u.s. history ii his-112

Unit 6 The Progressives Confront

Industrial Capitalism (1890-1914)

U.S. History IIHIS-112

Progressivism

Progressive movement was actually a number of movements They focused on the problems created by a rapidly

expanding urban and industrial world The middle class reformers aim was to humanize the

modern city Others were concerned with the conditions of work

and the rights of labor Still others pressed for changes in the political system

to make it more responsive to the people

The movement had its roots in the 1890s

Progressivism

Progressivism was influenced mainly by Darwinism Specifically, it was shaped by the idea that the world

was constantly in transition Progressives saw the environment as more important

than heredity in shaping a person They also believed that some groups could be molded

and changed more easily than others (such as blacks)It was the first modern reform movement

It wanted to bring order to a world falling into chaos At the same time, many reformers wanted to keep the

old school nostalgia of the preindustrial age with its small town values and bring it to the city

Progressivism

Most of the progressive leaders were from the middle class They tried to teach these values to the workers and

immigrants They often seemed more interested in control than reform

The reformers reflected the fact that they were part of a statistics minded generation Many conducted surveys, gathered facts, and generated

reports that they hope to use to promote changeThey were also optimistic about human nature

and the potential for change While they might seem naïve, they did tackle many of the

difficult issues of the period

Upton Sinclair Author (1878-1968)

The Muckrakers

Muckrakers were those who exposed corruption and other social evils This group included investigative reporters, writers,

and critics They were the product of the journalistic revolution of

1890s where magazines were competing for new readers

Lincoln Steffens - The Shame of the Cities He wrote a series of articles for McClure magazine

that exposed corruption in city governments and their ties to big businesses

The Muckrakers

Ida Tarbell – “History of Standard Oil” Her series of articles in McClure magazine revealed the

cut-throat practices used by John D. Rockefeller in his control of Standard Oil

Upton Sinclair – The Jungle This work was one of the most famous by the

muckrakers Sinclair’s goal was to expose the horrible conditions of

Chicago’s meatpacking industry It told tales of not only corruption, but workers falling

into meat grinders and becoming part of the products sold

This work led to the creation of both the Pure Food and Drug Act (1906) and the Meat Inspection Act (1906)

Child mine driver from West Virginia

Child Labor

One of the main focuses of the reformers was child labor Many gathered statistics, took photographs, and then

used this evidence of horrid conditions to push for legislation at the local and then the national level

Florence Kelley was one of the leading reformers against child labor She helped push through legislation in Illinois to limit

work days to eight hours for women and children However, the state supreme court ruled it as

unconstitutional

Child Labor

National Child Labor Committee was founded in 1904 by Edgar Gardner Murphy It drew up a model state child labor law and

encouraged state and city campaigns In 1907, it was incorporated by an Act of Congress Its mission was to promote “the rights, awareness,

dignity, well-being and education of children and youth as they relate to work and working”

It hired photojournalist Lewis Hine to do an expose of child labor in the U.S., including the mining and steel industries

Photograph of child workers in an Indiana glass factory by Lewis Hine

Child Labor

2/3 of the states did pass some form of the law but most had major loopholes

In 1912 reformers were able to get Congress to establish a children’s bureau in the Department of Labor

Too many businesses were dependant on the profits from using child labor They put pressure on politicians to prevent any real

child labor legislation from being passed Also, many families were reliant on income from the

children in order to make ends meet

Child Labor

It was actually compulsory school attendance laws that really reduced the number of children working

Reformers also worked on reforming the justice system to protect juvenile offenders They helped to organized juvenile courts to protect

children from being placed in the adult system Judges were given the option of putting children on

probation, make them wards of the state, or put them in an institution

It did work to help prevent children from lives of crime However, many children did not receive due process

Working Women

Tied into the anti-child labor movement was the regulation of women’s work movement

Muller v. Oregon (1908) The Supreme Court upheld an Oregon law which

limited the hours of work for women in factories and laundries to no more than ten hours a day

Justice David Brewer stated “That woman's physical structure and the performance of maternal functions place her at a disadvantage in the struggle for subsistence is obvious…as healthy mothers are essential to vigorous offspring, the physical well-being of woman becomes an object of public interest and care in order to preserve the strength and vigor of the race”

Working Women

After this judgment, most states went on to pass protective legislation for women However, like the child labor laws, most companies

found loopholes

The argument that women were weaker than men resulted in protective legislation However, it would eventually be used to enforce

gender segregation of the workforce

Women’s Suffrage Parade in NYC (1912)

