TR had handpicked his successor as president to be William Howard Taft, but after he was elected, he made many Progressives angry with his actions after he was elected in 1908.
TR went on a long safari to
In 1912, TR challenged Taft for the Republican presidential nomination. Taft won the nomination.
The Progressives in the Republican party formed their own party, called the Progressive Party. When they asked TR if he was physically ready for a campaign, he replied, “I feel fit as a bull moose!” The Bull Moose Party became the nickname of the Progressive Party.
The election of 1912 had four candidates.
TR ran for the Bull Moose Party and they had a platform of tariff reduction, women’s suffrage, more regulation of business, a child labor ban, an 8-hour work day, a federal workers’ compensation system, and the direct election of senators.
Woodrow Wilson ran as the Democrat candidate. He ran on a Progressive platform, but he criticized big business and big government. As part of his “New Freedom” policy, he promised to enforce antitrust laws without threatening economic competition.
The fourth candidate was Eugene V. Debs, who ran as a Socialist.
With the Republican vote split between Taft and Roosevelt,
In 1914, Congress passed the Clayton Antitrust Act to strengthen the Sherman Antitrust Act. The Clayton Act spelled out the specific activities that big businesses could not do. The act also legalized unions as well as their key weapons: strikes, peaceful picketing, and boycotts.
To enforce the Clayton Act and set up fair-trade laws, Wilson and Congress created the Federal Trade Commission in 1914. The FTC was given the power to order firms to “cease and desist” the practice of business tactics found to be unfair.
In 1913 Congress passed the Federal Reserve Act creating the Federal Reserve System. It divided the country into 12 districts, each with a Federal Reserve bank owned by its member banks. The system was supervised by a Federal Reserve Board appointed by the President.
(The Federal Reserve banks were the central banks for their regions – the “bankers’ banks.” Every national bank was required to become a member of the Federal Reserve bank in its district and to deposit some of its capital and cash reserves in that bank. Member banks could borrow from the Federal Reserve to meet short-term demands. This helped to prevent bank failures that occurred when large numbers of depositors withdrew funds during an economic panic.)
This system also created a new national currency known as Federal Reserve notes. The Federal Reserve could now expand or contract the amount of currency in circulation according to economic needs.