Chapter 4 Pt1 – Wilson and New Freedom

1. Situation in 1912 Wilson was the first Democrat in 50 years to enjoy a huge majority in an election + Democrat control of both houses of Congress. He was 1st President to install telephone link between Congress and the Whitehouse. He also had bipartisan support of Progressives in the Republican Party. He had the power, the votes and the means to make radical changes. Anti-Trust Measures Federal Trade Commission set up to investigate corporations engaged in ‘unfair’ practice. Criticised for being too weak. Filed 400 cease-and-desist orders under Wilson though. Never defined what ‘unfair’ was. Lasting legacy, still exists. Clayton Anti-Trust Act strengthened Sherman Anti-Trust Act e.g. to make monopolies more difficult + shared directorship of companies appearing to be in competition. Called ‘Magna Carta for Labor’ by president of AFL. African Americans Pre-WW1 During 1912 election won support of NCAAP and white liberals by promising to treat blacks equally and to speak out against lynching. When in power he actually opposed federal anti-lynching laws, saying that it came under the states jurisdiction, rather than the government. Felt he had to please Southern Democrats which made up a large proportion of his support, so appointed segregationists in charge of a number of federal agencies. Expanded racial segregation in Washington, armed forces and federal government. NCAAP and white liberals felt betrayed by him. Banking Reform Created the Federal Reserve Board. All banks participating had to invest 6% of their capital and surplus in the reserve bank. Controlled from Washington. Could influence the economy by decreasing amount of money in circulation when inflation threatened and increasing it when deflation was a worry. 70% of nations finances were part of federal reserve system by 1923. System still the basis of US banking system so lasting legacy – but of course did little to avert the Great Depression. Trade Unions and Labor Disputes Appointed an ex-miner and union leader as Secretary of Department of Labor, which helped to resolve labor disputes.But went things got out of hand gov still sided with business – see social reform. 1913 coal miner strike in Ludlow, Colarado, Colorado National Guard called out when workers set up tents outside company. 26 people killed. Federal Troops were then sent to restore order and break the strike. Chapter 4 Pt1 – Wilson and New Freedom Economic and Financial Reform Underwood Tariff reduced a lot of tariffs and removed some entirely; this was largely on things that could be produced cheaper in the US so didn’t need protection anyway. Big business favoured tariffs. Introduced increased income tax to make up for income lost when tariffs were reduced or removed. Initially only paid by wealthy. Revenue Act of 1916 expanded taxation to business profits (rather than just taxing individual people). By 1917 more was being gained from income tax than had ever been gained by tariffs. Big business were to contribute huge amounts to federal coffers for the rest of the 20th century: progressive. Reorganised Department of Agriculture to help more farmers, meaning better credit and distribution networks. Also Federal Farm Loan Act of 1916 provided low-cost loans to farmers. (Note – farmers took advantage of loans available to expand during WW1, which came back to hurt them when demand fell post-war). Election 1916 First Democrat since 1837 to win a second term. ‘He kept us out of war’ was the slogan. Won by narrow margin against Republican Hughes who campaigned against Wilson’s pacifist stance. Seemed to feel his progressive measures had gone far enough by 1914 and pulled back from them. Also, war was to dominate politics after 1914. Social Reform Federal Child Labor Act 1916 to help 2 million child workers, often deprived of an education. However, 2 years later Supreme Court judged it unconstitutional. A fully-working anti-child labor act would not pass until 1938. 1916 Workmen’s Compensation Act meant federal employees got financial assistance if ill or injured and missing work. Progressive = blue. Not progressive = red. Things that don’t fit clearly into either camp left black.

