The New Freedom
Encyclopedia
The New Freedom comprises the campaign speeches and promises of Woodrow Wilson
in the 1912 presidential campaign. They called for less government, but in practice as president he added new controls such as the Federal Reserve System and the Clayton Antitrust Act
. More generally the "New Freedom" is associated with Wilson's first term as president (1913-1917). As President, Wilson focused on three types of reform:
1. Tariff Reform: This came through the passage of the Underwood Tariff Act of 1913
, which lowered tariffs for the first time since the American Civil War
and went against the protectionist lobby.
2. Business Reform: This was established in 1914 through the passage of the Federal Trade Act
, which established the Federal Trade Commission
to investigate and halt unfair and illegal business practices by issuing "cease and desist" orders, and the Clayton Anti-Trust Act.
3. Banking Reform: This came in 1913, through the creation of the Federal Reserve System
, and in 1916, through the passage of the Federal Farm Loan Act
, which set up Farm Loan Banks to support farmers.
's ideas of New Nationalism
, particularly on the issue of antitrust modification. According to Wilson, "If America is not to have free enterprise, he can have freedom of no sort whatever." In presenting his policy, Wilson warned that New Nationalism represented collectivism
, while New Freedom stood for political and economic liberty from such things as trusts
(powerful monopolies). Wilson was strongly influenced by his chief economic advisor Louis D. Brandeis, an enemy of big business and monopoly.
Although Wilson and Roosevelt agreed that economic power was being abused by trusts, Wilson ideas split with Roosevelt on how the government should handle the restraint of private power as in dismantling corporations that had too much economic power in a large society.
. Wilson appointed Brandeis to the US Supreme Court in 1916. He worked with Congress to give federal employees worker's compensation, outlawed child labor with the Keating-Owen Act
(though this act was ruled unconstitutional in 1918
) and passed the Adamson Act
, which secured a maximum eight-hour workday for railroad employees. Most important was the Clayton Act of 1914, which largely put the trust issue to rest by spelling out the specific unfair practices that business were not allowed to engage in.
By the end of the Wilson Administration, a signficant amount of progressive legislation had been passed, affecting not only economic and constitutional affairs, but farmers, labor, veterans, the environment, and conservation as well. The reform agenda of the New Freedom, however, did not extend as far as Theodore Roosevelt
's proposed New Nationalism
in relation to the latter's calls for a standard 40-hour workday, minimum wage laws, and a federal system of social insurance. This was arguably a reflection of Wilson's own ideological convictions, who adhered to the classical liberal principles of Jeffersonian Democracy
(although Wilson did champion reforms such as agricultural credits later in his presidency, and called for a living wage in his last State of the Union Address
). Despite this, the New Freedom did much to extend the power of the federal government in social and economic affairs, and arguably paved the way for future reform programs such as the New Deal
and the Great Society
.
Woodrow Wilson
Thomas Woodrow Wilson was the 28th President of the United States, from 1913 to 1921. A leader of the Progressive Movement, he served as President of Princeton University from 1902 to 1910, and then as the Governor of New Jersey from 1911 to 1913...
in the 1912 presidential campaign. They called for less government, but in practice as president he added new controls such as the Federal Reserve System and the Clayton Antitrust Act
Clayton Antitrust Act
The Clayton Antitrust Act of 1914 , was enacted in the United States to add further substance to the U.S. antitrust law regime by seeking to prevent anticompetitive practices in their incipiency. That regime started with the Sherman Antitrust Act of 1890, the first Federal law outlawing practices...
. More generally the "New Freedom" is associated with Wilson's first term as president (1913-1917). As President, Wilson focused on three types of reform:
1. Tariff Reform: This came through the passage of the Underwood Tariff Act of 1913
Revenue Act of 1913
The United States Revenue Act of 1913 also known as the Tariff Act, Underwood Tariff, Underwood Tariff Act, or Underwood-Simmons Act , re-imposed the federal income tax following the ratification of the Sixteenth Amendment and lowered basic tariff rates from 40% to 25%, well below the Payne-Aldrich...
, which lowered tariffs for the first time since the American Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...
and went against the protectionist lobby.
