Chapter 20: The Progressive EraThe Intellectual Roots of ProgressivismA Sense of Mastery

I. The Progressive Era was an age of scientific investigation. The federal government conducted massive statistical studies of immigration, women’s and children’s labor, and working conditions in many industries.

A. Vice commissions studied prostitution, gambling, and other moral ills of American cities.B. In the Pittsburgh Survey, financed by NYC philanthropists, a team of investigators recorded in

great detail living and working in Pittsburgh’s steel district.II. The facts were important because they formed the basis for corrective action. The Progressive Era was

marked by confidence in people’s ability to act purposely and constructively. This sense of mastery expressed itself in many ways—for example, in the faith people had in academic experts.

A. Progressives were strongly attracted to scientific management, which had originally been intended to rationalize work in factories.

Attacking Nineteenth-Century FormalismI. The essential thing, in the progressive view, was to resist intellectual formulations that denied people this

sense of mastery, as the Social Darwinian writings of Herbert Spencer.A. Spencer argued that societies develop according to fixed laws and cannot be changed. His

intellectual approach was formalistic—it proceeded from unproven general principles rather than from actual investigation.

II. Critics of Spencer denied that the evolution of society is guided by absolute and unvarying rules.III. In law too formalism had dominated. The courts treated legal rights as if these were eternal principles

not rooted in—or to be tested in—social reality.The Academic Critique

I. The assault against formulism took place in many scholarly disciplines. In classical economics, scholars assumed that markets were perfectly competitive and thus perfectly responsive to the laws of supply and demand. Such a system left no room for reform.

A. Critics of classical economics—they called themselves “institutional economists”—denied that the market ever operated so perfectly. They conducted field research to determine how institutions and power relationships influenced the marketplace.

B. In the real world, economist Thorstein Veblen contended, people acted not out of pure economic calculation but from complex motives ranging from vanity to pride in their work.

II. In philosophy, it was William James who led the assault on formalism as an intellectual system. James denied the existence of absolute truths.

A. In his philosophy of pragmatism, ideas were judged by their consequences; ideas served as guides to action that produced desired results. Philosophy should be concerned with solving problems, not with contemplating ultimate ends.

III. James’s most important disciple was John Dewey. Like James, Dewey had a great interest in psychology, whose insights he applied to education.

A. Dewey broke from the rigid curriculum of traditional education and instead stressed problem solving and practical activity as the keys to children’s personal growth. His pupils were encouraged to explore and discover for themselves rather than learning lessons by route. This became to be known as progressive education.

Success of Progressive IdealismI. The reformers prided themselves on being tough-minded, on being expert in making things happen. But

they were not indifferent to the purposes of effective action.II. A lot of progressive idealism came from the American past. No American hero loomed larger for

progressives than Abraham Lincoln.

A. Lincoln’s example inspired the battle for political reform.B. Political reforms typically described their work as political restoration, frequently confessing that

they had converted to reform after discovering how far party politics had drifted from the ideals of representative government.

III. Progressive idealism also derived from American radical traditions.A. Many progressives traced their conversion to Henry George’s Progress and Poverty, which asked

why, in the midst of fabulous wealth, so many Americans lived in poverty.B. George’s answer—that private control of land siphoned the community’s wealth into the hands of

nonproductive landlords—led to a Single Tax movement that served as a school for many budding progressives.

C. Others traced their awakening to Edward Bellamy’s novel Looking Backward, with its utopian vision of an ordered, affluent American socialism, or to the Chicago social democrat Henry Demarest Lloyd’s Wealth Against Commonwealth, with its powerful indictment of the Standard Oil Trust.

D. In later years this radical tradition was transmitted mainly through the Socialist Party, which flourished in the 1900s under the leadership of Eugene Debs.

IV. The most important source of progressive idealism, especially among social reformers, was religion. Protestant churches had long been concerned with the plight of the urban poor. Now this concern blossomed into a major school of religious thought—the Social Gospel.

A. The influential cleric Walter Rauschenbusch fought for more playgrounds and better housing in slum neighborhoods. He argued that the ‘kingdom of God on Earth’ would be achieved not by striving for personal salvation but by struggling for social justice.

B. To coordinate that effort, reform-minded clerical leaders formed the Federal Council of Churches in 1908.

V. The Social Gospel was an explicitly religious movement, but secular progressivism was also infused with a strong element of faith. Progressive leaders characteristically grew up in families imbued with evangelical piety. Many went through a religious crisis, and, having failed to experience a conversion, settled on careers in social work, education, journalism, or politics, where they could translate inherited religious belief into modern secular action.