2. Wilsonianism – Moral Diplomacy Believed US to be morally superior and that other nations would benefit from contact with US. Linked to this is his decision to give Colombia $20 million in reparations for US role in encouraging Panamanians to rebel against Colombian rule in 1903. Linked to this his declaration that future cooperation with Latin America would only be possible with ‘just’ governments – implying that they would oppose military dictatorships or revolutionary governments. One of Wilson’s envoys, in an unguarded moment, said that the ‘US forces would shoot men until they learn how to vote and rule themselves’. Ordered intervention in Haiti 1915 after revolution there, stayed until 1934. Intervened in Dominican Republic 1915 after several revolutions there, stayed until 1924. Maintained US presence in Nicaragua. Idealism – insisted Congress repealed law that meant US shipping didnt have to pay tolls on Panama Canal. Idealism – Built highways, hospitals, schools and more across Latin America. Trade Favouring Allies Despite neutrality, US trade clearly favoured the Allies, in part due to the effective British naval blockade of Germany. Trade with the Allies (most of which was munitions) stood at $3.2 billion by 1916, which was ten times the amount of trade done with the Central Powers. In 1914 the US got nearly double the trade profit from trade with Britain than it got from Germany. This may have influenced US inter-war trade policy as they stood more to lose from stopping trade with the Allies. Neutral actions = blue. Not Neutral actions = red. Stuff that shows US as ‘morally superior’ as according to Wilsonianism. Stuff that is not showing US upholding Wilsonianism values. Things that don’t fit clearly into either camp left blank. Chapter 4 Pt2 – US Neutrality 1914-1917 Unrestricted Submarine Warfare Unlike the British blockade, the German submarines intended to sink and kill any ships of any nation bound for Britain. Some Americans thought this was a fair tactic during war and that the answer was for Americans not to go to Britain. The German Foreign Embassy in the US took out an advertising campaign to warn US citizens of travelling the Britain. Wilson chose to warn the Germans that he would hold them responsible for any American deaths. When two Americans died after a submarine attack in August 1915, the Germans abandoned their attempt to starve the British into submission through unrestricted submarine warfare and instead would give the ships warnings for the passengers to get into lifeboats before they would attack the ship. This was a far less effective form of blockade, but at least it wouldn’t bring the US into the war against Germany. The Germans would return to unrestricted submarine warfare later in the war. Reasons for Neutrality Wilsonianism (See above). He made ‘Declaration of Neutrality in 1914’ and offered to mediate between the warring nations. Very idealistic. Guided by Christian principles and values. Found war abhorrent, despite all the times he intervened in Latin America. Public opinion. Marches and campaigns were organised against the war, people felt war was pointless. Freedom of the Seas British risked upsetting Americans by seizing US ships that were bound for Germany and confiscating the goods on board as contraband (even if it was just food). Doing this in the Napoleonic Wars in 1812 had led to war between Britain and the USA. However, the British always treated the US crews with respect and no US sailors were ever killed and Wilson had the dilemma that although he wanted to remain neutral, he did want the Allies to win. He chose not to act on this. Tensions Surrounding Neutrality Although desiring peace and neutrality, Wilson did favour the Allies and Britain in particular where he had spent a lot of time in the Lake District on holidays as a boy. He gave a speech condemning the actions of German-Americans in 1915. The US had clashed over Samoa in 1889 and the US was wary of German intentions in Latin America, especially Mexico. In the popular press were stories of German atrocities and things like bayonetting babies; they had little foundation in fact but that didn’t matter as it made for interesting reading so the newspapers published such stories and people believed them. So, US policy did lean toward the Allies as a result of all this.

