THE WISE OR FOOLISH POLICIES OF WOODROW WILSON
...and shutting out the competitors without facing any legal complications. In summary the Federal Trade Commission was a waste of time because it did nothing to stop the monopolies or create competition. In 1914 due to rising concern about monopolies, Wilson attacked them with the passing of the Clayton Anti- Trust Act. The Clayton Act strengthened the anti-trust laws already in effect and limiting the power the trusts had over the employees and the labour unions: And the Clayton Anti-Trust Act of 1914 specifically forbade many practices that interfered with the free flow of interstate commerce. Among its provisions were also selections legalizing labour unions, peaceful picketing, boycott, and strikes; and limited the use of labour injunctions. The bill was designated by many trade unionists as labour’s bill of rights. (Collier’s 451) It stopped businesses from selling at lower prices to favourite customers if these deals helped in the creation of a monopoly. It prevented corporations from buying stock of other companies if the purchase created a monopoly. Also the companies could not “tie contracts” with retailer requiring the retailer not to buy goods from a competitor. One of the most important parts of the Act was that individuals of the same industry could not be directors of two or more competing companies. If company officials were found guilty of violating the Clayton Act they would be imprisoned. The Clayton Anti-Trust Act was a smart move by the Wilson administration keeping the number of monopolies to a minimum. Workers were now allowed to strike and picket their employers while being protected by the law. This Act helped bring down the price of goods because competitors were regaining retailers who had to buy form these different companies. This Act covered some of the missed points on earlier Acts passed to protect workers and to strike right at the heart of the monopolies and their owners. The next policy we will study is the Underwood Tariff Act that was passed in 1913. When Wilson first entered office the first thing on his “to do” list was the lowering of tariffs. These are duties or taxes levied on goods that cross borders of states and countries. Wilson believed that these high tariffs only benefited large corporations or monopolies because they had more money to put towards these duties and that these high tariffs protected the monopolies and kept them running strong: This law lowered tariffs on many imported goods. Wilson believed that foreign competition would make American companies more efficient and force them to reduce prices on their goods. Lower prices would benefit all Americans. (Hux 252) This act cut tariffs the most they had been since the Civil War and it not only dealt with the lowering of tariffs but with income too, on a graduated level. The Underwood Tariff Act was a wise endevour by Wilson because it expanded the markets of American industry, but because it cut down on the revenue the government was making the implementation of an income tax system helped keep a balance. This Act was passed under strong opposition but it did provide relief for many small businesses and increasing the opportunity for economic growth and expansion. On April 6th 1917 the United States entered the First World War by a declaration of War against Germany and the Axis powers. The First World War started in 1914 by the assassination of an Austrian Archduke, which then led to a full scale war engulfing many nations. The United States at the time was torn between both of the sides because of its multiculturalism. United States merchants wanted to make lots of money off the war and were happy to be neutral because they could supply arms to both sides. The German submarine campaign changed the outlook of many Americans when the passenger liner Lusitania, was torpedoed with 128 Americans on board. After this incident opinions started to sway in the United States especially when a document from the German embassy stated that all ships in the North Atlantic were considered free game to German submarines. Wilson condemned these submarine attacks that were sinking unarmed merchant ships. Pressure mounted from the public and soon war was inevitable. Wilson stated that they were fighting for ultimate peace and that they were not entering the war to gain more land but to create peace: But the right is more precious than peace, and we shall fight for the things which we have always carried nearest our hearts – for democracy, for the right of those who submit to authority to have a voice in their own government, for the rights and liberties of a small nations, for a universal dominion of right by such a concert of free peoples as shall bring peace and safety to all nations and make the world itself at last free. (Ferrell, 2-3) Declaring War on Germany was an extremely wise policy of Wilson and his cabinet. Every member of Congress supported his decision for the declaration of war. Americans caught on to the idea of entering the war for peace and not to gain more foreign territories. Because the United States joined the war on the Allies side several other South American countries decided to join with the Allies or to stay neutral indefinitely. The war was a chance for American business to prosper more than they had been already. When the United States was not at war the merchant ships were not protected nor could they protect themselves against an attack by the German ships and submarines. Now that America was at war ships were being armed and escorted and fewer numbers were being lost, bringing more supplies to the war effort. Because of this pressure from the public it was a smart thing for Wilson to do if he were to try for re-election and or pass any more acts in Congress. This was an opportunity for America to grow and build ties with other nations. By doing this Wilson promoted rapid growth throughout the United States and helped bring on prosperity in the following years. The final policy that Wilson drafted and strongly believed in, was the “14 Points”. In 1917 the First World War was beginning to turn for the Allies as American men and support flowed onto the battle field. The Allies needed to develop a strategy to makes things as they were before the war a...