First Period Notes- 2/2/09

-National Progressive Reform

• After 1896, leadership came from the White House in the form of progressive presidents Roosevelt, Taft, and Wilson
• Roosevelt was elected vice president in 1900, and became president when McKinley was assassinated

-Regulating the Trusts

• Roosevelt set out to break what he considered to be bad trusts
• Roosevelt's Justice Department prosecuted the Northern Securities Company, a Railroad Monopolu; They used the Sherman Anit-Trust Act. The Supreme Court upheld the decision and Northern securities were dissolved
• Roosevelt DID NOT OPPOSE ALL MONOPOLIES. He saw regulation of the trusts to ensure US wealth, production, and a rising standard of living
• Roosevelt called this "New Nationalism"

-Toward a "Square Deal"

• Roosevelt showed where he was coming from in the Coal Miners Strike of 1902. Miners wanted a pay raise and an 8 hour work day--> owners refused to negotiate
• Roosevelt stunned the Mine owners when he supported the miners and threatened to run the mines with federal troops to help the miners
• Owners that long used the government protection against strikes finally agreed to a 10% raise an a 9 hour work day
• Roosevelt invited Booker T. Washington to dine with him at the White House
• Roosevelt promised every American a "square deal" when he ran for election in 1904. He called for government control of corporations, consumer protection, and conservation of national resources (first time a president has ever took action to conserve environment)

-Expanding Government Power over the Economy

• Roosevelt wins 1904 electoin and gets congress to pass the Hephum Act in 1906. This Act increased the Interstate Commerce Commissions power to review railroad rates and its enforcement powers
• Roosevelt supported the passage of the Pure Food and Drug Act of 1906 and when his investigators confirmed the findings of Upton Sinclairs (The Jungle) he backed the Meat Inspection Act of 1906

-Expanding Government Power over the Environment

• Roosevelt oversaw the creation of 5 national parks, 16 national monuments, and 53 wildlife reserves
• Roosevelt appointed a Public Lands Commission to survery public lands and set up a permit system to regulate their use
• Roosevelt oversaw the movement of responsibilty of National Forests from the Department of the Interior to the Department of Agricultur and the creation of the National Forest Reserve
• Roosevelts old guard did not support Roosevelts progressive ideas on conservation and struck back with legislation curtaining the presidents power to create new government lands reserves. Roosevelt responded by seizing another 17 million acres for national forest reserves before the law took effect

-Progressive Movement--> A Move for the People

• Before he left office in 1909, Roosevelt expanded his reform to include income and inheritance taxes, a national workmens compensation law, abolition of child labor, and an 8 hour work day. These reforms widened the gap between Roosevelt and the Republican Old Guard

-The Taft Presidency

• As Roosevelts hand picked successor, Taft easily won in the 1908 election

-Tafts Battle with Congress

• Taft alienated progressives when he appeared to side with the Old Guard on the tariff and powers of the Speaker of the House Cannon
• Progressives favored tariff reduction; Taft raised expections reduction and didn't push congress to get it done

-Ballinger-Pinchot Controversy

• Secretary of the interior Ballinger aroused progressives by reopening for private commercial use of 1 million acres of land that was previously bought under federal protection
• Roosevelts friend, the National Forest Service head, Pinchot, obtained information impicating Ballinger in the sale of Alaskan oil deposits to JP Morgan and David Guggenheim. Pinchot showed the information to Taft who defended Ballinger. Pinchot leaked it to the press and was fired by Taft

-Roosevelt Returns

• When Roosevelt hears about the Ballinger-Pinchot controversy, he returns from an African safari/hunting trip and met with Pinchot
• After his quick return to politics, Roosevelt went on a speaking tour touting his "New Nationalism" which called for a strong federal government to stabilize the economy, protect the weak, and restore social harmony
• 1910 (off year election) Progressive Republicans and reform minded Democrats defeated the Old Guard/ Conservative Republicans
• Roosevelt announced his candidacy for president in 1912. Taft refused to step aside. Republican Old Guard gave parties nomination to Taft
• Roosevelt left the Republican Party and won the nomination of the New Progressive Party
• Progressive Party Platform called for: sweeping regulation of corps, extensive protections for workers (minimum wage, no child labor, workmens compensation), a sharply graduated income tax, and womens suffrage
• The Progressive Party also called themselves the "Bull Mooses"

-The Bull Moose Campaign of 1912

• Republican vote was going to split between Roosevelt and Taft
• So Democrats nominate Woodrow Wilson who was reform minded
• Socialist Party nominate Eugene Debs on the reform platform

-Election of 1912 Outcome

• Taft and Debs had little change
• Roosevelt and Wilson differed in the approach. Roosevelt's "New Nationalism" call for a strong federal government to regulate and, if necessary, curb the trusts. Roosevelt also campaigned for social welfare, minimum wage laws, and social insurance
• Wilson's "New Freedom" didn't like any monopolies and called for using government power to dismantle the trusts. He wanted an unregulated and unmonopolized market. Democrats avoided social welfare
• Wilson wins the 1912 election

-Tariff Reform and a Progressive Income Tax

• Wilson steamrolled protections with a direct appeal to the American people and got congress to pass the Underwood Simmons Tariff of 1913 reducing the tariff from approximately 40-25%
• Wilson got an income tax bill passed the used the 16th Amendment. It was a progressive tax requiring wealthy Americans to pay a greater percent of income than the poor

-Federal Reserve Act

• Congress passed the Federal Reserve Act of 1913 giving the national government authority to regulate credit and currency flow
• The Act established 12 regional banks. Every private bank in the country was required to deposit about 6% of its assets in its federal reserves bank. The Reserve would be used to make loans to member banks and to issue paper money called federal reserve notes (money we use today)
• The federal reserve system strengthened the country's financial structure and was an important success

-From New Freedom to New Nationalism

• Wilson did not mount a vigorous Anti-trust Campaign
• Wilson supported the Federal Trade Commission Act which set up the FTC to regulate business practices
• Wilson supported a weakened Clayton Anti-Trust Act rather than seeking authority to vigorously prosecute the trusts
• Wilson refused to aid organized groups of workers and farmers
• Wilson did not support the campaign for African American political equality
• Wilson pushed for an got a workmens compensation law and an 8 hour workday for workers

-In many ways Wilson drifted toward Roosevelt's New Nationalism in its social welfare aspects