Chapter 28 and 29 Outlines

Chapter 28

I. Progressive Roots

1. In the beginning of the 1900s, America had 76 million people,
   mostly in good condition. Then before the first decade of the 20th
   century, the U.S. would be influenced by a “Progressive
   movement’ that fought against monopolies, corruption,
   inefficiency, and social injustice.
   • The purpose of the Progressives was to use the government as an agency of human welfare.
2. The Progressives had their roots in the Greenback Labor Party of the 1870s and 1880s and the Populist Party of the 1890s.
3. In 1894, Henry Demarest Lloyd exposed the corruption of the
   monopoly of the Standard Oil Company with his book Wealth Against
   Commonwealth, while Thorstein Veblen criticized the new rich (those who
   made money from the trusts) in The Theory of the Leisure Class (1899).
4. Other exposers of the corruption of trusts, or
   “muckrakers,” as Theodore Roosevelt called them, were Jacob
   A. Riis, writer of How the Other Half Lives, a book about the New York
   slums and its inhabitants, and novelist Theodore Dreiser, who wrote The
   Financier and The Titan to attack profiteers.
5. Socialists and feminists gained strength, and with people like Jane
   Addams and Lillian Wald, women entered the Progressive fight.

II. Raking Muck with the Muckrakers

1. Beginning about 1902, a group of aggressive ten and fifteen-cent popular magazines, such as Cosmopolitan, Collier’s, and Everybody’s, began flinging the dirt about the trusts.
2. Despite criticism, reformer-writers ranged far and wide to lay bare the muck on the back of American society.
   • In 1902, Lincoln Steffens launched a series of articles in McClure’s
     entitled “The Shame of the Cities,” in which he unmasked
     the corrupt alliance between big business and the government.
   • Ida M. Tarbell launched a devastating exposé against Standard Oil and its ruthlessness.
   • These writers exposed the “money trusts,” the railroad
     barons, and the corrupt amassing of American fortunes, this last part
     done by Thomas W. Lawson.
   • David G. Phillips charged that 75 of the 90 U.S. Senators did not represent the people, but actually the railroads and trusts.
   • Ray Stannard Baker’s Following the Color Line was about the illiteracy of Blacks.
   • John Spargo’s The Bitter Cry of the Children exposed child labor.
   • Dr. Harvey W. Wiley exposed the frauds that sold potent patent medicines by experimenting on himself.
3. The muckrakers sincerely believed that cures for the ills of American democracy, was more democracy.

III. Political Progressivism

1. Progressives were mostly middle-class citizens who felt squeezed by
   both the big trusts above and the restless immigrant hordes working for
   cheap labor that came from below.
2. The Progressives favored the “initiative” so that
   voters could directly propose legislation, the “referendum”
   so that the people could vote on laws that affected them, and the
   “recall” to remove bad officials from office.
3. Progressives also desired to expose graft, using a secret ballot
   (Australian ballot) to counteract the effects of party bosses, and have
   direct election of U.S. senators to curb corruption.
   • Finally, in 1913, the 17th Amendment provided for direct election of senators.
4. Females also campaigned for woman’s suffrage, but that did not come…yet.

IV. Progressivism in the Cities and States

1. Progressive cities like Galveston, TX either used, for the first
   time, expert-staffed commissions to manage urban affairs or the
   city-manager system, which was designed to take politics out of
   municipal administration.
2. Urban reformers tackled “slumlords,” juvenile delinquency, and wide-open prostitution.
3. In Wisconsin, Governor Robert M. La Follette wrestled control from
   the trusts and returned power to the people, becoming a Progressive
   leader in the process.
   • Other states also took to regulate railroads and trusts, such as
     Oregon and California, which was led by Governor Hiram W. Johnson.
   • Charles Evans Hughes, governor of New York, gained fame by investigating the malpractices of gas and insurance companies.

