Progressive Reform.

The fulfillment of many progressive reform goals came after the Democratic Party won both the presidential and congressional elections of 1912. President Woodrow Wilson's "New Freedom" agenda included provisions designed to reshape the nation's financial system, which had long been characterized by instability and occasional chaos, and the government's fiscal policies as well. Wilson immediately began to implement his domestic program by calling a special session of Congress to address the tariff. After successfully rallying the legislature and the public, Wilson signed the Underwood Tariff Act on 3 October 1913, reducing tariffs and opening trade. Tariff reform, however, was only one part of Wilson's overall plan. The president then turned his attention to the nation's banking system, whose structure had not been altered since the Civil War.

Federal Reserve System.

The Federal Reserve Act, signed into law on 23 December 1913, established twelve regional...