The MuckrakersI. The progressive mode of thought—idealistic in intent and tough-minded in approach—nurtured a new style

of reform journalism. Magazines began to find a large supply of urban readers. These bright new journals specialized in lively and informative reporting.

A. What most interested readers, and most lifted circulation, was the exposure of corruption in American life. Hardly a sordid corner of American life escaped the scrutiny of tireless reporters.

B. The reporters were moralists as well, infusing their factual accounts with a powerful spirit of personal indignation.

II. President Roosevelt, among many others, thought these journalists went too far. Thus the term muckraker became attached to journalists who exposed the underside of American life.

A. Their efforts were in fact health giving. More than any other group, the muckrakers called the people to arms.

The Many Faces of ReformI. Progressivism was not a movement in any meaningful sense. There was no progressive constituency, no

agreed-upon agenda, and no unifying organization or leadership.Political Reformers

I. One realm that cried out for reform was American politics. 20th century reformers denounced the boss rule of the party system, but the progressives’ attack was much more skilled and aggressive. Indeed, because politics was about power, in this realm the motives of the progressives were always mixed, with the ideals of civic betterment elbowing uneasily with the drive for self-aggrandizement.

City GovernmentI. In many cities the demand for good government came from local businessmen. Taxes went up, they

complained, but needed services always lagged. A. The solution lay in putting municipal affairs on a strict business basis. Cities should be run not by

partisans, but people skilled in business management and social service.II. This was a way of grabbing power. By making elections city-wide and professionalizing city

administration, municipal reformers attacked the ward politics that had favored ethnic and working-class groups, shifting political power to the urban middle class. In fact, municipal reform contained a decidedly anti-democratic bias.

III. Other urban progressives opposed such elitism. By combining popular programs and campaign magic, progressive mayors won over the urban masses and challenged the rule of the machines.

State PoliticsI. The major battleground for democratic reform was the states. Robert La Follette led the way. He was a

tireless exponent of political reform, battling the Republican old guard for a decade before finally winning the governorship of WI in 1900 on a platform of higher taxes for corporations, stricter utility and railroad regulation, and political reform.

II. La Follette’s key proposal was a direct primary law requiring political parties to choose candidates by means of popular election rather than in machine-run conventions.

A. Enacted in 1903, this democratic reform not only expressed La Follette’s ideals but suited his particular political talents.

B. Republican party regulars opposing him were insiders, more comfortable in the caucus room than out on the hustings.

III. What was true of La Follette was more or less true of all successful progressive politicians. Albert Cummins, Harold O’Ren, and Hiram Johnson all espoused democratic ideals, and all skillfully used the direct primary as the stepping-stone to political power and reform.

A. If they were newcomers they showed a quick aptitude for politics and gained a solid mastery of the trade. They practiced a new kind of popular politics, which in a reform age could be a more effective route to power than the back-room techniques of the old-fashioned machine politicians.

IV. Even the most democratizing of progressive reforms—the initiative, the referendum, and the recall—were really exercises in power politics

A. The initiative let ordinary citizens place issues of interest to them on the ballot.B. The referendum enabled voters to decide big legislative issues by popular vote.C. The recall empowered citizens to remove from office politicians who had lost the public’s

confidence.D. It soon became clear that direct democracy did not supplant organized politics. Initiative,

referendum, and recall campaigns put a premium on organization, money, and expertise, and these were attributes not of the people at large but of well-organized special interests.

The Woman ProgressiveI. For middle-class women of the Progressive Era, the link to the reform movement was through their

established identity as “social housekeepers”: it was women’s duty to tend to the social well-being of their communities.

II. Middle-class women had long borne the burden of humanitarian work in American cities. They did most of the legwork for the charity-organization societies coordinating citywide private relief after the 1870s.

A. As voluntary investigators, women visited needy families, assessed their problems, and referred them to relief agencies.

III. The goal of the New York Consumers’ League, founded in 1890 by Josephine Shaw Lowell, was to improve the wages and working conditions of female clerks in the city’s stores by issuing a “white list” of cooperating shops.

A. From these modest beginnings the league spread to other cities and blossomed into the National Consumers’ League in 1899.

B. By then the women who ran the league had lost faith in voluntary action; only the state could rescue poor urban families.

C. The Consumers’ League became a powerful lobby for protective legislation for women and children.

D. The League’s success in the Muller v. Oregon was a victory for the new “sociological jurisprudence” and cleared the way for a wave of protective laws across the country.

IV. Women’s organizations became a mighty lobbying voice on behalf of women and children. Their victories included the first law providing public assistance for mothers with dependent children.