2. Business Reform: This was established in 1914 through the passage of the Federal Trade Act
Federal Trade Commission Act
The Federal Trade Commission Act of 1914 started the Federal Trade Commission , a bipartisan body of five members appointed by the president of the United States for seven-year terms. This commission was authorized to issue “cease and desist” orders to large corporations to curb unfair trade...
, which established the Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
to investigate and halt unfair and illegal business practices by issuing "cease and desist" orders, and the Clayton Anti-Trust Act.
3. Banking Reform: This came in 1913, through the creation of the Federal Reserve System
Federal Reserve System
The Federal Reserve System is the central banking system of the United States. It was created on December 23, 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907...
, and in 1916, through the passage of the Federal Farm Loan Act
Federal Farm Loan Act
The Federal Farm Loan Act of 1916 was a United States federal law aimed at increasing credit to rural, family farmers. It did so by creating a federal farm loan board, twelve regional farm loan banks and tens of farm loan associations...
, which set up Farm Loan Banks to support farmers.
Campaign slogan in 1912
Wilson's position in 1912 stood in opposition to Progressive party candidate Theodore RooseveltTheodore Roosevelt
Theodore "Teddy" Roosevelt was the 26th President of the United States . He is noted for his exuberant personality, range of interests and achievements, and his leadership of the Progressive Movement, as well as his "cowboy" persona and robust masculinity...
's ideas of New Nationalism
New Nationalism
New Nationalism was Theodore Roosevelt's Progressive political philosophy during the 1912 election.-Overview:Roosevelt made the case for what he called the New Nationalism in a speech in Osawatomie, Kansas, on August 31, 1910...
, particularly on the issue of antitrust modification. According to Wilson, "If America is not to have free enterprise, he can have freedom of no sort whatever." In presenting his policy, Wilson warned that New Nationalism represented collectivism
Collectivism
Collectivism is any philosophic, political, economic, mystical or social outlook that emphasizes the interdependence of every human in some collective group and the priority of group goals over individual goals. Collectivists usually focus on community, society, or nation...
, while New Freedom stood for political and economic liberty from such things as trusts
Antitrust
The United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...
(powerful monopolies). Wilson was strongly influenced by his chief economic advisor Louis D. Brandeis, an enemy of big business and monopoly.
Although Wilson and Roosevelt agreed that economic power was being abused by trusts, Wilson ideas split with Roosevelt on how the government should handle the restraint of private power as in dismantling corporations that had too much economic power in a large society.
Wilson in office
Once elected, Wilson seemed to abandon his "New Freedom" and adopted policies that were more similar to those of Roosevelt's New Nationalism, such as the Federal Reserve SystemFederal Reserve System
The Federal Reserve System is the central banking system of the United States. It was created on December 23, 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907...
. Wilson appointed Brandeis to the US Supreme Court in 1916. He worked with Congress to give federal employees worker's compensation, outlawed child labor with the Keating-Owen Act
Keating-Owen Act
The Keating-Owen Child Labor Act of 1916 also known as Wick's Bill, was a statute enacted by the U.S. Congress which sought to address the perceived evils of child labor by prohibiting the sale in interstate commerce of goods manufactured by children in the United States, thus giving an expanded...
(though this act was ruled unconstitutional in 1918
Hammer v. Dagenhart
Hammer v. Dagenhart, 247 U.S. 251 , was a United States Supreme Court decision involving the power of Congress to enact child labor laws...
) and passed the Adamson Act
Adamson Act
The Adamson Act was a United States federal law passed in 1916 that established an eight-hour workday, with additional pay for overtime work, for interstate railroad workers....
, which secured a maximum eight-hour workday for railroad employees. Most important was the Clayton Act of 1914, which largely put the trust issue to rest by spelling out the specific unfair practices that business were not allowed to engage in.
By the end of the Wilson Administration, a signficant amount of progressive legislation had been passed, affecting not only economic and constitutional affairs, but farmers, labor, veterans, the environment, and conservation as well. The reform agenda of the New Freedom, however, did not extend as far as Theodore Roosevelt
Theodore Roosevelt
Theodore "Teddy" Roosevelt was the 26th President of the United States . He is noted for his exuberant personality, range of interests and achievements, and his leadership of the Progressive Movement, as well as his "cowboy" persona and robust masculinity...
