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EMERGENCE ON THE WORLD STAGE 1912-20 - Coggle Diagram
EMERGENCE ON THE WORLD STAGE 1912-20
PRESIDENT WILSON AND THE NEW FREEDOM
banking reform
FEDERAL RESERVE ACT OF 1913: created the first central banking system in the US.
12 banking districts under the supervision of the Federal Reserve Board.
meant the supply of money was no longer reliant on gold.
enabled reserve banks to control the money supply and so when inflation threatened, the banks could increase the rediscount rates, discouraging borrowing and therefore reduce the amount of money in circulation.
when there was deflation, the banks could do the opposite.
by 1923, 70% of the nation's banking resources were part of the system.
anti-trust measures
FEDERAL TRADE COMMISSION:
formed to investigate corporations and stop unfair practices.
a regulatory body for business.
under Wilson it administered almost 400 cease-and-desist orders.
CLAYTON ANTI-TRUST ACT:
gave more powers to those enforcing the Sherman Anti-Trust Act.
economic and financial reforms
UNDERWOOD TARIFF:
1913.
significantly reduced many duties and freed certain items from them entirely.
incl food, wool, iron and steel, shoes and agricultural machinery.
all of which could be produced cheaper in USA than abroad so did not need protection.
loss of govt revenue compensated by income tax.
many regarded this as an attack on big business and an aid to business and farmers.
INCOME TAX:
1913.
gave the federal govt a major source of income in place of reduced tariffs.
Revenue Act of 1916 continued plan of taxing rich and redistributing wealth, expanding into taxation of business profits and estates.
by 1917, the govt was receiving more money than ever brought in by tariffs.
social reform:
first Federal Child Labour Act 1916 - although 2 years later the act was ruled unconstitutional by Supreme Court.
Workmen's Compensation Act of 1916: ensured federal employees absent from work due to injury/illness received financial assisstance.
Adamson Act 1916: max. 8 hour day for railroad workers.
Wilson showed little sympathy towards or support for unions.
african americans:
Wilson appeased conservative Southern Democratic voters but disappointed Northern white and black supporters.
he placed segragationists in charge of federal agencies and so expanded racial segregation in fed govt, the military and washington d.c.
during the 1912 presidential campaign he had won the support of certain NAACP individuals but as president he opposed anti-lynching legislation and believed segregated facilities were just.
the KKK's 'Birth of a Nation' film was even shown in the White House during Wilson's presidency.
Wilson's Second Term as President
THE 1916 PRESIDENTIAL ELECTION:
occurred when most american's wanted to remain neutral in the war.
Wilson tapped into this using the campaign 'He kept us out of war'.
Wilson was victorious.
his second term was dominated by involvement in the war and the measures taken during the war - greater federal control of the economy and workforce.
THE US AND WWI
US NEUTRALITY 1914-17
wilson and moral diplomacy:
the idea that the desire to do good would govern US policy.
he believed the USA had a responsibility to improve the lives of foreign peoples through US examples.
wilson's idealism:
declared on taking office that future co-operation with latin america would only be possible with 'just govt' - implying he would oppose military dictatorships or revolutionary govts.
took the Roosevelt Corollary to another level.
said he was going to teach the people of south america to elect 'good men'.
:check: fought against special concessions like the 1912 law exempting US coastal shipping from paying tolls to the panama canal.
:check: US interests built highways, bridges, airfields, hospitals, schools and more trhoughout latin america.
reasons for neutrality
PUBLIC OPINION: prevailing mood was that war had nothing to do with US.
WILSONIANISM: (moral diplomacy) Wilson believed he could negotiate a peace settlement - largely due to his predominantly christian values.
tensions concerning neutrality
PRO-BRITISH FEELING: Wilson, and many of his advisors, who sought neutrality actually favoured the allies and particularly the British.
ANTI-GERMAN FEELING: Wilson and his advisors also felt that Germany posed a threat to US interests so it was better to fight them now on behalf of others than for themself one day.
TRADE:
the allies benefitted more from trade with the USA.
and by 1914, the USA was one of the worlds major trading nations.
the govt wanted to maintain trade because it received 40% of its revenue from the tariff.
Trade favoured the Allies and by 1916 trade with the allies was 10 times that of the trade with central powers.
by 1916, German trade with the US was 1% of what it was in 1914.
by 1918, the allies had borrowed nearly $7bn from the US.
by the time of the peace settlement, allied war debts to the US were $10.5bn
FREEDOM OF THE SEAS:
the British blockade of Germany was disrupting the US's trade with the country, and whilst an uproar could have been made, the US generally wanted the allies to win.
unrestricted submarine warfare, feb-aug 1915
Feb: Germany declared British waters a war zone and reserved the right to sink any ships en route to Britain.
this policy was an attempt to break the deadlock of trench warfare in western europe by taking control of the seas from britain.
Germany agreed to abandon unrestricted submarine warfare after the sinking of the Lusitania and the Arabic.
from then on, submarines would only attack ships after fair warning allowing passengers to reach safety.
US ENTRY INTO THE WAR
failure of peace initiatives:
wilson realised that if he didnt enter the war he would lose credibility as a peacemaker - although no one seemed interested in his efforts anyway.
reasons for entry
RESUMPTION OF UNRESTRICTED SUBMARINE WARFARE:
Germany hoped they could starve Britain into surrendering by intensifying the U-boat campaign.
in response, Wilson broke off diplomatic relations with Germany whilst still hoping war would not be neccessary.
in Feb and March 1917, several US ships were sunk by German U-boats.
