The Battle for National Reform

1. The Battle for National Reform Chapter 22

2. Theodore Roosevelt and the Modern Presidency The “loveable” president • Changed the powers, role and perception of the president • The Accidental President • “that damned cowboy!” Mark Hanna • reputation of substance, rather than of style • New York Legislature: energy among lethargy • Rancher and peace authority in Dakota Territories • San Juan Hill (useless but heroic)

3. Theodore Roosevelt • Never rebelled against leaders of his party • TR philosophy on reform / gov’t • Reform = protecting the gov’t from more radical challenges • Gov’t = not an agent of a particular interest, but as the mediator of public good with the president at its center

4. Government, Capital and Labor • TR allied himself with progressives who urged regulation, but not destruction, of the trusts • wanted to investigate the activities of corporations and publish them • believed an educated public would eliminate most corporate abuses • gov’t could legislate those that remained • Department of Commerce and Labor

5. TR: Trust Buster? • 1902 ordered the Justice Department to invoke the Sherman Antitrust Act against Northern Securities Company (J.P Morgan) • J.P. Morgan “fix it up” • 1904 Supreme Court ordered the NSC • Roosevelt assured Morgan that he did not wish to dissolve trusts • 40 anti-trust suits filed during the TR presidency • but no serious commitment to reverse the prevailing trend toward economic concentration J.P Morgan

6. TR: Friend of Labor? • 1902 United Mine Workers Strike • threatened to send in troops • federal arbitration awards 10% wage increase and 9 hour day • no recognition of union • TR viewed himself as a champion of management and labor

7. The Square Deal • Through skillful politicking, Roosevelt wins re-election in 1904 • After re-election, free to display extent and limits of reform • Hepburn Railroad Regulation Act of 1906 sought to restore regulatory authority to government (empower the I.C.C.) • cautious • Senator Robert LaFollette never would forgive Roosevelt

8. Square Deal Acts • Pure Food and Drug Act • Meat Inspection Act (Upton Sinclair, The Jungle)

9. The Square Deal Continued • eight-hour day for workers • broader compensation for victims of industrial accidents • inheritance and income taxes • regulation of the stock market • TR criticized conservatives who obstructed these programs • Lead to stalemate in agenda • Widening gap between president TR and the conservative members of his party

10. Conservation • TR life time sportsman and naturalist, was the first president to take an active interest in the new and struggling American conservation movement • Spent four days hiking in the Sierras with John Muir, founder of the Sierra Club • Sierra Club: “aesthetic” value of forest • TR administration: supported rational and efficient human use of the wilderness… “scientific management”

11. Gifford Pinchot • Gifford Pinchot was TR chief forester… 1907 worked furiously to seize all the forests and many of the water power sites till in the public domain before a Conservative Congress restricted president’s authority.

12. Conservation Continued • TR’s administration: established government’s role as “manager” of the continuing development of the wilderness • Pleasing the opposition: Newlands Act… provided federal funds for the construction of dams, reservoirs, and canals in the West • open new lands for cultivation • cheap electric power • greater impact would not be felt for twenty years later

13. The Panic of 1907 • despite reforms gov’t had little control over the economy • Same three mistakes as 1893 • supply production out runs the capacity of demand • banking system inadequate • financial mismanagement • Roosevelt falsely blamed for “mad” economic policies

14. The Panic of 1907 Continued • Roosevelt and Morgan make a deal: Morgan “props up shaky financial institutions” in return for protection from anti-trust action • TR does not run again in 1908 • conservative backlash, might not have gotten party bid • panic of 1907 • promised not to run again in 1904 • retired from public life, briefly, at age 50

15. The Troubled Succession • Hand-picked by Roosevelt to succeed him • Attention to law and detail instead of aggressive like Roosevelt • Came to office as the “darling” of both progressives and conservatives… soon found he could not please both

16. Taft and the Progressives • Payne-Aldrich Tariff • called Congress to a special session to lower protective tariff rates • Taft made no effort to influence Congress, arguing it was unconstitutional for him to do so • P-A Tariff was weak and angered progressives