Settlement HousesI. Meanwhile, other women were launching the settlement-house movement. In 1889, Jane Addams and Ellen

Gates Starr established Hull House on Chicago’s West Side. During the next 15 years, scores of settlement houses sprang up in the slum neighborhoods of the nation’s cities.

A. The settlement house served as community centers run by middle-class residents, who acted as amateur social workers for the surrounding immigrant communities.

II. Besides the modest good they did in slum neighborhoods, settlement houses also satisfied the hunger of their middle-class residents for meaningful lives. Settlement houses contributed significantly to the emerging profession of social work.

Revival of the Suffrage MovementI. Women activists such as Jane Addams and Florence Kelley breathed new life into the suffrage movement.

If women had the right to vote, they would demand more enlightened legislation and better government.A. By encouraging working-class women to help themselves, women progressives got a whole new

class interested in fighting for suffrage.II. In 1903 social reformers founded the National Women’s Trade Union League. Financed and led by wealthy

supporters, the league organized women workers, played a considerable role in their strikes, and helped develop working-class leaders.

A. Although they often resented the patronizing ways of their well-to-do sponsors, such trade-union women identified their cause with the broader struggle for women’s rights.

III. Suffrage activity began to revive nationwide. Women began to win the right to vote in certain states.A. Women began to apply more confrontational tactics.B. Rather than try to win the vote state by state, Alice Paul advocated a constitutional amendment

that in one stroke would give women across the country. In 1916 she organized the militant National Women’s Party.

IV. The National American Women Suffrage Association was also rejuvenated. It brought a broad-based organization to the campaign for a federal amendment.

The Birth of FeminismI. In the midst of the suffrage struggle something new and more fundamental began to happen. A new

generation of college-educated women, out in the world and self-supporting, refused to be hemmed in by the world of social constraints of women’s ‘separate sphere.’

A. These women called themselves feminists, a term that was just coming to use. In this incarnation, feminism meant freedom for full personal development, which in its specifics covered many things—freedom to follow a career, freedom from the double standard of sexual morality, freedom from social convention—but in a larger sense it meant freedom from the stifling stereotypes of women’s separate sphere.

II. Feminists were militantly prosuffrage, but did not stake their claim on any personal uplifting effect of the women’s vote on American politics. Rather, they demanded the right to vote because they considered themselves fully equal to men.

A. At the point that the suffrage movement was about to triumph, it was overtaken by a larger revolution that redefined the struggle for women’s rights as a battle against all the constraints that prevented women from achieving their potential as human beings.

III. Feminism brought forth a new and more radical type of woman progressive.Urban Liberalism

I. When Hiram Johnson first ran for governor of CA on the Republican ticket in 1910, he was the reform candidate of the urban middle class and the farming community. He pledged to purify CA politics and curb the Southern Pacific Railroad—the dominating power in the state’s economic and political life. By his second term Johnson was championing social and labor legislation.

A. His original base in the middle class had eroded and been replaced by an immigrant working-class vote that made him an invincible power in CA for years.

II. Johnson’s career illustrated an enduring achievement of progressivism: the activation of America’s working people as a force in reform politics.

A. The elements in this achievement were, first, the emergence of committed leaders; second, the crafting of a reform program keyed to the notes of the urban masses; and a rising level of popular engagement by these immigrant working people.

B. The last development crucially altered the composition of progressivism, which had begun as a movement of the middle class but then took on board America’s working people.

C. The effect was a brand of reform politics called urban liberalism.Machine Politicians as Reformers

I. After the fire at the Triangle Shirtwaist Company, the newly-created New York State Factory Commission developed a remarkable program of labor reform: 56 laws dealing with fire hazards, unsafe machines, homework, and wages and hours for women and children.

A. The chairman of the commission was Robert Wagner; the vice-chairman, Alfred Smith. Both were Tammany Hall politicians, Democratic party leaders in the state legislature. They established the commission, participated fully in its work, and marshaled party regulars to pass the proposals into law. They did this all with the approval of the Tammany machine.

II. Tammany’s reform role reflected something new in urban politics. Party machines increasingly recognized their limitations as social agencies in the modern industrial age. Only the state could prevent future Triangle fires or cope with the evils of factory work and city life.

A. A new generation had entered machine politics. They formed durable ties with middle-class progressives.

III. For all their organized muscle, the urban machines could not ignore the will of the people. They saw the appeal of reform programs in working-class wards.

A. They faced a threat from the left as well. The Socialist Party was making headway in the cities and winning municipal elections in towns and cities across the country.

B. The political universe of the urban machines had changed, and they had to pay more attention to opinion in the precincts.