V. Progressive Women

1. Women were an indispensable catalyst in the progressive army. They
   couldn’t vote or hold political office, but were active
   none-the-less. Women focused their changes on family-oriented ills such
   as child labor.
2. Progressives also made major improvements in the fight against
   child labor, especially after a 1911 fire at the Triangle Shirtwaist
   Company in NYC which killed 146 workers, mostly young women.
   • The landmark case of Muller vs. Oregon (1908) found attorney Louis
     D. Brandeis persuading the Supreme Court to accept the
     constitutionality of laws that protected women workers.
   • On the other hand, the case of Lochner vt. New York invalidated a New York law establishing a ten-hour day for bakers.
   • Yet, in 1917, the Court upheld a similar law for factory workers.
3. Alcohol also came under the attack of Progressives, as
   prohibitionist organizations like the Woman’s Christian
   Temperance Union (WCTU), founded by Frances E. Willard, and the
   Anti-Saloon League were formed.
   • oFinally, in 1919, the 18th Amendment prohibited the sale and drinking of alcohol.

VI. TR’s Square Deal for Labor

1. The Progressivism spirit touched President Roosevelt, and his
   “Square Deal” embraced the three Cs: control of the
   corporations, consumer protection, and the conservation of the United
   States’ natural resources.
2. In 1902, a strike broke out in the anthracite coalmines of
   Pennsylvania, and some 140,000 workers demanded a 20% pay increase and
   the reduction of the workday to nine hours.
   • Finally, after the owners refused to negotiate and the lack of coal
     was getting to the freezing schools, hospitals, and factories during
     that winter, TR threatened to seize the mines and operate them with
     federal troops if he had to in order to keep it open and the coal
     coming to the people.
   • As a result, the workers got a 10% pay increase and a 9-hour
     workday, but their union was not officially recognized as a bargaining
     agent.
3. In 1903, the Department of Commerce and Labor was formed, a part of
   which was the Bureau of Corporations, which was allowed to probe
   businesses engaged in interstate commerce; it was highly useful in
   “trust-busting.”

VII. TR Corrals the Corporations

1. The 1887-formed Interstate Commerce Commission had proven to be
   inadequate, so in 1903, Congress passed the Elkins Act, which fined
   railroads that gave rebates and the shippers that accepted them.
2. The Hepburn Act restricted the free passes of railroads.
3. TR decided that there were “good trusts” and “bad
   trusts,” and set out to control the “bad trusts,”
   such as the Northern Securities Company, which was organized by J.P.
   Morgan and James J. Hill.
   • In 1904, the Supreme Court upheld TR’s antitrust suit and
     ordered Northern Securities to dissolve, a decision that angered Wall
     Street but helped TR’s image.
4. TR did crack down on over 40 trusts, and he helped dissolve the
   beef, sugar, fertilizer, and harvester trusts, but in reality, he
   wasn’t as large of a trustbuster as he has been portrayed.
   • He had no wish to take down the “good trusts,” but the
     trusts that did fall under TR’s big stick fell symbolically, so
     that other trusts would reform themselves.
5. TR’s successor, William Howard Taft, crushed more trusts than
   TR, and in one incident, when Taft tried to crack down on U.S. Steel, a
   company that had personally been allowed by TR to absorb the Tennessee
   Coal and Iron Company, the reaction from TR was hot!

VIII. Caring for the Consumer

1. In 1906, significant improvements in the meat industry were passed,
   such as the Meat Inspection Act, which decreed that the preparation of
   meat shipped over state lines would be subject to federal inspection
   from corral to can.
   • Upton Sinclair’s The Jungle enlightened the American public
     to the horrors of the meatpacking industry, thus helping to force
     changes.
2. The Pure Food and Drug Act tried to prevent the adulteration and mislabeling of foods and pharmaceuticals.
   • Another reason for new acts was to make sure European markets could trust American beef and other meat.

IX. Earth Control

1. Americans were vainly wasting their natural resources, and the
   first conservation act, the Desert Land Act of 1877, provided little
   help.
   • More successful was the Forest Reserve Act of 1891, which
     authorized the president to set aside land to be protected as national
     parks.
     • Under this statute, some 46 million acres of forest were set aside as preserves.
2. Roosevelt, a sportsman in addition to all the other things he was,
   realized the values of conservation, and persuaded by other
   conservationists like Gifford Pinchot, head of the federal Division of
   Forestry, he helped initiate massive conservation projects.
   • The Newlands Act of 1902 initiated irrigation projects for the
     western states while the giant Roosevelt Dam, built on Arizona’s Salt
     River, was dedicated in 1911
3. By 1900, only a quarter of the nation’s natural timberlands
   remained, so he set aside 125 million acres, establishing perhaps his
   most enduring achievement as president.
4. Concern about the disappearance of the national frontier led to the
   success of such books like Jack London’s Call of the Wild and the
   establishment of the Boy Scouts of America and the Sierra Club, a
   member of which was naturalist John Muir.
5. In 1913, San Francisco received permission to build a dam in Hetchy
   Hetch Valley, a part of Yosemite National Park, causing much
   controversy.
   • Roosevelt’s conservation deal meant working with the big logging companies, not the small, independent ones.

