Soon after the inauguration of Mr. Wilson Congress under his guidance took up a number of important matters. A new tariff bill was passed, extending the free list and lowering duties. To make up for the decrease in revenue an income tax was provided, including the principle of graduation. A currency bill, pro viding for a Federal reserve bank system, was also enacted. Other important measures in accord with the Democratic program were put on the statute books.
The outbreak of the World War in the summer of 1914 brought many perplexing and difficult problems; the United States, seeking to maintain its rights and to fulfil its duty as a neutral state whose citizens were deeply stirred by the war and whose interests, -com mercial and personal, were strongly affected, found it no easy task to assert and uphold its rightful position. English commercial policy, which purposed to prevent all trade with the enemy, even trade passing through neutral countries, brought forth objection from the American government; and on the other hand there was on more than one occasion serious danger of war with Germany because of the destruction by German submarines of British passenger ships carrying American citizens. The trouble with Germany and Austria was acute and fraught with danger of war from the time of the sinking of the Lusitania in the spring of 1915, and in February 1917 diplo matic relations with Germany were broken be cause of the declaration of that nation that vessels coming within a war zone which she marked off would be sunk without warning and without restraint. To add to the anxiety and perplexity of these trying years, our relations with Mexico were strained almost to the break ing point. During the later years of Mr. Taf is administration Mexican conditions presented serious difficulties, but soon after Mr. Wilson's accession the situation became acute. Various factions strove for the control of the govern ment, lawlessness prevailed, bandits sought their prey; American property was destroyed and American citizens murdered. In 1916 a band of outlaws crossed our border and killed several unoffending persons. At the beginning of his administration President Wilson an nounced a policy of friendly regard for the countries of Latin America and disclaimed any desire or intention to acquire further territory; this policy he earnestly strove to fulfil; but in the spring of 1916 a force was sent to Mexico to hunt out the archbandit Villa and to punish those who had invaded our territory. In the early summer the State militia was called out and some of these troops sent to the Mexican border. The Great War in Europe and the trouble with Mexico called the attention of the American people to miliary matters; and the average citizen questioned whether the navy was strong enough to defend the coast in case of attack, or the army large enough to defeat invaders. There was strong demand for °prep aration,* and Congress passed measures provid ing for a large increase in the army and for a greatly enlarged While making provision for the great expend iture for military purposes, Congress declared that the United States °looks with apprehension and disfavor upon a general increase of arma ment throughout the world, but it realizes that no single nation can disarm, and that without a common agreement upon the subject every considerable power must maintain a relative standing in military strength.*
In 1916 the Democrats nominated Wilson and Marshall once more; the Republicans named Charles E. Hughes and Charles W. Fairbanks. Mr. Roosevelt was nominated by the Progressives, but declined to be a candi date and advocated the support of Mr. Hughes. The issue of the election did not appear at first to enlist the acute attention of the people, but before the end there was widespread in terest and enthusiasm. It is hard to say in a word what was the chief or controlling issue of the campaign: Republicans charged the Demo crats with executive mismanagement, and in the later weeks of the campaign recurred to the tariff, declaring that the great business pros perity of the country was produced by the war and would be succeeded by a hopeless depres sion if sufficient protection were not provided. President Wilson himself was the centre of attack; and some speakers, notably Mr. Roose velt, condemned his Mexican policy and his failure to take more decisive and aggressive action in dealing with Europe, especially Ger many. Mr. Wilson's supporters ably defended his administration as high-minded, progressive and constructive, and asserted that his atti tude and action with regard to the trying prob lems of diplomacy were wise and patriotic. In the midst of the campaign a sudden strike of railroad employees was prevented by the pas sage of a Congressional act, on Mr. Wilson's recommendation, establishing an eight-hour day on interstate railroads for certain classes of employees. The President at the same time made additional recommendations which con templated, among other things, making it un lawful to bring on a strike or a lockout before public investigation of conditions; but these recommendations were not at that time made into law. This labor problem and Mr. Wilson's action greatly complicated the discussions and the course of the campaign; for some persons strongly condemned, while others as vigorously defended, the steps of the administration in this particular emergency, and it is impossible to determine whether the President's responsi bility for the eight-hour measure (the Adam son Act) aided him or reacted unfavorably. The result of the election showed, on the whole, something of a sectional variation, although even in the East, which was generally strongly Republican, New Hampshire, by a very small plurality, chose Wilson electors. Ohio broke the solid vote of the Old Northwest by casting its vote for the Democratic candidate, while many of the Western States, including Cali fornia, added their votes to those of the South, and thus determined the election in Mr. Wil son's favor. The Democratic candidate was supported by every State west of the Missis sippi except Iowa, Minnesota, Oregon and South Dakota. In Minnesota the popular plu rality was small, not far from 400. The electoral votes of the States carried by Mr. Hughes numbered 254; those carried by Mr. Wilson, 277; the Democratic plurality in the popular vote was over 450,000.