By January 1910, Wilson had drawn the attention of James Smith Jr. and George Brinton McClellan Harvey, two leaders of New Jersey's Democratic Party, as a potential candidate in the upcoming gubernatorial election. Having lost the last five gubernatorial elections, New Jersey Democratic leaders decided to throw their support behind Wilson, an untested and unconventional candidate. Party leaders believed that Wilson's academic reputation made him the ideal spokesman against trusts and corruption, but they also hoped his inexperience in governing would make him easy to influence. Wilson agreed to accept the nomination if 'it came to me unsought, unanimously, and without pledges to anybody about anything.'
At the state party convention, the bosses marshaled their forces and won the nomination for Wilson. He submitted his letter of resignation to Princeton on October 20. Wilson's campaign focused on his promise to be independent of party bosses. He quickly shed his professorial style for more emboldened speechmaking and presented himself as a full-fledged progressive. Though Republican William Howard Taft had carried New Jersey in the 1908 presidential election by more than 82,000 votes, Wilson soundly defeated Republican gubernatorial nominee Vivian M. Lewis by a margin of more than 65,000 votes. Democrats also took control of the general assembly in the 1910 elections, though the state senate remained in Republican hands. After winning the election, Wilson appointed Joseph Patrick Tumulty as his private secretary, a position he held throughout Wilson's political career.
Wilson began formulating his reformist agenda, intending to ignore the demands of his party machinery. Smith asked Wilson to endorse his bid for the U.S. Senate, but Wilson refused and instead endorsed Smith's opponent James Edgar Martine, who had won the Democratic primary. Martine's victory in the Senate election helped Wilson position himself as an independent force in the New Jersey Democratic Party. By the time Wilson took office, New Jersey had gained a reputation for public corruption; the state was known as the 'Mother of Trusts' because it allowed companies like Standard Oil to escape the antitrust laws of other states. Wilson and his allies quickly won passage of the Geran bill, which undercut the power of the political bosses by requiring primaries for all elective offices and party officials. A corrupt practices law and a workmen's compensation statute that Wilson supported won passage shortly thereafter. For his success in passing these laws during the first months of his gubernatorial term, Wilson won national and bipartisan recognition as a reformer and a leader of the Progressive movement.
Republicans took control of the state assembly in early 1912, and Wilson spent much of the rest of his tenure vetoing bills. Nonetheless, he won passage of laws that restricted labor by women and children and increased standards for factory working conditions. A new State Board of Education was set up 'with the power to conduct inspections and enforce standards, regulate districts' borrowing authority, and require special classes for students with handicaps.' Shortly before leaving office, Wilson signed a series of antitrust laws known as the 'Seven Sisters,' as well as another law that removed the power to select juries from local sheriffs.
Presidential election of 1912
Democratic nomination
Wilson became a prominent 1912 presidential contender immediately upon his election as Governor of New Jersey in 1910, and his clashes with state party bosses enhanced his reputation with the rising Progressive movement. In addition to progressives, Wilson enjoyed the support of Princeton alumni such as Cyrus McCormick and Southerners such as Walter Hines Page, who believed that Wilson's status as a transplanted Southerner gave him broad appeal. Though Wilson's shift to the left won the admiration of many, it also created enemies such as George Brinton McClellan Harvey, a former Wilson supporter who had close ties to Wall Street. In July 1911, Wilson brought William Gibbs McAdoo and 'Colonel' Edward M. House in to manage the campaign. Prior to the 1912 Democratic National Convention, Wilson made a special effort to win the approval of three-time Democratic presidential nominee William Jennings Bryan, whose followers had largely dominated the Democratic Party since the 1896 presidential election.