X. The “Roosevelt Panic” of 1907

1. TR had widespread popularity (such as the “Teddy”
   bear), but conservatives branded him as a dangerous rattlesnake,
   unpredictable in his Progressive moves.
2. However, in 1904, TR announced that he would not seek the
   presidency in 1908, since he would have, in effect, served two terms by
   then. Thus he “defanged” his power.
3. In 1907, a short but sharp panic on Wall Street placed TR at the
   center of its blame, with conservatives criticizing him, but he lashed
   back, and eventually the panic died down.
4. In 1908, Congress passed the Aldrich-Vreeland Act, which authorized
   national banks to issue emergency currency backed by various kinds of
   collateral.
   • This would lead to the momentous Federal Reserve Act of 1913

XI. The Rough Rider Thunders Out

1. In the 1908 campaign, TR chose William Howard Taft as his
   “successor,” hoping that the corpulent man would continue
   his policies, and Taft easily defeated William Jennings Bryan; a
   surprise came from Socialist Eugene V. Debs, who garnered 420,793 votes.
2. TR left the presidency to go on a lion hunt, then returned with much energy.
   • He had established many precedents and had helped ensure that the
     new trusts would fit into capitalism and have healthy adult lives while
     helping the American people.
   • TR protected against socialism, was a great conservationist,
     expanded the powers of the presidency, shaped the progressive movement,
     launched the Square Deal—a precursor to the New Deal that would
     come later, and opened American eyes to the fact that America shared
     the world with other nations so that it couldn’t be isolationist.

XII. Taft: A Round Peg in a Square Hole

1. William Taft was a mild progressive, quite jovial, quite fat, and passive.
   • He was also sensitive to criticism and not as liberal as Roosevelt.

XIII. The Dollar Goes Abroad as Diplomat

1. Taft urged Americans to invest abroad, in a policy called
   “Dollar Diplomacy,” which called for Wall Street bankers to
   sluice their surplus dollars into foreign areas of strategic concern to
   the U.S., especially in the Far East and in the regions critical to the
   security of the Panama Canal. This investment, in effect, gave the U.S.
   economic control over these areas.
2. In 1909, perceiving a threat to the monopolistic Russian and
   Japanese control of the Manchurian Railway, Taft had Secretary of State
   Philander C. Knox propose that a group of American and foreign bankers
   buy the railroads and turn them over to China.
3. Taft also pumped U.S. dollars into Honduras and Haiti, whose
   economies were stagnant, while in Cuba, the same Honduras, the
   Dominican Republic, and Nicaragua, American forces were brought in to
   restore order after unrest.

XIV. Taft the Trustbuster

1. In his four years of office, Taft brought 90 suits against trusts.
2. In 1911, the Supreme Court ordered the dissolution of the Standard Oil Company.
3. After Taft tried to break apart U.S. Steel despite TR’s prior
   approval of the trust, Taft increasingly became TR’s antagonist.

XV. Taft Splits the Republican Party

1. Two main issues split the Republican party: (1) the tariff and (2) conservation of lands.
   • To lower the tariff and fulfill a campaign promise, Taft and the
     House passed a moderately reductive bill, but the Senate, led by
     Senator Nelson W. Aldrich, tacked on lots of upward revisions, and
     thus, when the Payne-Aldrich Bill passed, it betrayed Taft’s
     promise, incurred the wrath of his party (drawn mostly from the
     Midwest), and outraged many people.
     • Old Republicans were high-tariff; new/Progressive Republicans were low tariff.
     • Taft even foolishly called it “the best bill that the Republican party ever passed.”
   • While Taft did establish the Bureau of Mines to control mineral
     resources, his participation in the Ballinger-Pinchot quarrel of 1910
     hurt him. In the quarrel, Secretary of the Interior Richard Ballinger
     opened public lands in Wyoming, Montana, and Alaska to corporate
     development and was criticized by Forestry chief Gifford Pinchot, who
     was then fired by Taft.
     • Old Republicans favored using the lands for business; new/Progressive Republicans favored conservation of lands.
2. In the spring of 1910, the Republican party was split between the
   Progressives and the Old Guard that Taft supported, so that the
   Democrats emerged with a landslide in the House.
   • Socialist Victor L. Berger was elected from Milwaukee.

