HST 306, Exam #1 (Study Guide):
I. Dollar Diplomacy: the efforts of the United States under President Taft to further its aims in
Latin America and East Asia through use of its economic power by guaranteeing loans made
to foreign countries. [The term was originally coined by President Theodore Roosevelt.]
II. Progressivism: a reform movement, backed by city dwellers, including middle class; focused
on political and social problems in urban society. It’s primary goal was to challenge the
growing power of corporations that have grown so large as to dwarf individuals, cities, etc.
a. The movement seemed to lack a clearly defined program.
b. Saw industrialization and urbanization as a potentially disruptive force.
c. Used the power of the government in an unprecedented manner.
i. From T. Roosevelt on progressivism was reforming society using the
III. Progressive Era Technological Innovation
i. Henry Ford created the Model A, the Model T etc. (First Old 999 racing car)
1. “Invented” the assembly line.
b. Movies: moving pictures were first developed at the turn of the century and became a
key to propaganda and media influence in our culture.
d. Panama Canal: “Speak softly but carry a big stick.”
i. Began construction under T. Roosevelt Administration.
ii. Questionable ethics in acquiring the land used.
e. Electric Lights: Thomas Edison
IV. Brandeis [Review Important Sections of Book Highlighted In Class]: Brandeis had a
reputation among Progressive reformers for his clear-cut views on monopolies and his
proposal on how to end the abuses of large corporations.
a. Financial Oligarchy:
i. “The Dominant Element”: “The dominant element in our financial oligarchy is
the investment banker,” (Brandeis, 50).
1. “The original function of the investment banker was that of dealer in
bond stocks, and notes; buying mainly at wholesale from corporations,
municipalities, states, and governments which need money, and selling
to those seeking investments,” (Brandeis, 51).
2. The Key to the Power of the Investment Banker:
a. The obvious consolidation of banks and trust companies and the
subtle affiliations through stockholding, voting trusts, and
interlocking directorates. Joint transactions eliminate
competition between investment bankers.
b. The consolidation of railroads into huge systems created
businesses so big that they had to depend upon the associated
New York Bankers. c. J.P. Morgan & Co. became the directing power in pretty much
b. Interlocking Directorates: refers to the practice of members of a corporate board of
directors serving on boards of multiple corporations.
c. Big Men Little Businesses:
V. Theodore Roosevelt: “to infuse reform with respectability”
a. Believed in the essential goodness of American institution and hated those who wanted
to tear down what had taken so long to create.
i. Reform by perfecting the system would help preserve it.
b. Roosevelt’s Square Deal: the intention was not to “trust-bust” out right.
i. Roosevelt: combination is a natural process but one that required supervision.
ii. 44 anti-trust suits were filed ruing Roosevelt’s presidency.
1. Northern Securities Company
iii. Sherman Antitrust Act : was the first measure passed by federal
government to prohibit trusts.
iv. Three Major Pieces of Legislation:
1. The Pure Food and Drug Act : prevented the manufacture, sale, or
transportation of adulterated, or poisonous, or deleterious, foods,
drugs, medicines, and liquors, and for regulating traffic therein, and for
2. The Meat Inspection Act : prevented adulterated or misbranded
meat and meat products from being sold as food and to ensure that
meat and meat products are slaughtered and processed under sanitary
3. The Hepburn Act : gave the Interstate Commerce Commission
(ICC) the power to set maximum railroad rates and extend its
v. Popularized Conservation of Natural Resources:
1. Five new national parks, fifty one new wildlife refuges, additional forty
three million acres of national forest, etc.
VI. William H. Taft: helped win important victories for progressivism.
a. Taft proved to be a vigorous trust buster.
i. Mann-Elkins Act : placed the telephone and telegraph companies under
the jurisdiction of the ICC and authorized it to examine railroad rates on its own
b. Department of Labor:
c. Children’s Bureau:
d. Established an eight hour work day for federal employees.
e. Sixteenth Amendment: authorized an income tax.
f. Seventeenth Amendment: provided for the direct election of senators.
g. Between 1909 and 1912, Taft lost the confidence of the Progressives: i. Legislative Reform: Speaker of the House (Joseph Gurney) held all the power in
the House of Representatives. Progressives hated this arrangement, but
Conservatives threatened to block legislation if Taft didn’t side with them and
Progressives then blamed their loss on Taft’s desertion.
ii. Trade: another wedge between Taft and the Progressives.