3. Wilson’s Thoughts and Feelings At the beginning of the war, Wilson wanted to maintain the respect of all warring nations so that the US could influence the peace. However, Wilson began to think that the US would need to play a part in the war for them to have a chance to influence the peace. He was driven by the idea that humanity needed to be saved through an international association which would uphold the rights of everybody around the world, stop private companies from arms profiteering and would impose sanctions on any aggressive nations. He made speeches about this. His thoughts would later go on to make up his famous Fourteen Points. His related ‘Peace Without Victory’ speech was seen as idealistic and unrealistic by French leader Clemenceau who said ‘Never before has any political assembly heard so fine a sermon on what human beings might be capable of accomplishing if only they weren’t human.’ Why did US get involved? 3 German Activities in USA There were definitely German spies operating in the USA and working to disrupt the Allied war effort (which depended in large part on US trade). This was exaggerated but it did exist and fuelled resentment against Germany amongst the public, especially as Wilson gave speeches denouncing Americans with German background who worked against the US as traitors. Why did US get involved? 4 Zimmerman Telegram Germany sent their ambassador in Mexico (Jan 1917) a telegram that instructed him to encourage the Mexicans to declare war on the USA – something the Mexicans were in no position to do as they were in the middle of a Civil War. The Ambassador never even acted upon the telegram so the Mexicans didn’t know of it, however the British intercepted the telegram and passed it to the Americans. It gave Wilson a pretext to declare war. Coupled with the unrestricted submarine warfare killing US citizens and the German spies, it is suggested by some historians that Wilson had been provoked to the extent that if he didn’t declare war on Germany then he would have lost credibility. Why did US get involved? 5 Allies Struggling By April it was clear that the German unrestricted submarine warfare was having a crippling impact on the Allied war effort with 1 million tonnes of shipping sunk over Feb/March 1917. Wilson feared that if the US didn’t get involved then Germany might win. Chapter 4 Pt3 – US Entry into WW1 Why did the US get involved? 1 – Peace Initiatives Failed Wilson sent an envoy to Europe in 1915 and 1916 to end what was seen as pointless slaughter of millions. Neither the Allies or the Central Powers seemed to seriously consider brokering a peace on either occasion. This may have suggested to Wilson that he would not influence the peace unless he played a part in the war and his idealism - along with his belief in the superior morality of the USA - meant that he could not bear being left out of peace discussions. Historian View 1 – Economic and Isolationist Debate 1918-41 historians like Grattan and Mills thought Wilson had been swayed into going to war by big business who would profit from it. Also swayed into helping allies as they would lose most economically from their defeat and gain most economically from Allied victory. These historians had largely supported isolationism and wanted to argue that US entry to the war was wrong. Argument was discredited by start of WW2. However, O Fordham showed that US GNP doubled between 1914-16 and 70% went to Europe and so unrestricted warfare maybe couldn’t be tolerated due to economic impact. Most historians no longer see economic factors as most significant however. Suggesting that as the US jumped into foreign markets left vacant by European belligerent, they would still have gained economically and the negative effect of not joining in would have been minimal. Historian View 2 – The Moral Crusade Most historians agree that Wilson was driven by his idealism and his desire to create a better world out of the peace e.g. Ferguson in 2003, Evans in late 1990s. Some like Kennedy (2008) write that Wilson shared Allied war aims and therefore favoured Allies even during neutrality. Allied war aims were to return lands it had taken by force, Wilson thought this had to happen as any attempt at collective security would only work if the nations trusted each other and therefore Germany had to return the lands – according to Kennedy. Brogan 1960s felt that the Germans gave Wilson no choice with their actions but also that Wilson was anything but neutral. He disagrees with Kennedy and suggests the US fought for a better world and different reasons to the Allies. See pg 117-118 for more. Why did the US get involved? 2 – Resumption of Unrestricted Submarine Warfare 31st Jan 1917 the Germans gave 8hrs notice that they would begin unrestricted submarine warfare around Britain. It was a gamble as the Germans felt it would bring the US into the war but they thought they could starve the British into submission before the US could make it across to Europe in large enough numbers to affect the war in the trenches. Wilson thought the Kaiser was insane and broke of diplomatic relations. Several US ships sunk Feb-March 1917.

