Woodrow Wilson's Presidency (1913-1921)

Question 1

The 1912 Election

Answer 1

• Four candidates: Taft, Wilson, Roosevelt and Eugene Debs (Socialist)
• Wilson won, 435 electoral college votes
• Wilson had a huge majority of voters in the electoral college and a mandate from the people to reform government
• Bipartisan support from Democrats and progressives
• Worked closely with Congress

Question 2

Wilson’s ‘New Freedom’

Answer 2

• Favoured small businesses and unmonopolised free markets
• Active gouvernement in economic and social affairs
• Promised tackling the ‘Triple Wall Privilege’ - banks, trusts, tariffs - Strengthening Sherman Anti-Trust Act
• Reduction of the tariff on imported goods
• Reform of the inept national banking system

Question 3

The Federal Reserve Act (1913)

Answer 3

• Maintained stability of financial system, supervises banking system, managed inflation, provided banking services
• Created the first central banking system in the USA
• 12 banking districts were created
• All national/state banks wanting to participate, invest 6% of their capital and surplus in a reserve bank
• Supply of money no longer dependent on the amount of gold
• Enabled reserve banks to control money supply in US
• 1923: Roughly 70% of nation’s banking resources were part of the federal reserve system
• One of Wilson’s biggest achievements

Question 4

Wilson’s Anti-Trust Policies

Answer 4

Federal Trade Commission (1914)
- Investigated corporations, stop unfair practices
- Regulatory body for business, covered every possible dubious business action
- Established important principle of federal regulation
Under Wilson, administered almost 400 cease-and-desist orders

Clayton Anti-Trust Act (1914)
- Gave more power to those enforcing Sherman Anti-Trust Act
- Made certain business practices illegal, e.g. price discrimination to foster monopolies
- Legalised labour unions
- Samuel Gompers, president of the AFL, saw it as a great value to workers, ‘Magna Carta for labour’

Question 5

Wilson’s Support for Farmers & Workers

Answer 5

• Introduced the first income tax
• Wilson appointed the Department of Labour’s first secretary, William Wilson, former miner and union leader
• Reorganised the Department of Agriculture, ensuring better credit and distribution networks for farmers
• Federal Farm Loan Act (1916), provided low-cost loans to farmers

Question 6

The Underwood Tariff (1913)

Answer 6

• Significantly reduced many duties and freed certain items from farmers entirely
• Included food, wool, steel, etc
• All items which could be produced more cheaply in the USA than abroad, didn’t need protection from foreign competition
• Many regarded this an attack on big business

Question 7

Wilson’s Income Tax (16th Amendment)

Answer 7

• Income tax intended to replace the government income lost when tariffs were reduced/abolished
• Initially tax only had to be paid by those with an income over $4,000, at the time, 4 times more a good industrial wage
• Gave federal government a major source of income
• Revenue Act (1916), continued to tax the rich and redistribute their wealth
• 1917: Government receiving more money on income tax than it had ever gained from tariffs

Question 8

Wilson’s Social Reforms

Answer 8

• First Federal Child Labour Act (1916): dealt with 2 million children under 16 who were known to be in work
• Barred goods made by child labour from inter-state commerce
• 2 years later, Act was ruled unconstitutional by Supreme Court
• Workmen’s Compensation Act (1916): ensured federal employees absent from work for illness/injury received financial support
• Adamson Act: max 8 hour day for railroad workers
• Little sympathy for labour unions
• Colorado Coal Miners Strike: company refused workers demands, evicted workers from company housing
• Workers set up tents outside company, federal troops sent, killed 26

Question 9

African Americans

Answer 9

• Wilson appeased white Southerners, disappointed Northern black and white voters
• Placed segregationists in charge of federal agencies, expanded racial segregation
• 1912 Campaign: won support of white liberals and black intellectuals by promising to treat blacks equally, speaking out against lynching
• Wilson opposed anti-lynching legislation
• Appointed white Southerners to his Cabinet who extended segregation
• Wilson had, ‘Made no promises in particular to negroes, except to do them justice.’
• African Americans and white liberal supporters felt betrayed

Question 10

The 1916 Election

Answer 10

• Wilson served a second term from 1917-1921
• Wilson spread his desire for neutrality in WW1 with the slogan ‘He kept us out of the war’
• Republican Party nominated S.C Justice Charles Evans Hughes, hoped to heal 1912 split
• Republicans attacked Wilson’s interventions in the Mexican Civil War
• Wilson narrowly won the election
• Second term dominated by US involvement in WW1