's proposed New Nationalism
New Nationalism
New Nationalism was Theodore Roosevelt's Progressive political philosophy during the 1912 election.-Overview:Roosevelt made the case for what he called the New Nationalism in a speech in Osawatomie, Kansas, on August 31, 1910...
in relation to the latter's calls for a standard 40-hour workday, minimum wage laws, and a federal system of social insurance. This was arguably a reflection of Wilson's own ideological convictions, who adhered to the classical liberal principles of Jeffersonian Democracy
Jeffersonian democracy
Jeffersonian Democracy, so named after its leading advocate Thomas Jefferson, is a term used to describe one of two dominant political outlooks and movements in the United States from the 1790s to the 1820s. The term was commonly used to refer to the Democratic-Republican Party which Jefferson...
(although Wilson did champion reforms such as agricultural credits later in his presidency, and called for a living wage in his last State of the Union Address
State of the Union Address
The State of the Union is an annual address presented by the President of the United States to the United States Congress. The address not only reports on the condition of the nation but also allows the president to outline his legislative agenda and his national priorities.The practice arises...
). Despite this, the New Freedom did much to extend the power of the federal government in social and economic affairs, and arguably paved the way for future reform programs such as the New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...
and the Great Society
Great Society
The Great Society was a set of domestic programs in the United States promoted by President Lyndon B. Johnson and fellow Democrats in Congress in the 1960s. Two main goals of the Great Society social reforms were the elimination of poverty and racial injustice...
.
Farmers
- The 1914 Smith-Lever Act tied vocational education in home economics and agriculture to the land-grant college system. It also led to the support of the federal government to support farm cooperatives, bringing about a system of country agents to assist farmers in conducting more efficient and scientific stock-raising and crop-growing.
- The Cotton Warehouse Act (1914) authorized the federal government to license warehouses. The intention of this legislation was to ensure that the better handling of crops “would make warehouse receipts more readily acceptable by banks as collateral for loans.”
- The Agricultural Extension Act (1914) authorized federal grants-in-aid to the state agricultural colleges for the purpose of supporting a program of extension work in farm areas.
- The Federal Farm Loan ActFederal Farm Loan ActThe Federal Farm Loan Act of 1916 was a United States federal law aimed at increasing credit to rural, family farmers. It did so by creating a federal farm loan board, twelve regional farm loan banks and tens of farm loan associations...
of 1916 provided federal credit to small farmers via cooperatives. - The Smith-Hughes Vocational Education Act extended the Smith-Lever provisions of 1914 and supported teacher training and other instruction in industrial occupations, home economics, and agriculture.
- The Warehouse Act of 1916Warehouse Act of 1916The Warehouse Act of 1916 permitted Federal Reserve member banks to give loans to farmers on the security of their staple crops which were kept in Federal storage units as collateral. This Act of Congress went far in securing the farm vote in the 1916 Presidential election....
. - The Stock-Raising Homestead ActStock-Raising Homestead ActThe Stock-Raising Homestead Act of 1916 provided settlers of public land—a full section or its equivalent—for ranching purposes. Unlike the Homestead Act of 1862 or the Enlarged Homestead Act of 1909, land homesteaded under the 1916 act separated surface rights from subsurface rights,...
of 1916. - The Grain Standards Act of 1916 mandated the grading and inspection of grains under federal license.
Labor
- The Workmen’s Compensation Act provided medical coverage for federal employees suffering from work-related injuries.
- The Seamen's Act of 1915 aimed to protect merchant seamen. It outlawed their exploitation by officers and ship owners by practices such as indefinite hours, inadequate food, poor wages, and abandonment in overseas ports with back pay owing.
- The Adamson Act gave railroad workers on interstate runs an eight-hour workday.
- The Clayton Act strengthened anti-trust regulation while exempting agricultural cooperatives and labor unions, thus putting an end to the court’s habitual rulings that boycotts and strikes were “in restraint of trade.”
