II.Progressive Presidents
A. Election of 1904

1. Candidates
   a. Republicans in Chicago - Theodore Roosevelt, campaigned for the presidency in his own right, offering a wide range of policies known as the Square Deal , adding Senator Charles W. Fairbanks (IN) as Vice-President
   b. Democrats - Hoping to attract conservative businessmen, Judge Alton B. Parker (NY), was nominated for President, although many preferred the liberal Teddy Roosevelt, and Henry G. Davis (WV) was nominated for Vice-President.
   c. Socialists nominated Eugene V. Debs (IN) and Benjamin Hanford (NY)
2. Results
   a. Roosevelt won 56.4% - 7,626,593 popular (336 electoral) votes to Parker's 37.6% - 5,082,898 popular (140 electoral) votes.
   b. Missouri voted Republican for the first time since the Civil War
   c. 1905 Eugene Debs founded the Industrial Workers of the World or IWW.
B. Roosevelt Years - Domestic Issues
1. Anti-Trust Activity
   a. He directed much effort toward trusts to restore competition to interstate commerce.
   b. Supreme Court Setbacks -- 1908 - Supreme Court ruled that labor unions could not use boycotts of industry because it was an unfair restraint of trade, again applying the Sherman Anti-Trust Act to unions.
2. Anthracite Coal Strike May 1902 - First Federal action in behalf of Labor
   a. John Mitchell led 140,000 members of the United Mine Workers to strike, demanding a 20% pay hike, an 8-hour work day and official recognition of the UMW
   b. Mine owners knew that hard coal heated schools, homes and businesses, refused to negotiate through Oct, sensed that they had time on their hands as winter approached and expected the public to lose patience with the miners, letting them win by default
   c. After Roosevelt threatened to send in federal troops to operate the mines, the owners negotiated through a commission of arbitration and the workers returned to work.
   d. Mar 1903 - 10% raise, 9-hour day, tacit recognition of the union.
3. Conservation Measures
   a. Newlands Reclamation Act 1902 set aside proceeds from the sale of public lands for irrigation projects in the West when the projects were larger than the states could handle
   b. Using an earlier piece of legislation (Forest Reserve Act 1891), Roosevelt set aside several million acres from the public domain, including 85 million acres in Alaska, at least until the mineral value could be assessed, and appointed Gifford Pinchot as head of the Forest Service division of the Department of Agriculture.
   c. National Monuments Act established several national parks and monuments
   (1) 1906 - Devil's Tower Wyoming - the first of 16 national monuments
   (2) 5 National parks were established including Crater Lake OR, Mesa Verde CO
   (3) 51 wildlife sanctuaries were also created.
   d. 1908 - National Conservation Conference - 44 governors + 500 others discussed conservation measures after which most states created conservation commissions
4. Other Actions - Oklahoma became the 46th state in Nov 1907.
C. Roosevelt's Foreign Policy - Building an Image as a World Power
1. 1902 - Venezuela -- the US intervened in a dispute involving Britain, Germany and Italy which established a precedent for US actions regarding Latin America.
2. Roosevelt Corollary - a Clarification of the Monroe Doctrine
   a. 1903 - After the Dominican Republic defaulted on several debts to European nations, many nations considered sending in troops to force them to repay their debts.
   b. 6 Dec 1904 - In the light of the debt default of the Dominican Republic, Roosevelt sent a message to Congress, which became known as the Roosevelt Corollary , which was designed to restore order in Latin American affairs and prevent European intervention.
   (1) Because European intervention violated the Monroe Doctrine, the US would intervene when needed
   (a) The US was responsible for the proper redress for wrongs inflicted on a foreign state by any nation within the American sphere of influence
   (b) "Chronic wrongdoing" in Latin America might force the US to step in as an "international police force," influencing when it benefited US interests.
   (2) Desiring a stable, orderly world environment, Roosevelt believed in using military power as necessary and that the world should look to America's example
   c. Use of the Roosevelt Corollary - US Intervention
   (1) Jan 1905 - intervened into Dominican Republic to exercise financial control
   (2) 1906 - At the request of Cuban President Tomas Estrade Palma, US marines went into Cuba to quell a riot, remaining until new elections were held in 1909.
