4.4- NOTES- Reformers in the White House - Part 2
What is the essential legacy of Progressive political reform movements?
The Progressive reformers passed on the idea that government can take action to help people and private enterprise fix the problems plaguing America today.
32. Describe the Clayton Antitrust Act.
Congress passed the Clayton Antitrust Act in 1914, which strengthened earlier antitrust laws by spelling out those activities in which businesses could not engage. Page 184
25. Explain Woodrow Wilson's plans for tariffs.
Early in Wilson's first term, he pushed for new laws that would bring down the three walls of privilege (tariffs, banks, and trusts) and give the government more control over the economy. Page 183
31. What is the Federal Trade Commission (FTC)?
In 1914, Wilson persuaded Congress to create the Federal Trade Commission (FTC). Members of this group were named by the President to monitor business practices that might lead to monopoly. The FTC was also charged with watching out for false advertising or dishonest labeling. Page 184
28a. What is monetary policy?
Monetary policy is control of the supply of money in circulation at any given time. Page 184
28b. What is the purpose of a monetary policy?
Monetary policy, carried out by a central authority, helps to influence and control interest rates with the goal of promoting economic growth and stability and controlling inflation and deflation. Page 184
How did President Taft influence Roosevelt's decision to run for a third term?
President Taft had angered Roosevelt so much, Roosevelt felt he had to take action. Roosevelt thought Taft was ruining his work from when he was in office. Page 181-182
24. What was the "triple wall of privilege"?
President Wilson attacked what he called the "triple wall of privilege," the tariffs, the banks, and the trusts, that blocked businesses from being free.
36. Where in today's society do we see the influence of the Progressive movement?
Progressive reforms also paved the way for future trends. The American economy today showcases the Progressives' legacy. Antitrust laws, the Federal Reserve Board, and the other federal agencies watch closely over the economy. The Progressive years also greatly expanded the government's role in managing natural resources.
20. What is New Nationalism?
Roosevelt began traveling the country speaking about what he called the New Nationalism, a program to restore the government's trustbusting power. Page 182
15a. Who did Roosevelt hand pick to succeed him after serving two terms in office?
Roosevelt chose William Howard Taft to win the presidency in 1908. Page 181
15b. What did Roosevelt hope that his successor would do?
Roosevelt expected Taft to continue his programs of managing business and natural resources. Page 181
19. What did Roosevelt think about Taft's moves on corporations? Why?
Roosevelt fumed when Taft sued U.S. Steel to sell a coal company it had bought because he had approved of that purchase. Taft further infuriated Roosevelt and other Progressives in the Republican Party when he fired Gifford Pinchot for publicly criticizing Secretary of Interior Richard Ballinger. Page 182
21a. What happened to the Republican party when Roosevelt decided to make a come-back in the 1912 election? 21b. What was the name of this new political party?
Roosevelt vowed to tackle trusts in a third presidential term. The Taft-Roosevelt battle split the Republic Party as an election neared. Progressives bolted from the Republican Party and created the Progressive Party. Page 182
17. Who was really the "trustbuster," Taft or Roosevelt? Defend your answer.
Roosevelt was more of a trustbuster than Taft was because Taft was more lenient when it came to dissolving trusts. For example, Taft supported what the Supreme Court called its "rule to reason," which relaxed the hard line set by the Sherman Antitrust Act. While when Roosevelt was in office, he separated the good trusts from the bad ones, and "busted" them. In fact, Taft gave up Roosevelt's distinction between good and bad trusts. Page 181
16. What were some things that Taft did while in office?
Taft approved the Payne-Aldrich Act in 1909, which did not lower tariffs as much as Roosevelt had wanted. He also pushed Congress to pass the Mann-Elkins Act in 1910, which gave the government control over telephone and telegraph rates. He encouraged Congress to propose an income tax. Perhaps most importantly, he dropped Roosevelt's distinction between good trusts and bad trusts. Page 181
18. What infamous trust did Taft break up?
Taft's attorney general sued to force U.S. Steel to sell a coal company it had bought. Page 181
33. Who does the FTC & Clayton Antitrust Act protect?
The FTC and the Clayton Antitrust Act protect both businesses and consumers from abusive business activities. Page 184
How did the government regulate commercial banks?
The Federal Reserve Act in 1913 was passed by Congress, placing commercial banks under the control of a Federal Reserve Board. The Federal Reserve Board set up regional banks to hold the reserve funds from those commercial banks. This protected the economy by preventing too much money end up in the hand of a person, bank, or a region. Page 184
30. Who sets interest rates?
The Federal Reserve Board sets the interest rate that banks borrow money from other banks, and it supervises banks to make sure they all are well run. Page 184
27a. Describe the 16th Amendment.
The Sixteenth Amendment gave Congress the power to collect an income tax without restrictions. Page 183
27b. How does a graduated income tax work?
The graduated tax became and continues to be the battleground between those who favor low rates to stimulate economic growth and those who view it as a means to further investment. Page 183
35. Summarize the achievements of the Progressive movement.
The political reforms of the Progressives had lasting effect on the American political system. The initiative, referendum, recall, and the Seventeenth and Nineteenth Amendments expanded voters' influence.
26a. What was the main source of revenue for the government? 26b. How was Wilson going to fix this?
The revenue from the income tax more than made up for the money the government lost by lowering tariffs on imports. Wilson passed the Underwood Tariff Act of 1913, which included a provision to create a graduated income tax. Page 183
34. What were some advancements made by labor during Wilson's term?
Wilson did not always support organized labor, as a tragic incident known as the Ludlow Massacre showed. In the fall of 1913, coal miners in Ludlow, Colorado, demanded safer conditions, higher pay, and the right to form a union. Evicted from company housing, the miners and their families set up in a tent city near the mines. The strike continued through the winter. Then on April 20, 1914, the Colorado National Guard opened fire on the tent city and set fire to the tents, killing some 26 men, women, and children. In the end, Wilson sent federal troops to restore order and break up the strike. The miners' attempt to form a union had failed. Page 185
29. What is the Federal Reserve Act?
Wilson pushed Congress to pass the Federal Reserve Act in 1913. This law placed commercial banks under the control of a Federal Reserve Board, which set up regional banks to hold the reserve funds from those commercial banks. This system helps protect the American economy from having too much money end up in the hands of one person, bank, or region. Page 184
22b. What was the name of Woodrow Wilson's platform?
Wilson shipped his ideas into a program he called New Freedom. Page 182
23. Who helped Woodrow Wilson win the election of 1912? How?
Wilson's ideas had caught the attention of William Jennings Bryan, who helped Wilson win the Democratic nomination. (couldn't find a way how) Page 182
22c. Describe Woodrow Wilson's platform.
Wilson's platform looked much like Roosevelt's New Nationalism. It, too, would place strict government controls on corporation. Page 182
22a. Who was Woodrow Wilson?
Woodrow Wilson was the Democratic candidate for the election during Taft's and Roosevelt's fight. Page 182
