Woodrow Wilson Democrat T. Marshall

New Freedom  Attacks triple wall of privilege  1. Trusts  2. Tariffs  3. High Finance

Clayton Anti-Trust Act  Strengthened the Sherman Anti-Trust Act  If a company broke the law, its officers could be prosecuted!  Labor and farm unions have the legal right to exist  Strikes and boycotts legal

Federal Trade Commission FTC 1914  5 member watchdog group that investigated unfair business practices  Requires reports from companies

State of the Union

16 th Amendment  3. Legalized a Federal Income Tax 1913  4. Graduated Federal income tax was legalized. Government taxed larger incomes at a slightly higher rate then smaller incomes  5. generates millions and billions of dollars for the Government.

Government problem needed to be corrected…  Needed to make credit more available throughout the nation for all levels of Americans

7. Federal Reserve System 1913  8.  Made credit more available  Private banks under federal control  Had the power to issue new currency and make loans  Federal Banks can loan money to struggling member banks

1916 Election  “He kept us out of War” – was the slogan that got Wilson reelected

World War I  US neutrality shattered  Zimmerman Note  German declaration of unrestricted submarine warfare

14 points 1. Open diplomacy 2. Freedom of Seas 3. Free trade 4.Arms reduction 5.Adjustment of colonial claims ….14. Creation of the League of Nations Allies reject – want to punish Germany…except for…..

League of Nations  Wilson called for a League of Nations that would address diplomatic crises to settle problems without war!

Treaty of Versailles  June 28 th 1919 signed peace agreement Creates problems that lead to WW II

Missionary Diplomacy  US responsibility to deny recognition to any Latin American government it viewed as oppressive, undemocratic or hostile to US interests.  Pressured nations in Western Hemisphere to establish democratic governments