Women’s Suffrage

Progressives also campaigned for woman suffrage

They were first successful at the state level, especially in the western states Wyoming was the first to allow women to vote in some

elections in 1869 and nine states followed by 1914

The U.S. did lag behind other countries in granting women the right to vote Britain, New Zealand, Finland, and Norway had

already given women the right to vote by 1918

Women’s Suffrage

The right for women to vote was a slow process This was because a constitutional amendment was

required to change the law This meant that the fight would have to be won one

state at a time

Also, the social values at the time made the process even more difficult

A bill was presented in the House on January 12, 1915 to grant universal suffrage However, it was voted down 174 to 204

Women’s suffrage before 19th Amendment

Margaret Sanger

Birth Control

Movement for birth control was more controversialThe Comstock Law of 1873 made it illegal to

promote or even write about contraceptive devices or abortion This was in reaction to a growing concern about “obscene

material” Even material sent through the mail was banned as well

Margaret Sanger was one of the founders of the modern birth control movement Growing up, she watched her mother endure 18 pregnancies

and 11 live births As a nurse, she watched many women suffer and die from

illegal abortions

Birth Control

Educated Americans learned how to order birth control devices and avoid the Comstock Laws Condoms were called by a variety of names such as "Dr.

Power's French Preventatives” Women could order “feminine hygiene" products such as

cocoa butter suppositories, which were really spermicides

In 1914, she began writing articles for her journal, The Woman Radical It tackled many of the women’s rights issues of the day,

including the right for birth control She believed that once the woman became the “absolute

mistress of her own body” then women could work on gaining other rights

Birth Control

Because she wrote about contraceptive methods, she was indicted of violating federal postal obscenity laws

She faced a possible 45 years in jail so she fled to England While she was in Europe, she collected information

about birth control available there

When she returned, the case was dismissed because of a combination of the media attention and the death of her 5-year-old daughter

Birth Control

In 1916, she opened the first birth control clinic in the U.S. in Brooklyn The clinic was raided and she was arrested for

violating obscenity laws This did become a victory for Sanger since the case

brought birth control to the media forefront

In 1921, she founded the American Birth Control League This became the Planned Parenthood Federation in

1942

“The Drunkard’s Progress” (1893)

Crusades Against Immoral Behavior

The progressives spoke out against the behavior of the working class They were mainly opposed to prostitution and alcohol Some Protestants saw the consumption of alcohol as a

sinThe consumption of alcohol was on the rise

It hit is peak between 1911 and 1915 This included beer, wine, and hard liquor

The temperance movement had been around since the 1840s However, only three states had prohibition laws in

effect by 1900


After 1900, it was groups like the Anti-Saloon League who worked together with religious leaders to revitalize the temperance movement Between 1906 and 1912, they were successful at

passing temperance laws in seven states

One of their main concerns was the saloon Tales were spun about children having to go to saloons

to purchase beer for their fathers Also, there was a belief that the saloons were also

linking to drug traffic, prostitution, and political corruption


Some reformers realized that the saloons also provided a very important social aspect to these people’s lives Jane Addams started a coffeehouse at Hull House to

give people a non-alcoholic alternative However, they were not successful at finding a good

enough replacement for the saloonOn December 22, 1917, the 18th Amendment

was passed by Congress It prohibiting the sale, manufacture and import of

intoxicating liquor It was ratified in 1919 with the approval of 36 states


Another source of progressive attack was the movie theater These were seen as threats to the morals and

behaviors of young peopleWhile the motion picture had been around in

1889, it was not until the long feature films were produced during WWI that they attracted a middle class audience These were silent movies whose subject matters

included everything from comedy, romance, adventure, and even mild pornography

Reformers objected to content of films and to location of theaters (near saloons) and their dark interiors


Reformers saw prostitution as the worst evil There had been many campaigns against prostitution

since the early 19th century Reformers were able to get many cities to appoint vice

commissions and elaborate studies of prostitution

Some blamed inferior people but many stressed environmental causes Also, they considered economic causes of prostitution While they believed that education and reform would

end prostitution, the reformers did little to end it or to address its roots in poverty


On June 25, 1910, the White-Slave Traffic Act was passed by Congress It is also known as the Mann Act of 1910 While its specific purpose was to ban white slavery in

the U.S., it also prohibited the interstate transport of women for immoral purposes

