Banks Inadequate banking system had plagued America Glaring defects were apparent in the 1907 Panic-major reserves in NY and large cities only Congressional investigation uncovered a 3rd Bank of US needed June 1913 Wilson delivered a Joint Session speech again-asked for decentralized bank & not Republican private banks Wilson again turned to the people-Federal Reserve Act passed: Federal Reserve Board-apptd by the President to oversee 12 regional reserve districts Owned by member financial institutions-final authority rested w/Reserve Board Reserve Notes used and amount of $ in Circulation increased(backed by paper-promisory notes) Could now control the flow of $-Huge Success

Trusts Early in 1914 Wilson went before Congress again-passed the Federal Trade Commission Act-Presidential Apptd Committee to watch industry-crush monopoly by rooting out unfair practices, unlawful competition, false advertising, mislabeling, bribery Clayton Anti-Trust Act-lengthened list of Illegal business practices-price discrimination, interlocking directorates Exempted labor and agriculture organizations from anti-trust lawsuits-legalized strikes and picketing

Wilsonian Progressivism Federal Farm Loan Act of 1916-credit to farmers at low rates Warehouse Act of 1916-loans on security of staple crops Seamen’s Act of 1915-decent living wages on merchant ships Workingmen’s Compensation Act of 1916-assistance to Federal Civil Service employees during disability-restricted child labor- invalidated by the SC Adamson Act of hour workday for RR workers Nominated Louis Brandeis to SC yet presided over segregation in the Federal Government Made some conservative apptments. To the Federal Board yet stayed mostly progressive-needed to bring Progressives to Dems to be victorious in 1916

Foreign Policy Resisted TR and Taft Policies No longer support to US investors Repealed Panama Tolls Acts Jones Act of 1916-Territorial status to Philippines & promised independence Smoothed tensions with Japan Sent troops to Haiti in 1915 & Dominican Republic to stop riots Purchased Virgin Islands from Denmark in 1917

Mexico Much investment in Mexico-country was poor Revolt in 1913 put new revolutionary president Huerta in control Spurred on migration-hurt US owned lands in Mexico-many wanted US intervention Wilson refused to recognize the government and allowed guns to flow freely to Huerta’s enemies Further problems when American sailors arrested-Mexicans released and apologized Wilson wanted to eliminate Huerta and asked for Congressional approval of force Huerta regime collapsed and new government set up under Carranza 16 men ruthlessly killed in Mexico and murdered another 19 US John J. Pershing sent to lead an American contingent and fought successfully yet eventually pulled

WW I Begins!!!!!!!!!! Neutrality Neutral in thought and Deed-Both sides wooed the US British enjoyed the advantage? Germans counted on those of same heritage in the US(11 million) Kaiser Wilhelm II seemed an arrogant autocrat-Ruthless strike at neutral Belgium-Further problems when agents attempted sabotage Most Americans wanted to stay out!!

Blood $ When war started US was in recession-orders started coming in and prosperity returned-financed partially by JP Morgan and Co.-advanced $2.3 billion to allies during US neutrality Germany protested yet they were free to trade w/US-prevented by geography and the British Navy-trade w/ Germany not allowed by British Navy Feb, 1915 Germany declared a sub warfare area around British Isles-weak yet effective-Germany said it would try to not sink neutral vessels-Wilsom tried to keep US neutral even though incidents would be difficult to avoid U-boats sank 90 vessels in first few months of 1915-Lusitania (128 US civilians)-Mass Murder? Eastern US wanted war yet country divided-Wilson had no desire for war

Wilson took strong stance(WJ Bryan resigned) Mixed reaction After British liner Arabic sunk in Aug, 1915(2 US lives lost) Germany promised to not sink unarmed and unresisting passenger ships w/out warning French liner Sussex torpedoed in March 1916-Wilson demanded they stop Germany agreed to give warning yet attached to the agreement that Allies had to modify illegal blockade-Wilson agreed to first part

1916 Election Bull Moose returned yet would not split party Repubs nominated Charles Evans Hughes-SC justice- condemned tariffs & foreign affairs-Poor campaigner Wilson avoided topic of his opponent Hughes took east-Wilson thought he had lost Wilson won /9.1 million to 8.5 Wilson had kept the country out of war