Woodrow Wilson and Business-Government Relations During World War I

Abstract

By the spring of 1914 Woodrow Wilson was clearly doing everything in his power to ingratiate the new Democratic Administration with the nation's business groups. He abandoned the Brandeisian spirit of trust-busting as part of his program for corporation control in favor of regulation by commission, a policy more in line with the sentiment among leading businessmen. (Indeed, the Federal Trade Commission established in 1915 soon showed that it would serve as the friend and not the enemy of business.) He directed personal appeals to businessmen both by letter and by informal conversations at the White House, and he made nominations to regulatory agencies like the Federal Trade Commission and Federal Reserve Board that left no doubt as to his sincerity in attracting business support. One of his choices for the Reserve Board, Thomas D. Jones, was at once a personal friend and a former trustee of Princeton University. But Jones was also a well-known member of the “Zinc Trust” and a director of the International Harvester Company then under indictment as a conspiracy in restraint of trade. Wilson campaigned hard for this appointment against strong Senatorial opposition even within his own party. At the same time, he declared publicly: “It would be particularly unfair to the Democratic Party and the Senate itself to regard it as the enemy of business, big or little.” Wilson was outraged when the Senate Banking Committee rejected his friend. “I believe the judgment and desire of the whole country cry out for a new temper in affairs,” he wrote rather despairingly to Jones. “We have breathed already too long the air of suspicion and distrust.”