The Labor MovementI. City machines, always pragmatic, adopted urban liberalism without much of an ideological struggle. The

same could not be said of trade unions, the other institution that spoke for American working people.A. During its early years the American Federation of Labor had strongly opposed state interference in

labor’s affairs. Samuel Gompers preached that workers should not seek from government what they could accomplish through their own economic power and self-help.

B. Volunteerism, as trade unionists called this doctrine, did not die out, but it weakened substantially during the progressive years.

II. In the early 20th century the labor movement came under attack by the courts. The worst was the willingness of many judges to grant employers labor injunctions prohibiting a union from carrying a strike or boycott.

A. The effect of this measure was to immobilize and defeat the union.III. Only a political response could blunt these assaults on labor’s economic weapons. In its “Bill of

Grievances” of 1906 the AFL demanded that congress grant unions immunity from court attack.A. Rebuffed by congress, the unions became more politically active, entering campaigns and giving

nonpartisan support to candidates who favored their program.B. Labor became allied with the Democratic party, which was more responsive than the Republican

party to labor’s pleas for a curb on the courts.IV. Once into politics, the labor movement had difficulty denying the case for social legislation. In state after

state, organized labor joined the battle for progressive legislation and increasingly became its strongest advocate.

V. Conservative labor leaders offered the excuse that protective laws were for women and children, who could not defend themselves. In practice, however, trade unions became more flexible about legislative protection for men as well, and on the issue of workers’ compensation they took the lead.

Social Insurance DeferredI. Accidents took an awful toll in American factories and mines. Liability laws, which were governed by

common-law principles, so heavily favored the employer that victims of industrial accidents rarely got compensation.

A. Citing state-funded accident insurance in Europe, the unions demanded comparable protections for American workers, although they were willing to compromise with the insurance industry and employers on a funding system based on accident rates. Between 1910 and 1917 workers’ compensation on this basis went into effect in all the industrial states.

II. The US was slow to protect workers against the hazards of modern industrial life. Health insurance and unemployment compensation scarcely made it into the American political agenda.

A. It did not help that the Republican party shamelessly exploited veterans’ pensions as a campaign issue, or that administration of the program was notoriously corrupt and laced with patronage, or that easy access to veterans’ benefits often reinforced fears of state-induced dependency.

III. Not until a later generation experienced the Great Depression of the 1930s would the country be ready for social insurance.

Cultural Pluralism EmbattledI. Urban liberalism was driven out only by the plight of the economically downtrodden but also by a

sharpening attack on immigrants. A. Old-stock evangelical Protestants had long agitated for laws that would impose their moral and

cultural norms on American society. After 1900, this impulse again began to beat strongly, expressing one strand of progressive reform.

B. The Anti-Saloon League became a formidable force for prohibition in many states.C. Outlawing the sale of liquor was related to other reform targets: the saloon made for dirty politics,

poverty, and bad labor conditions. Like progressiveness on other fronts, prohibitionists pronounced their movement the “Revolt of Decent Citizens.”

II. The moral reform agenda expanded to include a new goal: restricting the immigration of southern and eastern Europeans. The danger, social scientists argued, was that the nation’s Anglo-Saxon population would be “mongrelized” and its civilization swamped by “inferior” cultures.

A. Feeding on this fear, the Immigration Restriction League spearheaded a movement to end America’s open-door policy.

B. Like prohibition, immigration restriction was considered by its proponents to be a progressive reform.

III. Urban liberals thought otherwise. They denounced prohibition and immigration restriction as attacks on their personal liberty and worthiness of urban immigrants.

A. They championed both the economic needs of city dwellers and their religious and cultural freedom. Until the Great Depression, the second issue provided the stronger basis for urban liberal politics.

B. Because their party cultivated the immigrant vote, the Democrats became the beneficiaries of the rise of urban liberalism. The rapid growth of this city vote destined the Democrats to become the majority party.

C. The shift from Republican domination began in the Progressive Era.Racism in an Age of Reform

I. The direct primary was the flagship of progressive politics—the crucial reform for defeating the party bosses and returning politics to “the people.”

A. The primary originated in the South. It was celebrated in the south as a democratizing reform and frequently set the stage for brining reform state administrations into power.

II. The southern primary sprang up from the furious political battles of the 1890s. in the course of those battles, as the challenges to Democratic rule failed, one of the devices that emerged for driving blacks out of politics was the primary.

White Supremacy in the Progressive VeinI. In the north, racial tensions were on the rise. The arrival of blacks to the northern cities sparked white

resentment. Attacks on blacks became widespread.Revival of the Civil Rights Struggle

I. In these bleak years a core of young black professionals, mostly northern-born, began to fight back. The key figure was William Monroe Trotter, an outspoken critic of Booker T. Washington.

