Editing Woodrow Wilson (section)

=== New Freedom domestic agenda ===
[[File:CONGRESS, U.S. OPENING MESSAGE, 63RD CONGRESS.jpg|thumb|Wilson giving his first [[State of the Union]] address in 1913 before a joint session of [[United States Congress|Congress]],<ref>{{cite journal| title=Presidential addresses to congress: Woodrow Wilson and the Jeffersonian tradition| last=Hendrix| first=J. A.| journal=The Southern Speech Journal| volume=31| issue=4| date=Summer 1966| pages=285–294| doi=10.1080/10417946609371831 | issn = 0038-4585}}</ref> which initiated the modern practice of the State of the Union being given in person before all members of Congress<ref name="AppSou">{{cite web|title=State of the Union Addresses and Messages: research notes by Gerhard Peters|url=http://www.presidency.ucsb.edu/sou.php|website=The American Presidency Project (APP)|access-date=January 24, 2017}}</ref>]]

Wilson introduced a comprehensive program of domestic legislation at the outset of his administration, something no president had ever done before.<ref>Cooper (2009), pp. 183–184</ref> He announced four major domestic priorities: the [[Conservation movement|conservation]] of natural resources, banking reform, [[tariffs in United States history|tariff]] reduction, and better access to raw materials for farmers by breaking up Western mining trusts.<ref>Cooper (2009), pp. 186–187</ref> Wilson introduced these proposals in April 1913 in a speech delivered to a joint session of Congress, becoming the first president since [[John Adams]] to address Congress in person.<ref>Berg (2013), pp. 292–293</ref> Wilson's first two years in office largely focused on his domestic agenda. With trouble with Mexico and the outbreak of World War I in 1914, foreign affairs increasingly dominated his presidency.<ref>Cooper (2009), pp. 212–213, 274</ref>

==== Tariff and tax legislation ====
Democrats had long seen high tariff rates as equivalent to unfair taxes on consumers, and tariff reduction was their first priority.<ref name="Clements3637"/> He argued that the system of high tariffs "cuts us off from our proper part in the commerce of the world, violates the just principles of taxation, and makes the government a facile instrument in the hands of private interests."<ref>See [https://avalon.law.yale.edu/20th_century/wilson1.asp "First Inaugural Address of Woodrow Wilson"]</ref> By late May 1913, House Majority Leader [[Oscar Underwood]] had passed a bill in the House that cut the average tariff rate by 10 percent and imposed a tax on personal income above $4,000.<ref name=cooper216218/> Underwood's bill represented the largest downward revision of the tariff since the Civil War. It aggressively cut rates for raw materials, goods deemed to be "necessities", and products produced domestically by trusts, but it retained higher tariff rates for luxury goods.<ref>Weisman (2002), p. 271</ref>

Nevertheless, the passage of the tariff bill in the Senate was a challenge. Some Southern and Western Democrats wanted the continued protection of their wool and sugar industries, and Democrats had a narrower majority in the upper house.<ref name="Clements3637">Clements (1992), pp. 36–37</ref> Wilson met extensively with Democratic senators and appealed directly to the people through the press. After weeks of hearings and debate, Wilson and Secretary of State Bryan managed to unite Senate Democrats behind the bill.<ref name="cooper216218" /> The Senate voted 44 to 37 in favor of the bill, with only one Democrat voting against it and only one Republican voting for it. Wilson signed the [[Revenue Act of 1913]] (called the Underwood Tariff) into law on October 3, 1913.<ref name="cooper216218">Cooper (2009), pp. 216–218</ref> The Revenue Act of 1913 reduced tariffs and replaced the lost revenue with a federal income tax of one percent on incomes above $3,000, affecting the richest three percent of the population.<ref name="weisman230282">Weisman (2002), pp. 230–232, 278–282</ref> The policies of the Wilson administration had a durable impact on the composition of government revenue, which now primarily came from taxation rather than tariffs.<ref>Gould (2003), pp. 175–176</ref>

==== Federal Reserve System ====
{{see also|History of the Federal Reserve System}}
[[File:Federal Reserve Districts Map - Banks & Branches.png|thumb|Map of Federal Reserve Districts with Federal Reserve banks (in black circles), District branches (in black squares), and the Federal Reserve's national headquarters in red]]
Wilson did not wait to complete the Revenue Act of 1913 before proceeding to the next item on his agenda—banking. By the time Wilson took office, countries like Britain and Germany had established government-run [[central bank]]s, but the United States had not had a central bank since the [[Bank War]] of the 1830s.<ref>Cooper (2009), pp. 219–220</ref> In the aftermath of the [[Panic of 1907|nationwide financial crisis in 1907]], there was general agreement to create some sort of central banking system to provide a more elastic currency and to coordinate responses to financial panics. Wilson sought a middle ground between progressives such as Bryan and conservative Republicans like [[Nelson Aldrich]], who, as chairman of the [[National Monetary Commission]], had put forward a plan for a central bank that would give private financial interests a large degree of control over the monetary system.<ref>Clements (1992), pp. 40–42</ref> Wilson declared that the banking system must be "public not private, [and] must be vested in the government itself so that the banks must be the instruments, not the masters, of business."<ref>Heckscher (1991), pp. 316–317</ref>

