Chapter 17. 4 & 5

Roosevelt’s Square Deal 1901: Theodore Roosevelt became President. (Teddy)

He became known for fighting corruption.

Roosevelt greatly expanded the powers of the Presidency.

***He used his powers to convince the public of the need for Progressive Reform.

***He called his plan the “The Square Deal”The Goal:

***To keep Big Business from taking over and exploiting small business.

PRIMARY SOURCE (Square Deal)“When I say I believe in a square deal, I do not mean to give every man the best hand. If good cards do not come to any man, or if they do come, and he has not got the power to play them, that is his affair. All I mean is that there shall be no crookedness in the dealing.” (Theodore Roosevelt, 1905)

***At this point Roosevelt’s administration became known as “trustbusters.”

Roosevelt was NOT interested in breaking up all companies.

***He claimed to be the judge between what where “GOOD” trusts and “BAD” trusts.

He supported Big Business as long as they played fairly with smaller businesses.

***Roosevelt: Believed that the land should be CONSERVED, because the land had natural resources that could benefit the country.

***Roosevelt believed in “rational” use.

Muir: Believed in PRESERVATION.

National reclamation Act:Gave the Federal Gov’t the power to decide where and how water would be distributed.

***Roosevelt left office after 2 terms was still a powerful source for the Republican Party.

***He helped William Howard Taft (Secretary of War) win the Presidency of 1908.

Roosevelt expected Taft to continue his programs and policies.

Wilson’s New Freedom

Section 5

***Woodrow Wilson won the White House.

***He began shaping his ideas of government called “NEW FREEDOM”

It looked like Roosevelt’s New Nationalism

***It would place strict gov’t controls on corporations.

Wilson wanted to prevent Big Business from unfairly charging high prices to their customers.

***-He (Wilson) lowered tariffs on foreign goods so people could buy goods from other countries if American prices were too high.

-Wilson was able to pass laws to regulate the economy thanks to the 16th amendment. (Allowed Congress to tax income.)

Wilson tried to reform the Banking system.-At this time there was NO central banking system.

***Wilson pushed Congress to pass the FEDERAL RESERVE ACT (1913)

-This placed banks under the control of a Federal Reserve Board.

-Set up Regional banks to hold reserve funds for commercial banks.Prevent too much wealth from being in control of one person.

-Federal Reserve set up interest rates-Supervised banks