Banks
•Inadequate banking system had plagued America
•Glaring defects were apparent in the 1907 Panic-major reserves
in NY and large cities only
•Congressional investigation uncovered a 3rd Bank of US needed
•June 1913 Wilson delivered a Joint Session speech again-asked
for decentralized bank & not Republican private banks
•Wilson again turned to the people-Federal Reserve Act passed:
Federal Reserve Board-apptd by the President to oversee 12
regional reserve districts
•Owned by member financial institutions-final authority rested
w/Reserve Board
•Reserve Notes used and amount of $ in Circulation
increased(backed by paper-promisory notes) Could now control
the flow of $-Huge Success
Trusts
• Early in 1914 Wilson went before Congress again-passed the
Federal Trade Commission Act-Presidential Apptd Committee
to watch industry-crush monopoly by rooting out unfair
practices, unlawful competition, false advertising, mislabeling,
bribery
• Clayton Anti-Trust Act-lengthened list of Illegal business
practices-price discrimination, interlocking directorates
• Exempted labor and agriculture organizations from anti-trust
lawsuits-legalized strikes and picketing
Wilsonian Progressivism
• Federal Farm Loan Act of 1916-credit to farmers at low rates
• Warehouse Act of 1916-loans on security of staple crops
• Seamen’s Act of 1915-decent living wages on merchant ships
• Workingmen’s Compensation Act of 1916-assistance to Federal
Civil Service employees during disability-restricted child laborinvalidated by the SC
• Adamson Act of 1916-8 hour workday for RR workers
• Nominated Louis Brandeis to SC yet presided over segregation
in the Federal Government
• Made some conservative apptments. To the Federal Board yet
stayed mostly progressive-needed to bring Progressives to
Dems to be victorious in 1916
Foreign Policy
• Resisted TR and Taft Policies
• No longer support to US investors
• Repealed Panama Tolls Acts
• Jones Act of 1916-Territorial status to Philippines & promised
independence
• Smoothed tensions with Japan
• Sent troops to Haiti in 1915 & Dominican Republic to stop riots
• Purchased Virgin Islands from Denmark in 1917
Mexico
• Much investment in Mexico-country was poor
• Revolt in 1913 put new revolutionary president Huerta in control
• Spurred on migration-hurt US owned lands in Mexico-many
wanted US intervention
• Wilson refused to recognize the government and allowed guns
to flow freely to Huerta’s enemies
• Further problems when American sailors arrested-Mexicans
released and apologized
• Wilson wanted to eliminate Huerta and asked for Congressional
approval of force
• Huerta regime collapsed and new government set up under
Carranza
• 16 men ruthlessly killed in Mexico and murdered another 19 US
• John J. Pershing sent to lead an American contingent and
fought successfully yet eventually pulled
WW I Begins!!!!!!!!!!
Neutrality
• Neutral in thought and Deed-Both sides wooed the US
• British enjoyed the advantage?
• Germans counted on those of same heritage in the US(11
million)
• Kaiser Wilhelm II seemed an arrogant autocrat-Ruthless strike
at neutral Belgium-Further problems when agents attempted
sabotage
• Most Americans wanted to stay out!!
Blood $
• When war started US was in recession-orders started coming in
and prosperity returned-financed partially by JP Morgan and
Co.-advanced $2.3 billion to allies during US neutrality
• Germany protested yet they were free to trade w/US-prevented
by geography and the British Navy-trade w/ Germany not
allowed by British Navy
• Feb, 1915 Germany declared a sub warfare area around British
Isles-weak yet effective-Germany said it would try to not sink
neutral vessels-Wilsom tried to keep US neutral even though
incidents would be difficult to avoid
• U-boats sank 90 vessels in first few months of 1915-Lusitania
(128 US civilians)-Mass Murder?
• Eastern US wanted war yet country divided-Wilson had no
desire for war
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•
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Wilson took strong stance(WJ Bryan resigned)
Mixed reaction
After British liner Arabic sunk in Aug, 1915(2 US lives lost)
Germany promised to not sink unarmed and unresisting
passenger ships w/out warning
• French liner Sussex torpedoed in March 1916-Wilson
demanded they stop
• Germany agreed to give warning yet attached to the agreement
that Allies had to modify illegal blockade-Wilson agreed to first
part
1916 Election
• Bull Moose returned yet would not split party
• Repubs nominated Charles Evans Hughes-SC justicecondemned tariffs & foreign affairs-Poor campaigner
• Wilson avoided topic of his opponent
• Hughes took east-Wilson thought he had lost
• Wilson won 277-254/9.1 million to 8.5
• Wilson had kept the country out of war