Speaker of the House Champ Clark of Missouri was viewed by many as the front-runner for the nomination, while House Majority Leader Oscar Underwood of Alabama also loomed as a challenger. Clark found support among the Bryan wing of the party, while Underwood appealed to the conservative Bourbon Democrats, especially in the South. In the 1912 Democratic Party presidential primaries, Clark won several of the early contests, but Wilson finished strong with victories in Texas, the Northeast, and the Midwest. On the first presidential ballot of the Democratic convention, Clark won a plurality of delegates; his support continued to grow after the New York Tammany Hall machine swung behind him on the tenth ballot. Tammany's support backfired for Clark, as Bryan announced that he would not support any candidate that had Tammany's backing, and Clark began losing delegates on subsequent ballots.Wilson gained the support of Roger Charles Sullivan and Thomas Taggart by promising the vice presidency to Governor Thomas R. Marshall of Indiana. and several Southern delegations shifted their support from Underwood to Wilson. Wilson finally won two-thirds of the vote on the convention's 46th ballot, and Marshall became Wilson's running mate
General election
In the 1912 general election, Wilson faced two major opponents: one-term Republican incumbent William Howard Taft, and former Republican President Theodore Roosevelt, who ran a third party campaign as the 'Bull Moose' Party nominee. The fourth candidate was Eugene V. Debs of the Socialist Party. Roosevelt had broken with his former party at the 1912 Republican National Convention after Taft narrowly won re-nomination, and the split in the Republican Party made Democrats hopeful that they could win the presidency for the first time since the 1892 presidential election.
Roosevelt emerged as Wilson's main challenger, and Wilson and Roosevelt largely campaigned against each other despite sharing similarly progressive platforms that called for an interventionist central government. Wilson directed campaign finance chairman Henry Morgenthau not to accept contributions from corporations and to prioritize smaller donations from the widest possible quarters of the public. During the election campaign, Wilson asserted that it was the task of government 'to make those adjustments of life which will put every man in a position to claim his normal rights as a living, human being.' With the help of legal scholar Louis D. Brandeis, he developed his New Freedom platform, focusing especially on breaking up trusts and lowering tariff rates. Brandeis and Wilson rejected Roosevelt's proposal to establish a powerful bureaucracy charged with regulating large corporations, instead favoring the break-up of large corporations in order to create a level economic playing field.
Wilson engaged in a spirited campaign, criss-crossing the country to deliver numerous speeches. Ultimately, he took 42 percent of the popular vote and 435 of the 531 electoral votes. Roosevelt won most of the remaining electoral votes and 27.4 percent of the popular vote, one of the strongest third party performances in U.S. history. Taft won 23.2 percent of the popular vote but just 8 electoral votes, while Debs won 6 percent of the popular vote. In the concurrent congressional elections, Democrats retained control of the House and won a majority in the Senate. Wilson's victory made him the first Southerner to win a presidential election since the Civil War, the first Democratic president since Grover Cleveland left office in 1897, and the first president to hold a Ph.D
Presidency
After the election, Wilson chose William Jennings Bryan as Secretary of State, and Bryan offered advice on the remaining members of Wilson's cabinet. William Gibbs McAdoo, a prominent Wilson supporter who married Wilson's daughter in 1914, became Secretary of the Treasury, and James Clark McReynolds, who had successfully prosecuted several prominent antitrust cases, was chosen as Attorney General. Publisher Josephus Daniels, a party loyalist and prominent white supremacist from North Carolina, was chosen to be Secretary of the Navy, while young New York attorney Franklin D. Roosevelt became Assistant Secretary of the Navy. Wilson's chief of staff was Joseph Patrick Tumulty, who acted as a political buffer and intermediary with the press. The most important foreign policy adviser and confidant was 'Colonel' Edward M. House; Berg writes that, 'in access and influence, outranked everybody in Wilson's Cabinet.'
New Freedom domestic agenda
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Wilson introduced a comprehensive program of domestic legislation at the outset of his administration, something no president had ever done before. He had four major domestic priorities: the conservation of natural resources, banking reform, tariff reduction, and equal access to raw materials, which was accomplished in part through the regulation of trusts. Wilson introduced these proposals in April 1913 in a speech delivered to a joint session of Congress, becoming the first president since John Adams to address Congress in person. Wilson's first two years in office largely focused on the implementation of his New Freedom domestic agenda. With the outbreak of World War I in 1914, foreign affairs increasingly dominated his presidency.
