Chapter V: Progress, Modernization, and Efficiency (1913-1914)
President: Leonard Wood (R-NH)
Vice President: Myron T. Herrick (R-OH)
Secretary of State: Henry L. Stimson (R-NY)
Secretary of the Treasury: John W. Weeks (R-MA)
Secretary of War: Newton W. Gilbert (R-IN)
Attorney General: Charles Nagel (R-MO)
Postmaster General: Harry S. New (R-IN)
Secretary of the Navy: William Loeb, Jr. (R-NY)
Secretary of the Interior: Gifford Pinchot (R-PA)
Secretary of Agriculture: George L. Sheldon (R-NE)
Secretary of Commerce: Edwin Sydney Stuart (R-PA)
Secretary of Labor: James Rudolph Garfield (R-OH)
After securing four more years in the White House, President Wood was not going to accept the slow start that had occurred during his first term. He was widely popular with the Republican Party and the American public, and the GOP possessed decent margins in Congress to act. Once the new Congress assembled in April 1913, a series of minor reform bills that Congress didn't have the time or votes to pass in the previous section was sent to the Presidents desk and signed into law.
Throughout the summer, however, President Wood, with the help of his aides and Secretaries Weeks, Nagel, and Stuart, was spending most of his political capital on the Hill striving to pass legislation to institute an income tax and establish a national bank. For the Wood Administration, the two issues were closely linked and it was hoped to be an early victory that would help the Republican Party maintain Congress in the Mid-Term Elections the following year.
The biggest problem was in trying to handle the matter whilst avoiding tariffs, which the Democrats were not willing to let happen. Many in the Democratic Party argued that the establishment of an income tax, which was widely supported, would allow the United States to lower its tariff rates because revenue would be generated from the income tax. Progressives of both parties supported this argument. Conservative Republicans, however, were not going to let that happen without a fight. Throughout the summer, the Vice President and conservative Republicans met with the President almost daily, reminding him that the Party Platform promised a review of tariffs before action be taken and that those actions were supposed to make adjustments in America's interest. Lowering tariff rates, by their arguments, was not in the interests of the United States, because it would weaken American industry. Furthermore, they argued that the additional revenue from having tariffs and an income tax could be used to build out the United States military, which was a point that especially caught the attention of the president.
By mid-July, the process had slowed down significantly. President Wood decided he would have to get involved more directly with the process if anything was going to be accomplished before the Congressional session expired. He began to take the journey to the Hill at least once a week, often more, to meet with important Republican Senators and Representatives, trying to forge a party consensus on the matter. Nothing was getting accomplished, however, and by the time Congress was packing up to go back home, President Wood surprised the country by calling for a special session of Congress to settle the matter.
It was during this special session that progressive Republicans decided to partner with their Democratic colleagues. The National Reserve System would be established - partially vindicating, for many Democrats, the selection of Senator Owen to be their Presidential Nominee the year before - an income tax imposed on the wealthiest Americans, and a mild reduction in tariffs was signed into law. Conservative Republicans were furious at the President's decision to go along with the plan, but progressives across the country cheered.
He secured minor funding to begin the development of militarized aircraft within the United States Army. The President signed legislation that would provide support for American farmers seeking to modernize their techniques. At the President's behest, there was an expansion of the nation's road system through rural America. He instructed his Cabinet Secretaries to search their budgets for wasteful spending and to report back what could be cut.
The President continued his push for further building the United States Navy, although he found stiff resistance following the autumn of 1913. Conservative Republicans were fuming over what they viewed as the President's betrayal on the issue of tariffs. Many progressive Republicans were skeptical over the necessity of continuing to expand the nation's naval power, despite the strong advocacy from Senators Lodge, Beveridge, and Root. Democrats were quick to point to the President's past efforts to call for a treaty limiting naval armaments, painting Wood as hypocritical on the issue. While he did his best to explain his belief that maintaining a peace that protected American interests required strength and that it was only with a strong navy that the U.S. could have credibility with foreign powers to call for restrictions on naval power, but President Wood could not have hoped to persuade the American people like his predecessor could. He was an administrator more than a politician, and, while he was well liked, he could not give a speech like Theodore Roosevelt could.
Secretary of the Navy William Loeb, formerly President Roosevelt's secretary, suggested to President Wood that he call on T.R. to help rally the public to increase naval expenditures, but President Wood resisted. He was still friends with his predecessor, of course, and the two wrote numerous letters to each other and met semi-frequently to discuss policy. However, this was a matter of pride for President Wood. Secretary Loeb continued to seek President Wood's approval to reach out to Theodore Roosevelt, especially before the former President was to leave for South America later that year. It was not until late June that the President finally swallowed his pride. On June 27th, 1914, President Wood wrote to Theodore Roosevelt to formally request the assistance of his friend to rally the public to this cause.
On July 28th, 1914, Archduke Franz Ferdinand of Austria-Hungary was assassinated in Sarajevo.