Wilson domestic policy (1912-20)

Question 1

3

Describe the 1912 election campaigns

Answer 1

• Wilson’s ‘New Freedom’ - tariff reduction and banking reform
• TR’s ‘New Nationalism’ - social insurance programmes and 8hr work day
• Taft ran subdued ‘progressive conservatism’ campaign

Question 2

3

Describe the 1912 election results

Answer 2

• 4 way contest between Wilson (Dem), TR (Pro), Taft (Rep), Debs (Soc)
• Wilson would win in landslide with 435/531 EC votes, despite lowest pop vote since 1860 (lower than any Bryan result)
• Taft’s certain victory before 1910 turned into 3rd place with only 2 states carried

Question 3

4

Describe the significance of the 1912 election

Answer 3

• landslide for progressivism
• dramatic rejection for Taft’s conservative Republicanism
• Wilson first President to win over 400 electoral votes
• Only Dem Pres from 1896-1932 - one of two elected Dem Pres from 1860-1932 (+ Cleveland)

Question 4

5

Describe the rise of socialism by 1912

Answer 4

• Rising industrial action e.g. railroad industry Pullman Strike 1894
• Many European imms influenced by socialist ideas
• Debs won 6% vote in 1912
• IWW (Industrial Workers of the World) demanded huge changes to socio-economic system
• Moderate socialists like Samuel Gompers more willing to work with big business as long as wages and employment was guaranteed

Question 5

3

Describe the 1916 election campaign

Answer 5

• Wilson used campaign slogan ‘He kept us out of war’ to capitalise on public mood
• Republicans picked moderate SC justice Charles Evan Hughes who could appeal to both progressives and conservatives
• TR declined to run for progressive party again, instead endorsing Hughes

Question 6

3

Describe the 1916 election results

Answer 6

• Elec college: Wilson 277, Hughes 254
• Narrow victory due to reformation of Republican vote
• Led to collapse of progressivism as partisan movement

Question 7

4

What did President Wilson do for banking?

Answer 7

• 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

Question 8

2

What were the successes of President Wilson’s banking reforms?

Answer 8

• 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

Question 9

3

What were the limitations of President Wilson’s banking reforms?

Answer 9

• 30% of national banking resources were not part of the federal reserve
• conservative opposition as threatened state rights
• Regional/smaller banks largely existed outside system - effect on 1929

Question 10

6

Describe Wilson’s economic policies

Answer 10

• Rebalance of government for federal intervention
• Underwood Tariff Act 1913
• Federal Trade Commission Act 1914
• Clayton Anti-Trust Act 1914
• Federal Farm Loan Act 1916
• Revenue Act 1916

Question 11

2

Describe the FTC

Answer 11

• Formed 1914 to investigate corporations and stop ‘unfair’ practices
• Established regulatory body for business that covered every possible dubious business activity

Question 12

1

Describe the successes of the FTC

Answer 12

• Under Wilson the FTC administered 400 cease-and desist orders to companies engaged in illegal activity

Question 13

2

Describe the weaknesses of the FTC

Answer 13

• ‘unfair’ practices not defined
• needed to be strengthened

Question 14

2

Describe the Clayton Anti-Trust Act 1914

Answer 14

• strengthened Sherman Anti-Trust Act 1890
• made certain practices illegal

Question 15

3

Describe the practices made illegal by the Clayton Anti-Trust Act 1914

Answer 15

• price discrimination to foster monopolies
• ‘tying arrangements’ which forbade retailers from handling rivals’ products (e.g. purchase of fridge and transport tied together)
• interlocking directorates - when a board member of one company is also on the board of a rival company

Question 16

3

Describe how Wilson rebalanced the government to facilitate greater intervention

Answer 16

• Department of Commerce annd Labor split
• William Wilson appointed first secretary of Department of Labor - a former union leader who played a key arbitrary role in settling disputes
• reorganised Department of Agriculture to develop better credit and distribution networks for farmers

Question 17

2

Describe the Federal Farm Loan Act 1916

Answer 17

• gave farmers low cost, long-term loans to inc farming capacity
• occurred at time of increased food demand due to WW1

Question 18

6

Describe the Underwood Tariff Act 1913

Answer 18

• 16th amendment (introduced under Taft) permitted introduction of federal income tax - ratified 1913
• Reduced average tariffs from 40% to 27%
• reduced some duties to 0
• industries: food, iron/steel, agricultural machinery - helped farmers
• 1% income tax only applied to those earning over $3k (circa 3x good industrial wage)
• Major source of revenue