Democrats crafted a compromise plan in which private banks would control twelve regional [[Federal Reserve Bank]]s, but a controlling interest in the system was placed in a central board filled with presidential appointees. Wilson convinced Democrats on the left that the new plan met their demands.<ref>Link (1954), pp. 43–53</ref> Finally the Senate voted 54–34 to approve the [[Federal Reserve Act]].<ref>Clements (1992), pp. 42–44</ref> The new system began operations in 1915, and it played a key role in financing the Allied and American war efforts in World War I.<ref>Link (1956), pp. 199–240</ref>

==== Antitrust legislation ====
{{see also|History of United States antitrust law}}
[[File:Woodrow Wilson Priming the Prosperity Pump, 1914 political cartoon by Berryman.jpg|thumb|A 1913 [[Clifford K. Berryman]] cartoon with Wilson addressing the economy by pumping it full of tariff, currency, and antitrust laws]]
Having passed major legislation lowering the tariff and reforming the banking structure, Wilson next sought antitrust legislation to enhance the [[Sherman Antitrust Act]] of 1890.<ref>Cooper (2009), pp. 226–227</ref> The Sherman Antitrust Act barred any "contract, combination ... or conspiracy, in restraint of trade", but had proved ineffective in preventing the rise of large business combinations known as [[Trust (business)|trust]]s.<ref>Clements (1992), pp. 46–47</ref> An elite group of businessmen dominated the boards of major banks and railroads, and they used their power to prevent competition by new companies.<ref>Berg (2013), pp. 326–327</ref> With Wilson's support, Congressman [[Henry De Lamar Clayton Jr.|Henry Clayton, Jr.]] introduced a bill that would ban several anti-competitive practices such as [[Price discrimination|discriminatory pricing]], [[Tying (commerce)|tying]], [[exclusive dealing]], and [[interlocking directorate]]s.<ref>Clements (1992), pp. 48–49</ref>

As the difficulty of banning all anti-competitive practices via legislation became clear, Wilson came to back legislation that would create a new agency, the [[Federal Trade Commission]] (FTC), to investigate antitrust violations and enforce antitrust laws independently of the Justice Department. With bipartisan support, Congress passed the [[Federal Trade Commission Act of 1914]], which incorporated Wilson's ideas regarding the FTC.<ref>Clements (1992), pp. 49–50</ref> One month after signing the Federal Trade Commission Act of 1914, Wilson signed the [[Clayton Antitrust Act of 1914]], which built on the Sherman Act by defining and banning several anti-competitive practices.<ref>Clements (1992), pp. 50–51</ref>

==== Labor and agriculture ====
{{see also|Labor history of the United States}}
[[File:Presidentwoodrowwilson.jpeg|thumb|Wilson's 1913 official presidential portrait]]
Wilson thought a child labor law would probably be unconstitutional but reversed himself in 1916 with a close election approaching. In 1916, after intense campaigns by the [[National Child Labor Committee]] (NCLC) and the [[National Consumers League]], the Congress passed the [[Keating–Owen Act]], making it illegal to ship goods in interstate commerce if they were made in factories employing children under specified ages. Southern Democrats were opposed but did not filibuster. Wilson endorsed the bill at the last minute under pressure from party leaders who stressed how popular the idea was, especially among the emerging class of women voters. He told Democratic Congressmen they needed to pass this law and also a workman's compensation law to satisfy the national progressive movement and to win the 1916 election against a reunited GOP. It was the first federal child labor law. However, the [[Supreme Court of the United States|U.S. Supreme Court]] struck down the law in ''[[Hammer v. Dagenhart]]'' (1918). Congress then passed a law taxing businesses that used child labor, but that was struck down by the Supreme Court in ''[[Bailey v. Drexel Furniture Co.|Bailey v. Drexel Furniture]]'' (1923). Child labor was finally ended in the 1930s.<ref>Arthur S. Link, ''Wilson: Campaigns for Progressivism and Peace, 1916–1917. Vol. 5'' (1965) pp. 56–59.</ref> He approved the goal of upgrading the harsh working conditions for merchant sailors and signed LaFollette's [[Seamen's Act]] of 1915.<ref>Clements, pp. 44, 81.</ref> 

During his political career, Wilson commissioned members of the [[Fraternal Order of Eagles]] to study old age pension laws overseas to determine whether such laws could be adopted in the United States.<ref>{{Cite web|url=https://books.google.com/books?id=UsFIAAAAIBAJ&dq=President+Wilson+commissioned+members+of+the+Fraternal+Order+of+Eagles+old+age+pension+laws&pg=PA5&article_id=1042,2085282|title=The Meriden Daily Journal|publisher=The Meriden Daily Journal|via=Google Books}}</ref> Pensions for civil servants employed by the federal government were introduced during Wilson's final year in office.<ref>[https://www.google.co.uk/books/edition/The_Federal_Civil_Service_System_and_the/Joa6AzdM96MC?hl=en&gbpv=1&dq=Federal+civil+service+pensions+1920&pg=PA91&printsec=frontcover The Federal Civil Service System and the Problem of Bureaucracy The Economics and Politics of Institutional Change By Ronald N. Johnson, Gary D. Libecap, 2007, P.91]</ref>

