The Battle for National Reform

Chapter 22

Theodore Roosevelt and the Modern Presidency

The “loveable” president Changed the powers, role and perception of

the president The Accidental President

“that damned cowboy!” Mark Hanna reputation of substance, rather than of style New York Legislature: energy among lethargy Rancher and peace authority in Dakota

Territories San Juan Hill (useless but heroic)

Theodore Roosevelt

Never rebelled against leaders of his party

TR philosophy on reform / gov’t Reform = protecting the gov’t from more

radical challenges Gov’t = not an agent of a particular

interest, but as the mediator of public good with the president at its center

Government, Capital and Labor

TR allied himself with progressives who urged regulation, but not destruction, of the trusts

wanted to investigate the activities of corporations and publish them believed an educated public would eliminate

most corporate abuses gov’t could legislate those that remained Department of Commerce and Labor

TR: Trust Buster? 1902 ordered the Justice

Department to invoke the Sherman Antitrust Act against Northern Securities Company (J.P Morgan) J.P. Morgan “fix it up” 1904 Supreme Court ordered the NSC Roosevelt assured Morgan that he did not

wish to dissolve trusts 40 anti-trust suits filed during the

TR presidency but no serious commitment to

reverse the prevailing trend toward economic concentration

J.P Morgan

TR: Friend of Labor?

1902 United Mine Workers Strike threatened to send in

troops federal arbitration awards

10% wage increase and 9 hour day

no recognition of union TR viewed himself as a

champion of management and labor

The Square Deal

Through skillful politicking, Roosevelt wins re-election in 1904

After re-election, free to display extent and limits of reform

Hepburn Railroad Regulation Act of 1906 sought to restore regulatory authority to government (empower the I.C.C.) cautious Senator Robert LaFollette never

would forgive Roosevelt

Square Deal Acts

Pure Food and Drug Act Meat Inspection Act (Upton Sinclair, The Jungle)

The Square Deal Continued

eight-hour day for workers broader compensation for victims of

industrial accidents inheritance and income taxes regulation of the stock market TR criticized conservatives who obstructed

these programs Lead to stalemate in agenda Widening gap between president TR and the

conservative members of his party

Conservation

TR life time sportsman and naturalist, was the first president to take an active interest in the new and struggling American conservation movement

Spent four days hiking in the Sierras with John Muir, founder of the Sierra Club Sierra Club: “aesthetic” value of forest TR administration: supported rational and

efficient human use of the wilderness… “scientific management”

Gifford Pinchot

Gifford Pinchot was TR chief forester… 1907 worked furiously to seize all the forests and many of the water power sites till in the public domain before a Conservative Congress restricted president’s authority.

Conservation Continued

TR’s administration: established government’s role as “manager” of the continuing development of the wilderness

Pleasing the opposition: Newlands Act… provided federal funds for the construction of dams, reservoirs, and canals in the West open new lands for cultivation cheap electric power greater impact would not be felt for twenty years

later

The Panic of 1907

despite reforms gov’t had little control over the economy

Same three mistakes as 1893 supply production

out runs the capacity of demand

banking system inadequate

financial mismanagement

Roosevelt falsely blamed for “mad” economic policies

The Panic of 1907 Continued

Roosevelt and Morgan make a deal: Morgan “props up shaky financial institutions” in return for protection from anti-trust action

TR does not run again in 1908 conservative backlash, might not have gotten

party bid panic of 1907 promised not to run again in 1904 retired from public life, briefly, at age 50

The Troubled Succession

Hand-picked by Roosevelt to succeed him Attention to law and detail instead of

aggressive like Roosevelt Came to office as the “darling” of both

progressives and conservatives… soon found he could not please both

Taft and the Progressives

Payne-Aldrich Tariff called Congress to

a special session to lower protective tariff rates

Taft made no effort to influence Congress, arguing it was unconstitutional for him to do so

P-A Tariff was weak and angered progressives

The Pinchot-Ballinger Controversy Taft replaces Roosevelt’s secretary of the interior who was a

conservationist with a conservative corporate lawyer, Richard Ballinger

Ballinger removes 1 million acres of public forests and mineral reserves to private enterprises

