Unit 4 Part 1 Presidency of Woodrow Wilson

Mr. Klein Fall 2012

Woodrow Wilson
President of Princeton University (1902-1910) Governor of New Jersey (1911-1913)

Democrat
Three books on Politics:
Congressional Government The State Constitutional Government in the United States

Controversial Political Views

Critical of notion of inalienable individual rights : No doubt a lot of nonsense has been talked about the inalienable rights of the individual, and a great deal that was mere sentiment and pleasing speculation has been put forward as fundamental principle
- Constitutional Government in the United States

Controversial Political Views

Believed in moral right of leaders to direct lives of subjects:
The competent leader of men cares little for the internal niceties of other peoples characters: he cares mucheverythingfor the external uses to which they may be put. He supplies the power; others supply only the materials upon which that power operates. It is the power which dictates, dominates; the materials yield. Men are as clay in the hands of the consummate leader.
Leaders of Men (1890 essay)

Opposed checks and balances in favor of expansion of executive power

First Term (1913-1916)

Federal Reserve Act (1913)

Response to panic of 1907 System of banks who make short-term loans to other banks (preventing bank failure) Combination of Govt and Private Institutions Officials (Board of Governors) appointed by President

Federal Reserve Act (1913)

Begin issuing Federal Reserve Notes as currency in 1914

Federal Reserve Act (1913)

Federal Reserve Act (1913)

Federal Reserve Act (1913)

Fed Controls Monetary Policy: 1. Maximize Employment 2. Keep Prices Stable
- (called dual mandate of Fed) - Means Fed dictates amount of $ in circulation - Done via controlling interest rates

Clayton Antitrust Act (1914)

Clarifies and Strengthens Sherman Specifically bans:
Price discrimination (between customers) Exclusive dealings contracts Product tying

Provides for Treble (3x) damages

Clayton Antitrust Act (1914)

Contains provisions to protect Labor:
Says Unions NOT combinations for purposes of antitrust laws Limits injunctions against unions for striking, picketing, etc. unless there is a threat of damage to property

Wait a Second?!?!?

Clayton Antitrust Act (1914)

Courts determine that Clayton Acts ambiguous wording does not add new anti-injunction protections for unions
Duplex Printing Press Company v. Deering, 254 U.S. 453 (1921)

Took Norris-LaGuardia Act to eliminate injunctions as management tool

Federal Trade Commission Act (1914)

Creates FTC to investigate unfair business practices forbidden by Clayton Act

Issues cease and desist orders to offending company

Reviews business mergers to determine if too monopolistic