Woodrow Wilson 1912-1921 Flashcards
Bankind reform
• The Federal Reserve Act 1913
- Created the first central banking system in the USA.
This system enabled the reserve banks to control the money supply in the USA because the Federal Reserve Banks could lend money to member banks at rediscount rates.
By 1923, 70% of the nation’s banking resources were part of the federal reserve system.
Anti-Trust measures
• Federal Trade Commission
1) It was formed to investigate corporations and stop unfair practices.
2) It established an important principle of federal regulation.
Clayton Anti-Trust Act
It made certain business practices illegal such as price discrimination to foster monopolies, forbade retailer from handling rivals’ products and the creation of interlocking directorates to control companies that appeared to be in competition.
Economic & Financial Reforms
1) Wilson reorganised the Department of Agriculture to assist all those involved in farming, ensuring better credit and distribution networks for farmers.
2) The Federal Farm Loan Act 1916 provided low-cost loans to farmers.
3) The first federal income tax in 1913
Economic & Financial Reforms
• Underwood Tariff 1913
Reduced many duties and freed certain items from tariff, including food and woo. All of which could be produced more cheaply in the USA than abroad, meaning that they did not need protection from foreign competition.
Implication: Attack on big business because it was helping smaller businessmen and farmers.
Economic & Financial Reforms
• Income tax (The Revenue Act 1916)
Taxing the rich and redistributing wealth, expanding into the taxation of business profits and estates.
Social Reform
• Federal Child Labour Act 1916
Dealt with the 2 million children under sixteen who were known to be in work and were often deprived of education.
It barred goods made by child labour from inter-state commerce.
It was ruled as unconstitutional two years later.
Social Reform
• Workmen’s Compensation Act 1916
Ensured that federal employees who were absent form work because of injury or illness received financial assistance.
Social Reform
• The Adamson Act
Laid down a maximum eight-hour day for railroad workers.
Wilson on African Americans
Wilson placed segregationists in charge of federal agencies, thereby expanding racial segregation in the federal government and the military.
Wilson’s moral diplomacy
1) The desire to do good would govern US policy.
2) Believed that the USA had a responsibility to improve the lives of foreign peoples through US example.
3) Contact with the USA could only benefit others
4) The USA was morally superior to other nations and its diplomacy was governed by noble and benevolent principles.
Wilson’s intervention in Latin America
Wilson felt that they were badly governed or corrupt.
The USA had a moral obligation to force them to improve
Wilson’s idealism
• Achievements
US interests built highways, hospitals and schools throughout Latin America.
Wilson’s second term as President 1917-1921
• Criticism from the Republicans
The Republicans campaigned against Wilson’s pacifist stance, arguing for a programme of greater mobilisation and preparedness, and attacked his interventions in the Mexican Civil War
What was Wilson’s second term in 1917-1921 dominated by?
The involvement of the USA in the First World War and the measures taken by Wilson during the war, particularly greater federal control of the economy and workforce.