Question 19

3

Describe the Revenue Act 1916

Answer 19

• Lower rate of income tax raised from 1% to 2%
• raised top rate from 7% to 15%
• by 1917, had provided more govt revenue than tariffs ever had

Question 20

2

Describe opposition to federal income tax introduction

Answer 20

• few congressmen initially realised potential of income tax
• Opposition from wealthy industrialists

Question 21

5

Describe the Ludlow Massacre 1913

Answer 21

• Coal strike over abysmal conditions and low pay
• Colorado National Guard members formed anti-strike militia that killed 26
• Watershed moment in labour relations
• Wilson sent federal troops to break up the strike only after 10 days of violence
• Criticised for delayed intervention

Question 22

4

Describe Wilson’s social policy

Answer 22

• Federal Child Labor Act (Keating-Owen Child Act) 1916
• Workmen’s Compensation Act 1916
• Adamson Act 1916
• Volstead Act 1920

Question 23

3

Describe the Federal Child Labor Act (Keating-Owen Child Act) 1916

Answer 23

• barred goods made by children from interstate commerce
• addressed 2m children under 16 in work and deprived of edu
• ruled unconstitutional by SC in 1918

Question 24

2

Describe the Workmen’s Compensation Act 1916

Answer 24

• Provided financial assistance for federal employees absent from work due to illness of injury
• Financial security improved employment

Question 25

# 2 Describe the Adamson Act 1916

Answer 25

* laid down max 8hr work day for railroad workers * prevented future deadly strikes

Question 26

# 3 Describe the successes of Wilson's AA policy

Answer 26

* Won NAACP support in 1912 * on basis he would treat black people equally and criticise lynching * non-interventionist policy struck political compromise

Question 27

# 3 Describe the weaknesses of Wilson's AA policy

Answer 27

* Placed segregationists in charge of federal agencies and into Cabinet * opposed anti-lynching legislation, arguing it was state matter * 1915 - screened 'birth of a nation' at White House

Question 28

# 3 Describe an example of a racist in Wilson’s Cabinet

Answer 28

- Josephus Daniels - Sec of Navy - notorious white supremacist - counted among leaders of Wilmington Massacre 1898

Question 29

# 2 Describe the constitutional policy of Wilson

Answer 29

* 17th amendment (ratified 1913) - direction election of Senators * 19th amendment (ratified 1920) - female enfranchisement

Question 30

# 3 Describe the 17th amendment (direct election of senators)

Answer 30

* Reflected popular dissatisfaction with the corruption that characterised Senator selection in many states * Delivered on progressive goal to reduce undue influence of big business * Prevented vacancies caused by changes to party leadership at state level

Question 31

# 2 Describe a limit with the 17th amendment

Answer 31

* By time of adoption, many states had already introduced mechanisms to direct election * e.g. legislatures appointed winners of party primaries

Question 32

# 2 Describe the 19th amendment (female enfranchisement)

Answer 32

* milestone in decades-long campaign * propelled American democracy by giving equal voice to women

Question 33

# 1 Describe a limit to the 19th amendment

Answer 33

* Many women were still disenfranchised for generations due to discriminatory state legislation on ethnicity

Question 34

# 4 Describe the role of the state in WW1

Answer 34

* State grew rapidly - away from American norms * Established War Industries Board (WIB) * Previous divided railroad system centralised under control of Director-General William G McAdoo * Lever Food and Fuel Control Act 1917

Question 35

# 5 Describe the War Industries Board (WIB)

Answer 35

* set quotas and efficiency targets * allocated scarce resources * fixed prices * yet still allowed big firms to make profit * e.g. US Steel made $0.5bn in 2 years - accusations of war-profiteering

Question 36

# 2 Describe the centralised railroad system under McAdoo (Sec of Treasury)

Answer 36

* centralised system vital for movement of goods and troops * McAdoo standardised accounting practices, raised wages and increased passenger rates

Question 37

# 4 Describe the 1917 Lever Food and Fuel Control Act and agriculture in WW1

Answer 37

* under Herbert Hoover (US Director of Food Administration) * set wheat prices at $2.20 per bushel to encourage production * Established government corporation to buy US and Cuban sugar to maintain supplies * Organised voluntary campaigns to avoid rationing e.g. Meatless Thursdays