Reformers also persuaded several states to raise the age of consent for women

In 20 states, the Wassermann test for syphilis became mandatory for both men and women before a marriage license could be issued

August von Wassermann (1866-1925)

Rise of Corporate America

By 1900, life in America had radically changed The U.S. went from a rural and small business type

economy to a corporate and industrial powerhouse

By 1904, 300 corporations controlled 40% of the country’s wealth Most of that power was in the hands of a few: 70

people controlled 1/16th of the country’s wealth

The larger corporations attempted to find ways to become more efficient


Frederick Winslow Taylor put together his ideas of “scientific Management” in 1911 He believed the management of businesses during the

industrial revolution were ineffective Instead he came up with his own ideas, which were

based on scientific study, on how to run a business effective and efficiently

It including finding the best way of completing a task, train employees rather than leaving them to learn on their own, give detail instructions and supervision, and divide the work equally between managers and workers


By using scientific methods, worker productivity increased dramatically between 1899 and 1914 Because of this, employers were able to pay their workers

more However, critics stated that labor unions and skilled

workers were usually eliminated by this methodologyManagement did increase during this time with

new business practices There was the rise of the “white-collar” worker, those

who were not actually involved in production but instead were supervisors, executives, office personnel, and sales people

Even women were hired as clerks, stenographers, and secretaries


Other businesses benefited from the rise of corporations To fill the need to train these new managers, colleges

created new business schools In 1908, Harvard’s Business School was created and

offered the first MBA’s

There was also the development of advertising In 1900, companies only spent $542 million on

advertising It jumped to $3 billion by 1920 With this, new jobs were created in advertising

including copywriters and designers


In the early 20th century, transportation technology made leaps and bounds In 1903, the Wright brothers successfully flew at Kitty

Hawk, NC The invention of the automobile had one of the biggest

impacts on the U.S. The first combustion engine car was

introduced in the 1880’s These cars were made one at a time, took a long time

to build, and were very expensive Not everyone could afford the luxury of having a car

in the 19th century

Samuel Gompers President AFL (1886-1924)

Workers in the Progressive Era

The progressives did try to protect the workers They sought protective legislation, unemployment

insurance, and workers’ compensation They also supported labor’s right to organize but were

opposed to using the strike as a weapon against management

The work place in the Progressive Era had not improved from the harsh conditions of the late 19th century Their lives were dominated by the clock and their bosses Many were incredibly unhappy with their jobs with more

than 1/3 of all workers staying at their jobs less than a year


Many leaders were fearful of how “scientific management” would affect workers One of the biggest concerns was turning humans into

“mere machines”

The AFL was one organization that flourished in the Progressive Era Under the leadership of Samuel Gompers,

membership increased from just under 450,000 in 1897 to over 2 million by 1904

He continued to focus on rights for the skilled artisans who made up the AFL


In the beginning, the labor unions were able to cooperate with the corporations The AFL was especially successful at gaining better worker

conditions through collective bargaining agreementsHowever, the corporations soon got the upper

hand The National Association of Manufacturers (NAM) launched

an aggressive counterattack, using strikebreakers and industrial spies

The Supreme Court sided with management in Loewe v. Lawler (1910) It stated that a union boycott of an industry violated the

Sherman Anti-Trust Act


The working woman received more attention from the progressives than did the working man From 1900 to 1920, the number of women working outside

the household increased from 5 to 8.5 million Reformers tried to help out women workers by establishing

day-care centers and supporting protective legislationIn 1903, the Women’s Trade Union League was

founded by Mary Kenney and William English Walling It helped organize women into unions, helped out in time of

strikes, and publicized the plight of working women It also forced the AFL to pay more attention to women

Struggle of the Garment Workers

One area that the Women’s Trade Union League focused on was the garment industry

The garment industry had some of the worst working conditions in the country Employees tended to be young women between the

ages of 16-25 They worked 56 hours a week in six-day weeks,

making a total of $6 a week In New York City alone, there were over 600 garment

factories employing over 30,000


In the early 20th century, many of the garment factories were centralized in large loft buildings in lower Manhattan They were located in crowded buildings that did not have

property fire escapes or safety featuresMany of these businesses tried to employ

“scientific management” to make them more successful Women were forced to rent the sewing machines and pay for

the electricity they used If they made mistakes or talked too loudly, they were

penalizedAlso, many of the women had to endure sexual

harassment from their bosses


On November 22, 1909, the garment workers went on strike It began with a walkout by workers at the Triangle