4. Production Problems The US was not really prepared for the levels of production demanded of it (as it would be for WW2) e.g. Hog Island shipyard, Philadelphia failed to finish a ship ordered for the war before the war ended. The US armed forces fired 8.8 million shells during WW1 but only 8000 of them had been made in the USA. War Industries Board Had some control over industry to direct supplies toward the war effort, however still allowed profiteering e.g. US Steel made half a billion in profit in two years as a result of war sales. Accused of war profiteering in post-war years but laissez-faire attitude of 1920s meant nothing was ever done about it. Railroads Was owned by many different companies but for duration of war was centralised and run by one body so that movement of goods for war effort and troops could be coordinated. There was a Director General of the Railroads appointed called McAdoo (think Agado-do-do song) he increased railroad worker wages but also passenger rates during the war. Paying for the Expense of War The war cost $33.5 billion and the US also lent $7 billion to the Allies. Some of this was paid for by rising tax e.g. income tax graded so the wealthiest paid a lot more. 25% inheritance tax introduced. $10.5 billion collected in taxes by gov. Gov also sold War Bonds that people could buy to support war effort. Famous people recruited to sell them and endorse them e.g. Charlie Chaplin. April 1918 9 million posters and 5 million window stickers issued to advertise war bonds. Bonds paid for 2/3rds of the cost of the war. Agriculture Hoover was appointed Food Administrator and did a great job. In 1917 the Food Lever and Fuel Control Act gave him the power to influence prices. Wheat prices were set at $2.20 a bushel to encourage production (high price, chance of profit). Hoover established a new government corporation to take control of US and Cuban sugar to maintain supplies. He also ran a voluntary campaign (may have influenced his later belief in voluntary help during Great Depression) that asked people to eat sensibly and thus avoid need for gov to ration things. It was very successful. Overall food production increased by over 6 million tonnes a year and farm income grew 30% from 1915-18. Chapter 4 Pt4 – US Society During WW1 African Americans A flood of migrants went from south to north to engage in the war work as demand for workers was high. Maybe 500,000 from 1914-18 moved, meaning northern cities began to get significant black populations. There were some racist riots as a result e.g. East St Louis 39 AAs were killed summer 1917. Military strictly segregated and most black men in army did menial tasks rather than actual fighting. Most black organisations supported the war. 200,000 AAs served abroad and this sometimes led to determination to improve their rights when arriving back home after seeing black soldiers serving as other soldiers did in French army for example. FBI targeted the black press, worried that Germans would try to influence AAs as a group that might be willing to work against fed gov that didn’t support them. However, the vast majority of black press consistently offered patriotic messages of support for the war. Women Some war work and this contributed to them gaining 19th Amendment in 1920 which gave them right to vote but only a little because relatively few were engaged in war related work compared to men e.g. only 6000 in aircraft manufacture. Partly this was because labor unions did not approve the hiring of women as they were allowed to be paid less so this depressed wages. Most women who did war work were forced to leave their jobs at the end of the war. Workers Labour disputes were a constant feature of US society and during war things were no different. National War Labor Board was set up and dealt with 1,200 cases from April 1918-May 1919. On the positive side the War Labor Policies Board set wages and standards of employment so they often improved for workers. For example, wages in the steel industry doubled and unions began to find that they were able to gain recognition and acceptance as part of industries because the War Labor Policies Board consulted unions during the war.

5. Fourteen Points (Very influential) Linked to Wilson’s idealism (Wilsonianism). Main points were no secret diplomacy, people had a right to self-determination (choose their own rulers) and also the setting up of a League of Nations which would prevent future war by imposing sanctions on aggressor nations. Not all nations agreed, especially with self-determination (British/French Empires would have lost a lot of resources/territory). Wilson got Nobel Peace Prize 1919 for his work in trying to secure a just peace. Paris Peace Conference Wilson was first ever President to leave USA whilst in office. He chose to travel to Paris to try to influence the peace. • League of Nations (Failure) • After peace settlement Wilson returned to USA to try to gain support for league but he failed for two reasons: • His health was failing, had already had strokes. Doctors advised him against a tour of the USA. As part of his tour of the USA he was followed by opponents who debated with him, this was very demanding and he wasn’t on top form. • Wilson refused to compromise. Some politicians were not completely opposed to the League of Nations but would have needed some compromise to vote for the USA to join it. One compromise bill was introduced but Wilson told Democrats to vote against it and it failed. Paris Peace