GERMAN ACTIVITIES WITHIN THE USA:
many german americans had already been accused of espionage and sabotage by Wilson.
despite obvious exaggeration, the presence of internal traitors fuelled resentment against Germany.
ZIMMERMAN TELEGRAM:
a coded telegram sent from the German Foreign Secretary to the German Ambassador to Mexico to propose a secret alliance with Germany to the Mexican govt. which would see Mexico receive back Texas, Arizona and New Mexico.
in feb 1917, the telegram was intercepted by the US Ambassador in Britain.
The German Ambassador had not acted upon this and Mexico knew nothing of it with a civil war in their own country.
DECLARATION OF WAR:
April 1917: Wilson asked Congress for the authority to make war on Germany.
He realised he had little choice as the USA had been provoked until its credibility was threatened.
The allies were in trouble also.
THE USA DURING THE WAR
the war economy
PAYING FOR THE WAR:
2/3 of the cost was raised by loans like Liberty and Victory Loans.
there were 5 war bond issues between 1917 and 1919.
movie stars were deployed to encourage people to buy bonds and the country was plastered with posters.
the govt used a steeply graded income tax also with a top level of 75%.
a 25% inheritance tax was also introduced.
WAR INDUSTRIES BOARD:
est July 1917.
to co-ordinate tasks of finance and supplies.
had power to direct resources, standardise production and fix prices.
companies could still make profits though and US steel was accused of war profiteering in post-war years.
RAILROADS:
run as a single centralised system to co-ordinate and simplify a transport system vital for the movement of goods and troops.
all railway equipment was pooled, accounting practices were standardised, wages were raised and passenger rates were increased
AGRICULTURE:
1917 Lever Food and Fuel Control Act gave Herbert Hoover, as Food Administrator, the power to:
set wheat prices to $2.20 per bushel to encourage production.
establish a govt corporation to buy US and Cuban sugar to maintain supplies.
organise a voluntary campaign to eat sensibly and therefore avoid rationing.
workers:
National War Labour Board set up April 1918 to settle industrial disputes - covered over 1200 cases until demise in 1919.
The War Labour Policies Board set wages and standards of employment - consulted unions as well as employers.
WOMEN:
most supported the war but were not mobilised into war production.
labour unions did not support hiring of women as they saw them as depressing wages.
african americans
MIGRATION OF AFRICAN AMERICANS:
flood of migrants from south to northern cities - as many as 500,000 between 1914-18.
pay in industrial plants in north was considerably better than cotton fields of south, but discrimination continued.
in several northern cities - like East St. Louis - there were serious riots against the african american presence.
the military was strictly segregated.
PATRIOTISM:
could not be questioned.
360,000 african americans volunteered for service.
SUPPRESSION:
many politicians feared african americans would not support the war effort due to the prejudice and discrimination they faced at home - few african americans in the south could vote so why should they be expected to fight for the rights of foreigners who could?
Some of the 'Black Press' stressed that african americans were expected to be patriotic and support the war.
the NAACP's periodical was warned to avoid publishing anything that may cause dissatisfaction among african american troops.
RENEWED ISOLATIONISM 1919--20
THE FOURTEEN POINTS
Wilson's peace proposition.
roughly grouped into 3 categories:
first 5 considered general principles to maintain orderly relations between countries and diplomacy should be open and above board.
next 8 dealt with matters of self determination - borders being redrawn according to the wishes of local populations.
14th point announced setting up of the League of Nations
this did win him the 1919 Nobel Peace Prize.
THE PEACE SETTLEMENT
the peace conference
convened in Paris in Jan 1919.
Wilson went to Paris himself and was the first US President to go to US while in office.
most decisions were made by the 'Big 3': the USE, Britain and France.
each had a different agenda.
Wilson's priority was the acceptance of the League of Nations and he was willing to compromise other issues for this.
the usa and the league of nations
WHY WILSON FAILED:
Wilson toured the USA in Sept 1919 to win support for membership of the League. He was followed by opponents to the League who spoke just as convincingly. He collapsed after a speech in Colorado and his campaign was over.
Wilson refused to compromise.
when presented to the senate it passed by 49 to 35 votes and was 7 short of the 2/3 majority needed for approving treaties.
THE USA BY 1920
economy
USA was worlds leading industrial nation.
partly due to impact of WWI.
countries in Europe that required rebuilding bought their supplies from the US.
money poured in for food, raw materials and munitions.
this led to growth of US industry and agriculture.
countries took large loans from the US. Investments were made in Europe and once their economies recovered in the 1920s profits were made.
during the war, the US had taken over European overseas markets.
the war had stimulated technological advances, particularly in mechanisation and the development of new raw materials like plastics.
by 1920, the USA produced and consumed 70% of the worlds oil.
standard of living was higher than that of their european counterparts.
society
diverse and multicultural:
at its core were WASP settlers.
but now also other immigrants who came in search of the 'american dream'.
first 2 decades of 20th C saw further waves of immigrants.
by adding their cultural dimensions to america a society unlike any other was created.
this aggravated racial tension despite the end of slavery though.
it remained divided and unequal.
african americans were still second-class citizens due to discrimination, segregation and intimidation.
politics
expansion in the role of the president and federal govt under presidents in the progressive era - particularly TR and Wilson in area of business, financial and social reform.
role of both remained limited though as many americans still believed in a laissez faire society.
in world affairs, the US had moved from isolationism, to involvement in the First World War, back to isolationism - particularly in Europe.