Chap. 33: Wilsonian Progressivism at Home and Abroad, 1912-1916 1 Woodrow Wilson, Domestic Progressivism, and Foreign Relations
Learning Objectives 2 Discuss the key issues of the 1912 election and the basic principles of Wilsonian progressivism. Describe how Wilson successfully reformed the triple wall of privilege.
The 1912 Presidential Campaign: Which type of Progressivism to pursue? 3 Split in the Republican Party Taft and Old Guard vs. T.R. and the Progressives Taft received the nomination (controlled convention machinery) TR and Progressive Republicans bolted the party
The Republicans 4
(B) TR became the nominee of the Progressive or Bull Moose Party 5 TR s Platform: New Nationalism honesty in government regulation of business conservation of national resources reconstruction of society by political action TR favored a broad program of social welfare
(C) Democrats saw a chance to un-seat the Republicans, re-gain national power Nominated Woodrow Wilson scholar, Progressive Gov. Of New Jersey Ran on platform of New Freedom tariff reform & reduction banking and currency reform more regulation of big business outlaw of the labor injunction, favored small business, entrepreneurship 6
1912 Presidential Election 7 Wilson won convincingly in the Electoral College Wilson received a minority of the popular vote 41 % of the population voted for him significance of the 1912 election the country was clearly in favor of Progressivism
Electoral College Vote 8
II. WOODROW WILSON 9 First Southern to be elected President since 1848 Brought together many of the policies & initiatives of the Roosevelt and Taft Administrations Wilson exerted strong executive leadership for progress Wilson imposed his will on Congress was a man of strong moral principle was cold, stand-offish unable to compromise
III. Domestic Policy: Breakdown of the Triple Wall of Privilege (tariffs, banks, trusts) 10
(A.) TARIFF REFORM (1913) lobbyists attempted to derail plan to lower the tariff Wilson appealed to Congress and the people Congress passed Underwood Tariff Bill lowered duties for over 100 items offset loss of tariff revenues with provisions for a graduated income tax income tax ratified in the 16th Amendment 11
B. Banking and Currency Reform 12 (1) Panic of 1907 brought fundamental economic problems to light private banks had too much control over money supply currency was inelastic; currency should be able to expand, or contract to meet needs of business (2) Problem of the Money Trust bank funds concentrated in N.Y.C. and Northeast businesses in other parts of the country were handicapped
(3) The Federal Reserve Act (1913) 13 divided U.S. into 12 districts, ea. with a Federal Reserve Bank (FRB); ea. FRB served as a depository for the cash reserves of the member banks commercial banks in a region owned the local FRB (owned stock, based on amount of deposits) Federal Reserve Banks were authorized to issue Federal Reserve Notes FRB s would loan $ to member banks when needed to prevent a financial crisis
The Federal Reserve System 14
Significance of the Federal Reserve System 15 stabilized member banks made the currency more elastic Federal Reserve System inhibited reckless spending could raise the Discount Rate, the interest rate banks paid to borrow $ from the Federal Reserve
C. Regulation of Big business 16 Federal Trade Commission (1914) crush monopoly by rooting out unfair business practices Clayton Anti-trust Act (1914) further defined unfair trade practices (re: FTC act) made officers liable for illegal corporate actions exempted labor unions and agricultural organizations from anti-trust actions restricted the use of the injunction; explicitly legalized strikes & peaceful picketing
(D) Other Domestic Progressive Programs 17 Farm Loan Act 1916, credit for farmers, low % Seaman s Act 1916, required better living, working conditions for ocean/lake sailors Adamson Act 1916, 8 hr. day for railroad workers
(E) Failings of Wilsonian Progressivism did not improve race relations accelerated segregation in the Federal bureaucracy 18
Learning objectives Examine how Wilson s efforts to assert U.S. domination in Latin America created long-lasting animosity. Describe America s response to World War I and state the difficulties of remaining neutral. 19
IV. Wilson s Foreign Policy in the Western Hemisphere: 1913-1917 20 W W hated imperialism (TR s Big Stick, Taft s Dollar Diplomacy), yet was responsible for repeated intervention in the Caribbean & Central Americas Haiti, 1915; Dominican Republic, 1916 to protect American property & lives
B. Relations with Mexico: (1) The Mexican Revolution: 1910-1913 Revolution: Conservative Porfirio Diaz overthrown Counter-revolution: Conservatives installed Huerta as President supported by large landowners opposed by middle class, poor; (Carranza, Pancho Villa) Huerta regime recognized by most European powers Wilson refused de jure recognition of Huerta regime 21
Diaz Villa 22 Carranza Huerta
2. The Mexican Recognition Controversy April, 1914 23 Amer. sailors arrested in Tampico, Mexico (April, 1914) sailors released, but Mexico refused to apologize Wilson asked Congress for authority to use military force against Mexico ABC Powers tried to mediate the dispute (July,1914) Huerta refused mediation, lost power, fled country Carranza became President of Mexico (Aug., 1914) Pancho Villa led attacks on the Carranza govt.
24 Wilson gave Carranza de jure recognition (1915) Villa attacked Columbus, New Mexico (March, 1916) Carranza gave U.S. permission to chase Villa ( Pershing) US Army was finally withdrawn from Mexico in Jan. 1917 because of involvement in World War 1
V. Foreign Policy and Europe: 1914-1916 25 War began, August, 1914 (Sarajevo) Wilson issued a Neutrality Proclamation (Aug. 4, 1914) U.S. would remain neutral in thought and deed American attitudes anti-german feelings from the beginning (why?) majority of Americans wanted to stay out of the war (why?)
Economic Factors Allied orders for war goods pulled U.S. out of recession British Blockade prevented Germany from trading with U.S. Armed camps developed (1910-1914) Central Powers, Allied Powers U.S. wanted to trade with both sides 26
VI. The Problem of Neutrality: 1914-1916 27 Factors influencing American Public Opinion cultural ties of American voters Anglo-Saxon/English/Canadian = 50% German/Austrians/Hungarians = 20% German Militarism Global Economics trade with Allies enriched America, brought us out of recession United States had an economic stake in an Allied victory
(B) Conflict over Neutral Rights (Historical precedents?) British blockade disrupted American trade, (protests) Germany declared submarine zone around Britain sink Allied ships on sight in blockade area subs would not sink neutral shipping (how to determine?) 28
Lusitania sunk off the Irish coast, 17 May, 1915 1200 killed, 128 Americans ship carrying ammunition, war supplies violent American protests to Germany Germany agreed not to sink unarmed merchant ships without warning Germans continued to sink Allied shipping British blockade was working 29
30 French liner Sussex sunk March, 1916 Wilson threatened to break diplomatic relations with Germany if they continued to sink unarmed merchant ships Germans agreed to Sussex Pledge: would not sink merchant ships without warning; stop & save lives Effect: The submarine controversy ended for nine months.
The Presidential Election of 1916 Candidates Republicans: Chas. Evans Hughes attacked Wilson s diplomacy and pacifism Democrats: re-nominated Wilson campaign theme: He kept us out of war. The Election Republicans won the East; thought they won Democrats carried Mid-West, the South, West Wilson won Electoral College 277 to 254 (California was key electoral state!) Wilson supporters included Progressive Republicans, Bull Moosers, the working class 31