Louis Glavis, Interior Department Secretary, finds evidence that Ballinger was selling areas of Alaska for personal profit

Glavis, shows case to Gifford Pinchot (still head of Forest Service) and Pinchot takes case to president

Ballinger cleared by Taft’s attorney general Glavis fired by Taft

Pinchot, not happy takes the case to the Press and asks Congress to investigate the issue Pinchot fired for insubordination Conservative Congressional Committee exonerates Ballinger

Symbolic Taft separates himself from Roosevelt supporters completely Big business vs. progressive managed control

The Return of Roosevelt

Gone for two years on an African Safari Return to America, a major public event:

turned down an invitation to the White House to meet with Pinchot

Announced a public speaking tour believed Taft had “completely twisted around”

his policies believed that he alone was capable of reuniting

the Republican Party

New Nationalism

made clear he had moved a considerable way from the cautious conservatism of the first years of his presidency

social justice only possible through a strong federal government

inheritance taxes workers compensation in

industrial accidents regulation of the labor of women

and children firmer regulation of corporations

Spreading Insurgency 1910 Congressional Elections

Conservatives ousted, Progressives elected

Democrats beginning to make their mark in Congress

Roosevelt says he does not want to run for President, but rather urge Taft to return to progressivism… two things changed his mind 1911 antitrust decision by the

Taft Administration: TR takes it personally

1912 Progressive Candidate LaFollette suffers a public breakdown in response to his daughter’s illness

“Fighting Bob”

The Republican Schism

Roosevelt wins almost every primary election at the individual state level

Republican Party leaders override the primary and refuse to admit Roosevelt’s delegates

Roosevelt marches out of the convention with his delegates

In August of that year, Roosevelt creates a new Progressive Party to nominate him as president

“fit as a bull moose” = Progressive becomes “Bull Moose” Party

Woodrow Wilson and The New Freedom

The Rise of Wilson Born and raised in the

South Author of books on the

American political system President of Princeton

University 1902 (New Jersey)

Governor of New Jersey 1910

Reputation for progressivism and unwillingness to compromise

Woodrow Wilson

Election of 1912

traditional Republicans split Taft – Republican Party Roosevelt – Progressive / Bull Moose Party

Roosevelt Impaired Many Republicans refused to leave the party Roosevelt shot by a would be assassin during the

last weeks of the elections Democrats nominated a strong candidate

Wilson’s “New Freedom” vs. Roosevelt’s “New Nationalism” two opposing progressive perspectives proper response to monopolies was to destroy them

(Wilson / Brandies) rather to regulate them (Roosevelt)

The Scholar as President

Wilson more bold and forceful that both Roosevelt and Taft demanded fierce loyalty used Presidential powers to mold together a

coalition of conservatives and progressives who would support his program

Democrat majorities in both houses helped his platform elected candidates realized they would have to

enact progressive reform to stay elected

The Scholar as President Continued

Tariffs substantial lowering of the protective tariff Underwood-Simmons Tariff

many Americans believed this act introduced real competition into American markets

help break the power of trusts graduated income tax

imposed a 1% tax on individuals and corporations earning over $4,000

ii. rates went up to 6% on incomes over $500,000

The Scholar as President Continued Again

Banking Reform gov’t would have substantial control at the national

level bankers would retain control at the local level

Federal Reserve Act = most important piece of domestic legislation during Wilson’s administration created 12 regional banks, each to be controlled by

the individual banks of it’s district new paper currency: Federal Reserve Notes central institutions able to shift funds quickly into

troubled areas

Problem of the Trusts

During 1912 Campaign, Wilson promised to attack economic concentration (aka monopolistic trusts) but his philosophy began to change into one of regulation, like Roosevelt