17. The Pinchot-Ballinger Controversy • Taft replaces Roosevelt’s secretary of the interior who was a conservationist with a conservative corporate lawyer, Richard Ballinger • Ballinger removes 1 million acres of public forests and mineral reserves to private enterprises • Louis Glavis, Interior Department Secretary, finds evidence that Ballinger was selling areas of Alaska for personal profit • Glavis, shows case to Gifford Pinchot (still head of Forest Service) and Pinchot takes case to president • Ballinger cleared by Taft’s attorney general • Glavis fired by Taft • Pinchot, not happy takes the case to the Press and asks Congress to investigate the issue • Pinchot fired for insubordination • Conservative Congressional Committee exonerates Ballinger • Symbolic • Taft separates himself from Roosevelt supporters completely • Big business vs. progressive managed control

18. The Return of Roosevelt • Gone for two years on an African Safari • Return to America, a major public event: turned down an invitation to the White House to meet with Pinchot • Announced a public speaking tour • believed Taft had “completely twisted around” his policies • believed that he alone was capable of reuniting the Republican Party

19. New Nationalism • made clear he had moved a considerable way from the cautious conservatism of the first years of his presidency • social justice only possible through a strong federal government • inheritance taxes • workers compensation in industrial accidents • regulation of the labor of women and children • firmer regulation of corporations

20. Spreading Insurgency • 1910 Congressional Elections • Conservatives ousted, Progressives elected • Democrats beginning to make their mark in Congress • Roosevelt says he does not want to run for President, but rather urge Taft to return to progressivism… two things changed his mind • 1911 antitrust decision by the Taft Administration: TR takes it personally • 1912 Progressive Candidate LaFollette suffers a public breakdown in response to his daughter’s illness “Fighting Bob”

21. The Republican Schism • Roosevelt wins almost every primary election at the individual state level • Republican Party leaders override the primary and refuse to admit Roosevelt’s delegates • Roosevelt marches out of the convention with his delegates • In August of that year, Roosevelt creates a new Progressive Party to nominate him as president • “fit as a bull moose” = Progressive becomes “Bull Moose” Party

22. Woodrow Wilson and The New Freedom • The Rise of Wilson • Born and raised in the South • Author of books on the American political system • President of Princeton University 1902 (New Jersey) • Governor of New Jersey 1910 • Reputation for progressivism and unwillingness to compromise Woodrow Wilson

23. Election of 1912 • traditional Republicans split • Taft – Republican Party • Roosevelt – Progressive / Bull Moose Party • Roosevelt Impaired • Many Republicans refused to leave the party • Roosevelt shot by a would be assassin during the last weeks of the elections • Democrats nominated a strong candidate • Wilson’s “New Freedom” vs. Roosevelt’s “New Nationalism” • two opposing progressive perspectives • proper response to monopolies was to destroy them (Wilson / Brandies) rather to regulate them (Roosevelt)

24. The Scholar as President • Wilson more bold and forceful that both Roosevelt and Taft • demanded fierce loyalty • used Presidential powers to mold together a coalition of conservatives and progressives who would support his program • Democrat majorities in both houses helped his platform • elected candidates realized they would have to enact progressive reform to stay elected

25. The Scholar as President Continued • Tariffs • substantial lowering of the protective tariff • Underwood-Simmons Tariff • many Americans believed this act introduced real competition into American markets • help break the power of trusts • graduated income tax • imposed a 1% tax on individuals and corporations earning over $4,000 • ii. rates went up to 6% on incomes over $500,000

26. The Scholar as President Continued Again • Banking Reform • gov’t would have substantial control at the national level • bankers would retain control at the local level • Federal Reserve Act = most important piece of domestic legislation during Wilson’s administration • created 12 regional banks, each to be controlled by the individual banks of it’s district • new paper currency: Federal Reserve Notes • central institutions able to shift funds quickly into troubled areas

27. Problem of the Trusts During 1912 Campaign, Wilson promised to attack economic concentration (aka monopolistic trusts) but his philosophy began to change into one of regulation, like Roosevelt

28. Federal Trade Commission Act • created a regulatory agency that would help businesses determine in advance whether their actions would be acceptable to the government • would have authority to launch prosecutions against “unfair trade practices” • increased government’s regulatory authority significantly

29. Clayton Antitrust Act • originally reflected the ideals of 1912 campaign • Wilson did not back it strongly, weakened in Congress • Promises of 1912 election never materialized Wilson’s conclusion: supervision over dismemberment