Conference (some achievement) Wilson was first ever President to leave USA whilst in office to attend. Also had health issues but gambled with them to play his part. Had an issue that his idealistic view of the peace was not accepted by the other two countries in the ‘big three’ (France and Britain). Had to compromise on self-determination and also on German War-Guilt clause. Problem was most of war fought on French soil and damage in $s and lives was astronomical, French wanted revenge. Britain’s leader Lloyd George did not want to be too harsh on Germany for fear of the problems and resentment this would cause in Germany but British population desired revenge. Wilson’s priority was to get acceptance of League of Nations and was willing to compromise on other matters to achieve it. Chapter 4 Pt5 –Renewed Isolationism 1919-20 March 1920 vote put to the Senate It passed by 49 to 35 votes but this was 7 votes short of the majority needed on such a vote. Isolationism had won, the USA would not play a leading role in world and specifically European affairs until Pearl Harbour in December 1941. Otway summary of chapter (not fact, just my opinion, feel free to have your own and if you are an A* student you should be able to criticise/evaluate my opinion): Wilson was an idealist who was ruled by his own ideals. He felt that Britain was morally superior, so favoured them and was also influenced by industrialists but open support was prevented by the prevailing isolationist opinion amongst the public and his ideals. He was dragged into the conflict in part because of big business but in greater part because he felt that without getting involved he would have little opportunity to influence the peace and also Germany had given him little choice but to get involved by 1917. Wilson’s idealism – along with his desire to save mankind from a disaster such as had just befallen the world (WW1) - meant he left the US to travel to Paris, despite his health. Perhaps with better health his tour of the USA upon his return might have resulted in US membership of the League of Nations but it is impossible to know - it may well be that the horrors of war may have meant that the US would never have had any chance of joining the League of Nations. In summary, Wilson was an idealist and an honourable man who was nevertheless swept along by events.

6. Economy • Became world’s leading economy after WW1 and largely as a result of it. • Europe borrowed huge sums from USA which gave US money back with interest and influence over Europe. • US took over foreign markets, especially Asia, whilst European countries were distracted by war. E.g. US became leading manufacturer of fertilisers and chemicals replacing Germany. • By 1920 US produced and consumed 70% of world’s oil and was leading producer of coal and steel. • Standards of living in the US were on average much higher after WW1 than in European countries. • HOWEVER – Wealth was totally unevenly distributed. Workers were at mercy of corporations who often refused to engage with unions. There were millions of poor Americans. • Farmers were also beginning to face difficulties as Europe recovered and demand reduces for US farm produce. Also competition from Canada, Australia and New Zealand made things worse. Society Diverse, multicultural, lots of immigration as people came to try find the ‘American Dream’. But racial tension was simmering and the move toward anti-immigration policies were beginning to happen by 1920. Also immigrants, African Americans, Native Americans and other minorities were usually treated as second-class citizens, in the south AAs in particular suffered with segregation. Native Americans might have been worst off of all, forced to live on reservations with their way of life destroyed. Positive for USA = blue. Negative = red. Things that don’t fit clearly into either camp left black. Chapter 4 Pt6 – USA By 1920 Politics The role of the president had increased in power since Theodore Roosevelt, as had the role of the federal government which expanded massively during the war years. Also progressive era from Roosevelt onwards had meant big business had been taken on to some extent with their power slightly checked since the Gilded Age but ‘laissez-faire’ still powerful principle and big business had huge power. From 1865-1914 the official foreign policy was linked closely to isolationism. WW1 changed that and Wilson tried to keep the US involved in foreign affairs in order to maintain a peaceful world but he failed and the US returned to its tradition of isolationism.

7. Essays Related to Chapter 4 From Textbook ‘Wilson was the most progressive of the American presidents in the years 1890-1912.’ Assess the validity of this view. From Sample Essays/Past Papers ‘The main reason for the growth of the US economy, 1900-30 was technological change.’ Assess the validity of this view. ‘Between 1890 and 1920, the foreign policy of the United States continued to be dominated by isolationism.’ Assess the validity of this view. ‘It was mass immigration that brought about the rapid expansion of the American economy in the years 1880 to 1914. Assess the validity of this view. Interpretation Essays From Textbook Instructions are on pg129 and source are on pg129-130 ‘Using your understanding of the historical context, assess how convincing the arguments in the extracts are in relation to the reasons why the USA became more involved in foreign affairs in the years 1890-1917.’ Chapter 4 Related Exam Questions