   (3) July 1907 - US marines went into Honduras to quell a revolution.
3. Building the Panama Canal
   a. US imperialism, needing an expanded navy with a faster ability to get from the Atlantic to the Pacific, created demands for an isthmian canal, a desire of many nations.
   b. Three obstacles prevented the US from building a canal in Central America
   (1) Who would pay for it ? - Spooner Isthmian Canal Act 1902 authorized the President to buy the construction rights from France and eventually the US offered the old construction company $40 million for its entire operation in Panama.
   (2) Who will build it ?
   (a) Clayton-Bulwer Treaty 1850 (US + Britain) provided for joint building and operation of any canal in Central America.
   (b) Hay-Pauncefote Treaty 1901 (US + Britain) negated this treaty, granting the US exclusive rights to a canal in Latin America.
   (3) Where to build it ? - Two possible sites:
   (a) Nicaragua - a longer, but easier route.
   (b) Panama - province of Colombia
   c. Choosing Panama
   (1) An attempt to build a canal by a privately-owned American and French Company failed, and the US Congress expressed a willingness to pay as much as $40 million for the rights of the New Panama Canal Company.
   (2) Hay-Herran Treaty 1903 - US + Colombia
   (a) US retained rights to a 10-mile wide zone in Panama for 100 years.
   (b) After initially paying $10 million, annually $250,000 to Colombia.
   (c) 12 August - Colombia's Senate failed to ratify the treaty primarily because of the retention of US sovereignty over the canal.
   (3) Panamanian Revolution 1903
   (a) 3 Nov - After negotiations broke down between the US and Colombia, a new government was organized.
   (b) 4 Nov - Panamanian independence was declared and led by a major investor in the New Panama Canal Co, Philippe Buneau-Varilla .
   (c) 6 Nov - The revolution was recognized officially by the US, who secretly supported the rebels by preventing Colombian troops from intervening into Panama
   (d) 18 Nov - Hay-Buneau-Varilla Treaty gave the US similar terms as it had sought from Colombia, rent payments not beginning until after nine years, with the US receiving permanent rights to the Canal Zone.
   (e) In the debate over Panama, Roosevelt bragged, "I took the canal; let Congress debate it."
   d. After the Revolution, Panama became a US protectorate in 1904.
   (1) 1906 - Roosevelt, first sitting President to go outside the US, visited Panama.
   (2) Spring 1906 - 15 Aug 1914 - Panama Canal was built at a cost of $366 million
   (3) 1921 -- treaty with Colombia gave them $25 million for the loss of Panama + duty-free use of canal in exchange for their recognition of Panama's independence.
   (4) 1978 - US agreed to return the entire canal to Panama by the year 2000.
4. North Africa Moroccan Crisis 1904
   a. France and England agreed to spheres of influence in North Africa, France in Morocco and England in Egypt, to freeze out German influence
   b. As France tightened control over Morocco, Emperor Wilhelm II demanded an Open Door in Morocco, which had been guaranteed by a treaty in 1880.
   c. 1906 - To avoid a military confrontation, the US mediated between the two powers at Algeciras Spain which allowed joint administration of Morocco by Spain and France
5. Great White Fleet
   a. 16 December 1907 - 22 Feb 1909 -- The US sent 16 battleships on a practice cruise to the American West coast.
   b. This goodwill tour made stops in South America, Australia and Japan, where it was received as a friendly gesture but in reality it underscored the US image as a major power
   c. It enforced Roosevelt's Big Stick Diplomacy --"Speak softly and carry a big stick."
6. Problems with Japan, America's Chief Rival for Domination in the Pacific
   a. Treaty of Portsmouth (NH) 1905
   (1) Japan and Russia were at war in 1904 when Roosevelt offered to mediate, on condition that the Open Door be recognized regarding China.
   (2) Japan gained recognition of preeminence in Korea, some small territorial concessions including 1/2 of Sakhalin Island, South Manchurian Railway and Southern Liaotung Peninsula
   (3) Although militarily defeated, Russia did not have to pay indemnity to Japan, but had its dominant role in Manchuria reduced.
   (4) Roosevelt received the Nobel Peace Prize in 1906 for this mediating effort.
   b. Gentleman's Agreement
   (1) Americans on the West Coast felt threatened by the yellow peril , as Japanese laborers poured into California which responded by creating segregated schools for children of Oriental extraction in 1906.