30. Retreat and Advance • Fall of 1914 Wilson decides Reform Movement is complete and that agitation for reform would end • refused to support the movement for national woman’s suffrage • condoned re-imposition of segregation in the agencies of federal government • dismissed efforts from Congress to support new reform legislation • Congressional elections of 1914 shattered President’s complacency: Democrats ousted by re-united Republicans • With 1916 on his mind, Wilson began to push for a second flurry of reforms • Nominated Louis Brandies to the Supreme Court • Supported a measure to make it easier for farmers to receive credit • Workers compensation for federal employees • Keating-Owen Act: first federal law regulating child labor / struck down by Supreme Court

31. The Big Stick”: America and The World,1901 – 1917 (Pre-WWI PPT) Little public involvement in country’s international affairs prior to World War I

32. Roosevelt and “Civilization” • TR believed in the value and importance of using American power in the world (Proverb: “Speak softly, but carry a big stick”) • Clear distinction between “civilized” and “uncivilized” nations • civilized = Anglo-Saxon or Teutonic • uncivilized = non-white, Latin or Slavic • Economic development also important American interests • civilized = producers of industrial goods • uncivilized = sources of raw materials • relationship between the two viewed as vital • Roosevelt believed in order to preserve order and stability, build a strong navy

33. Protecting the Open Door in Asia • TR was concerned with military tensions between Japan, Russia, Germany, France and Asia • Mediated conflict between Russia and Japan in 1905 • part of deal stated US could trade freely in the region • Roosevelt wins Nobel Peace Prize in 1906 • Russian Fleet destroyed by Japan… Japan begins to exert authority in Pacific • Domestic issues • extension of Chinese Exclusion Act • “Oriental School” • Hearst Papers: “Yellow Peril” • “The Great White Fleet” on world tour

34. The Iron-Fisted Neighbor • Principal Sphere of interest: Latin America • 1902 Venezuela: European powers converge off Venezuelan coast, TR uses threat of US naval power to force Germany to withdrawal • “Roosevelt Corollary”: TR states that US has the right to intervene in domestic affairs of its neighbor if they proved unable to maintain order on their own • Dominican Republic: debts to Europe • Cuba: Platt Amendment

35. The Panama Canal • Roosevelt: determined to achieve dream of connecting Atlantic to Pacific • Original site was Nicaragua • French originally tried and failed in Panama…uneven ground would require locks • US chose Panama when French lowered their price of their prior holdings from $109 mil. To $40 mil. • 1901 Hay-Pauncefote Treaty eliminated Britain from the deal • Trouble with closing deal with Columbia • John Hay and suspicious deal with Columbian official • TR upset when Columbians change their mind, calls them “inefficient bandits” and “blackmailers”

36. The Panama Canal Continued • US and French organize and support revolution in Panama • U.S.S Nashville off the coast in Panama to “maintain order” • US military presence kept Colombia from suppressing the rebellion • Independent Nation of Panama officially recognized by the US • 1914 Panama Canal opens TR exclaims “I took the Canal Zone and let Congress debate!”

37. Taft and “Dollar Diplomacy” • Taft also worked to expand the nation’s economic interest overseas, but little interest in world stability • P.C. Knox worked to expand US investments into less developed regions • Failure and greed of Taft-Knox diplomacy: Asia • Taft expands America’s economic influence in Manchurian region, counter to Roosevelt policy • Constructing railroads • Russians loose alliance with Japanese and American railroad project quickly collapses • Failure and greed of Taft-Knox diplomacy: Caribbean • Nicaragua 1909, American corporate inspired revolt • American seize customs houses • Knox encourages American bankers to offer substantial loans to the new government, thus increasing US financial leverage

38. Diplomacy and Morality • Dominican Republic • Mexico • Porfirio Diaz, corrupt leader in Mexico, but friendly to American Businessmen • Victoriano Huerta seizes leadership, Wilson calls him a “government of butchers” • Battle at Veracruz: US on brink of war • Carranza takes leadership, unfriendly to US • US supports coup by Poncho Villa, then abandons • PV retaliates: attack on US soil • General John Pershing chases Villa and attacks Mexico on Mexican soil • Never find Villa