Tariff and tax legislation
Democrats had long seen high tariff rates as equivalent to unfair taxes on consumers, and tariff reduction was their first priority. He argued that the system of high tariffs 'cuts us off from our proper part in the commerce of the world, violates the just principles of taxation, and makes the government a facile instrument in the hands of private interests.' By late May 1913, House Majority Leader Oscar Underwood had passed a bill in the House that cut the average tariff rate by 10 percent and imposed a tax on personal income above $4,000. Underwood's bill represented the largest downward revision of the tariff since the Civil War. It aggressively cut rates for raw materials, goods deemed to be 'necessities,' and products produced domestically by trusts, but it retained higher tariff rates for luxury goods. Passage of tariff bill in the Senate was a challenge. Some Southern and Western Democrats wanted the continued protection of their wool and sugar industries, and Democrats had a narrower majority in the upper house. Wilson met extensively with Democratic senators and appealed directly to the people through the press. After weeks of hearings and debate, Wilson and Secretary of State Bryan managed to unite Senate Democrats behind the bill. The Senate voted 44 to 37 in favor of the bill, with only one Democrat voting against it and only one Republican voting for it. Wilson signed the Revenue Act of 1913 into law on October 3, 1913. The Revenue Act of 1913 reduced tariffs and replaced the lost revenue with a federal income tax of one percent on incomes above $3,000, affecting the richest three percent of the population. The policies of the Wilson administration had a durable impact on the composition of government revenue, which now primarily came from taxation rather than tariffs. In the aftermath of the nationwide financial crisis in 1907, there was general agreement to create some sort of central banking system to provide a more elastic currency and to coordinate responses to financial panics. Wilson sought a middle ground between progressives such as Bryan and conservative Republicans like Nelson Aldrich, who, as chairman of the National Monetary Commission, had put forward a plan for a central bank that would give private financial interests a large degree of control over the monetary system. Wilson declared that the banking system must be 'public not private, must be vested in the government itself so that the banks must be the instruments, not the masters, of business.'
Democrats crafted a compromise plan in which private banks would control twelve regional Federal Reserve Banks, but a controlling interest in the system was placed in a central board filled with presidential appointees. Wilson convinced Democrats on the left that the new plan met their demands. Finally the Senate voted 54–34 to approve the Federal Reserve Act. The new system began operations in 1915, and it played a key role in financing the Allied and American war efforts in World War I.
Wilson did not wait to complete the Revenue Act of 1913 before proceeding to the next item on his agenda—banking. By the time Wilson took office, countries like Britain and Germany had established government-run central banks, but the United States had not had a central bank since the Bank War of the 1830s. In the aftermath of the nationwide financial crisis in 1907, there was general agreement to create some sort of central banking system to provide a more elastic currency and to coordinate responses to financial panics. Wilson sought a middle ground between progressives such as Bryan and conservative Republicans like Nelson Aldrich, who, as chairman of the National Monetary Commission, had put forward a plan for a central bank that would give private financial interests a large degree of control over the monetary system. Wilson declared that the banking system must be 'public not private, must be vested in the government itself so that the banks must be the instruments, not the masters, of business.'
Democrats crafted a compromise plan in which private banks would control twelve regional Federal Reserve Banks, but a controlling interest in the system was placed in a central board filled with presidential appointees. Wilson convinced Democrats on the left that the new plan met their demands. Finally the Senate voted 54–34 to approve the Federal Reserve Act. The new system began operations in 1915, and it played a key role in financing the Allied and American war efforts in World War
Antitrust legislation
Having passed major legislation lowering the tariff and reforming the banking structure, Wilson next sought antitrust legislation to enhance the Sherman Antitrust Act of 1890. The Sherman Antitrust Act barred any 'contract, combination...or conspiracy, in restraint of trade,' but had proved ineffective in preventing the rise of large business combinations known as trusts. An elite group of businessmen dominated the boards of major banks and railroads, and they used their power to prevent competition by new companies. With Wilson's support, Congressman Henry Clayton, Jr. introduced a bill that would ban several anti-competitive practices such discriminatory pricing, tying, exclusive dealing, and interlocking directorates. As the difficulty of banning all anti-competitive practices via legislation became clear, Wilson came to back legislation that would create a new agency, the Federal Trade Commission, to investigate antitrust violations and enforce antitrust laws independently of the Justice Department. With bipartisan support, Congress passed the Federal Trade Commission Act of 1914, which incorporated Wilson's ideas regarding the FTC. One month after signing the Federal Trade Commission Act of 1914, Wilson signed the Clayton Antitrust Act of 1914, which built on the Sherman Act by defining and banning several anti-competitive practices.
