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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