iv. Wilson sympathized with the Confederacy

v. Was religious (the son of a Presbyterian minister), but was a racist. He praised Birth of a Nation, a controversial movie negatively depicting African-Americans

vi. He shared Jefferson’s faith in the masses – if they were properly informed

vii. He wanted to reform the wrongs of society (tariff, bank, and the trusts)

b. Beliefs About the Presidency

i. Thought that the president should play a dynamic role

ii. He believed that Congress couldn’t function properly unless he provided leadership to them

iii. He often appealed over the heads of legislators to the people themselves

c. Downfalls of Wilson

i. Was stubborn

ii. Could be cold and standoffish

iii. Could sometimes be an arrogant intellectual (felt politicians and journalists were beneath him)

IV. Wilson Tackles the Tariff

a. State of the Union Address

i. Established by Wilson in early 1913

ii. All were read by a clerk since Jefferson’s day

iii. Ever since, presidents have made their State of the Union Addresses in front of a joint session of Congress

b. Underwood Tariff Bill

i. Substantially reduced rates

ii. When lobbyists went to the Senate to urge them to vote against the bill, Wilson appealed to the people by urging them to encourage their representatives to vote for it

iii. The tactic worked and the bill became law

c. Income Tax

i. Permitted by the 16^th Amendment – allowed graduated (increasing by the amount of money you make) income tax

ii. It started with incomes over $3,000 (considerably higher than the average family’s income)

iii. By 1917 (the year after the amendment passed), the revenue from the income tax exceeded those of the tariff and has widened ever since

V. Wilson Battles the Bankers

a. Problems With the Nation’s Financial Structure

i. Country’s finances were running under the Civil War National Banking Act

ii. Banking reserves were heavily concentrated in NY and a handful of other large cities and could not be mobilized in times of financial stress

b. Progress For Banking Reform

i. In 1908, Congress investigated the banking problem. They recommended a gigantic bank with numerous branches – a third Bank of the U.S.

ii. In 1913, Wilson appealed in front of a joint session of Congress for banking reform. He wanted a decentralized bank (a bank with many branches) in government hands, as opposed to Republican demands for a huge private bank with 15 branches

iii. Wilson’s attorney, Louis D. Brandeis wrote Other Peoples’ Money and How the Bankers Use It (1914) – it fanned the flames of reform

c. Federal Reserve Act of 1913

i. Was response to the Panic of 1907 and concerns of business

ii. Created the Federal Reserve Board –

1. Oversaw a nationwide system of 12 regional reserve districts, each with its own central bank

2. The regional banks were owned by private bankers, not the government, but the Federal Reserve Board had substantial control over them (they could raise or lower interest rates)

3. The board was also empowered to issue paper money backed by commercial paper (like promissory notes). As a result, the amount of money needed in circulation could be increased more easily

d. Results of the Federal Reserve Act of 1913

i. Was one of the most important pieces of economic legislation from the Civil War to the New Deal

ii. The act enabled the U.S. to get through WWI

VI. The President Tames the Trusts

a. Federal Trade Commission Act of 1914

i. Created after Wilson met before a joint session of Congress again

ii. Created a commission to investigate industries engaged in interstate commerce. Any monopoly was to be crushed by focusing on their:

1. Unfair trade practices

2. Unlawful competition

3. False advertising

4. Mislabeling

5. Adulteration

6. Bribery

b. Clayton Anti-Trust Act of 1914

i. Strengthened the Sherman Anti-Trust Act by adding to objectionable business practices:

1. Price discrimination that was destructive to competition is illegal

2. Interlocking directorates (whereby the same individuals served as directors of supposedly competing firms) is illegal

ii. Exempted labor and agricultural organizations from antitrust prosecution (unions had been prosecuted as trusts)

iii. Legalized strikes and peaceful picketing

VII. Wilsonian Progressivism At High Tide

a. Rural America Laws

i. Federal Farm Loan Act of 1916

1. Made money available to farmers at low interest rates

ii. Warehouse Act of 1916

1. Authorized loans on the security of staple crops

iii. Other laws constructed highways and putting agriculture in State colleges

b. Workers Laws

i. La Follette Seamen’s Act of 1915

1. Required safety and sanitation measures for commercial ships, as well as regulated wages, food, and hours of sailors

2. However, freight rates rose with the crew’s wages

ii. Workingmen’s Compensation Act of 1916

1. Granted assistance to federal civil-service employees during periods of disability

iii. Adamson Act of 1916

1. Established an 8-hour day for all employees on trains in interstate commerce, with extra pay for overtime (time and ½)

iv. Keating-Owens Child Labor Act of 1916

1. Forbade the shipment of products whose production had involved child labor

2. Power of enforcement derived from interstate commerce, so the federal government could regulate it rather than States

3. Declared unconstitutional because it interfered with the power of States to regulate intrastate trade

c. Louis D. Brandeis

i. Nominated to the Supreme Court in 1916 – he was a progressive (businesses disliked the appointment)

ii. He was the first Jew appointed to the position

iii. Wilson was against blacks kept most of them out of the federal government

d. Being Cautious For the Election of 1916

i. Wilson appeased businessmen by making conservative appointments to the Federal Reserve Board and the Federal Trade Commission

ii. Devoted most of his energy to getting progressive support

iii. He needed to gain more votes than in the election where the Republican vote was split (1912)

VIII. New Directions In Foreign Policy

a. Wilson’s Foreign Policy

i. Hated Roosevelt’s big stick policy (against imperialism)

ii. Hated Taft’s dollar diplomacy policy (against Wall Street)

1. He proclaimed that the government would no longer offer special support to American investors in Latin America and China

iii. Wilson’s policy was called “watchful waiting.” He rejected alliances with leaders who took control through force and their interests could be determined as against the needs of America

b. Foreign Policy Events During Wilson’s Administration

i. Panama Canal Tolls Act of 1912

1. Exempted American shipping from tolls

2. Under the Clayton-Bulwer Treaty of 1889, America proclaimed that would operate the canal, but that the canal would be neutral

3. The British protested this act and it was repealed in 1914

ii. Japan (1913)

1. The CA legislature prohibited Japanese settling there from owning land

2. When Wilson dispatched Secretary of State William Jennings Bryan to plead with the CA legislature to soften its stand, tensions eased somewhat

iii. Haiti (1914-15)

1. Rebellion in Haiti forced Wilson to intervene. He reluctantly dispatched marines to protect American lives and property

2. They remained for 19 years

3. In 1916, he concluded a treaty with Haiti providing for U.S. supervision of finances and the police. Haiti became an American protectorate (country that is protected and under partial control of another country)

iv. Dominican Republic (1916)

1. Marines were sent to quell riots and stayed for 8 years

v. Jones Act of 1916

1. Granted the Philippines territorial status and promised independence as soon as a “stable government” could be established – July 4, 1946

vi. Virgin Islands (1917)

1. Wilson purchased these islands from Denmark to rid the area of that foreign power

IX. Moralistic Diplomacy In Mexico

a. Mexican Revolution

i. American capitalists invested a billion dollars in oil, railroads, and mines in Mexico

ii. Mexico had a lot of money, but its people did not. As a result, they rebelled in 1913

iii. The revolution killed the president and installed General Victoriano Huerta. This caused a massive migration of Mexicans to America (watchful waiting policy)

iv. 1900-1930 – more than a million Mexicans came to the U.S. They helped blend Mexican and American cultures

b. American Intervention

i. The rebellion threatened American lives and property in Mexico

ii. Many Americans wanted Wilson to intervene militarily

iii. Early 1914 – at first he refused, but Wilson eventually allowed American arms to be given to Huerta’s rivals (end of the watchful waiting policy)

iv. April 1914 – a small party of American sailors was arrested. Although they were quickly released and the Mexicans apologized, Wilson asked Congress for authority to use force against Mexico

