Emergence on the World Stage (1912 - 1920) Flashcards
4ww1
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 - greater monetary control potential
2
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
3
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
- Regional/smaller banks largely existed outside system
5
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
2
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
1
What were the weaknesses of President Wilson’s economic policies?
- Some saw income tax an attack on big business/liberty
4
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
1
What were the strengths of President Wilson’s social policy?
Several bits of reforming legislation
3
What were the weaknesses of President Wilson’s social policy?
- Federal Child Labour Act was ruled unconstitutional in 1918
- Wilson opposed strikers
- Adamson Act 1916 only applied to railway workers
3
What were President Wilson’s initial policies on African Americans?
- Initially won support of the NAACP in 1912 election
- Promised equality
- Promised to speak out against lynching
2
Describe the Federal Trade Commission
- Formed 1914 to investigate corporations and stop ‘unfair’ practices
- Under Wilson the FTC administered 400 cease-and desist orders to companies engaged in illegal activity
2
What were the strengths of the FTC
- Did establish the principle of federal regulation
- Prevented illegal and unfair business acts and gave more power to government
2
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
5
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
4
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