WILSON’S PRESIDENCY

Wilson as president A. Background (DON’T HAVE TO COPY, just

underlined portions1. Believed president should play a dynamic role in gov’t a. Congress could not function properly unless president provided leadership b. Gov’ts responsibility was to pass good laws and let the courts enforce them.

2. Not willing to go as far as TR in government activism. --Unlike TR, Wilson lacked common touch --Moral righteousness =uncompromising

“Triple Wall of Privilege”

B. Wilson came to office with a clear plan few presidents have rivaled. 1. First four years: more positive legislation at any time since Alexander Hamilton. 2. Attacked the "triple wall of privilege": the tariff, the banks, and the trusts.

T: TariffC. Underwood Tariff Bill -- 1913 (Underwood-Simmons Tariff)

1. Provisions: a. Substantially reduced tariff to 29% from 37-40% under

Payne-Aldrich Tariff. b. Enacted a graduated income tax, under authority granted

by recently ratified 16th Amendment. (Landmark provision)

i. Rate of 1% on incomes over $4,000; 7% on incomes over $500,000

ii. By 1917, revenue from income tax exceeded tariff revenues.

-- Gap has widened since then.

T: The BanksD. Federal Reserve Act (1913) – created Federal Reserve System 1. Nation’s existing National Banking Act showed its weakness during Panic of

1907 with its inelasticity of money. 2. Republican solution: a huge national bank (in effect, a "third BUS") 3. Federal Reserve Act of 1913 signed into law in 1913.

a. Most significant economic legislation between Civil War and New Deal. i. Carried U.S. through financial crises of WWI. ii. Without it, nation’s progress toward the modern economic age would have been seriously compromised. iii. Yet it failed in its most central purpose: preventing economic depressions

b. Provisions: i. Federal Reserve Board appointed by the president oversaw nationwide system of 12 regional reserve districts, each with its own central bank. -- Regional banks actually bankers’ banks owned by member

financial institutions. ii. Board empowered to issue paper money "Federal Reserve Notes".

U.S. IN INTERNATIONAL TURMOILIsolation or Intervention…what’s a country to do?

Wilson’s Foreign Policy: Moral Diplomacy

• Mexico:– Revolution occurred Diaz was replaced by Madero but

foreign investors feared Madero, who vowed to confiscate property owned by foreigners

– Foreign diplomats plotted w/ Mexican army to replace Madero w/ General Huerta

– Poor Mexicans revolted and overthrew Madero & Gen. Huerta president• Massive migration of Mexicans to US begun

– Wilson refused to recognize Huerta’s presidency and urged him to abdicate or the US would overthrow him

– Wilson allowed for arms to flow to Huerta’s rivals

Pancha Villa• April 1914: US sailors arrested for being in a war zone w/o

permit– Mexico released sailors and apologized– Wilson went to Congress to ask to use force to remove Huerta– Wilson ordered the Navy to seize Vera Cruz

• Congress and American public were OUTRAGED• US occupied the city for 7 months

– ABC Powers offered to mediate to prevent full-scale war– Pancho Villa retaliated against Americans by killing 18

Americans in Jan 1916 then killing 17 more in New Mexico– Gen. Pershing ordered to find Villa but no luck after a year– Threat of war in Europe was real and US withdrew from Mexico

by February 1917

A Quick Clip…

American Spirit Time• Read the document on pages 248-top of 250• Author - Who created the source? What is their point

of view?• Place and Time -Where and when was the source

produced?• Prior Knowledge - What do you already know that

would further your understanding of this sources?• Audience - For whom was the source created? Does

this affect the reliability of the source?• Reason - Why was this source produced at the time is

was produced?• The Main Idea - What is the source trying to convey? • Significance - Why is this source important for today?

4 M.A.I.N. Causes of WWI

• Militarism• Alliances– Triple Entente (Allies): GB, France, Russia– Triple Alliance (Central): Germany, Austria-

Hungary and Ottoman Empire, **ITALY**

• Imperialism• Nationalism

Meanwhile in the World

• Trigger Event: Assassination of Archduke Ferdinand and wife in Sarjev, Bosnia in June 1914– Austria issued a warning to Serbia to allow in Austrian

investigators– Serbia was backed by Russia; Austria was backed by

Germany– Eventually Austria declared war on Serbia, Germany

declared war on Russia and France– Once Belgium was invaded by Germany, GB declared

war on Germany

Wilson’s Views…

• Wilson called for US neutrality in both thought and deed (isolationism)– Both sides tried to gain US support– Immigrants in the US were torn as they watched

their home countries torn apart in war– Most Americans were anti-German from the

outset of war; Germany immigrants began to change their names

– US Economy boomed via GB & French war orders

Causes that led to US entering WWI:

• US merchant ships were being sunk by German u-boats

• Sinking of the Lusitania• British blockade of European ports, but

American investors and business traded with the Allies

• Russian Revolution• Zimmerman note (last straw)

Wilson’s Re-election

• Wilson was re-elected in 1916 with a campaign slogan of “He kept us out of war”

• Wilson asked for a declaration war on April 2, 1917 ending American policy of ISOLATIONISM

Question of the Day:• What is the source of the following quote?

"l find that the God of Israel is among us, when ten of us shall be able to resist a thousand of our enemies; when He shall make us a praise and glory ,... for we must consider that we shall be as a city upon a hill, the eyes of all people are upon us; so that if we shall deal falsely with our God in this work we have undertaken and so cause him to withdraw his present help from us, we shall be made a story and a byword through the world..."

A) Mayflower CompactB) "A Model of Christian Charity"C) "Sinners in the Hands of an Angry God"D) Fundamental Orders of ConnecticutE) the Halfway Covenant

The Big Four @ Versailles

• France—George Clemenceau• GB—David Lloyd Garrison• Italy—Vittorio Orlando• USA—Woodrow Wilson

Wilson’s Plan (14 Points)

• no secret alliances• freedom of the seas• free trade or little restrictions among the nations• Arms should be reduced• Self-determination for colonies• LAST POINT: called for a body of nations to

discuss and handle disputes (LEAGUE OF NATIONS)

Results of the Treaty of Versailles

• new nations were formed• $33 BILLION in war reparations were to be

paid by Germany• Germany had to admit sole responsibility for

starting WWI

• US Senate refused to sign the Treaty of Versailles b/c of League of Nations