Labor and agriculture
Wilson thought a child labor law would probably be unconstitutional but reversed himself in 1916 with a close election approaching. In 1916, after intense campaigns by the National Child Labor Committee and the National Consumers League, the Congress passed the Keating–Owen Act, making it illegal to ship goods in interstate commerce if they were made in factories employing children under specified ages. Southern Democrats were opposed but did not filibuster. Wilson endorsed the bill at the last minute under pressure from party leaders who stressed how popular the idea was, especially among the emerging class of women voters. He told Democratic Congressmen they needed to pass this law and also a workman's compensation law to satisfy the national progressive movement and to win the 1916 election against a reunited GOP. It was the first federal child labor law. However, the U.S. Supreme Court struck down the law in Hammer v. Dagenhart. Congress then passed a law taxing businesses that used child labor, but that was struck down by the Supreme Court in Bailey v. Drexel Furniture. Child labor was finally ended in the 1930s. He approved the goal of upgrading the harsh working conditions for merchant sailors and signed LaFollette's Seamen's Act of 1915.
Wilson called on the Labor Department to mediate conflicts between labor and management. In 1914, Wilson dispatched soldiers to help bring an end to the Colorado Coalfield War, one of the deadliest labor disputes in American history. In 1916 he pushed Congress to enact the eight-hour work day for railroad workers, which ended a major strike. It was 'the boldest intervention in labor relations that any president had yet attempted.'
Wilson disliked the excessive government involvement in the Federal Farm Loan Act, which created twelve regional banks empowered to provide low-interest loans to farmers. Nevertheless, he needed the farm vote to survive the upcoming 1916 election, so he signed it.
AFTERMATH OF WORLD WAR I
Paris Peace Conference
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After the signing of the armistice, Wilson traveled to Europe to lead the American delegation to the Paris Peace Conference, thereby becoming the first U.S. president to travel to Europe while in office. Senate Republicans and even some Senate Democrats complained about their lack of representation in the American delegation, which consisted of Wilson, Colonel House, Secretary of State Robert Lansing, General Tasker H. Bliss, and diplomat Henry White. Save for a two-week return to the United States, Wilson remained in Europe for six months, where he focused on reaching a peace treaty to formally end the war. Wilson, British Prime Minister David Lloyd George, French Prime Minister Georges Clemenceau, and Italian Prime Minister Vittorio Emanuele Orlando made up the 'Big Four,' the Allied leaders with the most influence at the Paris Peace Conference. Wilson had an illness during the conference, and some experts believe the Spanish flu was the cause.
Unlike other Allied leaders, Wilson did not seek territorial gains or material concessions from the Central Powers. His chief goal was the establishment of the League of Nations, which he saw as the 'keystone of the whole programme.' Wilson himself presided over the committee that drafted the Covenant of the League of Nations. The covenant bound members to respect freedom of religion, treat racial minorities fairly, and peacefully settle disputes through organizations like the Permanent Court of International Justice. Article X of the League Covenant required all nations to defend League members against external aggression. Japan proposed that the conference endorse a racial equality clause; Wilson was indifferent to the issue, but acceded to strong opposition from Australia and Britain. The Covenant of the League of Nations was incorporated into the conference's Treaty of Versailles, which ended the war with Germany, and into other peace treaties.
Aside from the establishment the League of Nations and solidifying a lasting world peace, Wilson's other main goal at the Paris Peace Conference was that self-determination be the primary basis used for drawing new international borders. However, in pursuit of his League of Nations, Wilson conceded several points to the other powers present at the conference. Germany was required to permanently cede territory, pay war reparations, relinquish all of her overseas colonies and dependencies and submit to military occupation in the Rhineland. Additionally, a clause in the treaty specifically named Germany as responsible for the war. Wilson agreed to allowing the Allied European powers and Japan to essentially expand their empires by establishing de-facto colonies in the Middle East, Africa, and Asia out the former German and Ottoman Empires; this teritorial awards to the victorious countries were thinly disguised as 'League of Nations mandates'. The Japanese acquisition of German interests in the Shandong Peninsula of China proved especially unpopular, as it undercut Wilson's promise of self-government. Wilson's hopes for achieving self-determination saw some success when the conference recognized multiple new and independent states created in Eastern Europe, including Poland, Yugoslavia, and Czechoslovakia.