Shirtwaist Company for unsafe working conditions The workers turned for help to the International

Ladies’ Garment Workers Union (ILGWU) and the Women’s Trade Union League

Other garment workers went on strike as well It was known as the “Uprising of 20,000” It lasted for 14 weeks and involved about 2/3 of the

garment workersThey were able to gain some improvements

from their strike

Triangle Shirtwaist Company Fire (March 1911)

Triangle Shirtwaist Fire

The Triangle Shirtwaist Company was located in Washington Square East in Lower Manhattan It was a typical non-union sweatshop of the time:

people worked long hours for little pay in dangerous working conditions

When a fire broke out on the 8th floor of the building on March 25, 1911, many of the young female workers inside were trapped Exits were locked as the owners claimed workers

were stealing goods The fire escape was not strong enough to hold all of

those trying to get out

Triangle Shirtwaist Fire

In the end, 148 women died from the fire or by jumping to their deaths It was the biggest workplace tragedy in NYC history

until 9/11 The owners survived by going to the roof

The disaster led the state to investigate the working conditions of the garment industry NY state passed legislation limiting work weeks to 54

hours, prohibiting workers under the age of 14, and improving safety regulations in factories

Colorado Militia near the Ludlow tent colony

The Ludlow Massacre

In 1912, the federal Industrial Relations Commission was created to study the causes of industrial unrest and violence

One of their biggest investigations was on the conflict at the Colorado Fuel and Iron Industry in Ludlow, CO Miners went on strike in 1913, demanding eight-hour

workdays, better safety, and termination of armed guards

The company refused to negotiate with the miners and the strike turned violent

The Ludlow Massacre

On April 20, 1914, a firefight broke out between strikers and militia In the process, the strikers’ tent community was

burned to the ground Two women and eleven children died as were trapped

in a hole in the ground as their tent above them burned down

In response to the massacre, labor leaders organized their workers to take up arms against the mining companies Workers spent ten days traveling from mines to mines,

destroying them and the related buildings It was broken up when Wilson sent in federal troops

The Ludlow Massacre

The Industrial Relations Commission did do an investigation into the massacre This including hearings with testimony from strikers

and mine owner J.D. Rockefeller The commission implied that Rockefeller was

responsible for the deaths as armed guards and detectives were used to put down the strike

The Commission also mentioned that violence could be avoided if some reforms were made in the industry This included eight hour work days and a ban on child

labor However, the commission’s report fell on deaf ears

“Big Bill” Haywood (Labor Radical)

Radical Labor

Not all reformers were willing to wait for the slow paced work of investigations and legislation There were many who demanded changes now

In 1905, the Industrial Workers of the World (IWW) was formed in Chicago Unlike the AFL, all workers, regardless of skill, color

or gender, were allowed to join One of its founding members and leaders was Big Bill

Haywood, a leading labor radical Members were known as the Wobblies

Radical Labor

The IWW was successful in organizing the strikes of textile workers in Lawrence, MA in 1912 It was in response to owners cutting wages after a law

went into effect lowers the hours of women and children to 54 hours a week

Over 20,ooo workers joined the two-month long strike In the end, the union helped the workers get all their

demandsIt also had success in organizing itinerant

lumbermen and migratory workers in the Northwest

Despite its successes, the IWW remained a small organization troubled by internal problems

Theodore Roosevelt (1901-1909)

Roosevelt’s Domestic Policies

When Theodore Roosevelt took office, many did not know what to expect from him While he was considered a progressive, no one was sure if he

would implement progressive ideas while president He did turn out to be one of the strongest presidents in U.S.

historyT.R. wanted to change of the office of the president

He wanted it to become more involved in changing policy, including setting the national agenda and shape public opinion

He also made the federal government more effective For example, he reorganized the command of the U.S. army

and modernized the consular service

Corporate Progressivism

One area of concern for TR was the huge growth of corporations He realized there was nothing he could do to stop the

growth of big business but he did realize that the government could regulate it

His policy became known as “corporate progressivism” This bridged the ideas behind the big business

Republicans and the progressive movement The focus of his attention was breaking up trusts


T.R. wanted to control large industrial corporations that were constantly consolidating, growing bigger and more powerful Between 1897 and 1904, 4227 companies combined to

form 257 large corporations US Steel, formed in 1901, was the first billion dollar

corporationHe used the justice department to prosecute

some of the largest corporations in the country under the Sherman Anti-Trust Act (1890) This increased role of federal government as regulator

and caused some large companies to diversify


In 1902, the Northern Securities Company was founded It included a number of railroad executives such as J.P.

