Louis Pisha AP US History
Chapter 23: Progressivism: Retreat and Resurgence
Insurgency
A Cautious President
An Old-Guard Tariff
A Divided Party
The Election of 1910
A Divisive Foreign Policy
The Road to Revolt
The Bull Moose
Progressivism at Zenith
Woodrow Wilson
The Election of 1912
A Democratic Tariff
Banking Reform
The New Freedom and the Trusts
In Behalf of Progress
Wilson and Moral Diplomacy
The Force of Moral Principle
Confusion in Latin America
Intervention in Mexico
Problems of Neutrality
War in Europe
Neutral Rights
The Submarine Issue
Peace with Honor
Americanism and Preparedness
The Election of 1916
The Road to War
▪ Although Republicans won 4 successive elections, Old Guard, Midwestern townspeople, urban progressives and Western agrarians beginning to factionalize and Democrats gaining power
Insurgency
A Cautious President
▪ Taft had excellent intentions and saw need for continuing Roosevelt program
▪ On the other hand, jolly fat man, had been a judge, strict interpretationist, so didn’t want to interfere with legislation
▪ Highest confidence in the bench and didn’t trust majority to make laws—accepted change but did not like to be rushed—yet progressives in a hurry
An Old-Guard Tariff
▪ Taft called special session of Congress to revise tariff—had suggested he preferred downward revision, and farmers convinced Dingley Duties way too high
▪ Taft appointed cabinet of conservatives, unwilling to restrict power of Speaker and made no gesture in favor of tariff revision
▪ House passed bill reducing some duties and graduated inheritance tax, but Senate cut inheritance tax, increased average tariff rates—Taft intervened and got 2% corporate income tax, but bill still benefitted biz (Payne-Aldrich Act)—triumph for protectionists and Taft alienated Midwesterners
A Divided Party
▪ Taft proposed bill empowering ICC to fix railroad rates, but established Court of Commerce with veto power, and permitted railroads to acquire competitors—Democrats amended it to eliminate this last provision, bring telephone and telegraph companies under jurisdiction and physical valuation of railroad property
▪ In Senate, Aldrich eliminated valuation and preserved Commerce Court by trade with Democrats for admissions of Arizona and New Mexico
▪ Taft denied insurgents patronage and started campaign to defeat them in 1910
▪ Ballinger opened to private sale millions of acres of public land and waterpower sites that Pinchot, Roosevelt’s friend, had closed—Ballinger had sold government coal fields in Alaska to Morgan—Pinchot took case to Taft, who ruled for Ballinger
▪ Pinchot got magazines to attack Ballinger, letter to Senate, Taft dismissed him—Brandeis revealed Taft had tampered with evidence sent to Congress—Pinchot and Roosevelt still buddies and Roosevelt sided with him
The Election of 1910
▪ When Roosevelt returned to NY, started speaking tour, which praised insurgents—Roosevelt announced New Nationalism: social welfare, federal regulation of biz, direct democracy
▪ Republican party lost in elections of 1910—Democrats identified selves with progressivism and Republicans with rising costs of living—returns suggested only insurgent could save Republicans in 1912
▪ Taft, LaFollette and Roosevelt possible Republican candidates of 1912
A Divisive Foreign Policy
▪ January 1911 Taft submitted reciprocity agreement with Canada for agricultural products, raw materials, and some manufactured goods—Western progressives, fearing competition, and high tariff advocates, rejected it—Taft called special session where Democrats put the measure through, but Canadians repudiated it
▪ Democrats passed series of “popgun reduction tariffs” for president to veto and be embarrassed by
▪ Knox intended to use American economic power to promote influence (dollar diplomacy)—treaties with Latin America for assumption of their European debt and appointment of Americans to direct their finances
▪ Senate rejected treaty but Knox had considerable success—also emphasized China
▪ Roosevelt disapproved of dollar diplomacy, urged Taft to abandon competition with Japanese in China
▪ Roosevelt also opposed arbitration treaties with France and England—Taft convinced international problems solved by court of law but Roosevelt denounced arbitration of questions involving national honor
The Road to Revolt
▪ Supreme Court had pronounced “rule of reason” which held only unreasonable restraints of trade unlawful—necessary corollary but Taft allowed court to define reasonableness while Roosevelt believed administrative agency
▪ Taft chose to prosecute US Steel which resulted in acquittal and publicizing of Roosevelt-Morgan negotiations
▪ Taft’s policies gave Roosevelt rationalization for declaring presidential candidate
▪ LaFollette’s supporters deserted him for Roosevelt and his New Nationalism
▪ Old Guard cared more about nominating Taft and defeating Roosevelt than winning the election
▪ Roosevelt got 278 candidates to Taft’s 48, but national committee allotted 235 contested seats to Taft and rigged convention renominated Taft on first ballot
The Bull Moose
▪ Roosevelt men bolted convention crying fraud and reorganized as Progressive party—included social workers, feminists, intellectuals, industrialists