v. Before Congress could respond, Wilson sent the navy to capture the Mexican port of Vera Cruz

vi. July 1914 – Huerta’s government collapsed. He was succeeded by his archrival, Venustiano Carranza

vii. January 1916 – Pancho Villa (part bandit, part Robin Hood), was the chief rival to Carranza, who Wilson reluctantly supported. Villa tried to persuade America into fighting with Mexico by capturing 16 American mining engineers and killing them

viii. February 1916 – Villa went across the border into New Mexico, where he murdered 19 Americans

ix. General John J. Pershing (a veteran of the Cuban and Philippine campaigns) was ordered to break up Villa’s group. He quickly got rid of Villa’s group, but did not capture him

x. January 1917 – As the threat of war with Germany increased, American troops were withdrawn

X. The Great War Begins

a. Causes of the War

i. Nationalism – This is a deep devotion to one’s country. It can unify a country, but it can also cause rivalries and intense competition between countries

1. Ex – Great Britain was home to the industrial revolution and Europe’s leader in industry, finance, and shipping. However, after 1850, Germany’s new industries made its economy one of the fastest growing

2. Ex – France had never gotten over the loss of Alsace-Lorraine to Germany in the Franco-Prussian War (1870)

3. Ex – Austria-Hungary and Russia competed for the Balkans. Intense nationalism from ethnic groups within the Balkans led to demands for independence

ii. Imperialism – Competition for colonies in Africa and Asia. They could use their colonies’ resources to fuel the economy of the motherland, but the fierce competition for these colonies often pushed European nations to the brink of war

1. Ex – Germany and France nearly fought over who would control Morocco in 1905 and 1911

iii. Militarism – The glorifying of military power and keeping an army prepared for war. The nations of Europe believed that to be truly great, they needed to have a powerful military. So, an arms race began in the late 1890s. By 1914, all of the great powers of Europe had large standing armies

iv. Entangling Alliances – Between 1864 and 1871 Otto von Bismarck, freely used war to unify Germany. He then turned his energies to maintaining peace. He thought his greatest threat to peace was France. In order to isolate France, in 1881, Bismarck formed a Triple Alliance between Germany, Austria-Hungary, and Italy. In 1887, Bismarck made another ally with Russia

b. Crisis in the Balkans

i. With a long history of nationalist uprisings and ethnic clashes, the Balkans were known as the “powder keg” of Europe. By the early 1900s, the Ottoman Empire, which included the Balkan region, was in rapid decline. Some Balkan groups struggled to free themselves from Ottoman rule, including Bulgaria, Greece, Montenegro, Romania, and Serbia. Nationalism was a powerful force in each of these countries

ii. Serbia - Had a large Slavic population. They hoped to absorb all the Slavs on the Balkan Peninsula

iii. Russia - Supported Serbia because they were a mostly Slavic nation. They hoped to fill the power vacuum created by the Ottoman decline in the Balkans

iv. Austria - Felt threatened by Serbia’s growth because they thought Serbia might rebel. Like the Russians, they hoped to fill the power vacuum created by the Ottoman decline in the Balkans

v. In 1908, Austria annexed (took over) Bosnia and Herzegovina. These were two Balkan areas with large Slavic populations. Serbian leaders, who had sought to rule these provinces, were outraged. However, by 1914, Serbia had been successful in gaining additional territory, causing new confidence and increased nationalism

vi. In June 1914, Archduke Franz Ferdinand (the sole heir to the Austro-Hungarian throne) and his wife visited Sarajevo, the capital of Bosnia. During the trip, they got assassinated by Gavrilo Princip, a member of the Black Hand. The Black Hand was a secret society committed to ridding Bosnia of Austrian rule

vii. Because the assassin was a Serbian, Austria decided to use the murders as an excuse to punish Serbia. Kaiser Wilhelm II, the leader of Germany, gave Austria his unconditional support. In July, Austria presented Serbia with an ultimatum. An ultimatum is a list of demands that if not met, will lead to serious consequences. Demands included an end to all anti-Austrian activity and allowing Austrian officials to come into their country to conduct an investigation. Serbian leaders agreed to most of Austria’s demands, but Austria still declared war on July 28, 1914

c. The Two Sides In WWI

i. Central Powers – Germany, Austria-Hungary, Turkey, Bulgaria

ii. Allied Powers – France, Russia, Britain, Italy, Belgium, Japan, and the U.S.