- A National War Labor Board was established, which improved working conditions in factories by insisting on an eight-hour workday, no child labor, and better safety conditions.
- A Department of Labor was established (1913), designed to promote the welfare of workers through improving conditions of work, tracking changes in employment-related economic factors, and safeguarding benefits.
- The Women's Bureau Act of 1920 established a Women’s Bureau to “formulate standards and policies which shall promote the welfare of wage-earning women, improve their working conditions, increase their efficiency, and advance their opportunities for profitable employment.”
- A Child Labor Tax Law (1919) assessed a 10% tax on the net profits of factories and mines employing children “to offset any competitive advantage employers thereby gained. The legislation introduced a minimum age of 14 for workers in most jobs, and of 16 for mining and night work. The legislation also required documentary proof of age and, like the previous Keating-Owen Act, limited working hours for minors. From 1919 to 1922 (the year when the Supreme Court declare the legislation to be unconstitutional), arguably as a result of, or partly because of, this legislation, the number of working children fell by 50%.
- The Workingmen's Compensation Act (Kern–McGillicuddy Act).
- The Keating-Owen ActKeating-Owen ActThe Keating-Owen Child Labor Act of 1916 also known as Wick's Bill, was a statute enacted by the U.S. Congress which sought to address the perceived evils of child labor by prohibiting the sale in interstate commerce of goods manufactured by children in the United States, thus giving an expanded...
- The Kern ResolutionKern ResolutionThe Kern Resolution, sponsored by Sen. John W. Kern of Indiana and adopted on May 27th, 1913, called for an investigation into the then ongoing Paint Creek-Cabin Creek strike of 1912 in West Virginia....
of 1913. - The Saboth ActSaboth ActThe Sabath Act was a Federal law that established an immigrant protection network.-Provisions:It was sponsored by Rep. Adolph J. Sabath of Illinois...
of 1913. - The Newlands Labor ActNewlands Labor ActThe Newlands Labor Act, was sponsored by Senator Francis G. Newlands of Nevada and drafted by Bureau of Labor Statistics Commissioner Charles Patrick Neill. It created the Board of Mediation and Conciliation .-History:...
of 1913. - The Federal Boiler Inspection ActFederal Boiler Inspection ActThe Federal Boiler Inspection Act, also called the Railroad Inspection Act, expanded the Boiler Inspection Act of 1911 to include I.C.C. regulation not just of train engine boilers, but of the entire train as well as cargo to ensure safety for workers and passengers....
of 1915. - The Occupancy Permits ActOccupancy Permits ActThe Occupancy Permits Act was passed on March 4, 1915 by the 63rd United States Congress. It allowed the U.S. Forest Service to issue to cabin permits at "reasonable rates" to individuals who had had their property taken through eminent domain...
of 1915. - The Fraudulent Advertising Act of 1916Fraudulent Advertising Act of 1916The Fraudulent Advertising Act of 1916 forbade businesses and advertisers to make deliberately misleading and fraudulent statements about the goods they were selling within the District of Columbia....
. - The Merchant Marine Act of 1920.
Health and Welfare
- The Cutter Service ActCutter Service ActThe Cutter Service Act emphasized providing otherwise unobtainable medical services for men on board American fishing fleets. It authorized the Commandant of the Revenue Cutter Service to "detail for duty on revenue cutters such surgeons and other persons of the Public Health Service as .....
of 1914. - The Federal Aid Road Act of 1916Federal Aid Road Act of 1916The Federal Aid Road Act of 1916, 39 Stat. 355, was enacted on July 11, 1916, and was the first federal highway funding legislation in the United States. It was introduced by Rep. Dorsey W. Shackleford of Missouri, then amended by Sen. John H. Bankhead of Alabama to conform with model legislation...
. - The Rural Post "Good" Roads Act of 1916Rural Post "Good" Roads Act of 1916The Rural Post Roads Act of 1916 provided federal aid to the states for the construction of rural post roads. The term "rural post road" was construed to mean any public road over which the United States mail was then transported....