   (2) To defuse a potentially sticky diplomatic situation, an unofficial agreement was worked out between Japan and the US.
   (3) California agreed to halt the practice of segregating Japanese students in return for Japan's agreement to issue no further passports to its citizens to the West Coast
   c. Root-Takahira Agreement 1908 US + Japan - After agreeing to respect each other's Pacific possessions, Japan also agreed to the independence and integrity of China, a partial victory for the Open Door Policy
D. Election of 1908
1. Candidates
   a. Republicans in Chicago held Roosevelt to a written promise not to run in 1908, but nominated his handpicked successor, William Howard Taft (OH), Secretary of War under Roosevelt, whom he expected to carry out his policies as he would, adding James S. Sherman (NY) as Vice-President.
   b. Democrats in Denver gave twice-beaten William Jennings Bryan a third shot at the presidency with John W. Kern as Vice-President
   c. Socialist Party nominated Eugene V. Debs (IN) and Benjamin Hanford (NY).
2. Results -- Taft received 321 electoral (7,679,006 popular) votes to Bryan's 162 electoral (6,409,106 popular) votes to Debs's 420,793 votes.
3. Taft (1857-1930) the man
   a. His wife was named Helen.
   b. He was inaugurated in 1909 in one of the worst blizzards in Washington D.C. history.
   c. He weighed 300 pounds and once got stuck in the White House tub.
   d. His true desire was to be a Supreme Court Justice.
E. Taft's (27th) Domestic Policies
1. Wisconsin continued its lead in progressive legislation:
   a. first to pass in 1903 the direct primary for electing party nominees
   b. limited lobbying activities
   c. established a reference library for its legislature.
   d. asked scholars, experts and specialists from the private sector to advise the government
2. Mann-Elkins Act June 1910
   a. Empowered the ICC to suspend rate raises for ten months pending an investigation
   b. Allowed the ICC to begin judicial proceedings against a railroad without waiting for the Attorney General to initiate action.
   c. Extended ICC jurisdiction over telephone and telegraph companies
3. Roosevelt-Taft Rift - Roosevelt expected Taft to carry out his policies, as if he were still in office, but policy disagreements created a permanent rift between the once-bosom buddies.
   a. Roosevelt African Safari sponsored by the Smithsonian Institute
   (1) To give Taft a chance, Roosevelt and his son went on a scientific expedition
   (2) He was paid $50,000 by Scribners Magazine for a description of his trip.
   (3) They bagged and stuffed over 3000 animals for the Natural History Museum.
   b. Tariff Reduction 1909
   (1) Republican Roosevelt favored a lowered tariff, expecting Taft to follow suit
   (2) After much debate, a Republican Congress lowered the tariff only slightly, the Payne-Aldrich Tariff , sponsored by Nelson Aldrich RI.
   (3) Signed it with no hint of dissatisfaction, calling it "the best bill the Republicans ever passed," Taft lost support from angry party Progressives led by Roosevelt.
   c. Conservation
   (1) 1910 - Interior Secretary Richard A. Ballinger reopened for settlement 700,000 acres in Washington, Idaho and Montana, which Roosevelt had set aside from the public domain.
   (2) When chief forester Gifford Pinchot criticized Ballinger for this action and over the handling of coal lands in Alaska, he was fired by Taft for insubordination.
   (3) Congress investigated the charges of Pinchot, but vindicated Ballinger.
   (4) Although Taft had reserved 3 million acres from the public domain, rich in oil reserves, including the reserves in Teapot Dome WY, and established the Bureau of Mines, he lost in public opinion over Pinchot's firing.
   d. The rift betweenTaft and Roosevelt was finalized over the tariff and conservation issues, irreparably dividing the Republicans in 1912.
F. Taft's Foreign Policy
1. Dollar Diplomacy
   a. As a replacement for "Big Stick Diplomacy," Taft encouraged the investment of private business into Latin America in an effort to stabilize the area
   (1) Wall Street dollars would encourage healthy reform in corrupt governments.
