Woodrow Wilson's New Freedom
Overview: In the presidential
election of 1912, a split in the
Republican party helped the
Democrats elect their candidateWoodrow Wilson. President Wilson
was a reformer. Through his
leadership, many laws were passed
that were designed to help the
country.
The Election of 1912: Before the
election of 1912, there was a split in
the Republican party. This came
about because of a disagreement
between President Taft and former
President Theodore Roosevelt.
Roosevelt and his Progressive
followers felt that President Taft had
not backed enough reforms. These
Republicans did not want Taft to be
their party's candidate in 1912.
Instead, they wanted to nominate
Roosevelt.
However, at the party's convention,
the majority of Republicans backed
Taft, and he was selected as the
party's candidate. But the
Republicans who favored Roosevelt
would not support Taft. They left the
Republican party and formed a new
party-the Progressive party. Former
President Roosevelt became their
candidate for the presidency.
The Democrats chose Woodrow
Wilson - the governor of New Jersey as their candidate. Governor Wilson
was a reformer who favored strong
antitrust laws. In his campaign for the
presidency, Wilson said that the
government should cut down on the
power of big business in the country.
Wilson called his reform plans the
New Freedom.
Woodrow Wilson won the election
with 6,293,453 votes. The Republican
vote was divided between Theodore
Roosevelt and William Howard Taft.
Roosevelt came in second with
4,119,538 votes. Taft received
3,484,980 votes. Wilson was the first
Democrat to be elected President
since 1892.
New Freedom Reforms: Wilson
believed that the President should
take an active part in shaping the
country's laws. On his first day in
office, he went before Congress to
explain what laws he thought were
needed.
One of President Wilson's main goals
was to lower the tariff -the tax
collected on goods from other
countries. High tariffs raised the
prices that Americans paid for
imported goods. This kept cheaper
foreign goods from competing with
American goods. Wilson believed
that the present tariff offered unfair
advantages to certain businesses by
keeping prices high. Thus, he
backed the Underwood Tariff Act,
which was passed by Congress in
1913. This law cut tariffs for the first
time since the Civil War. It lowered
the cost of many goods in America.
President Wilson also worked with
Congress to reform the country's
banking system. Some Americans felt
the New York bankers had too much
power over the country's money
supply. Business owners in the West
and in the South often found it hard
to borrow money. Also, some banks
were not sound. People often lost
money when these banks failed.
Therefore, public opinion tended to
back President Wilson's plans to
correct the weaknesses in our
country's banking and money
systems.
Following President Wilson's
leadership, Congress passed the
Federal Reserve Act in 1913. This law
set up a new banking system. All
national banks were required to join
the system. State banks and trust
companies could also become
members. The country was divided
into 12 banking districts. A Federal
Reserve Bank was opened in each
district. These banks supervised the
activities of member banks. They
also controlled credit by raising and
lowering interest rates. This system
helped to make our currency more
sound. It also was designed to make
it easier for Americans in all parts of
the country to borrow money.
Under President Wilson, the federal
government took steps to end some
unfair business practices. An
important step was made when the
Clayton Antitrust Act was passed in
1914. This law clearly listed the things'
that businesses were not allowed to
do, such as fix prices. To enforce this
law, Congress set up the Federal
Trade Commission. This commission
investigated business activities to
end unfair methods of competition.
The Federal Reserve System and the
Federal Trade Commission still serve
our country today.
President Wilson also backed new
laws to meet the special needs of
certain Americans. Farmers were
helped by the Federal Farm Loan
Act. President Wilson also supported
a law that set the workday of
railroad workers at 8 hours. In the
past, some railroad workers had to
work 12 hours or more in one day.
The New Freedom also included
reforms for America's overseas lands.
In 1916, Congress passed a law that
gave the Philippine Islands more selfgovernment. And in 1917, the people of Puerto Rico became
American citizens.