XVI. The Taft-Roosevelt Rupture

1. In 1911, the National Progressive Republican League was formed,
   with LaFollette as its leader, but in February 1912, TR began dropping
   hints that he wouldn’t mind being nominated by the Republicans,
   his reason being that he had meant no third consecutive term, not a
   third term overall.
2. Rejected by the Taft supporters of the Republicans, TR became a
   candidate on the Progressive party ticket, shoving LaFollette aside.
3. In the Election of 1912, it would be Theodore Roosevelt
   (Progressive Republican) versus William H. Taft (Old Guard Republican)
   versus the Democratic candidate, whomever that was to be.

Chapter 29

I. The “Bull Moose” Campaign of 1912

1. With the Republican party split wide open, the Democrats sensed
   that they could win the presidency for the first time in 16 years.
   • One possible candidate was Dr. Woodrow Wilson, a once-mild
     conservative but now militant progressive who had been the president of
     Princeton University, governor of New Jersey (where he didn’t
     permit himself to be controlled by the bosses), and had attacked trusts
     and passed liberal measures.
   • In 1912, in Baltimore, the Democrats nominated Wilson on the 46th
     ballot, after William Jennings Bryan swung his support over to
     Wilson’s side.
   • The Democratic ticket would run under a platform called “New Freedom,” which would include many progressive reforms.
2. At the Progressive convention, Jane Addams put Theodore
   Roosevelt’s name on the nomination, and as TR spoke, he ignited
   an almost-religious spirit in the crowd.
   • oTR got the Progressive nomination, and entering the campaign, TR
     said that he felt “as strong as a bull moose,” making that
     animal the unofficial Progressive symbol.
3. Republican William Taft and TR tore into each other, as the former
   friends now ripped every aspect of each other’s platforms and
   personalities.
4. Meanwhile, TR’s “New Nationalism” and Wilson’s “New Freedom” became the key issues.
   • Roosevelt’s New Nationalism was inspired by Herbert
     Croly’s The Promise of American Life (1910), and it stated that
     the government should control the bad trusts, leaving the good trusts
     alone and free to operate.
     • TR also campaigned for female suffrage and a broad program of
       social welfare, such as minimum-wage laws and “socialistic”
       social insurance.
   • Wilson’s New Freedom favored small enterprise, desired to
     break up all trusts—not just the bad ones—and basically
     shunned social-welfare proposals.
5. The campaign was stopped when Roosevelt was shot in the chest in
   Milwaukee, but he delivered his speech anyway, was rushed to the
   hospital, and recovered in two weeks.

II. Woodrow Wilson: A Minority President

• With the Republicans split, Woodrow Wilson easily won with 435
  Electoral votes, while TR had 88 and Taft only had 8. But, the
  Democrats did not receive the majority of the popular vote (only 41%)!
• Socialist Eugene V. Debs racked up over 900,000 popular votes,
  while the combined popular totals of TR and Taft exceeded Wilson.
  Essentially, TR’s participation had cost the Republicans the
  election.
• William Taft would later become the only U.S. president to be
  appointed Chief Justice of the Supreme Court, when he was nominated in
  1921.

III. Wilson: The Idealist in Politics

• Woodrow Wilson was a sympathizer with the South, a fine orator, a
  sincere and morally appealing politician, and a very intelligent man.
  1. He was also cold personality-wise, austere, intolerant of stupidity, and very idealistic.
• When convinced he was right, Wilson would break before he would bend, unlike TR.

IV. Wilson Tackles the Tariff

• Wilson stepped into the presidency already knowing that he was
  going to tackle the “triple wall of privilege”: the tariff,
  the banks, and the trusts.
• To tackle the tariff, Wilson successfully helped in the passing of
  the Underwood Tariff of 1913, which substantially reduced import fees
  and enacted a graduated income tax (under the approval of the recent
  16th Amendment).

