Chapter 8Section 3

Election of 1912

• The election of 1912 featured a current president, a former president, and an academic with limited political experience.

Taft

• Former President Roosevelt (who selected his successor) was disappointed with President Taft’s performance.

• However, President Taft had obtained or secured enough delegates or supporters in the Republican Party.

Roosevelt

• As a result, Roosevelt left the republican Party and decided to run as the leader of the newly formed Progressive Party (nicknamed the Bull Moose Party).

• Because Taft had separated so many groups, the race was truly between Roosevelt and Woodrow Wilson.

As Governor of New Jersey

• As governor of New Jersey, Wilson:– Introduced direct primaries– Regulated utilities (companies that make

electricity)– Allowed cities to change to the commissioner

system of government

New Nationalism

• Both Roosevelt and Wilson supported progressivism. – Yet they each had their own approach to reform.

• Roosevelt accepted the good trusts or good monopolies as a fact of life.

• Roosevelt outlined his reforms with with laws protecting women, child labor, and workers’ compensation. – He called his reform the New Nationalism

New Freedom

• Wilson countered with his plan, the New Freedom.

• He argued that Roosevelt’s approach gave the government too much power in the economy and did nothing to simplify competition.

• He promised to restore this competition by breaking up the monopolies.

Winner…Wilson

• Roosevelt and Taft wound up splitting the Republican vote.

• This enabled Wilson to win the Electoral College and the election, even though he only won 42% of the popular vote.

Wilson’s Reforms

• As president, Wilson continued to push for progressive reform.

• The Underwood Tariff reduced the average tariff on imported goods

• He also signed the Adamson Act, which established the eight-hour workday for railroad workers.

More Reforms • The Federal Reserve Act established

regional federal banks, where other banks could put a portion of their deposits to protect them against losses.

• Federal Reserve Banks are bankers bank.– First Merit has their money stored in

the federal reserve banks of Cleveland.

• Federal Reserve system affects banks by setting interest rates the reserve banks charge other banks, indirectly controlling interest rates and the amount of money in circulation (or money out in the public).

Wilson & Monopolies

• Once Wilson was in office, he came to agree with Roosevelt’s view regarding trusts.

• He felt that regulating the trusts was more efficient and safer than trying to break them up.

• To help do this, Wilson established the Federal Trade Commission (FTC).

FTC

• The FTC was a board that had the power to investigate companies and issue “cease and desist” orders to companies engaging in unfair trade practices, or those which hurt competition.

• Companies that disagreed with the FTC could take the commission to court.

Clayton Antitrust Act

• Some progressives, unsatisfied by Wilson’s approach, passed the Clayton Antitrust Act in 1914, which outlawed or banned agreements that required retailers who bought from one company to stop selling a competitor's products; price discrimination

Progressive Reforms

• Like Roosevelt, Wilson expanded the role of the president. – Wilson also broadened the role of the federal government.

• Before the Progressive Era, most Americans did not expect the government to pass laws to protect workers. – They also did not expect it to regulate big business. – In fact, many courts reversed such laws.

• However, by the end of the era both public opinion and legal opinion had shifted. – Americans came to expect the federal government to play an

active role in regulating the economy. – They also expected the government to solve social problems.

Racial Issues

• Despite its successes, the Progressive movement failed to address racial issues.

• Even so, African Americans began to demand changes. In 1905 W.E.B. Du Bois and other African Americans met at Niagara Falls.

NAACP• They wanted to develop a plan

that would help African Americans gain full rights.

• This meeting led to the founding of the National Association for the Advancement of Colored People (NAACP) in 1909.

• Du Bois, as well as other NAACP founders, worked to ensure African Americans voting rights and to end lynching.