A. Trotter was joined by W.E.B Du Bois, who had also challenged Washington’s accommodationism. In 1906 the 2 called a meeting of 29 supporters at Niagara Falls.

B. The Niagara Movement, which resulted from that meeting, had an impact far beyond the scattering of members and local bodies it organized. The principles it affirmed would define the struggle for the rights of African Americans: first, the encouragement of black pride by all possible means; second, an uncompromising demand for full political and civil equality; and a denial “that the Negro-American assents to inferiority.”

II. A handful of white reformers rallied to the African American cause. Among the most devoted was Mary White Ovington. She called a meeting of sympathetic white progressives, which led to the formation of the National Association for the Advancement of Colored People in 1909.

III. Torn by internal disagreements, the Niagara movement was breaking up, and most of the black activists joined the NAACP. Whites dominated the organization’s leadership with the exception of Du Bois.

IV. In social welfare, the National Urban League became the lead organization, uniting in 1911 the many groups serving black migrants arriving in northern cities.

A. The Urban League was interracial, including white reformers and black welfare activists.B. In the south, social welfare was very much the province of black women, whose civic activities to

some extent filled the vacuum left by the disfranchisement of black men.C. African American women’s progressivism sprang organizationally from the churches and schools,

but also from the southern affiliates of the National Association of Colored Women’s Clubs, started in 1896.

D. Because their activities seemed unthreatening to white supremacy, black women were able to reach across the color line and find allies and supporters among white women in the south.

V. Progressivism was a house of many chambers. Most were infected with the respectable racism of the age, but not all. A saving remnant of white progressives rallied to the cause of African Americans.

Progressivism and National PoliticsI. The gathering forces of progressivism reached the national scene slowly. Reformers had been spurred by

immediate and visible problems. Washington seemed distant from the battles they were waging in the cities and states.

A. By 1910 a highly vocal progressive Republican bloc was making itself heard in both houses of Congress.

II. Progressivism came to national politics not from Congress, however, but by way of the presidency.T.R.: The Making of a Progressive President

I. Roosevelt identified himself with the cause of righteousness. But he did not scorn power and its uses. He rose in the NY party because he skillfully translated his moral fervor into broad popular support and thus forced himself on reluctant state Republican bosses.

II. During his term as governor of NY he clearly signaled his reformist inclinations by pushing through civil-service reform and a tax on corporate franchises.

III. Upon becoming president, Roosevelt moved cautiously, attending first of all to politics. He understood the power of the conservative Republican bloc in Congress. He adroitly used the patronage powers of the presidency to gain control of the Republican party.

A. Roosevelt was also restrained by uncertainty about what reform role the federal government ought to play.

First Steps: Conservatism and the Coal StrikeI. Roosevelt wanted to converse the country’s resources. He was not against commercial development as long

as it was regulated and mindful of the public interest.A. The Forest Reserve Act of 1891 had begun the process of withdrawing timberland from

unregulated private use.B. Roosevelt added more than 125 million acres to the national forests and brought mineral lands and

water power sites into the reserve system.C. In 1902 he backed the Newlands Reclamation Act, which designated the proceeds from public

land sales for irrigation in arid regions.D. His administration upgraded the management of public lands and prosecuted violators of federal

land laws.II. When the anthracite miners’ strike of 1902 threatened national emergency, Roosevelt called both sides of

the dispute to the White House. When the conference failed, Roosevelt threatened the operators with a government takeover of the mines. He also convinced the financier J.P. Morgan to use his influence with them.

A. The strike ended with the appointment by Roosevelt of an arbitration commission to rule on the issues.

B. He was ready to deploy all his presidential authority against the tyranny of irresponsible business.The Problem of the Trusts

I. The economic issue that most concerned Roosevelt was the assault on the competitive market by big business.

A. The drift towards large-scale enterprise had been under way for many years, as entrepreneurs sought the efficiencies of a nationwide, vertically integrated firm. But they knew that creating bigger businesses also meant gaining power to control markets. This was the motive behind the scramble to merge rival firms in the aftermath of the depression of the 1890s.

B. These mergers greatly increased the degree of business concentration in the economy.II. Most of the new combines were heavily watered—the stocks and bonds they issued greatly exceeded the

real value of the properties they controlled. Financiers did not relinquish control over the combines they had fathered, for they sat on the board of directors of the new firms and exerted a back-room influence on the operating executives.

A. Almost overnight a “money power” seemed to have gained a stranglehold on the American economy.

III. The basic legal principles upholding free competition were already firmly established. Under common law it was illegal for anyone to restrain or monopolize trade. Persons who were economically injured by such actions could sue for damages.