V. Wilson Battles the Bankers

• The nation’s financial structure, as created under the Civil
  War National Banking Act had proven to be glaringly ineffective, as
  shown by the Panic of 1907, so Wilson had Congress authorize an
  investigation to fix this.
  1. The investigation, headed by Senator Aldrich, in effect recommended a third Bank of the United States.
  2. Democrats heeded the findings of a House committee chaired by
     Congressman Arsene Pujo, which traced the tentacles of the “money
     monster” into the hidden vaults of American banking and business.
  3. Louis D Brandeis’s Other People’s Money and How the
     Bankers Use It (1914) furthermore showed the problems of American
     finances at the time.
• In June 1913, Woodrow Wilson appeared before a special joint
  session of Congress and pleaded for a sweeping reform of the banking
  system.
  1. The result was the epochal 1913 Federal Reserve Act, which created
     the new Federal Reserve Board, which oversaw a nationwide system of
     twelve regional reserve districts, each with its own central bank, and
     had the power to issue paper money (“Federal Reserve
     Notes”).

VI. The President Tames the Trusts

• In 1914, Congress passed the Federal Trade Commission Act, which
  empowered a president-appointed position to investigate the activities
  of trusts and stop unfair trade practices such as unlawful competition,
  false advertising, mislabeling, adulteration, & bribery.
• The 1914 Clayton Anti-Trust Act lengthened the Sherman Anti-Trust
  Act’s list of practices that were objectionable, exempted labor
  unions from being called trusts (as they had been called by the Supreme
  Court under the Sherman Act), and legalized strikes and peaceful
  picketing by labor union members.

VII. Wilsonian Progressivism at High Tide

• After tackling the triple wall of privilege and leading progressive
  victory after victory, Wilson proceeded with further reforms, such as
  the Federal Farm Loan Act of 1916, which made credit available to
  farmers at low rates of interest, and the Warehouse Act of 1916, which
  permitted loans on the security of staple crops—both Populist
  ideas.
• The La Follette Seamen’s Act of 1915 required good treatment
  of America’s sailors, but it sent merchant freight rates soaring
  as a result of the cost to maintain sailor health.
• The Workingmen’s Compensation Act of 1916 granted assistance
  of federal civil-service employees during periods of instability but
  was invalidated by the Supreme Court.
• The 1916 Adamson Act established an eight-hour workday with overtime pay.
• Wilson even nominated Louis Brandeis to the Supreme
  Court—making him the first Jew ever in that position—but
  stopped short of helping out Blacks in their civil rights fight.
• Wilson appeased the business by appointing a few conservatives to
  the Federal Reserve Board and the Federal Trade Commission, but he used
  most of his energies for progressive support.

VIII. New Directions in Foreign Policy

• Wilson, unlike his two previous predecessors, didn’t pursue
  an aggressive foreign policy, as he stopped “dollar
  diplomacy,” persuaded Congress to repeal the Panama Canal Tolls
  Act of 1912 (which let American shippers not pay tolls for using the
  canal), and even led to American bankers’ pulling out of a
  six-nation, Taft-engineered loan to China.
• Wilson signed the Jones Act in 1916, which granted full territorial
  status to the Philippines and promised independence as soon as a stable
  government could be established.
  1. The Filipinos finally got their independence on July 4, 1946.
• When California banned Japanese ownership of land, Wilson sent
  Secretary of State William Jennings Bryan to plead with legislators,
  and tensions cooled.
• When disorder broke out in Haiti in 1915, Wilson sent American
  Marines, and in 1916, he sent Marines to quell violence in the
  Dominican Republic.
• In 1917, Wilson bought the Virgin Islands from Denmark.