1. Payne-Aldrich Tariff : effected a modest reduction in the tariff.
Taft heralded this as a major reform for which he took credit. This
angered the Progressives who wanted more reduction and more credit.
iii. Conservation: dispute over Secretary of the Interior, Richard Ballinger- in 1909,
Louis Glavis, and investigator for the Interior Department uncovered that
shortly before taking office, Ballinger profited from aiding a Seattle group in
delivering a rich Alaskan coal field to a large business syndicate. Pinochet, idol of
the conservationists, and chief of Forest Services, leaked the story and was fired
VII. Woodrow Wilson: campaigned in 1912 under the slogan of “New Freedom”, an alternative
to Roosevelt’s New Nationalism.
a. New Freedom: the government should intervene in the economy to the extent
necessary to restore competition.
i. The Underwood Tariff : substantially reduced import duties. Also inacted
the first income tax passed under the Sixteenth Amendment; the tax rose one
percent on personal and corporate income over $4,000 to four percent on
incomes over $100,000.
ii. The Federal Reserve Act : reformed banking and currency system,
resulted in part from a congressional inquiry into the “money trust.” Provided
for more flexible currency and established a measure of public control over
private bankers. It created twelve Federal Reserve Banks that were responsible
to a Federal Reserve Board.
iii. Clayton Antitrust Act : attempted to bolster the faltering attack on
monopoly by prohibiting interlocking directorships and other devices that
lessened competition. It made gesture toward exempting labor unions, but with
fuzzy wording allowed for SCOTUS to later rule certain strikes and boycotts
iv. La Follette Seamen’s Act : freed sailors on merchant ships from a contract
system that amounted to forced labor in practice.
b. By early 1916 Wilson began to modify his position on many issues after reassessing the
i. In January 1916, Wilson nominated Louis D. Brandeis to the Supreme Court; this
outraged conservatives and it took four months to receive Senate confirmation.
ii. Federal Farm Loan Act : created twelve regional banks to provide long-
term, low interest loans to farmers. iii. Keating-Owens Act : barred the products of firms employing child labor
form interstate commerce. (Hammer v. Dagenhart : proved this measure
iv. Kern-McGillicuddy *1916+: provided workmen’s compensation for federal
v. Adamson Act : gave the unions an eight hour day for railroad workers in
vi. Webb-Pomerene Bill: exempted the overseas operations of business firms from
c. Wilson’s Administration experimented during WWI with new policies to increase
wartime food production.
VIII. New Nationalism: began its rise during T. Roosevelt’s second term in office.
a. Increased federal controls
b. Taxes on income and inheritances
c. Stricter regulation of railroad rates
d. Implantation of eight hour work days/ workman’s compensation
e. Limitations on uses of injunctions during labor disputes
IX. World War I:
a. Democracy (p. 80-83):
b. Pacifism (p. 92):
c. Propaganda (p. 88-90): Wilson administration had a massive wartime propaganda
i. Committee on Public Information, led by George Creel) published millions of
pamphlets featuring peace loving democracy.
i. Domestic Political Factors:
1. German Domestic Politics: German government was still dominated by
Prussian Junkers who feared the rise of the left-wing parties.
a. Fritz Fischer famously argued that they deliberately sought an
external war to distract the population and whip up patriotic
support for the government.
2. French Domestic Politics:
a. France recognized Germany had nearly twice as much
population and a better equipped military. France had a strong
indication after the Tangier, and Agadir Crises that war with
Germany would be inevitable if Germany continued to oppose
French colonial expansion.
b. France was politically polarized with left wing socialists and right
c. There was great turnover at the top of government with six
foreign ministers in the eighteen months leading up to the war. 3. Austrian Empire and Austria-Hungary: In 1867, the Austrian Empire
fundamentally changed its governmental structure and became the duel
monarchy of Austria-Hungary.
a. Under new monarchy, the traditional German speaking upper
class was challenged by the Hungarian upper class.
b. Social Darwinism became popular among the Austrian half of
ii. International Relations:
1. Imperialism: The U.K. and France accumulated great wealth from their
colonial holdings, and Germany, Austria-Hungary, Italy, and Russia
hoped to do the same. Their frustrated ambitions, and British strategic
exclusion created tensions.
a. The limits of natural resources in many European countries
began to alter trade balance and force national industries to
seek new territories with rich natural resources.
2. Web of Alliances: there were an abundance of loose alliances between
European nations that often required participants to agree to collective
defense if attacked.
a. Treaty of London : neutrality of Belgium.
b. German-Austrian Treaty/Duel Alliance : Italy joined on in
c. Franco-Russian Alliance 
d. The “Entente Cordiale” *1904+: between Britain and France
which left the northern coast of France undefended, and the
separate “entente” between Britain and Russia *1907+ that
formed the Triple Entente.
e. Timeline of Events that set these treaties in motion:
i. June 28, 1914: Serbian assassinates Archduke Franz
Ferdinand of the Austro-Hungarian Empire.
ii. July 23, 1914: Austria-Hungary sends Serbia a list of
severe demands. U.K. and Russia agree with demands
but feel time is too short [48 hours], but advised Serbia
iii. July 24, 1914: Germany declares support for Austria-
iv. July 25, 1914: Russia and Serbia mobilize armies.
v. July 28, 1914: Austria-Hungary declares war on Serbia.
vi. July 29, 1914: Germany says it is considering a war with
France and a track that passes through neutral Belgium.
vii. August 1, 1914: Germany declares war on Russia.
viii. And then it all went to hell.
iii. Franco-German Tensions iv. Austrian-Serbian Tensions and Bosnian Annexation Cri