A. These common-law rights had been enacted into statute law in many states during the 1880s and then, because the problem went beyond state jurisdictions, had been incorporated into the Sherman Antitrust Act of 1890 and become federal law.

Trust-BustingI. In 1903 Roosevelt established the Bureau of Corporations, empowered to investigate business

practices.II. Roosevelt was not antibusiness. He regarded large-scale enterprise as a natural result of modern

industrialism. Only firms that abused their power deserved punishment.A. Under the Sherman Act, following common-law doctrine, the courts decided whether an act in

restraint of trade was “unreasonable”—that is, actually harmful to the public interest—and the courts thus had the discretion to evaluate the actions of corporations on a case-by-case basis.

B. After 1897, after the Trans-Missouri decision, actions that restrained or monopolized trade automatically put a firm in violation of the Sherman Act, regardless of their impact on the public interest.

III. The Trans-Missouri placed Roosevelt in an awkward position. He had no desire to hamstring legitimate business activity, but he could not rely on the courts to distinguish between good and bad trusts. The only solution was for Roosevelt to assume the responsibility.

A. For Roosevelt, the “gentlemen’s agreement”—to settle financial matters between corporations privately—solved a serious dilemma: he could accommodate the realities of the modern industrial order while maintaining his public image as champion against the trusts.

Railroad RegulationI. The railroads posed a different kind of threat for Roosevelt. As quasi-public enterprises, the railroads had

always been subject to public regulation.A. Initially, this had been the responsibility of the states, but with the passage of the Interstate

Commerce Act of 1887, the federal government had entered the field, establishing the Interstate Commerce Commission.

B. Convinced that the railroads needed firm regulation, Roosevelt pushed through the Elkins Act of 1903, which prohibited discriminatory rebates—reductions on published rates for preferred customers.

II. The central issue was government rate-setting, which the conservative Republican bloc in congress firmly opposed.

A. In 1906 congress passed the Hepburn Railway Act, which empowered the ICC to set maximum rates upon complaint of a shipper and to prescribe uniform methods of bookkeeping. But as a concession to conservatives, the courts retained broad powers to rewrite the ICC’s rate decisions.

III. The Hepburn Act was a triumph of Roosevelt’s skills as a political operator. He maneuvered brilliantly against determined opposition and came away with the essentials of what he wanted.

Consumer ProtectionI. The regulation of consumer products, another hallmark of progressive reform, was the handiwork of

muckraking journalists such as Samuel Hopkins Adams and Upton Sinclair.II. The Pure Food and Drug Act and the Meat Inspection Act passed shortly after Sinclair wrote The Jungle,

and another administrative agency was added to the federal bureaucratic structure Roosevelt was building: the Food and Drug Administration.

The Square DealI. Roosevelt called his program the Square Deal. This kind of labeling was new to American politics,

introducing a political style that dramatized issues, mobilized public opinion, and asserted leadership.A. But the label identified something of substance as well. After many years of passivity, the federal

government was reclaiming the activist role it had abandoned after the Civil War. Now the target was the new economic order.

II. Roosevelt struggled to bring a modern corporate economy under regulatory control. He was aware, however, that his Square Deal was built on 19th century foundations; in particular, antitrust doctrine, which aimed at enforcing competition, seemed inadequate in the face of a large-scale industrial order.

A. Better, Roosevelt felt, to give the federal government administrative powers to regulate big business than to try to break it up.

The Fracturing of Republican ProgressivismI. William Howard Taft was an avowed Square Dealer. But he was not a progressive politician. He was

incapable of dramatizing issues or stimulating people. He disliked the give-and—takes of politics, distrusted power, and generally deferred to Congress.

A. In fundamental ways Taft was deeply conservative. He sanctified property rights, revered the processes of the law, and found it hard to trim his means to fit his ends.

II. William Jennings Bryan’s campaign moved the Democrats into the mainstream of national progressive politics.

Taft’s TroublesI. By 1909 the ferment for reform had unsettled the Republican Party.II. First there was the tariff. Progressives considered protective tariffs a major reason why competition had

declined and the trusts had sprung up. Although Taft had campaigned for tariff reform, he was won over by the conservative Republican bloc during the prolonged drafting process and gave his approval to the protectionist Payne-Aldrich Tariff Act of 1909, which sheltered eastern industry from foreign competition.

III. Next came the Pinchot-Ballinger affair. US Chief Forester Gifford Pinchot, an ardent conservationist, accused Secretary of the Interior Richard Ballinger of conspiring to transfer Alaskan public land to a private syndicate.

A. When Pinchot made the charges public in Jan 1910, Taft fired him for insubordination.B. Despite Taft’s strong conservationist credentials, in the eyes of the progressives the Pinchot-

Ballinger affair marked him for life as a friend of the interests bent on plundering the nation’s resources.

