AP United States History - Terms and People – Unit 9, Chapter 29 (13th Ed.)
HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and
become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work.
Wilsonian Progressivism at Home and Abroad, 1912 – 1916
Before studying Chapter 29, read over these “Themes”:
Theme: After winning a three-way election focused on different theories of progressivism, Woodrow Wilson successfully
pushed through a sweeping program of domestic economic and social reform in his first term.
Theme: Wilson’s attempt to promote an idealistic progressive foreign policy failed, as dangerous military involvements
threatened in both Latin America and the North Atlantic.
After studying Chapter 29 in your textbook, you should be able to:
1. Discuss the key issues of the pivotal 1912 election and the basic principles of Wilsonian progressivism.
2. Describe how Wilson successfully reformed the “triple wall of privilege.”
3. State the basic features of Wilson’s foreign policy and explain how they drew him into intervention in Latin
America.
4. Describe America’s response to World War I and explain how the increasingly sharp conflict over America’s
policies toward Germany.
5. Explain how domestic and foreign controversies played into Wilson’s narrow victory over Hughes in 1916.
Know the following people and terms. Consider the historical significance of each term or person.
Also note the dates of the event if that is pertinent.
A. People
+Woodrow Wilson
Herbert Croly
Eugene V. Debs
Arsene Pujo
Louis D. Brandeis
Victoriano Huerta
Venustiano Carranza
Pancho Villa
John J. Pershing
Kaiser Wilhelm II
Charles Evans Hughes
B. Terms:
New Nationalism
New Freedom
Underwood Tariff Bill
*Sixteenth Amendment
Federal Reserve Act (1913) (see pages 4 and 5)
Federal Trade Commission Act
Clayton (Anti-Trust) Act (1914)
Federal Farm Loan Act
Seaman’s Act (1915)
Workingmen’s Compensation Act (1916)
ABC Powers
Adamson Act (1916)
Jones Act
Sarajevo
Central Powers / Triple Alliance
AP United States History - Terms and People – Unit 9, Chapter 29 (13th Ed.)
HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and
become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work.
Allies / Triple Entente
Lusitania
Arabic
Sussex
+=One of the 100 Most Influential Americans of All Time, as ranked by The Atlantic. Go to Webpage to see all 100.
*=A 100 Milestone Document from the National Archive. Go to Webpage to link to these documents.
C. Sample Essay: Using what you have previously learned and what you read in Chapter 30, you should
be able to answer an essay such as this one:
Why was it difficult for President Wilson to maintain America’s neutrality from 1914 – 1916?
D. Map work: Using the numbers on the map, locate and identify the places listed below:
16
15
9
14
17
Identify the numbered nations:
1. ____________________________
8. ______________________________
2. ____________________________
10. ______________________________
3. ____________________________
11. ______________________________
4. ____________________________
12. ______________________________
5. ____________________________
13. ______________________________
6. ____________________________
14. ______________________________
7. __________________________
At the start of the war:
A. List the Triple Alliance/Central Powers:
B. List the Triple Entente / Allies:
________________________
_________________________
________________________
_________________________
________________________
_________________________
C. Which of these later dropped out of the war? ___________
D. What 2 countries later joined? _______________
_______________
E. Name the nation where an assassination helped ignite World War I: _______________________________
F. Bodies of Water:
What is #9? _____________/ #15?_____________/ #16?______________/ #17_____________
AP United States History - Terms and People – Unit 9, Chapter 29 (13th Ed.)
HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and
become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work.
E. Why aren’t we fighting over creating (or destroying) a “National Bank” anymore?
The Federal Reserve System
The Federal Reserve System ("The Fed"), created by the Federal Reserve Act, is the central bank
of the United States today. It is an independent organization created by Congress and President
Woodrow Wilson in 1913 to serve as the central bank of the United States and to provide the nation
with a safer, more flexible and more stable monetary and financial system. Over the years, the Fed's
role in banking and the economy has expanded, but its focus has remained the same.
Today, the Fed’s three functions are to: 1) conduct the nation’s monetary policy, 2) provide and
maintain an effective and efficient payments system, and 3) supervise and regulate banking operations.
Although all three roles are important in maintaining a stable growing economy, monetary policy is
the most visible to many citizens. Monetary policy is the strategic actions taken by the Federal Reserve
to influence the supply of money and credit in order to foster price stability and maintain maximum
economic growth. Through these actions, the Fed helps keep our national economy strong.
Independent Within Government - The Federal Reserve System was structured by Congress as a
distinctly American version of a central bank, established to carry out Congress’ own constitutional
mandate to "coin money and regulate the value thereof." The Fed is a decentralized central bank, with
Reserve Banks and branches in 12 districts across the country, coordinated by a Board of Governors in
Washington, D.C.
The Fed has a unique public/private structure that operates independently within government but not
independent of it. The Board of Governors, appointed by the president of the United States and