The conference finished negotiations in May 1919, at which point the new leaders of a Democratic Germany viewed the treaty for the first time. Some German leaders favored repudiating the peace due to the harshness of the terms, though ultimately Germany signed the treaty on June 28, 1919. Wilson was unable to convince the other Allied powers, France in particular to temper the harshness of the settlement being leveled at the defeated Central Powers, especially Germany.
For his efforts towards creating a lasting world peace, Wilson was awarded the 1919 Nobel Peace Prize
Ratification debate and defeat
Ratification of the Treaty of Versailles required the support of two-thirds of the Senate, a difficult proposition given that Republicans held a narrow majority in the Senate after the 1918 elections. Republicans were outraged by Wilson's failure to discuss the war or its aftermath with them, and an intensely partisan battle developed in the Senate. Republican Senator Henry Cabot Lodge supported a version of the treaty that required Wilson to compromise. Wilson refused. Some Republicans, including former President Taft and former Secretary of State Elihu Root, favored ratification of the treaty with some modifications, and their public support gave Wilson some chance of winning the treaty's ratification.
The debate over the treaty centered around a debate over the American role in the world community in the post-war era, and senators fell into three main groups. The first group, consisting of most Democrats, favored the treaty. Fourteen senators, mostly Republicans, were known as the 'irreconcilables' as they completely opposed U.S. entrance into the League of Nations. Some of these irreconcilables opposed the treaty for its failure to emphasize decolonization and disarmament, while others feared surrendering American freedom of action to an international organization. The remaining group of senators, known as 'reservationists,' accepted the idea of the League, but sought varying degrees of change to ensure the protection of American sovereignty and the right of Congress to decide on going to war. Article X of the League Covenant, which sought to create a system of collective security by requiring League members to protect one another against external aggression, seemed to force the U.S. to join in any war the League decided upon. Wilson consistently refused to compromise, partly due to concerns about having to re-open negotiations with the other treaty signatories. When Lodge was on the verge of building a two-thirds majority to ratify the Treaty with ten reservations, Wilson forced his supporters to vote Nay on March 19, 1920, thereby closing the issue. Cooper says that 'nearly every League advocate' went along with Lodge, but 'This effort failed solely because Wilson admittedly rejected all reservations proposed in the Senate.' Thomas A. Bailey calls Wilson's action 'the supreme act of infanticide':
Health collapses
To bolster public support for ratification, Wilson barnstormed the Western states, but he returned to the White House in late September due to health problems. On October 2, 1919, Wilson suffered a serious stroke, leaving him paralyzed on his left side, and with only partial vision in the right eye. He was confined to bed for weeks and sequestered from everyone except his wife and his physician, Dr. Cary Grayson. Dr. Bert E. Park, a neurosurgeon who examined Wilson's medical records after his death, writes that Wilson's illness affected his personality in various ways, making him prone to 'disorders of emotion, impaired impulse control, and defective judgment.' Anxious to help the president recover, Tumulty, Grayson, and the First Lady determined what documents the president read and who was allowed to communicate with him. For her influence in the administration, some have described Edith Wilson as 'the first female President of the United States.' Link states that by November 1919, Wilson's 'recovery was only partial at best. His mind remained relatively clear; but he was physically enfeebled, and the disease had wrecked his emotional constitution and aggravated all his more unfortunate personal traits.
Throughout late 1919, Wilson's inner circle concealed the severity of his health issues. By February 1920, the president's true condition was publicly known. Many expressed qualms about Wilson's fitness for the presidency at a time when the League fight was reaching a climax, and domestic issues such as strikes, unemployment, inflation and the threat of Communism were ablaze. In mid-March 1920, Lodge and his Republicans formed a coalition with the pro-treaty Democrats to pass a treaty with reservations, but Wilson rejected this compromise and enough Democrats followed his lead to defeat ratification. No one close to Wilson was willing to certify, as required by the Constitution, his 'inability to discharge the powers and duties of the said office.' Though some members of Congress encouraged Vice President Marshall to assert his claim to the presidency, Marshall never attempted to replace Wilson. Wilson's lengthy period of incapacity while serving as president was nearly unprecedented; of the previous presidents, only James Garfield had been in a similar situation, but Garfield retained greater control of his mental faculties and faced relatively few pressing issues.