IV. Taft found himself propelled into the conservative Republican camp.A. Largely in response to Taft, the reformers in the Republican Party turned into a distinct, organized

faction. By 1910 they were calling themselves “Progressives” or “Insurgents.”B. Taft answered by backing their conservative foes in the Republican primaries that year.

The Taft-Roosevelt SplitI. The progressives emerged from the 1910 elections stronger and angrier. In Jan 1911 they formed the

National Progressive Republican League and began a drive to take over the Republican Party.A. La Follette was the progressives’ leader and designated presidential candidate, but they knew their

best chance to win was Theodore Roosevelt.II. Roosevelt was too loyal a party member to defy the Republican establishment and too astute a politician

not to recognize that a party split would benefit the Democrats.A. He could be spurred into rebellion only by the discovery of a true clash of principles. On the

question of trusts, just such a clash materialized.III. By distinguishing between good and bad trusts, Roosevelt had managed to reconcile public policy and

economic reality. But this was a makeshift solution that depended on a president who was willing to stretch his powers to the limit. Taft had no such inclination.

A. His legalistic mind rebelled at the notion that he as a president should decide which trusts should be persecuted.

IV. In its Standard Oil decision the Supreme Court eased Taft’s problem by reasserting the common-law principle of the “rule of reason,” which meant that the courts themselves would distinguish between good and bad trusts.

A. With that burden lifted from the executive branch, Attorney General George Wickersham picked up the pace of antitrust actions.

V. US Steel Corporation became an immediate target. Among the charges against it was that it had violated the antimonopoly provision of the Sherman Act by acquiring the TN Coal and Iron Company in 1907.

A. Roosevelt had personally approved of the acquisition, but Taft attacked it. Nothing was better calculated to propel Roosevelt into action than an issue that was both an affair of personal honor and a question of broad principle.

The New NationalismI. Roosevelt believed that the federal government could be empowered to oversee the nation’s industrial

corporations to make sure they acted in the public interest. They could be regulated by a federal trade commission, with powers comparable to those exerted by the Interstate Commerce Commission over public utilities.

A. In the modern age, Roosevelt suggested, industrial cooperations were becoming natural monopolies and therefore were subject to the same degree of public oversight.

II. Roosevelt made the case for what he called the New Nationalism. The central issue, he argued, was human welfare versus property rights.

A. In modern society, property rights had to be controlled “to whatever degree the public welfare may require it.” The government would become the “steward of the public welfare.”

III. This formulation removed the restraints from Roosevelt’s thinking. Ultimately he went so far as to embrace government price-fixing for corporate industry.

A. He took up the cause of social justice, adding to his program a federal child labor law, regulation of labor relations, and a national minimum wage for women.

B. He also attacked the legal system. Insisting that the courts should not be making social policy, Roosevelt proposed sharp curbs on their powers.

IV. Beyond these specifies, the New Nationalism advanced a distinctive parallel philosophy. The key source was a book by Herbert Croly, The Promise of American Life, which called for a uniting of rival strains in the American political tradition.

A. From Alexander Hamilton’s federalism Cody drew his emphasis on strong national government; from Thomas Jefferson’s republicanism came Cody’s enthusiasm for democracy and the primacy of the interests of the common citizen. The result, however, was a genuine break from America’s political past.

B. To the problem of corporate power the New Nationalism offered a statist solution—an enormous expansion of the role of the federal government.

V. Early in 1912 Roosevelt announced his candidacy for president and immediately swept the progressive Republicans into his camp. A bitter party battle ensued.

A. Considering himself cheated out of the nomination, Roosevelt led his followers into a new Progressive Party, nicknamed the “Bull Moose” Party.

Woodrow Wilson and the New FreedomI. While the Republicans battled among themselves, the Democrats were on the move.

Forging the New FreedomI. Wilson possessed a moral certainty that characterized the progressive politician. He instinctively assumed

the mantle of righteousness and showed little tolerance for the views of his critics. Only gradually did he create a coherent reform program, which he called the New Freedom.

II. Like Roosevelt, Wilson opposed not bigness of business but the abuse of economic power. Nor did Wilson think that the abuse of power could be prevented without a strong federal government.

A. He parted company with Roosevelt on how government should restrain private power.B. Wilson also scorned Roosevelt’s social program. Welfare might be benevolent, but it would also

be paternalistic and contrary to the traditions of a free people.C. The New Nationalism meant collectivism, Wilson warned, whereas the New Freedom would

preserve political and economic liberty.

III. Wilson proposed court enforcement of the Sherman act to deal with the problem of corporate power. His task was to figure out how to make that long-established antitrust approach work better.