Morgan and J. D. Rockefeller It controlled most of the major railways including the

Northern Pacific Railway and the Great Northern Railway

T.R. saw this as a monopoly and filed an anti-trust case against them He used the Sherman Anti-Trust Act (1890) which was

designed to break up monopolies It was the first time someone filed against a monopoly for

the interests of the people rather than the corporations


Northern Securities Co. v. United States made it all the way to the Supreme Court in 1904 Northern Securities was dissolved and the Anti-Trust Act

gained new power

T.R. was not done with the railroads He saw himself as mediator and regulator

In 1903, he pushed Elkins Act through Congress It strengthened the Interstate Commerce Act of 1887 by

eliminating the use of rebates by railroads to shippers This meant that railroads could not deviate from

published rates


In 1906, he pushed the Hepburn Act This broadened the power of the ICC by giving it the

right to investigate and enforce maximum railroad rates

T.R. preferred not to use anti-trust laws to break up corporations Instead, he hope to work out “gentlemen’s

agreements” with corporate leaders to avoid such drastic measures

However, not everyone was willing to work with him


In 1904, Standard Oil controlled 91% of the production of oil and 85% of final sales With such a monopoly, the company used tactics such

as slashing prices to destroy competitors or just plain buying them out

In 1909, T.R. went against Standard Oil In 1911, the Supreme Court upheld the decision of

Standard Oil Co. of New Jersey v. United States to dissolve the company

However, it also put forth the precedent of “rule of reason” which stated that size and possession did not mean a company could be sued under anti-trust laws, but rather the combination of anti-trade practices did


T.R. also encouraged the acceptance of labor unions He hoped by doing so would bring an end to the

growing socialist movement

In 1902, coal miners went on strike in Pennsylvania They demanded shorter work days, higher pay, and

owner recognition of their union (United Mine Workers) Because of the effect a shortage of coal would have on

the nation, T.R. got directly involved in the negotiations When the owners rejected mediation, he threatened to

seize the mines and have troops run them


In the end, a compromise mostly in favor of the miners was reached The miners got shorter work days of 9 hours instead

of 12 and a 10% pay raise However, their union was not recognized by the

owners and the price of coal went up

T.R. justified his actions by saying he gave both sides a “square deal” This shifted government policy where now the

presidency would now work with unions and force the businesses to do his bidding

Election of 1904

Election of 1904

In 1904, T.R. was campaigning against Democratic presidential nominee Alton Brooks Parker Parker was a New York Supreme Court Judge who was a

very competent candidate Bryan did not seek nomination in this election due to the

popularity of T.R.

In the end, Parker could not compete against the popularity of T.R. T.R. won 56.4% of the popular votes and 336 electoral

votes Parker only got 37.6% of the vote and 140 electoral votes

Result of the 1904 Election

Consumer Protection

In his second term, T.R. continued on his policies of corporate progressivism This time, he supported more consumer protection

legislation

Since the late 19th century there was huge concern in the U.S. over manufactured foods and adulterated drugs There was no regulation for the production of food and

many businesses sacrificed purity for cost There were numerous manufactured foods on the

market that contained cheap ingredients (e.g., margarine) and sometimes questionable ones

Consumer Protection

In 1883, Harvey Wiley became chief chemist of the Department of Agriculture He made adulterated foods his number one priority for

the department He even created a “poison squad” to test foods and drugs

Many drugs came under scrutiny as well A number of dangerous drugs, including morphine and

heroine, were being sold as “health tonics” to the public

Working conditions were also of major concern In 1906, Upton Sinclair published The Jungle brought

horrendous conditions in the meatpacking industry to light

Consumer Protection

Pure Food and Drug Act of 1906 This act was designed to prevent “the manufacture, sale,

or transportation of adulterated or misbranded or poisonous or deleterious foods, drugs, medicines, and liquors, and for regulating traffic therein, and for other purposes.”