Wilson called on the Labor Department to mediate conflicts between labor and management. In 1914, Wilson dispatched soldiers to help bring an end to the [[Colorado Coalfield War]], one of the deadliest labor disputes in American history.<ref>Berg (2013), p. 332</ref> In 1916 he pushed Congress to enact the [[Eight-hour day|eight-hour work day]] for railroad workers, which ended a major strike. It was "the boldest intervention in labor relations that any president had yet attempted."<ref>Cooper (2009), pp. 345–346.</ref>

Wilson disliked the excessive government involvement in the [[Federal Farm Loan Act]], which created twelve regional banks empowered to provide low-interest loans to farmers. Nevertheless, he needed the farm vote to survive the upcoming 1916 election, so he signed it.<ref>Clements (1992), pp. 63–64</ref>

==== Territories and immigration ====
{{see also|History of immigration to the United States}}
Wilson embraced the long-standing Democratic policy against owning colonies, and he worked for the gradual autonomy and ultimate independence of the [[Philippines]], which had been acquired in 1898. Continuing the policy of his predecessors, Wilson increased self-governance on the islands by granting [[Filipinos]] greater control over the Philippine Legislature. The [[Jones Act of 1916]] committed the United States to the eventual independence of the Philippines, and granted Filipinos further autonomy with the establishment of a Filipino [[Philippine Senate|Senate]] and [[House of Representatives of the Philippines|House of Representatives]], replacing the American-run [[Philippine Commission]] and Filipino-run [[Philippine Assembly]], respectively.<ref>Cooper (2009), p. 249</ref> In 1916, Wilson [[Treaty of the Danish West Indies|purchased by treaty]] the [[Danish West Indies]], renamed as the [[United States Virgin Islands]].<ref>{{cite web|last=Ambar|first=Saladin|url=https://millercenter.org/president/wilson/foreign-affairs|title=Woodrow Wilson: Foreign Affairs|website=Miller Center|publisher=University of Virginia|date=October 4, 2016|access-date=August 24, 2022}}</ref>

Immigration from Europe declined significantly once World War I began and Wilson paid little attention to the issue during his presidency.<ref>{{cite book|last=Allerfeldt|first=Saladin|year=2013|chapter=Wilson's Views on Immigration and Ethnicity|editor-last=Kennedy|editor-first=Ross A.|title=A Companion to Woodrow Wilson|edition=1st hardcover|location=Hoboken, New Jersey|publisher=Wiley-Blackwell|pages=152–172|doi=10.1002/9781118445693<!--.ch8-->|isbn=978-1-4443-3737-2}}</ref> However, he looked favorably upon the "new immigrants" from southern and eastern Europe, and twice vetoed laws passed by Congress intended to restrict their entry, though the later veto was overridden.<ref>Cooper (2009), pp. 252–253, 376–377</ref>

==== Judicial appointments ====
{{Main|Woodrow Wilson Supreme Court candidates}}
{{Main list|List of federal judges appointed by Woodrow Wilson}}
Wilson nominated three men to the [[United States Supreme Court]], all of whom were confirmed by the U.S. Senate. In 1914, Wilson nominated sitting attorney general [[James Clark McReynolds]]. Despite his credentials as an ardent trust buster,<ref>Fox, John. "James Clark McReynolds", www.pbs.org/wnet/supremecourt/capitalism/robes_mcreynolds.html. ''Capitalism and Conflict: Supreme Court History, Law, Power & Personality, Biographies of the Robes''. Published December 2006. Public Broadcasting System (PBS). Retrieved September 25, 2021.</ref> McReynolds became a staple of the court's conservative bloc until his retirement in 1941.<ref>Cooper (2009), p. 273</ref> According to Berg, Wilson considered appointing McReynolds one of his biggest mistakes in office.<ref>Berg (2013), p. 400</ref> In 1916, Wilson [[Louis Brandeis Supreme Court nomination|nominated Louis Brandeis to the Court]], setting off a major debate in the Senate over Brandeis's progressive ideology and his religion; Brandeis was the first [[Jewish]] nominee to the Supreme Court. Ultimately, Wilson was able to convince Senate Democrats to vote to confirm Brandeis, who served on the court until 1939. In contrast to McReynolds, Brandeis became one of the court's leading progressive voices.<ref>Cooper (2009), pp. 330–332</ref> When a second vacancy arose in 1916, Wilson appointed progressive lawyer [[John Hessin Clarke]]. Clarke was confirmed by the Senate and served on the Court until retiring in 1922.<ref>Cooper (2009), pp. 340, 586</ref>