A. Wilson relied heavily on Louis Brandeis. Brandeis understood that an all powerful trade commission was likely to end up not as a defender of the public interest but in a cozy relationship with the industries it was supposed to regulate.

B. Nor did Brandeis think that bigness meant efficiency. He argued that trusts were wasteful compared to firms that vigorously compared with firms that vigorously competed in a free market. The main thing was to prevent the trusts from unfairly using their power to curb free competition.

The Election of 1912I. Despite the rhetoric of the campaign, the election fell short of being a referendum on the New Nationalism

versus the New Freedom. A. If there was a beneficiary of the reform ferment sparked by the presidential campaign, it was not

Wilson but Socialist candidate Eugene Debs.B. The 1912 election showed that the American public was in the mood for reform.

II. The 1912 election proved to be decisive in the history of national reform. The debate between Wilson and Roosevelt had brought forth, in the New Freedom, a program capable of finally resolving the crisis over corporate power that had gripped the nation for a decade.

The First Phase: Tariff Reform and the Federal ReserveI. Upon entering the White House, Wilson chose a flanking attack on the problem of economic power. So

long out of office, the Democrats were eager for tariff reform.A. The Underwood Tariff Act of 1913 pared down rates to an average of 25%.B. Targeting especially the trust-dominated industries, Democrats confidentially expected the

Underwood Tariff Act to spur competition and reduce prices for consumers by opening protected American markets to foreign consumers.

II. Wilson then turned to the banking system, whose key weakness was the absence of a central bank.A. The main function of the central bank at that time was to regulate commercial banks and back

them up in case they could not meet their obligations to depositors. In practice, in the US this role had been assumed by the great NY banks and assisted them when they came under pressure. However, if the banks weakened, the entire system would collapse.

III. The need for a reserve system became widely accepted, but the form it should take was hotly debated.A. Wall Street wanted a centralized system controlled by the bankers. Rural Democrats preferred a

decentralized network of reserve banks. Progressives in both parties agreed that the essential feature should be public control over the reserve system.

IV. Wilson learned quickly and reconciled the reformers and bankers.A. The First Reserve Act of 1913 gave the nation a banking system that was resistant to financial

panic. The act delegated reserve functions to 12 district reserve banks, which would be controlled by their member banks. The Federal Reserve Board imposed public regulation on this regional structure.

B. In one stroke the act strengthened the banking system and placed a measure of restraint on the money trust.

Settling the Trust QuestionI. Having dealt with tariff and banking reform, Wilson turned to the question of how to curb trusts.

A. In the Clayton Antitrust Act of 1914, amending the Sherman Act, the definition of unlawful practices was less flexible.

II. Brandeis realized that this retreat from a definitive antitrust prescription meant that a federal trade commission would be needed to aid the executive branch in enforcing the Sherman and Clayton acts. Wilson was hesitant, given his principled opposition to Roosevelt’s conception of a powerful trade commission overseeing American business.

A. At first Wilson wanted only an advisory, information-gathering agency. But ultimately, under the law establishing it, the Federal Trade Commission received broader powers to investigate companies and issue cease and desist orders against unfair trade practices that violated antitrust law.

B. FTC decisions were subject to court review, so that Wilson’s entire program was situated within the original conception of antitrust reinforcement. The courts would ultimately decide which business practices were illegal.

III. This arduous legislative process was an exercise in consensus building. Wilson himself had opened the debate. Afterward, Wilson felt that he had brought the long controversy over corporate power to a successful conclusion.

A. Steering a course between Taft’s conservatism and Roosevelt’s radicalism, Wilson carved out a middle ground that brought to bear the powers of government without threatening the constitutional order, and that curbed abuse of corporate power without threatening the capitalist system.

Wilson’s Social ProgramI. On social policy, Wilson carved out a middle way. Having denounced the New Nationalism as

paternalistic, he at first was unreceptive to what he saw as special-interest demands of labor and farm organizations.

A. On the leading issue—that they be exempted from antitrust prosecution—the most Wilson was willing to accept was cosmetic language in the Clayton Act that did not give them the immunity they sought.

II. The labor vote had grown increasingly important to the Democratic Party, however. Wilson was forced to lose some of his scruples about prolabor legislation.

A. In 1915-1916 he championed a host of bills beneficial to American workers: a model federal workers’ compensation law, a child labor law, the Adamson 8-hour law for railroad workers, and the Seamen’s Act, which eliminated abuses of sailors aboard ship and granted them the individual rights held by workers.

B. In 1916 Wilson approved the Federal Farm Loan Act, which provided the low-interest rural credit system long demanded by farmers.