It required proper truthful labeling on all foods and drugs It also banned the production and sale of adulterated

foods and drugsMeat Inspection Act of 1906

The Department of Agriculture was now allowed to inspect the meatpacking industry

It also got the right to inspect and condemn meat products

J.P. Morgan (1837-1913)

Panic of 1907

Even though T.R. spent a good portion of his time attacking big business, the economy flourished for the first five years of his administration In January 1906, the Dow reached an all time high of 103 By 1907, the annual growth rate of the country was at 7.3%

which was staggeringly high Banks grew tremendously with ten year growths of 97% for

national banks and 244% for trust company assetsIn April 1906, an earthquake devastated San

Francisco which started to destabilize the economy Many of the insurance policies had been issued through

British companies

Panic of 1907

To stop the flow of money out of Britain, the Bank of England raised its interest rates Many other European countries followed this example

Because of this, the U.S. gold reserve declined and the U.S. had to raise its interest rates as well This caused U.S. industry production to slow as well as

the overall economy

The stock market then began a downward spiral From January 19, 1906 to November 15, 1907, the stock

market dropped 48.5% making it the third worse crash in U.S. history

Panic of 1907

In October 1907, F. Augustus Heinze tried to “corner the market” on stocks for his company, United Copper He planned on short-selling the stocks, in hopes of

purchasing all the stock in his company However, it backfired and the price of United Copper

went from $52/share on October 14th to $10/share in a matter of days

United Copper went under and took its brokerage house, Gross & Kleeberg, with it

Panic of 1907

Mercantile National Bank, which held stock in United Copper, went under as well This led to a chain reaction of bank runs and collapses

Two of the biggest runs occurred on October 22nd at the Knickerbocker Trust Company and the Trust Company of America Both turned to financier J.P. Morgan to help bail them

out Morgan turned down Knickerbocker as he believed

the company was unsound but helped to rescue the Trust Company of America

Panic of 1907

Morgan then organized private investors and trust companies to extend loans to banks and trusts on the verge of collapse J.D. Rockefeller alone deposited $10 million into the

Union Trust Co. Treasury Secretary George B. Cortelyou put $25

million of treasury funds into a number of banks as well

On October 24th, the stock market was also on the verge of collapse Call money interest rates jumped from 6% to 100% Nobody was willing to lend money in order for stocks

to be bought

Panic of 1907

Once again, Morgan had to intervene to keep the stock market from closing early If it had, an even greater panic would have ensued as

over 50 stock exchange houses would fail He managed to raise almost $25 million from banks

which reached the stock market at 2:30pm Over $19 million was borrowed with rates of 10-60%

which helped ease the crisis on the short term

Panic of 1907

In November 1907, Moore & Schley, one of New York’s largest brokerage firms, was on the verge of collapse It had used its stock in Tennessee Coal, Iron and

Railroad Company (TCI) as collateral for many of its loans

With the crisis, Moore & Schley found its stock almost worthless

If Moore & Schley collapsed, it would lead to greater economic problems and more business failures

Panic of 1907

Morgan once again intervened, this time offering to buy TCI However, since he owned U.S. Steel, which was TCI’s

biggest competitor, he would be violating anti-trust laws

He had to negotiate personally with T.R. Roosevelt to allow the transaction to go through

While on the short term the crisis was settled, the country fell into an economic depression that lasted until June 1908 It was part of a longer recession that lasted until 1915

Panic of 1907

In response to the panic, T.R. signed into law the Aldrich-Vreeland Act (1908) It created the National Monetary Commission

Its job was to look into creating a national banking system based on the European model

Its reports played a major role in setting up the Federal Reserve Act of 1913

It also created an emergency fund account for banks to withdraw on

T.R.’s last year in office did not produce any other major legislation Congress rejected most of his bills, especially those

trying to regulate business

William H. Taft (1909-1913)

Election of 1908

Roosevelt did not run for a third term Instead, he backed his Secretary of War, William

Howard Taft, as the Republican nominee for PresidentThe Democratic nominee was William