iii. Americans were neutral and were thankful to be far away from the conflict

XI. A Precarious Neutrality

a. Triple Alliance Sympathies In America

i. Counted on all the German and Austro-Hungarian immigrants to America to sympathize with them. 11 million people living in America had ancestry to one of the Central Powers’ countries

b. Triple Entente Sympathies In America

i. The U.S. traded twice as much with France and England as they did with Germany

ii. Reports of German atrocities – some true and some not – stirred anti-German sentiment

iii. England and the U.S. shared a common ancestry

c. The American Public Favors…

i. The Allied Powers because:

1. Kaiser Wilhelm II reminded them of an autocracy. This was strengthened by:

a. His upturned mustache

b. German invasion of neutral Belgium

2. A German spy left his briefcase on a train in New York. The contents explained of plans for industrial sabotage (like terrorism). This was publicized and inflamed the American public

XII. America Earns Blood Money

a. Recession of 1914

i. The U.S. was pulled out of the recession by the French and British. J.P. Morgan and Company loaned the allies $2.3 billion

ii. The British had superiority on the seas, so Germany had trouble trading with America. The British forced American ships heading for Europe to dock in their ports

b. Lusitania

i. May 1915 – A German submarine, or U-boat (Unterseeboot – “undersea boat”), had sunk the British passenger ship Lusitania. The attack left 1,198 people dead, including 128 U.S. citizens

ii. Germany claimed that the ship had been carrying ammunition – which was years later found to be true. Nevertheless, the American public was outraged

iii. Germany stopped attacking neutral and passenger ships for fear the U.S. would enter the war against them. Wilson attempted to resolve the situation peacefully with increasingly strong notes

c. Arabic

i. August 1915 – Another British liner was sunk, killing 2 Americans

ii. Germany agrees to stop sinking unarmed passenger ships without warning

d. Sussex Pledge

i. March 1916 – The Germans sunk a French passenger ship called the Sussex

ii. Wilson informed the Germans that unless they renounced the practice of sinking merchant ships without warning, he would break diplomatic relations – a prelude to war

iii. Germany pledged to not sink passenger ships and merchant vessels without giving warning. However, the Germans wanted the United States to persuade the Allies to modify the “illegal” blockade. The U.S. of course couldn’t do this, but Wilson accepted the pledge, without the last part

XIII. Wilson Wins Reelection In 1916

a. Republican Party Nomination

i. Roosevelt refused to run because he didn’t want to split the Republican party again

ii. As a result, the Bull Moose Party died away

iii. Nominated Supreme Court justice Charles Evans Hughes (was former governor of New York)

iv. Platform:

1. Condemned the tariff

2. Condemned assaults on trusts

3. Didn’t like Wilson’s wishy-washiness in dealing with Mexico and Germany

b. Problems With Hughes’ Campaign (Charles Evasive Hughes)

i. Was a fence-rider

1. In strong anti-German areas of the country, he criticized Wilson for not standing up to Germany

2. In isolationist areas, he took a soften stance

c. Democratic Party Nomination

i. Wilson was easily nominated

ii. Warned that by electing Hughes, the nation would be in the war (like Roosevelt and the Rough Riders)

d. Election of 1916 Results

i. Hughes carried the East and looked like he was going to win

ii. Wilson carried the Midwest and Westerners because of his progressive reforms and antiwar policies

iii. It came down to CA. They had 3,800 votes more for Wilson, so he won the election:

1. 277-254

2. 9.1 million-8.5 million

iv. Wilson appealed to:

1. Working class

2. Some former Bull Moose party people

3. People thought he was more likely to keep the country out of war (although he never promised it)