Chap. 33: Wilsonian Progressivism at Home

and Abroad, 1912-1916

Woodrow Wilson, Domestic

Progressivism, and Foreign Relations

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Learning Objectives

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.”

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The 1912 Presidential Campaign: Which type of

Progressivism to pursue?

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

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The Republicans 4

(B) TR became the nominee of the

Progressive or Bull Moose Party

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

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(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

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1912 Presidential Election

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

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Electoral College Vote8

II. WOODROW WILSON

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

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III. Domestic Policy: Breakdown of the Triple

Wall of Privilege (tariffs, banks, trusts)

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(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

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B. Banking and Currency Reform

(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

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(3) The Federal Reserve Act (1913)

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

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The Federal Reserve System14

Significance of the Federal Reserve

System

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

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C. Regulation of Big business

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

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(D) Other Domestic Progressive Programs

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

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(E) Failings of Wilsonian Progressivism

did not improve race relations

accelerated segregation in the Federal

bureaucracy

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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.

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IV. Wilson’s Foreign Policy in the Western

Hemisphere: 1913-1917

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

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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

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22Villa

Carranza

Diaz

Huerta

2. The Mexican Recognition Controversy

April, 1914

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.

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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

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V. Foreign Policy and Europe: 1914-1916

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?)

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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

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VI. The Problem of Neutrality: 1914-1916

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

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(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?)

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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

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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.

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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

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