Jennings Bryan He was still very popular with the liberals and

populistsTaft won with a large margin

He received 51.6% of the votes Bryan only received 43%

Oklahoma became a state in 1907 and participated in this election

Election of 1908

Taft Presidency

After Roosevelt left office, he went big game hunting in Africa

Taft was very different compared to Roosevelt Taft was very overweight and not physically active He also had more problems encouraging people to

follow him This did not mean Taft did nothing as president

During his administration, he instituted more suits against monopolies than Roosevelt had A total of 80 anti-trust suits were filed and 45

indictments were issued against large companies In 1911, he tried to break up U.S. Steel with an anti-

trust suit but failed

Taft Presidency

Taft considered himself a progressive and supported such legislation He supported the 8 hour workday He helped push through legislation making mining safer He supported the Mann-Elkins Act, which expanded the

authority of the Interstate Commerce Commission to include communication

Taft did come into conflict with fellow Republicans over the tariff issues He called a special session of Congress to investigate

lowering the tariffs set by the Dingley Tariff Act of 1897

Taft Presidency

The reduced tariffs passed the House However, in the Senate the tariff bill was modified to

actually increase some tariffs while lowering others

The resulting Payne-Aldrich Tariff Act It lowered 650 tariffs and raised 220, while leaving

over a thousand unchanged It also raised the tariffs on manufactured goods which

could threaten crop exports This angered many progressives and a rift began to

form in the Republican party

Taft Presidency

Taft continued to anger his party when he replaced Secretary of the Interior James Garfield with Richard Ballinger Ballinger turned around Garfield’s policies of

protecting land by selling it to private owners or for reservoir use

Ballinger’s policies went against the conservation advice of the Chief of the United States Forest Service, Gifford Pinchot In response, Pinchot created the National

Conservation Association Pinchot also made allegations against Ballinger for

giving away coal lands in Alaska

Taft Presidency

In 1910, Taft took Ballinger’s side and fired Pinchot Even Roosevelt was angered by this and threatened to run

again for president After an investigation, Ballinger resigned in 1911

Another growing issue during Taft’s administration was a federal income tax There had been calls to reinstate an income tax since the

1890s In 1894, the Supreme court declared that certain income

taxes were unconstitutional in Pollock v. Farmers' Loan & Trust Co.

When Democrats tried to tack an income tax on to the 1909 tariff bill, Republicans fought against the issue saying that it should be a constitutional amendment rather than a law

Taft Presidency

In 1910, the Democrats got control of enough state legislatures and seats in Congress to push through such an amendment Democrats controlled the House as well

The Sixteenth Amendment was ratified in 1913 “The Congress shall have power to lay and collect taxes

on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”

It overrules the Pollack case and implement a federal income tax

Taft Presidency

Another sign of changing political times was the passage of the Seventeenth Amendment It changed the policy governing the appointment of

Senators Instead of Senators being appointed by State

Legislatures, they were now selected by direct elections by the people

This had been a rallying call for the Populist movement for quite some time

In May 1912, the Pujo Committee was organized to investigate the “money trust” It discovered that a small group of financial leaders,

including Morgan and Rockefeller, had abused public trust to create giant corporation

Taft Presidency

Even Taft’s foreign policies were unpopularHis administration promoted the idea of

“dollar diplomacy” This was the policy of offering economic benefits to

countries to exert control over them It also involved having American companies invest

heavily in other countries Taft believed this policy was supported by the Monroe

Doctrine by countering economic instability that could lead to either involvement by a foreign power or revolution

Taft Presidency

Taft first attempted this in 1909 to gain control over Honduras by purchasing its financial debt It was designed to prevent foreign countries from taking

that debt and exerting control over the country

In 1912, the U.S. overthrew one government in Nicaragua and put in a pro-U.S. government This was successful because the U.S. was able to gain a

financial hold over Nicaragua U.S. troops were even sent down to Nicaragua to help

with the overthrow

Return of T.R.

In 1910, T.R. Roosevelt returned to public life He had been highly critical of Taft’s policies

As part of his reemergence, he embraced the concept of “new nationalism” This came from Herbert Croly’s The Promise of

American Life (1909) which Roosevelt had read It stated that large corporations and overseas markets

were important for the growth of the U.S. At the same time, it said that there needs to be a

social welfare state to protect the working classes It reiterated the progressive ideas of the time

Election of 1912

Election of 1912

Roosevelt decided to run for the Republican nomination against Taft He stated “my hat is in the ring”

The Republican National Convention saw three main candidates: Taft who represented industrialists and party loyalists Robert La Follette, a Senator from Wisconsin who was

a progressive and appealed to small business owners and farmers

Roosevelt who continued to stand by his ideas of corporate progressivism

Election of 1912

At the Convention, Taft began exerting his influence on the delegates Even though Roosevelt won a number of states in the

primaries, those delegates were seated in such a way that they would be outvoted

Angered by the situation, Roosevelt asked his supporters to leave the convention on July 22