   (2) This "non-colonial imperial expansion" was supposed to foster an American economic penetration by private investors to stabilize underdeveloped areas and bring power and profit to the US without the use of American troops.
   b. Instead this policy fostered harsh and dishonest regimes, and created further animosity toward the US in Latin America
2. Continued Intervention in Latin America
   a. The US aided in the overthrow of the Nicaraguan dictator in 1909
   b. The US sent 20,000 troops to the US-Mexico border in 1911, threatening intervention in support of Porforio Diaz whose removal might jeopardize a $2 billion US investment.
   c. The US sent marines into Cuba in June 1912
   d. US marines returned to Nicaragua in 1912.
G. Election of 1912
1. Bi-Elections 1910
   a. Democrats regained control of the House for the first time since 1894.
   b. The first Socialist, Victor Berger , was elected to Congress
2. Although claiming he was not running for president, Roosevelt on a 5000-mile "non-political" speaking tour covered 16 states, outlining a program called the New Nationalism
   a. The name was coined in a speech made in Osawatomie Kansas
   b. It endorsed a graduated income tax, inheritance taxes, federal regulation of corporate political activities and of labor (esp. children and women) and workman's compensation.
3. Candidates
   a. National Progressive Republican League was formed in 1911 with Wisconsin Senator Robert La Follette as its leading candidate
   (1) Because it was assumed that Roosevelt would not be drafted as a third-termer by Republicans, Progressives nominated La Follette in Oct for President.
   (2) The NPRL endorsed initiative, referendum, recall, direct primaries, and direct election of delegates to conventions.
   (3) Feb 1912 - Roosevelt wrote Republican governors that he was willing to be nominated by Republicans, stating that because he had not been President since 1908 he would not violate the two-term tradition, meaning two consecutive terms.
   (4) After La Follette collapsed in Feb, Roosevelt was more than willing to take his place as the progressive candidate.
   b. Republicans in Chicago, after Taft delegates controlled the convention over challenges from Roosevelt delegates, renominated Taft for a second term.
   c. Democrats in Baltimore on the 46th ballot
   (1) VA-born Governor Thomas Woodrow Wilson (NJ), former president of Princeton University, Ph D, was nominated, after William Jennings Bryan withdrew in his favor, adding Thomas Marshall (IN) for vice-president.
   (2) Democrats called for a reduction of the tariff and harsher anti-trust legislation.
   d. Socialists nominated Eugene V. Debs and Emil Seidel (WI).
   e. Roosevelt supporters at the Republican convention bolted and formed the Bull Moose Party , most progressive party in 1912.
   (1) Roosevelt had stated "I am as strong as a Bull Moose"
   (2) Hiram Johnson (CA) was nominated Vice-President.
   (3) Bull Moosers endorsed the women's right to vote.
4. Campaign
   a. The real campaigning was between Wilson, calling his program the New Freedom and Roosevelt who had referred to his program as New Nationalism , although both agreed that the government should take a more active role in economic and social affairs.
   b. The difference between the two programs focused on the nature of trusts
   (1) Wilson believed the government serves social justice best if it gets rid of special interest groups and desired small enterprises to function freely in a market where real competition existed.
   (2) Roosevelt did not want to do away with all trusts, but desired consolidation of both trusts and labor unions, overseen by strong government regulatory agencies.
   c. During a speech in Milwaukee, Roosevelt was shot, but finished his speech before going to the hospital, recovering within two weeks.
5. Results
   a. Wilson polled 6,293,454 popular (435 electoral) votes to Roosevelt's 4,119,538 popular (88 electoral) votes to Taft's 3,484,980 popular (8 electoral) votes to Debs 900,672 votes.
   b. Wilson, a minority president (41% of the vote), was the 2nd Democrat elected President since the Civil War.
6. End of Taft
   a. 1912 - added two states: 47th state, NM in Jan, and 48th state, AZ.
   b. 15 April 1912 - Titanic sank with the loss of 1,502 lives.
   c. Taft was the first President to throw a baseball out on opening day of the season
   d. 1921 - Appointed Supreme Court Chief Justice by President Harding, serving to 1930
H. Woodrow Wilson (1856-1924) - Domestic Policy - first (28th) administration 1913-14
1. Legislation Completed Before He Was Inaugurated
   a. 16th Amendment - Income Tax - Feb 1913
   b. 17th Amendment - Direct Election of Senators - May 1913
   c. Webb-Kenyon Interstate Liquor Act , vetoed by Taft and overridden by Congress, prohibited the transportation of liquor into a dry state.