IX. Moralistic Diplomacy in Mexico

• Mexico had been exploited for decades by U.S. investors in oil,
  railroads, and mines, but the Mexican people were tremendously poor,
  and in 1913, they revolted, and installed full-blooded Indian General
  Victoriano Huerta to the presidency.
  1. This led to a massive immigration of Mexicans to America, mostly to the Southwest.
• The rebels were very violent and threatened Americans living in
  Mexico, but Woodrow Wilson would not intervene to protect American
  lives.
  1. Neither would he recognize Huerta’s regime, even though other countries did.
  2. On the other hand, he let American munitions flow to Huerta’s
     rivals, Venustiano Carranza and Francisco “Pancho” Villa.
• After a small party of American sailors were arrested in Tampico,
  Mexico, in 1914, Wilson threatened to use force, and even ordered the
  navy to take over Vera Cruz, drawing protest from Huerta and Carranza.
  1. Finally, the ABC powers—Argentina, Brazil, and
     Chile—mediated the situation, and Huerta fell from power and was
     succeeded by Carranza, who resented Wilson’s acts.
• Meanwhile, “Pancho” Villa, combination bandit/freedom
  fighter, murdered 16 Americans in January of 1916 in Mexico and then
  killed 19 more a month later in New Mexico.
  1. Wilson sent General John J. Pershing to capture Villa, and he
     penetrated deep into Mexico, clashed with Carranza’s and
     Villa’s different forces, but didn’t take Villa.

X. Thunder Across the Sea

• In 1914, a Serbian nationalist killed the Austro-Hungarian heir to
  the throne (Archduke Franz Ferdinand). The domino-effect began where
  Austria declared war on Serbia, which was supported by Russia, who
  declared war on Austria-Hungary and Germany, which declared war on
  Russia and France, then invaded neutral Belgium, and pulled Britain
  into the war and igniting World War I.
• Americans were thankful that the Atlantic Ocean separated the warring Europeans from the U.S.

XI. A Precarious Neutrality

• Wilson, whose wife had recently died, issued a neutrality
  proclamation and was promptly wooed by both the Allies and the German
  and Austro-Hungarian powers.
• The Germans and Austro-Hungarians counted on their relatives in
  America for support, but the U.S. was mostly anti-German from the
  outset, as Kaiser Wilhem II made for a perfect autocrat to hate.
• German and Austro-Hungarian agents in America further tarnished the
  Central Powers’ image when they resorted to violence in American
  factories and ports, and when one such agent left his briefcase in a
  New York elevator, the contents of which were found to contain plans
  for sabotage.

XII. America Earns Blood Money

• Just as WWI began, America was in a business recession. American
  trade was fiercely protested by the Central Powers, that were
  technically free to trade with the U.S., but were prohibited from doing
  so by the British navy which controlled the sea lanes. The Allies and
  Wall Street’s financing of the war by J.P. Morgan et al, pulled
  the U.S. out of the recession.
• So, Germany announced its use of submarine warfare around the
  British Isles, warning the U.S. that it would try not to attack neutral
  ships, but that mistakes would probably occur.
  1. Wilson thus warned that Germany would be held to “strict accountability” for any attacks on American ships.
  2. German subs, or U-boats, sank many ships, including the Lusitania,
     a British passenger liner that was carrying arms and munitions as well.
     • The attack killed 1,198 lives, including 128 Americans.
     • Notably the Germans had issued fliers prior to the Lusitania setting sail that warned Americans the ship might be torpedoed.
• America clamored for war in punishment for the outrage, but Wilson
  kept the U.S. out of it by use of a series of strong notes to the
  German warlords.
  1. Even this was too much for William Jennings Bryan, who resigned rather than go to war.
  2. After the Germans sank the Arabic in August 1915, killing two
     Americans and numerous other passengers, Germany finally agreed not to
     sink unarmed ships without warning.
• After Germany seemed to break that pledge by sinking the Sussex, it
  issued the “Sussex pledge,” which agreed not to sink
  passenger ships or merchant vessels without warning, so long as the
  U.S. could get the British to stop their blockade.
  1. Wilson couldn’t do this, so his victory was a precarious one.

XIII. Wilson Wins Reelection in 1916

• In 1916, Republicans chose Charles Evans Hughes, who made different
  pledges and said different things depending on where he was, leading to
  his being nicknamed “Charles Evasive Hughes.”
• The Democratic ticket, with Wilson at its head again, went under
  the slogan “He kept us out of war,” and warned that
  electing Hughes would be leading America into World War I.
  1. Ironically, Wilson would lead America into war in 1917.
  2. Actually, even Wilson knew of the dangers of such a slogan, as
     American neutrality was rapidly sinking, and war was appearing to be
     inevitable.
• Wilson barely beat Hughes, with a vote of 277 to 254, with the
  final result dependent on results from California, and even though
  Wilson didn’t specifically promise to keep America out of war,
  enough people felt that he did to vote for him.