confirmed by the Senate, represents the public sector, or governmental side of the Fed. The Reserve
Banks and the local citizens on their boards of directors represent the private sector. This structure
provides accountability while avoiding centralized, governmental control of monetary policy.
The Federal Reserve is fiscally independent because it receives no government appropriations. The
Fed funds its activities with the interest earned from loans to banks and investments in government
securities and from the revenue received from providing services to financial institutions. The Fed’s
financial goal in providing services is to generate only enough revenue to cover costs. Any excess
earnings—money made above the cost of operations—is turned over to the U.S. Treasury.
The Fed’s Structure - The seven-member Board of Governors is the main governing body of the
Federal Reserve System. The Board is charged with overseeing the 12 District Reserve Banks and with
helping implement national monetary policy. Governors are appointed by the president of the United
States, one on January 31 of every even-numbered year, for staggered 14-year terms. The chairman
and vice chairman of the Board of Governors are also appointed by the president and confirmed by the
Senate to serve a four-year term. The nominees of these posts are selected from the Board
membership.
Each Federal Reserve Bank has a board of directors, whose members work closely with their
Reserve Bank president to provide grassroots economic information and input on management and
monetary policy decisions. These boards are drawn from the general public and the banking community
and oversee the activities of the organization. They also appoint the presidents of the Reserve Banks,
subject to the approval of the Board of Governors. Reserve Bank boards consist of nine members: six
serving as representatives of non-banking enterprises and the public and three as representatives of
banking. The Federal Reserve branch offices have five or seven-member boards that provide vital
information concerning regional economies.
Who Owns the Fed? Banks that hold stock in the Fed are called member banks. All nationally
chartered banks hold stock in the Federal Reserve. State-chartered banks may choose to be members,
upon meeting certain standards. However, holding Fed stock is not like owning publicly traded stock.
Fed stock cannot be sold or traded. Member banks receive a fixed, 6% dividend annually on their stock,
and they do not control the Fed as a result of owning this stock. They do, however, elect six of the nine
members of Reserve Banks’ boards of directors.
AP United States History - Terms and People – Unit 9, Chapter 29 (13th Ed.)
HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and
become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work.
So who owns the Fed? Although it is set up like a private corporation and member banks hold its
stock, the Fed owes its existence to an act of Congress and has a mandate to serve the public. So the
most accurate answer may be that the Fed is "owned" by the citizens of the United States.
The Need for a Federal Reserve System - People who lived during the early 1900s used banks
much as we do today. They deposited their money into savings accounts and borrowed money to build a
home or start a business. When people borrowed money, banks issued them banknotes, which the
borrowers spent the way we spend paper money today. The public valued these banknotes as money
because banks promised to exchange them for gold or silver on demand.
Occasionally the public feared that banks would not or could not honor the promise to redeem these
notes, which led to bank runs. Believing that a particular bank’s ability to pay was questionable, a large
number of people in a single day would demand to have their banknotes exchanged for gold or silver.
These bank runs created fear that often spread, causing runs on other banks and general financial
panic.
Financial Panic and Bank Runs - During a run, even the healthiest and most conservative bank
could not redeem all of its notes at once. Banks then, just as now, used most of the money deposited
with them to make loans. As a result, the money was not sitting in the banks’ vaults but was circulating
in the community. In other words, the banks may have been solvent but not liquid. So when a bank run
occurred, many times a bank had to close because it could not exchange the large number of notes
presented in a single day.
Banks tried to prepare for increasing depositor withdrawals by building up their reserves of gold or
silver and by restricting credit. They stopped making loans, and panic ensued as everyone scrambled to
redeem notes. Businesses had difficulty operating normally. The country’s economic activity slowed, and
many people lost their jobs and life savings.
Financial panics such as these occurred frequently during the 1800s and early 1900s. A particularly
severe banking panic in 1907 prompted cries for reform. People wanted a central banking authority to
ensure the operation of healthy banks that might otherwise fail because of a bank panic and to
supervise bank activities so banks would not engage in unsound business practices that might lead to
more bank failures. The public also wanted a more elastic currency and an improved payments system,
which would contribute to economic stability.
Creating the Fed - In response, Congress set up the National Monetary Commission to study the
nation’s financial system and pinpoint its weaknesses. One of the primary weaknesses identified was
that the United States lacked an elastic currency. This meant the banking system did not have a way to
supply currency if demand for it increased significantly in a short time, so panics occurred. In 1912, the
commission presented Congress with a monetary reform plan that recommended the establishment of
