2023 - O/N - 9489/11 | Q1

Source A

A cartoon commenting on the impact of President Wilson's economic policies, published in a Washington newspaper, 1913.

Source B

The Clayton Anti-Trust Act will make the small businessman as free to succeed as the big businessman. It will kill monopoly from the outset. Our purpose is to destroy monopoly and maintain real competition as the only way to ensure liberty for the businessman. We have shown no party-political bias or favour to labour unions. We have achieved a new peace in our economic affairs. The new freedom I promised has now been achieved. We have discovered the way to attain a lasting method of cooperation between democracy and capitalism. There is now an effective method of enforcing this law, which was always a major failing of the Sherman Anti-Trust Act. It is clear what is legal and what is not. Morgan and his fellow monopolists have surrendered unconditionally. I see this legislation, together with our work on currency, banking and tariffs, as a major step forward. These laws will ensure not only future prosperity for all Americans, but an end to such crises that caused so much harm to so many in 1893 and 1907.

A letter from President Wilson to a member of the House of Representatives, October 1914.

Source C

While there is much to praise in the Clayton Anti-Trust Act to further regulate trusts, it is not without its flaws. Effective enforcement is intended, but it is unlikely that this will be achieved. There is greater clarity about what is permitted and what is not. The president did not give in to the excessive demands of the labour unions which would have caused much harm to business. While Wilson was prepared to listen and talk to members of our party, he made unnecessary and potentially damaging concessions to pacify radicals and improve his party's electoral standing in major cities in the North. There is more scope for competition and some of the worst practices of the monopolistic holding companies are outlawed. However, together with the legislation of last year, many see this as another major attack on wealth. Investment is falling as a result. Share prices and farm prices are down and there is a growing level of unemployment in both our cities and on our farms.

A speech in the Senate by a Republican senator, October 1914.

Source D

The Manufacturers' Association have just presented a petition to the president requesting that there is a complete halt to his anti-trust programme. They argue that the uncertainty in manufacturing that has already arisen as a result of the Democratic Party's legislation over tariffs and currency will only be worsened if the Clayton Anti-Trust Act is enforced.

The president is always sure that he is right, but when he argues that the present poor economic conditions are 'merely psychological', any businessman, well-informed financier or student of economic conditions will tell you that our troubles are caused by Washington. While the war in Europe is a factor in the current economic downturn, a much more profound cause is the determination showed by this administration that it knows what is best for business. It does not, and the medicine that it is determined to administer will worsen and not cure the situation.

From an article in the 'New York Times', October 1914.