Emergence on the World Stage (1912 - 1920) Flashcards
What did President Wilson do for banking?
Federal Reserve Act 1913:
- 12 banking districts were created, each under the supervision of a Federal Reserve Board
- All banks that wanted to participate in this system had to invest 6% of their capital and surplus into the reserve bank
- This means money is no longer dependent on the amount of gold
What were the successes of President Wilson’s banking reforms?
- Banks could use rediscount rates to control the amount of money in circulation
- By 1923, 70% of the national banking resources were part of the federal reserve system
What were the limitations of President Wilson’s banking reforms?
- 30% of national banking resources were not part of the federal reserve
- Opposed state rights
What were President Wilson’s economic policies?
- Wilson appointed the first secretary of the Department of Labour who helped resolve disputes between capital and labour
- Reorganised the Department of Agriculture
- Federal Loan Act 1916
- Underwood Tariff Act 1913
- Revenue Act 1916
What were the strengths of President Wilson’s economic policies?
- Government received much more income through income tax than it ever did through tariffs
- Helped fund prohibition
What were the weaknesses of President Wilson’s economic policies?
- Some saw income tax an attack on big business
What were President Wilson’s social policies?
- Federal Child Labour Act of 1916
- Workmen’s Compensation Act 1916
- Adamson Act 1916
- 1913 Coal mine strike in Ludlow, Colorado
What were the strengths of President Wilson’s social policy?
Several bits of reforming legislation
What were the weaknesses of President Wilson’s social policy?
- Federal Child Labour Act was ruled unconstitutional
- Wilson opposed strikers
- Adamson Act only applied to railway workers
What were President Wilson’s policies on African Americans?
- Initially won support of the NAACP in 1912 election by promising equality and to speak out against lynching
Disappointed during his presidency:
- Placed segregationists in charge of federal agencies
- Opposed federal anti-lynching legislation
- Appointed white southerners to his cabinet
- Supported segregated facilities
Describe the Federal Trade Commission
- Formed to investigate corporations and stop unfair practices
- Under Wilson the FTC administered 400 cease-and desist orders to companies engaged in illegal activity
What were the strengths of President Wilson’s amendments to the Constitution?
- Did establish the principle of federal regulation
- Prevented illegal and unfair business acts and gave more power to government
What were the weaknesses of the federal trade commission?
- The value of ‘unfair’ was not defined
- Many felt the federal trade commission was not strong enough
Explain how public opinion motivated US neutrality at the start of WW1
- The prevailing mood in the US was that war in Europe had nothing to do with them. Wars seemed wrong and did not achieve much.
- 29th August 1914, 1,500 women marched down Fifth Avenue in New York in black robes to the beat of drums to protest the war.
- Influential leaders (including William Jennings Bryan - Secretary of State) organised campaigns against it.
Explain how Wilsonianism motivated US neutrality at the start of WW1
- Wilson wanted neutrality
- Declaration of Neutrality 19th August 1914, he claimed he wanted to mediate. He warned citizens against taking sides and wanted the conflict to end.
- He was guided by a sense of Christian morality
- If the US wanted to be a peacemaker it needed to be neutral
Describe how pro-British feeling contributed to American entry into WW1
- Wilson does support neutrality but many of his advisors favoured the Allies (particularly the British)
- Wilson did support the British due to fond memories of cycling round the wet and wonderful Lake District
Describe how anti-German feeling contributed to American entry into WW1
- Wilson believes that Germany is a threat to the US interests
- If they didn’t help the Allies now they could end up fighting Germany alone
- Confrontations with Germany in Samoa in 1889
- Worried about Germany’s growing interests in Latin America, especially Mexico
- In message to Congress in December 1915, Wilson attacked German-Americans for disloyalty to the USA
Describe how trade contributed to American entry into WW1
- The British blockade of Germany was very effective
- Trade with the allies reached $3.2 billion by 1916 (10x that of with central powers)
- By 1916, US trade with Germany was only 1% of what it had been in 1914
- By the time of the peace settlement, Allied war debts to the USA amounted to $10.5 billion
Describe how ‘Freedom for the Seas’ contributed to American tension towards the war
The laws of the sea allowed countries at war to blockade enemy ports and seize cargo classified at ‘contraband’:
- The issue was ‘contraband’ was quite a loose term that could be defined as anything that could be useful to the enemy
- Led to the confiscation of American ships carrying food and other items to neutral ports
- The British were particularly prone to seizing American ships but the American crews were treated with courtesy and there was no loss of life
Describe how the resumption of unrestricted submarine warfare contributed to American entry into WW1
- 30th Jan 1917, Germany gave 8 hours notice that it intended to sink all ships found within the war zone around British waters
- They hoped to intensify their U-boat campaign to starve Britain into surrender
- They hoped that, in the event the US joined the war, this surrender could be achieved before American help arrived
- Wilson broke off diplomatic relations with Germany on the 3rd of February
- Feb-March 1917, several US ships were sunk by German U-boats
Describe how German activities within the US contributed to American entry into WW1
- Some Germans in the US were conducting espionage and sabotage
- The impact was largely exaggerated but stirred up feelings
Describe how the Zimmerman Telegram contributed to American entry into WW1
- A telegram sent from the German Foreign Secretary to the German Ambassador to Mexico on 16th Jan 1917
- The telegram proposed a secret alliance with Mexico
- If Germany went to war with the US, Mexico would receive back Texas, Arizona and New Mexico
- Telegram was intercepted by the Americans
- It became clear that the plan had never actually been proposed to the Mexicans but Wilson was still affronted
Decribe the US war economy during WW1
- US went from debtor nation to creditor nation
- Agriculture boomed
- Britain and France depended on US for war supplies
- Total value of US exports $2.5 billion, 1913 -> $6.2 billion, 1917
- By the end of 1918, American factories had produced 3.5 million rifles and 20 million artillery rounds
Describe how WW1 impacted on the US employment rate
US unemployment rate dropped from 16.4% in 1914 to 6.3% in 1916:
- Reduction in immigration due to war
- Recruitment to the army
- Increase in production, increased jobs