2. Legislation under Wilson 1913-14
   a. Tariff Reduction - Underwood-Simons Tariff 1913 - Using the income tax to replace potentially lost revenues, the Democrats passed the largest tariff reduction since the Civil War, reducing 958 items an average of 30%, and cotton and woolens by 50%.
   b. Growth of Government - 1913, on inauguration day, the Department of Commerce and Labor was divided into two cabinet level posts.
   c. Owen-Glass Federal Reserve Act 1913
   (1) Created twelve regional banking districts with a central headquarters or Federal Reserve Bank in each district.
   (2) Required all national Banks to join the system, depositing 1/2 to 2/3 of their reserves into a common account
   (3) Federal Reserve Banks could be used as a depository for government funds and only dealt with banks, not private individuals.
   (4) Provided a bank note currency, ending notes by private banks.
   (5) Created a Federal Reserve Board, coordinated by the Treasurer, and including the Comptroller of Commerce and 6 financial experts appointed by the President.
   d. Federal Trade Commission Act Sept 1914
   (1) Created the Federal Trade Commission, appointed by the President, to regulate interstate commerce, and restore competition to the market place.
   (2) FTC, authorized to investigate interstate corporations, became to corporations what the ICC was to railroads and transportation.
   e. Clayton Anti-Trust Act Oct 1914 - Labor's "Charter of Freedom"
   (1) It strengthened the Sherman Anti-Trust Act by exempting labor unions and farm organizations from anti-trust laws, such combinations being not in restraint of trade
   (2) It restricted the use of court injunctions against unions and legalized the use of strikes, peaceful picketing and boycotts while outlawing "interlocking directorates" and "tying agreements" (retailers forbidden from handling a competitor's product)
   (3) Samuel Gompers declared this the Magna Carta of Labor
   f. Revenue Act 1914 - first tax on incomes over $3000.00
   g. Other interesting facts:
   (1) Aug 1914 - Panama Canal opened - 40 miles long at a cost of $375 million
   (2) Ford Motor Co in 1913 set up the first moving assembly line, producing 1000 Model T's per day, paying the unheard of wage of $5 per day for a 40 hour work week while reducing the cost of a Model T to $290 in 1923, down from $950.
   (3) The center of the motion picture industry shifted from New York to Hollywood
   (4) 1914 - On the second Sunday in May, the first Mother's Day was observed
   (5) Unknown Notre Dame defeated Army with an innovative forward pass.
   (6) Jan 1915 - Rocky Mountain National Park was established
   (7) 1916 - First Rose Bowl was held - Washington 14 - Brown 10
I. Wilson's Domestic Policy - Later Legislation -- 1915-16
1. Knowing that the previous election resulted from a split among Republicans, Wilson sought a more progressive image in preparation for his reelection bid, esp. after the Democratic majority in the House was reduced in the Bi-Elections of 1914.
2. Actions Taken to Present A More Progressive Image
   a. La Follette Seaman's Act 1915 required decent wages, treatment and food for sailors on the US merchant marines
   b. 1916 - Wilson appointed the first Jew, Louis D. Brandeis (1856-1941), lawyer and writer, to the Supreme Court where he served until 1939.
   c. Federal Farm Loan Act July 1916 made credit available to farmers at low interest rates for improvements and established a land bank system.
   d. Workman's Compensation Act Sept 1916 granted assistance to 500,000 federal civil service employees if they became disabled.
   e. Keating-Owen Child Labor Act 1916 restricted goods shipped by interstate commerce if manufactured by anyone under 16 years of age, until portions were struck down by the Supreme Court Hammer vs Dagenhart 1918.
   f.Adamson Act Sept 1916 - Employees of railroads involved in interstate commerce only were reduced to an 8-hour day or else paid time and a half over 8 hours
   g. Nothing for black citizens -- Southern-born Wilson was unsympathetic, actually presiding over an accelerated segregation of the federal bureaucracy.