▪ Progressive party inadequately organized and Roosevelt knew probably assuring election of a Democrat, but could not support Taft and status quo
▪ Some considered Taft safe and Roosevelt alarming
▪ Bull Moose platform: presidential primaries, women’s suffrage, initiative and referendum, popular Senator election, conservation of natural and human resources, minimum wages for women, restriction of child labor, workmen’s compensation, social insurance, income tax, limitation of injunctions, federal commission to adjust tariff
Progressivism at Zenith
Woodrow Wilson
▪ Wilson was a professor, then president of Princeton, then Democratic governor of NJ, and progressive, which put him in lead for Democratic nomination
▪ Wilson had offended conservative sponsors, also unpopular in South, East and farming West
▪ Bryan castigated anyone supported by Tammany (Clark) and deals eventually got Wilson the nomination
The Election of 1912
▪ Contest between Democrats and Progressives—Democratic leadership took pains to preserved party unity but Wilson had to face Roosevelt
▪ Differences between Bull Moose and Democratic platforms: protective tariff/downward revision, powerful federal regulation/state’s rights, broad social welfare program/just limiting injunctions
▪ Roosevelt assumed economic consolidation was good, welcomed big business but big government supervise it, expressed in Croly’s book, which demanded comprehensive federal planning for national interest
▪ Wilson believed guilt in business, also personal guilt, so stern prophet rather than vigorous promoter, laissez-faire only work if state encourage competition, popular democracy, intellectual Brandeis argued great corporations had to be broken up, rules of competition be defined by law, credit for small and new businesses (New Freedom)
▪ Wilson said Roosevelt planned to partner government and trusts while his alternative free economy and free government—“regulated competition” instead of “regulated monopoly”—Roosevelt called it “rural Toryism”
▪ Wilson won by a lot and Democrats carried both houses—also Taft miserable showing and 1 million votes for socialism
▪ Low turnout of voters as compared to before
A Democratic Tariff
▪ Wilson willing to appeal over Congress’ head to electorate—however had neither temperament nor experience to get along with professional politicians, selected advisors: Bryan, Burleson, McAdoo, Tumulty, House
▪ Called special session of Congress for tariff revision and appeared personally—a month later House reduced rates, added consumer goods to free list, eliminated protection of trusts, and graduated income tax
▪ Democrats only had 3 vote majority in Senate and Democratic senators from sugar and wool producing states reluctant to leave those products free—president called on public opinion to go against lobbyists and caused investigation of senators who would profit personally from protection of wool and sugar, so bill got passed (Underwood-Simmons Act)
Banking Reform
▪ Panic of 1907 showed inflexibility of currency and credit and showed financial power in hands of few Eastern private bankers which persuaded progressives “money trust”
▪ Bankers also in favor of reform but of own kind—wanted currency responsive to expansion and contraction of commercial paper
▪ Wanted central bank authorized by government but privately controlled, issue currency on own liability—Democrats replaced single central bank with regional banks supervised by federal board
▪ Fell short of program advanced by South—no interlocking directorates, public control of regional banks, reserve banks allowed to discount agricultural paper, preventing commercial paper as basis for currency—president conceded discounting of agricultural notes and later interlocking directorates
▪ Resistance from conservatives in Senate and Wilson overcame it by appeal for party responsibility and patronage—passed December 1913 (Federal Reserve Act)
▪ Most important statute of Wilson’s administration—first efficient banking system since Jackson—greater degree of public control over banking than ever—helped us adjust to financial strains of WWI
The New Freedom and the Trusts
▪ Wilson asked for legislation to prohibit interrelated groups to control holding companies, commission to dissolve corporations in restraint of trade, define unfair business practices
▪ Didn’t satisfy conservatives, labor leaders, or Bull Moosers—Brandeis drafted Federal Trade Commission bill and passed after Republicans added broad court review
▪ House passed Clayton bill—defined unfair practices and forbade interlocking directorates—Senate exempted instances that did not decrease competition and also clause added by House exempting labor unions from antitrust prosecutions but only if pursuing legitimate aims
▪ These laws didn’t do enough but not immediately apparent and constituted another victory for administration
▪ Some Republican gains in 1914 and aided by collapse of Progressive party
In Behalf of Progress
▪ Wilson saw that interests of legitimate business did not conflict with social reform—also got passed Federal Farm Loan Act and Child Labor Act, legislation permitting export traders to combine to meet foreign competition, and created expert tariff commission
