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Major Events with Woodrow Wilson
- 1913-1920 - Progressive Amendments (16th, 17th, 18th, 19th)
The Progressive Amendment cluster shows the reform attitude of the people during this period. The sixteenth amendment was actually ratified about a month before Wilson took office. It gave the Congress the power to establish a federal income tax.
The seventeenth amendment was ratified in May of 1913. It provided for the Direct Election of the United States Senators. This was one of the issues of the Omaha Platform proposed in 1892 by the Populists in order to expand the power of the common man.
The eighteenth amendment was ratified in late 1919. It outlawed the "manufacture, sale, or transportation of intoxicating liquors." This amendment had been proposed many times earlier by the Women's Christian Temperance Union, however, it was not until the liberal attitude of the 1910s and the shortage of grain with the raging war in Europe that it had enough votes to pass.
The nineteenth amendment had been a culmination of a prolonged fight that began in 1848 with the Seneca Falls convention. By the terms of the amendment women were finally given the right to vote in the national elections. Individual western states had given women the right to vote years earlier, however it was not until the 1920 election that women voted for the President and Vice President of the United States.
- 1913 - Underwood Tariff
The Underwood Tariff was the first major reduction of the tariff in more than half a century. One of the reasons it passed was the ratification of the income tax amendment. This way the revenue that was usually received from the tariff was not lost. About a month after the tariff was passed, the war in Europe started and the tariff was soon an insignificant source of revenue. Even after the war, it could not compare to the income produced by the income tax amendment.
- 1913 - Federal Reserve System
Wilson suggested a new banking system to Congress, so that "the control of this system . . . must be public, not private . . . so that the banks may be the instruments, not the masters of business and of individual enterprise and initiative." The Federal Reserve Act divided the nation into twelve districts with one major bank in each one of those districts. All national banks had to join the system and deposit six percent of their capital in these banks. The Federal Reserve banks were banks strictly for banks - they did not do business with the private sector.
A Federal Reserve Board of eight members appointed by the President supervised the system. The main goal of the board was to regulate the interest rates charged the member banks for loans.
- 1914 - Clayton Anti-Trust Act
The Clayton Anti-Trust Act was passed to correct the weaknesses of the Sherman Anti-Trust Act of 1890. The act forbade the following: interlocking directorates, ownership of stock in a corporation by a competitor corporation, price cutting to eliminate a competitor, and many other business practices. Furthermore, it provided that the law does not apply to unions, forbade the issue of injunctions unless in emergency situations, and legalized boycotts and peaceful strikes.
- 1918 - Fourteen Points
President Wilson campaigned for Fourteen Points, his plan for European and world peace. He suggested that all agreements should be in the open, absolute freedom of the seas in times of peace and in times of war, removal of all trade barriers (including tariffs and quotas), reduction of armaments, self determination of the "freed" peoples, and the creation of an international association to control these rules and help prevent peace.
Unfortunately, even after Wilson convinced the European leaders to accept his plans, he lost support in the United States. The nation was becoming more and more conservative and did not want too see more Americans killed in far away lands for an incomprehensible cause, possibly even under the command of foreign generals. The treaty was voted on several times in the Senate, but due to the high opposition and unwillingness of Wilson to compromise, it was never ratified.
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