J. Presidential Election of 1916
1. Candidates
   a. Democrats in St. Louis renominated Woodrow Wilson and Thomas R. Marshall for second terms, using the theme He Kept Us Out of War
   b. Republicans in Chicago nominated Supreme Court Associate Justice Chas Evans Hughes , former NY Governor, for President (although seen by the public as a cold intellectual) and Chas Fairbanks Jr (IN) for Vice-President.
   c. Progressives, at first nominating Roosevelt who declined, hoping to defeat Wilson, endorsed the Republican candidate for President but nominated John M. Parker (LA) for Vice-President, which effectively eliminated them as a serious third party.
2. Campaign
   a. Roosevelt campaigned vigorously, favoring US participation in World War I.
   b. Wilson's campaign for preparedness on a theme of keeping the US out of the European war, provided a contrast between Republicans and Democrats.
   (1) Hughes was accused of campaigning softly for participation in WWI when in predominantly German areas, but taking a harder line when out of German areas, earning him the nickname Charles "Evasive" Hughes .
   (2) Wilson ignored Hughes in the campaign, emphasizing the preparedness theme, believing that one need not murder a man who was trying to commit suicide.
3. Results
   a. Wilson 277 electoral (9.1 million popular) votes to Hughes 254 electoral (8.5 million popular) votes, but it was not certain until late returns gave Wilson CA by 4000 votes.
   b. Democrats retained control of Congress
   c. The first woman was elected to Congress, Republican Jeannette Rankin (MT)
K. Wilson's Domestic Policies -- Second Term
1. Immigration Act Feb 1917, passed over Wilson's veto, excluded all Asiatics except the Japanese, and required a literacy test for immigrants.
2. Jones Act March 1917 made Puerto Rico US territory and its citizens US citizens.
3. Eighteenth Amendment - Prohibition
   a. Background
   (1) 1913 - the Webb-Kenyon Act was passed over Taft's veto and prohibited the interstate shipment of liquor into states where the sale of alcohol was illegal.
   (2) WCTU, established in 1874, resulted in the beginning of the Anti-Saloon League in 1893 which agitated for a national amendment banning the sale of alcohol
   (3) By 1917, prohibition had been passed in nineteen states.
   (4) 18 December 1917 - Congress sent the states an amendment which prohibited the sale, manufacture and transportation of alcoholic liquors.
   b. 16 Jan 1919 - Ratified to be effective in one year with Nebraska 's approval.
   c. Volstead (National Prohibition Enforcement) Act 28 Oct 1919 - over Wilson's veto, defined as alcoholic, anything over 1/2 of 1%
4. Nineteenth (Susan B. Anthony ) Amendment - 26 August 1920 - Women's Vote -
   a. First proposed in 1869, fifteen states had already agreed to women's suffrage before the amendment was introduced by Representative Rankin.
   b. After Republicans returned to Congress in 1918, in part due to the women who voted where they could vote, the amendment was sent to the states for ratification
   c. The battle lines were drawn in the South, who had disenfranchised Black males and were not about to allow the same fight over votes for Black women.
   d. The 36th state to ratify the measure was Tennessee after Wilson sensed that it would be ratified and pressed for its passage to avoid the appearance of a Democrat defeat.
   e. 26 August -Secretary of State Colby announced its ratification at four a.m.
   f. Women responded by voting overwhelmingly Republican in 1920.
L. Wilson's Foreign Policy 1913-20
1. Missionary Diplomacy - The idealistic approach of Wilson
   a. US relations with other countries must be based upon terms of "equality and honor".
   (1) To require Latin America to make special economic concessions to the US was degrading and unfair.
   (2) Wilson was determined to treat Latin American fairly, equally and honorably.
   b. "Dollar diplomacy" allows too much "interference" which should be avoided.
   c. Bank loans to a country raised the possibility of "forcible intervention" if not repaid.
   d. Wilson wanted to spread the gospel of American Democracy to the unenlightened ignorant unfortunates of the world.