the National Reserve Association, which would hold the reserves of commercial banks and could make
short-term loans to banks to ensure credit availability. Congress responded by drafting the Federal
Reserve Act, creating the Federal Reserve System. President Woodrow Wilson signed the act
into law on December 23, 1913.
The Fed and Monetary Policy - The Fed’s primary mission is to ensure that enough money and
credit are available to sustain economic growth without inflation. If there is an indication that inflation is
threatening our purchasing power, the Fed may need to slow the growth of the money supply. It does
this by using three tools—the discount rate, reserve requirements and, most important, open market
operations.
F. What is the “Progressive Era”? Read on 
AP United States History - Terms and People – Unit 9, Chapter 29 (13th Ed.)
HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and
become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work.
The Progressive Era in The United States
1900-1920
The Situation at the Turn of the Century: America in 1900.
The Gilded Age saw enormous industrial progress accompanied by the growth of appalling conditions in
the slums of the cities and in the plight of farmers and others ground up by the "wheels of progress." The struggle
between capital and labor (called a "war" by historian Page Smith) showed that Americans were prepared to fight
for their economic rights, as they had done in 1776 and from 1861 to 1865. If the terrible conditions of the
working poor had not been addressed, it is highly possible that some sort of revolution might have taken place. In
fact, a revolution of sorts did take place, though it came largely from the top—or at least from the middle class.
This revolution was called the Progressive Movement, and in many ways to was a conservative movement, not
meant to upset society, but to fix what was wrong with it in order to retain its essential character.
The progress that Henry George had talked about in his work, Progress and Poverty, made possible the
Progressive movement in many ways. Despite the harsh conditions for workers, living standards had risen
dramatically for many since the Civil war. Education was expanded, people had more leisure time, newspapers,
books and magazines proliferated, and a new breed of journalists began to examine American life in detail. These
new journalists became known as the “muckrakers,” and they benefited from the wide circulation of magazines
and newspapers made possible through advertising.
Although the muckrakers themselves were sometimes guilty of the things they complained about,
muckraking, which we now call investigative journalism, became a highly respected vocation. Writers like Jacob
Riis, Lincoln Steffens and Ida Tarbell wrote long, detailed articles and entire books exposing fraud, waste,
corruption and other evils in government, business and social structures such as the slums of the cities. They took
on bossism, profiteering, child labor, public health and safety, prostitution, alcohol, political corruption and almost
every aspect of public and even private life. They achieved some spectacular successes at virtually every level,
from child labor laws across the country to prohibition at the national level.
There was a good deal of moralism in the Progressive movement, and Progressives were often seen as
sanctimonious busybodies and meddlers, poking around in things that were none of their business. For others the
Progressives, and the muckrakers who provided the raw material for those reformers, were upholding American
values and the American way of life. For still others they were helping working people by rescuing capitalism from
its worst excesses, and because businessmen were smart enough to see that discontented, angry workers were a
threat to their livelihood, they often supported Progressivism and even led the charge, though it might cost them in
the short run. This phenomenon of short-term sacrifice for long-term advantage is an example of what is often
called enlightened self-interest.
In the political arena the Progressives wanted good government at all levels, and among their more notable
achievements were the direct election of Senators and woman suffrage. But good government meant more than
expanded democracy or honesty in public officials. Progressives wanted aggressive government that foresaw
problems and acted to prevent calamities before they occurred rather than reacting to damage already done. Thus
they demanded safety legislation, closer regulation of public health issues and better management of things like
public utilities. They also sought to make government more efficient, so that the taxpayer got what he was paying
for. If Americans did not have good government, said the Progressives, they had only themselves to blame. The
Progressives were activists, generally impatient, often misguided, but rarely satisfied until they had achieved a
good portion of their goals.
The roots of Progressivism go back to the Populist era. The Progressives did not discover for the first
time that America had problems, nor were they the first reformers. But it was the largest movement of its kind in
American history, and its effects were felt for a long time. Indeed, muckraking (ala 60 Minutes) is still a popular
indoor sport, and present day reformers often refer to themselves as Progressives. (It’s a term Republicans can use
to avoid calling themselves liberals.)
AP United States History - Terms and People – Unit 9, Chapter 29 (13th Ed.)
HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and
become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work.
Objectives of the Progressives
Political Reform: Greater Democracy at all Levels
 Cities First: "invisible government"

