President Wilson and the New Freedom

Question 1

What act was passed by Wilson in relation to banking?

Answer 1

• The Federal Reserve Act of 1913
• created first central banking system in the USA
• Twelve banking districts created –> under the supervision of a Federal Reserve Board
• Federal Reserve Banks could lend money to member banks at rediscount rate
• System no longer dependent on amount of gold

Question 2

What did the new banking system enable?
- statistic

Answer 2

• system enabled reserve banks to control money supply in USA
• When inflation or deflation threatened, banks could change rediscount rate accordingly
• By 1923, roughly 70% of the nation’s banking resources part of federal reserve system

Question 3

Wilson banking reform summarised:

Answer 3

• Federal Reserve Act of 1913 created first central banking system
• Federal Reserve Banks could lend money to member banks at rediscount rates
• The reserve banks control the money supply in the US

Question 4

What anti-trust measures did Wilson introduce?

Answer 4

• Federal Trade Commission - Formed to investigate corporations and stop unfair practices –> still effective today
• Clayton Antitrust Act - Gave more powers to those enforcing the Sherman Antitrust Act
• made certain business practices illegal such as price discrimination
• Samuel Gompers (AFL president) called it a magna carta for labour (great value for workers)

Question 5

Describe the Income tax Wilson introduced?

Answer 5

• Gave the government a new major source of income
• Later allowed for prohibition as it replaced money originally raised from alcohol tax

Question 6

When was the underwood tariff? what was it?

Answer 6

• October 1913
• Reduced many duties and freed certain items from them entirely
• Led to income tax and 16th Amendment to
• Considered an attack on big business in favour of small businessmen and farmers

Question 7

Act passed by wilson? (progressive)
- to do with economics

Answer 7

The revenue act of 1916
- taxed the rich and redistribute the wealth

Question 8

When was the workers compensation act what did it do ?

Answer 8

• Workmen’s Compensation Act 1916

- Federal employees who were absent from work because of injury or illness received financial assistance

Question 9

What did the Adamson Act do?

Answer 9

• Adamson Act

- Maximum 8 hour working day for railroad workers

Question 10

How was Wilson in regards to African Americans?

Answer 10

• He placed segregationists in charge of federal agencies, expanding racial segregation in the federal government, the military and Washington D.C
• Won the support of the NAACP’s black intellectuals and white liberals by promising to treat blacks equally and speak out against lynching
• -> opposed federal anti-lynching legislation
• -> Appointed racist white southerners to cabinet

Question 11

How was Wilson poor in regards to social reform? - child labour

Answer 11

• Federal Child Labour Act 1916 was ruled unconstitutional just 2 years after passing

Question 12

How was Wilson poor in regards to trade unions?

Answer 12

• Little support for trade unions
• 1913 coal miners strike in Ludlow, Colorado.
• Colorado National Guard killed 26 before Wilson sent federal troops to restore order and break up the strike.