The party nominated Taft for president and James Sherman for vice president

Election of 1912

The progressives in the Republican party were so outraged that they met in Chicago and advocated the creation of a Progressive Party They nominated Roosevelt with Hiram Johnson as his

running mate Roosevelt said that his new party was “as strong as a

bull moose,” thus earning the nickname the “bull moose party”

The party called for such progressive reforms as women’s suffrage, 8-hour workdays, more federal regulation of corporations, unemployment insurance, and an end to child labor

Election of 1912

This division of the Republican party was a boon for Democrats, who nominated Woodrow Wilson

Wilson stood for “New Freedom” He wanted to limit government and bring about open

competition To do this he called for lower tariffs, banking reform,

and the dismantling of large corporate trusts He believed that “If America is not to have free

enterprise, then she can have freedom of no sort whatsoever”

Election of 1912

The Socialist Party’s candidate was Eugene Debs He promoted unemployment insurance, government

ownership of major businesses, the removal of the Senate and Supreme Court, and single-term presidencies

In the end, Wilson won the presidency He won 41.8% of the votes and 435 electoral votes Roosevelt got 27.4% and 88 votes Taft only received 23.2% with 8 votes Debs received 6% of the votes

New Mexico and Arizona became states in 1912 and participated in this election

Election of 1912

Woodrow Wilson (1913-1921)

Wilson as Corporate Progressive

Woodrow Wilson was the first southerner elected president since the Civil War

The Wilson administration saw progressive reform reach its peak He was a vigorous and aggressive chief executive who

set out to translate his ideas about progressive government into legislation

Over the course of his presidency, he became more progressive


Wilson was extremely successful in getting Congress to pass his legislative agenda at the beginning of his administration He was the first president to appear in person before

Congress since Thomas Jefferson refused to go He also installed a private phone line between the

White House and the Capitol building to have contact directly with Congressmen

Part of this included patronage where he would reward those who backed him and punished those who opposed him


Wilson’s major move was to reduce the national tariff He worked with Congress to lower the tariff rate to help

farmers and businesses that imported raw materials

In 1913, the Underwood-Simmons Act was passed which reduced tariffs on hundreds of items Democrats sought to replace the lost income and included a

1% income tax on incomes over $4000 and 7% on corporate incomes over $500,000 as part of the act

This was the first major reform on tariffs since the Civil War


Next on Wilson’s agenda was freeing the banking system from Wall Street control The Pujo Committee findings showed that a “money

trust” was in control of banking It stated that there was a need for a central bank to

be able to liquefy assets in times of crisisThe Federal Reserve Act of 1913 created a

central banking system All banks, both public and private, were to join the

Federal Reserve System, and set aside reserves with it The Reserve also could raise or lower interest rates on

money if it needed to adjust inflation


Wilson also wanted to restore competition in the business industry Unlike Roosevelt, he recognized the differences

between monopolies and “big businesses” He focused his attention mainly on trusts These are businesses where a central board holds stock

in many companies as a way to cut costs and reduce competition

In his 1912 campaign speech, Wilson stated that “a trust is an arrangement to get rid of competition, and a big business is a business that has survived competition by conquering in the field of intelligence and economy”


In 1914, he helped push through the Clayton Antitrust Act It expanded on the Sherman Antitrust Act of 1890

concept of “unfair practices” It prohibited

holding companies among competitive businesses a director in the same position in two or more companies mergers and acquisitions that would end up reducing

competition

Also that year, Congress passed the Federal Trade Commission (FTC) Act This designated a committee to regulate businesses

from “unfair business practices”

Wilson and the Liberal State

While Wilson was satisfied with the legislation put through during his first term, there were those who pushed for even more reform

In the 1914 elections, Republicans were in the majority of both Houses of Congress Wilson changed his position and worked towards a

coalition between the two parties

In 1916, he signed numerous laws that went beyond his own reforms

Wilson and the Liberal State

The Adamson Act of 1916 provided an eight hour workday for railroad employees This was done to prevent a nationwide strike It was upheld by the Supreme Court in 1917

Keating Owen Child Labor Act of 1916 This act limited the amount of hours children under

the age of 16 could work It also forbade interstate sales of goods produced by

child labor It was overturned by the Supreme Court as

unconstitutional in Hammer v. Dagenhart in 1918 stating that Congress did not have the right to regulate commerce

u.s. history ii his-112

Documents

conditions of work

leading reformers

reformthe reformers

child laborshe

child labormany

work days

junglethis work

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