. Diplomatically, as well as domestically these events illustrate Wilsons competent leadership skill. Woodrow Wilsons nomination was strongly opposed by the progressives but he eventually passed much of their domestic reforming legislation. The progressive movement backed by Wilson called for some government control of industry and for regulation of railroad and public utilities. Among its other goals were the adoption of primary elections and the direct election of United States senators. Wilson called Congress into special session to consider a new tariff bill, he personally delivered his legislative request to Congress. Moved by Wilson's aggressive leadership, the House swiftly passed the first important reform measure, the Underwood Tariff Bill of 1913, which significantly reduced the tariff for the first time in many years and reflected a new awareness that American businesses were now powerful enough to compete in the markets of the world. In the end the Underwood Tariff had nothing to do with trade but the importance was the income tax provision (later the 16th amendment) which would replace the revenue lost when duties were reduced. It also showed that America was powerful enough to compete without protection from the government. As Congress debated the tariff bill, Wilson presented his program for reform of the banking and currency laws. The nations banking system was outdated, unmanageable, and chaotic. To fix this Wilson favored the establishment of a Federal Reserve Board with presidentally appointed financial experts. The Board would set national interest rates and manage a network of twelve major banks across the country. These banks, which would issue currency, would in turn work with local banks. Congress passed the Federal Reserve act basically in the form the President had recommended. Amendments also provided for exclusive governmental control of the Federal Reserve Board and for short term agricultural credit through...