Problem of state versus city sovereignty

Elected local officials—building coalitions

Initiative, referendum and recall

Direct Primaries

The Presidential election system is undemocratic. Electoral college reform [still needed]

Seventeenth Amendment: Direct election of Senators

Women’s suffrage
Good Government
 Scientific Management: The Gospel of Efficiency applied to city hall.

Budgeting, accounting; fair taxation. Attack Machine Politics, Faulty Institutions;

"Municipal socialism"; no radical reforms called for.

Commissioners, city manager plan.
Activist Government
 Greater involvement by government in public affairs to produce increased services, schools, loans, roads,
conservation, public health, welfare, care of handicapped, farm aid, child labor, mandatory school
attendance, transportation safety.

Private charity inadequate to meet needs; settlement houses in slums.
Regulation of Business
 The Abuses of Capitalism: The Sherman Act is insufficient

Fair trade practices

The Moral Imperatives of Wealth: Enlightened Self Interest

As stronger control measures instituted, burden of proof begins to shift from government to business.

Balance between laissez faire and socialism; trust busting versus regulation.

Better wages and job protection for workers
Social Justice: Welfare legislation--aid the urban poor
 Cleaning up the Workplace: Workmen's Compensation Laws; accident insurance: accident responsibility;
building codes; worker safety; Labor Laws: Women and Children

Prohibition: The WCTU gets muscle; the Anti-Saloon League
Public Service
 Social and Economic Reforms: "Gas and Water Socialism"

Consumer issues: food and drugs
Copyright © Henry J. Sage 1996-2002
AP United States History - Terms and People – Unit 9, Chapter 29 (13th Ed.)
HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and
become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work.
Name _________________________________
Per. __________
Forms of Progressivism
Often broad historical movements, such as progressivism, can best be understood by looking at its
various parts. Among the varieties of progressive reform discussed in Chapter 28 and 29 are:
A. political progressivism
B. economic or industrial progressivism
C. consumer progressivism
D. environmental progressivism
Put each of the following progressive acts / policies / or court cases into one of these categories by
writing in the correct letter:
_____
Newlands Act of 1902
_____
ten-hour law for bakers
_____
women’s suffrage.
_____ anthracite coal strike of 1902
_____ direct election of Senators
_____ Meat Inspection Act of 1906
_____ Pure Food and Drug Act
_____ initiative
_____ Muller v. Oregon
_____ Hepburn Act of 1906
_____ referendum
_____ Yosemite and Grand Canyon National Parks
_____ Workingmen’s Compensation Act (1916)
_____ Adamson Act (1916)
_____ Clayton (Anti-Trust) Act (1914)
______ recall