2. Missionary Diplomacy at Work
   a. Wilson withdrew government support of proposed loans to China to build railroads, causing banks to withdraw their support.
   b. Japan was persuaded to modify its demands upon China.
   c. William Jennings Bryan , Secretary of State, negotiated a conciliation treaty with 21 nations, providing a one year cooling off period when disputes arose between signatories, rather that engage immediately in open hostilities.
   d. Missionary diplomacy was designed to raise the moral tone of America's foreign policy
3. Missionary Diplomacy At Its Worse
   a. In reality, the US felt forced to intervene into Latin America where US interests were threatened, especially in the Caribbean, to protect US interest in the Panama Canal
   b. No unrest was allowed in the Caribbean
   (1) Wilson intervened in Haiti [July 1915] and Dominican Republic [May 1916 - 1924]
   (2) In addition to adding Puerto Rico as territory in 1917, the US purchased from Denmark for $25 million the Danish West Indies -- US Virgin Islands
   c. Bryan-Chamarro Treaty 1914
   (1) Without surrendering its sovereignty, Nicaragua granted the US rights to build a canal through its territory and to build a military base on its soil.
   (3) But to keep the treaty, the US kept in power an unpopular dictator, Adolfo Diaz
   d. Wilson reversed himself on loans to China in 1917, giving them full US backing.
   e. US Intervention Into Mexico
   (1) 1910 - liberal forces overthrew Porforio Diaz , dictator since 1876, whose policies had benefited wealthy landowners, the church and the military.
   (2) The gentle liberal, President Francisco Madera (1911-13) of Mexico, proved to be a poor administrator, and conditions rapidly deteriorated by 1913.
   (3) A friend of landowners, Victoriano Huerta , in a military coup partially aided by US Ambassador Henry Lane Wilson, seized power, brutally murdering Huerta.
   (4) Although many nations recognized Huerta's government of Mexico, President Wilson refused, even though the new government was more stable and many US businessmen were eager to invest in Mexico's future.
   (5) Wilson refused to recognize and establish diplomatic relations with a "government of butchers," but all attempts to persuade Huerta to hold free elections led to a further breakdown between the US and Mexico
   (6) Mexico arrested several soldiers and sailers from Admiral Henry Mayo's barge, Dolphin , in Tampico Mexico
   (a) Using this as an excuse, the US intervened in Mexico's internal affairs.
   (b) Mayo demanded an apology and a salute of the US flag, but Huerta broke relations with the US
   (c) 19 April - With war fever running high, Wilson's request to use force to make Huerta comply was approved by Congress
   (d) 21 April - US Navy went to Vera Cruz where US Marines took control
   i) 400 Mexican casualties against 4 US deaths and 20 wounded
   ii) German arms supplies to Huerta through this port soon dried up
   (e) Summer 1914 - Mediation by the ABC Powers (Argentina, Brazil and Chile) was scheduled at Niagara Falls Ontario.
   (f) Before anything was decided, Huerta fled in July and abdicated in Aug because of internal pressure from the constitutionalist armies of Zapata, Carranza and Villa.
   (7) The crisis subsided until a struggle between these three erupted
   (a) General Francisco "Pancho" Villa suggested cooperation with the US and had some support from Wilson.
   (b) General Venustiano Carranza , well-educated liberal, declared himself the duly constitutionally elected President of Mexico.
   (8) Efforts to negotiate a meeting between Carranza, Zapata and Villa were thwarted by Carranza, who in reality was little better than Huerta.
   (a) Because Carranza was committed to some social reforms and to a constitutional government, he had the support of the middle class
   (b) 19 Oct 1915 - Because Carranza was somewhat victorious against Villa's men in the North, Wilson recognized his government and banned the arms shipments to Mexico except into states controlled by Carranza.
   (9) Villa with nothing to lose tried to force US intervention into Mexico
   (a) He attacked a train in Mexico, killing 16 American engineers.
   (b) He crossed the US border and attacked Columbus NM with 1500 men, killing 17 Americans on US soil
   (10) Wilson sent General John J. Pershing with 6000 men into Mexico in pursuit of Villa, going deeper and deeper into Mexican territory
   (a) Carranza insisted that the US withdraw from Mexican territory, claiming that his government would take care of Pancho Villa
   (b) At the urgings of the ABC Powers, the US withdrew, officially resuming a posture of "watchfulness" towards Mexico.
   (c) In reality the situation in Europe was worsening, a Presidential election was approaching and the US had greater interests elsewhere.
   (11) Carranza, assassinated in 1920, was replaced by Alvaro Obregon