. - The Sundry Civil Appropriations Act authorized $200,000 for the newly formed Division of Scientific Research for the United States Public Health Service.
- An Act was passed (1916) authorizing hospital and medical services to government employees injured at work.
- An anti-narcotics law was passed (1914).
- The United State Housing Corporation was established (1918) to build housing projects for wartime workers.
- In 1918, the first Federal grants to States for public health services were made available.
- A federal leprosy hospital was authorized (1917).
- The Civil Service Retirement System was established (1920) to provide pensions to retired civilian federal employees.
- The Civilian Vocational Rehabilitation Act of 1920 (Smith-Fess Act) authorized a joint federal-state vocational rehabilitation program for handicapped civilians.
- The Death on the High Seas Act (1920) aimed at compensating the wives of sailors who had lost their lives at sea. The legislation enabled survivors “to recover pecuniary damages, or the lost wages of their relatives on whom they depended upon financially.”
- Under the Industry Vocational Rehabilitation Act of 1920 (Smith-Bankhead Act), Congress began providing federal funds for cooperation with the states in the vocational rehabilitation of persons disabled in industry.
Veterans
- The War Risk Insurance ActWar Risk Insurance ActThe War Risk Insurance Act was a piece of legislation passed by the United States Congress in 1914 to ensure the availability of marine insurance during World War I. It established a Bureau of War Risk Insurance within the Treasury Department to provide insurance policies and pay claims...
of 1914. - The War Risk Insurance ActWar Risk Insurance ActThe War Risk Insurance Act was a piece of legislation passed by the United States Congress in 1914 to ensure the availability of marine insurance during World War I. It established a Bureau of War Risk Insurance within the Treasury Department to provide insurance policies and pay claims...
of 1917. - The Rehabilitation Law of 1919 provided disabled veterans with tuition, books, and a monthly subsistence allowance of between $90 and $145.
- The Public Health Service was made directly responsible for the hospitalization of veterans under the War Risk Insurance Act (1919).
- The Smith-Sears Vocational Rehabilitation Act (1918) supported programs to help veterans with disabilities return to civilian employment following the end of the First World War.
- The Bureau of War Risk Insurance was set up to provide direct assistance to the families of soldiers. By the end of the First World War, the bureau was sending regular checks to 2.1 million families.
Constitutional
- The Jones-Shafroth Act 1917 bestowed US citizenship upon people of Puerto Rico.
- The Nineteenth Amendment to the United States constitution was passed (1920), granting women the right to vote.
- Mother’s Day was made an official national holiday (1914).
Environment
- The River and Harbors Act of 1916River and Harbors Act of 1916The Rivers and Harbors Act of 1916 provided Federal money for the maintenance and improvements of specified rivers and harbors across the USA. This act in particular aided the Cape Fear River in North Carolina and the Mississippi River in Arkansas. Most importantly, however, it authorized the...
. - The Irrigation District Act of 1916 (Smith Act)Irrigation District Act of 1916 (Smith Act)The Irrigation District Act of 1916 allowed local governments to take out loans and enter into debts to acquire, extend, or operate works for irrigation or drainage or flood control, or to undertake the development of electric or other power, and secure a water supply, and have the Federal...
. - The Flood Control ActFlood Control Act of 1917The Flood Control Act of 1917 is an Act of Congress enacted in response to costly floods in the lower Mississippi Valley, the Northeast, and the Ohio Valley between 1907 and 1913.-Legislative Provisions:It was enacted to control floods on the Mississippi River, the Ohio River, and the Sacramento...
of 1917 (Ransdell-Humphreys Act). - The Federal Water Power Act of 1920 (Esch Act).
Conservation
- A federal act established the National Park Service, bringing together the many historical sites, monuments, and national parks into one agency.
- The Glacier National Park Act of 1914.
- The Wildlife Game Refuges Act of 1916Wildlife Game Refuges Act of 1916The Wildlife Game Refuges Act of 1916 placed aside certain United States Federal park lands as wildlife reserves free from hunting and poaching, and placed the United States Forest Service in charge of enforcing such provisions....
. - The Acadia National Park Act of 1919.
- The Grand Canyon Park Act of 1919.