Federal Trade Commission Act

created a regulatory agency that would help businesses determine in advance whether their actions would be acceptable to the government

would have authority to launch prosecutions against “unfair trade practices”

increased government’s regulatory authority significantly

Clayton Antitrust Act

originally reflected the ideals of 1912 campaign

Wilson did not back it strongly, weakened in Congress

Promises of 1912 election never materialized

Wilson’s conclusion: supervision over dismemberment

Retreat and Advance Fall of 1914 Wilson decides Reform Movement is complete and

that agitation for reform would end refused to support the movement for national woman’s

suffrage condoned re-imposition of segregation in the agencies of

federal government dismissed efforts from Congress to support new reform

legislation Congressional elections of 1914 shattered President’s

complacency: Democrats ousted by re-united Republicans With 1916 on his mind, Wilson began to push for a second flurry

of reforms Nominated Louis Brandies to the Supreme Court Supported a measure to make it easier for farmers to receive

credit Workers compensation for federal employees Keating-Owen Act: first federal law regulating child labor /

struck down by Supreme Court

The Big Stick”: America and The World,

1901 – 1917 (Pre-WWI PPT)

Little public involvement in country’s international affairs prior to World War I

Roosevelt and “Civilization”

TR believed in the value and importance of using American power in the world (Proverb: “Speak softly, but carry a big stick”)

Clear distinction between “civilized” and “uncivilized” nations civilized = Anglo-Saxon or Teutonic uncivilized = non-white, Latin or Slavic

Economic development also important American interests civilized = producers of industrial goods uncivilized = sources of raw materials relationship between the two viewed as vital

Roosevelt believed in order to preserve order and stability, build a strong navy

Protecting the Open Door in Asia

TR was concerned with military tensions between Japan, Russia, Germany, France and Asia

Mediated conflict between Russia and Japan in 1905 part of deal stated US could trade freely in the region Roosevelt wins Nobel Peace Prize in 1906

Russian Fleet destroyed by Japan… Japan begins to exert authority in Pacific

Domestic issues extension of Chinese Exclusion Act “Oriental School” Hearst Papers: “Yellow Peril”

“The Great White Fleet” on world tour

The Iron-Fisted Neighbor

Principal Sphere of interest: Latin America 1902 Venezuela: European powers converge

off Venezuelan coast, TR uses threat of US naval power to force Germany to withdrawal

“Roosevelt Corollary”: TR states that US has the right to intervene in domestic affairs of its neighbor if they proved unable to maintain order on their own Dominican Republic: debts to Europe Cuba: Platt Amendment

The Panama Canal Roosevelt: determined to achieve dream of

connecting Atlantic to Pacific Original site was Nicaragua French originally tried and failed in Panama…

uneven ground would require locks US chose Panama when French lowered their price

of their prior holdings from $109 mil. To $40 mil. 1901 Hay-Pauncefote Treaty eliminated Britain from

the deal Trouble with closing deal with Columbia

John Hay and suspicious deal with Columbian official

TR upset when Columbians change their mind, calls them “inefficient bandits” and “blackmailers”

The Panama Canal Continued

US and French organize and support revolution in Panama U.S.S Nashville off the coast in Panama to

“maintain order” US military presence kept Colombia from

suppressing the rebellion Independent Nation of Panama officially

recognized by the US 1914 Panama Canal opens TR exclaims “I

took the Canal Zone and let Congress debate!”

Taft and “Dollar Diplomacy” Taft also worked to expand the nation’s economic interest

overseas, but little interest in world stability P.C. Knox worked to expand US investments into less

developed regions Failure and greed of Taft-Knox diplomacy: Asia

Taft expands America’s economic influence in Manchurian region, counter to Roosevelt policy

Constructing railroads Russians loose alliance with Japanese and American

railroad project quickly collapses Failure and greed of Taft-Knox diplomacy: Caribbean

Nicaragua 1909, American corporate inspired revolt American seize customs houses Knox encourages American bankers to offer substantial

loans to the new government, thus increasing US financial leverage

Diplomacy and Morality

Dominican Republic Mexico

Porfirio Diaz, corrupt leader in Mexico, but friendly to American Businessmen

Victoriano Huerta seizes leadership, Wilson calls him a “government of butchers”

Battle at Veracruz: US on brink of war Carranza takes leadership, unfriendly to US US supports coup by Poncho Villa, then abandons PV retaliates: attack on US soil General John Pershing chases Villa and attacks Mexico

on Mexican soil Never find Villa