▪ Wilson ordered Congress to establish 8 hr day at 10 hr pay for railroad labor—Adamson Act—to avoid strike which would have tied up war materials for Allies
▪ Brandeis first Jew to be appointed to Supreme Court
▪ President revealed faith in dynamic but humane capitalism and almost carried out platform of Progressive party
Wilson and Moral Diplomacy
The Force of Moral Principle
▪ Conditions of world affairs changed little between Roosevelt and Wilson—he felt had mission to teach semideveloped countries legal system of US and body of international law moral nations would obey—hope for peace in that law, not alliances or defensive military buildups
▪ Bryan negotiated treaties with Great Britain, France, Italy, others, provided for all disputes, submitted to permanent committees of investigation and one year “cooling off” period
▪ Wilson withdrew support from Taft’s Chinese railway consortium and recognized Republic of China
▪ Wilson race prejudiced, didn’t dissuade California politicians from prohibiting Japanese from owning land there—Japanese humiliated, complained to prez—Wilson was advised to move warships towards Japan but instead conciliatory diplomacy which resolved nothing
▪ Japan made 21 extraordinary demands of China that would have made it a political and economic dependency—Americans persuaded Japanese to moderate their terms—revealed tenuous balance of power in Asia and Bryan’s commitment to conventional national policies
Confusion in Latin America
▪ Wilson intended to abandon dollar diplomacy, cultivate their friendship and more democratic government
▪ Negotiated treaty with Colombia for apology and indemnity for Panama
▪ Wilson relied on private bankers instead of US government to assume and service their debts—would not permit turmoil in the area to breed European intercessions, so turned to American troops to keep order in Latin America and at times resisted reform
▪ Wilson never got how close he was to dollar diplomacy and how hated the US had become
▪ 1911 Mexican Revolution by middle class but 1913 Huerta restored reactionary regime and Constitutionalists continued to resist under Carranza
▪ Wilson refused to appoint ambassador to Mexico—“watchful waiting” until Huerta declared self military dictator, then, US demanded Huerta retire and sought advancement of constitutional liberty
▪ Wilson promised to protect British property and gave Britain better Panama Canal rights, so they withdrew their recognition of Huerta
▪ Wilson told Carranza US would help him—didn’t want interference but needed arms so president lifted embargo
Intervention in Mexico
▪ Huertista colonel arrested American sailors at Tampico, and although Mexico apologized did not salute American flag so US prepared to occupy Vera Cruz—Wilson ordered navy to seize Vera Cruz and Americans and Mexicans killed in skirmish
▪ Both countries accepted offer of mediation—meanwhile Huerta abdicated and Carranza took Mexico City
▪ Revolution became high-pitched—many wanted Wilson to intervene, but he recognized Constitutionalists de facto
▪ Pancho Villa murdered a bunch of Americans and Wilson ordered expedition across border to punish him without disturbing Constitutionalists—aroused Mexican tempers and Carranza insisted Americans leave—Wilson refused—Villa raided Texas—Wilson called up National Guard and plans for full-scale invasion—2 serious skirmishes
▪ Both men desired peace, appointed commission, Carranza rejected decision but war scare past and de jure recognition
▪ Wilson’s restraint outweighed moralism and offended those he wanted to help but withstood demands for war
Problems of Neutrality
War in Europe
▪ Germany, Austria-Hungary, Ottoman Empire vs. France, England, Russia & Italy
▪ Americans shocked by outbreak of war but wrongly relieved it was so far away—believed US should concentrate on further reform at home and set example of peace and democracy—few saw intensity of nationalistic emotions
▪ Wilson said US should be impartial mediator but Americans of different ethnic groups supported different sides and many supported England
▪ Propaganda on both sides but could not erase the fact Germany had violated pledge to respect Belgian neutrality
Neutral Rights
▪ Existing rules of international law were uncertain, especially since submarine
▪ Britain tightly blockaded Germany, inspected American cargoes, fooled with the mail, and forbade subjects to do business with blacklisted American companies
▪ Wilson protested and British only cared enough to keep the US out of the Central Powers
▪ Increasing goodwill Americans felt for England also owed to increased production for American economy
▪ By end of 1915 Americans giving Britain huge loans to finance Allied purchases of material
▪ Germans protested against American sales of war material to Allies since blockade against them, so sent out U-boats
The Submarine Issue
▪ Submarines could not operate according to traditional anti-commerce ship rules, yet Wilson insisted Germans observe the law
▪ Germany proclaimed war zone around British Isles, and danger of sinking neutral ships—Wilson said if any Americans killed, flagrant violation of neutral rights and gave Germany choice of abandoning plan or risking American antagonism