William Howard Taft 1908-1912
 Handpicked successor to
Teddy Roosevelt
 Installed new bathtub to fit
his girth
 Kept the Republican party
together
 Should be known as
Trustbuster, not Teddy
 16th Amendment-Makes
Income Tax legal
Taft Presidency
• Busts 90 Trusts in four years
• Promises to lower tariffs
• Payne Aldrich Tariff Act
• Lowers some tariffs but raises others
• Names Richard Ballinger as Secretary of Interior
• Ballinger opens up 1 million acres to timber and mining
• Progressives mad at Taft for these acts
• Taft not seen as Progressive enough
• Roosevelt decided to run again but is not chosen by Republicans
• Roosevelt sets up Bull Moose Party to run against Taft
• Hands the Presidency to Woodrow Wilson as a result
Election of 1912
Woodrow Wilson
New Freedom
1912-1920
• Reforms the Executive
Branch giving it more
power to act
• Seen as the first modern
President, ruling an
executive branch with lots
of power
• Reduced corruption in
government
• Limited the power of trusts
• Cleans up machine politics
Wilson’s New Freedom
 Three goals: Attack Trusts, Reduce Tariffs, Reorganize
the Financial System
 “Freedom is more than being left alone.”
 How does this compare to Laissez-faire?
Two Key Antitrust laws
 Clayton Antitrust Act
 Strengthens the Sherman
Act
 Federal Trade Act
 Sets up Federal Trade
Commission
 Corporations cannot buy
stocks of other companies
to set up monopolies
 5 member watch dog
group to oversee
violations of trade.
 Holds officers of Corp.
liable for its actions.
 Corps. Now have to
answer to the gov’t
 Unions no longer under the
Sherman Act
 Commission could order
cease and desist to
businesses.
 Makes them legal now.
Federal Trade Commission
Underwood Tariff
 Reduced tariffs and increased competition for American
business.
 Big business against it
 Wilson goes to American people directly through the press
to ask them to write their congressmen to urge passage.
Financial Reforms
 16th Amendment
 Makes income tax legal
 Income was declared
unconstitutional 3 times
before.
 Need constitutional
amendment to make it
legal
 Federal Reserve Act
 Set up Federal Reserve
System
 12 districts
 Issue currency as needed in
each region to regulate the
economy
Federal Reserve System
Summarize the three Presidents
 Roosevelt
 Taft
 Wilson