terms were reinforced in the same year by a law creating a Federal Trade Commission empowered to inquire into the methods of corporations and lodge complaints against concerns "using any unfair method of competition." In only one respect was the severity of the Democratic policy relaxed. An act of 1918 provided that the Sherman law should not apply to companies engaged in export trade, the purpose being to encourage large corporations to enter foreign commerce. The effect of this whole body of anti-trust legislation, in spite of much labor on it, remained problematical. Very few combinations were dissolved as a result of it. Startling investigations were made into alleged abuses on the part of trusts; but it could hardly be said that huge business concerns had lost any of their predominance in American industry. Labor Legislation. By no mere coincidence, the Clayton Anti-trust law of 1914 made many concessions to organized labor. It declared that "the labor of a human being is not a commodity or an article of commerce," and it exempted unions from prosecution as "combinations in restraint of trade." It likewise defined and limited the uses which the federal courts might make of injunctions in labor disputes and guaranteed trial by jury to those guilty of disobedience (see p. 581). The Clayton law was followed the next year by the Seamen's Act giving greater liberty of contract to American sailors and requiring an improvement of living conditions on shipboard. This was such a drastic law that shipowners declared themselves unable to meet foreign competition under its terms, owing to the low labor standards of other countries. Still more extraordinary than the Seamen's Act was the Adamson law of 1916 fixing a standard eight-hour work-day for trainmen on railroads a measure wrung from Congress under a threat of a great strike by the four Railway Brotherhoods. This act, viewed by union leaders as a triumph, called forth a bitter denunciation of " trade union domination," but it was easier to criticize than to find another solution of the problem. A third Three other laws enacted during President Wilson's administration were popular in the labor world. One of them provided compensation for federal employees injured in the discharge of their duties. Another prohibited the labor of children under a certain age in the industries of the nation. prescribed for coal miners in Alaska an eight-hour day and modern safeguards for life and health. There were positive proofs that organized labor had obtained a large share of power in the councils of the country. Federal and State Relations. If the interference of the government with business and labor represented a departure from the old idea of "the less government the better," what can be said of a large body of laws affecting the rights of states? The prohibition of child labor everywhere was one indication of the new tendency. Mr. Wilson had once declared such legislation unconstitutional; the Supreme Court declared it unconstitutional; but Congress, undaunted, carried it into effect under the guise of a tax on goods made by children below the age limit. There were other indications of the drift. Large sums of money were appropriated by Congress in 1916 to assist the states in building and maintaining highways. The same year the Farm Loan Act projected the federal government into the sphere of local money lending. In 1917 millions of dollars were granted to states in aid of vocational education, incidentally imposing uniform standards throughout the country. Evidently the government was no longer limited to the duties of the policeman. The Prohibition Amendment. A still more significant form of intervention in state affairs was the passage, in December, 1917, of an amendment to the federal Constitution establishing national prohibition of the manufacture and sale of intoxicating liquors as beverages. This was the climax of a historical movement extending over half a century. In 1872, a National Prohibition party, launched three years before, nominated its first presidential candidate and inaugurated a campaign of agitation. Though its vote was never large, the cause for which it stood found increasing favor among the people. State after state by popular referendum abolished the liquor traffic within its borders. By 1917 at least thirty-two of the forty-eight were "dry." When the federal amendment was submitted for approval, the ratification was surprisingly swift. In a little more than a year, namely, on January 16, 1919, it was proclaimed. Twelve months later the amendment went into effect. COLONIAL AND FOREIGN POLICIES The Philippines and Porto Rico. - Independence for the Philippines and larger self-government for Porto Rico had been among the policies of the Democratic party since the campaign of 1900. President Wilson in his annual messages urged upon Congress more autonomy for the Filipinos and a definite promise of final independence. The result was the Jones Organic Act for the Philippines passed in 1916. This measure provided that the upper as well as the lower house of the Philippine legislature should be elected by popular vote, and declared it to be the intention of the United States to grant independence" as soon as a stable government can be established." This, said President Wilson on signing the bill, is "a very satisfactory advance in our policy of extending to them self-government and control of their own affairs." The following year Congress, yielding to President Wilson's insistence, passed a new organic act for Porto Rico, making both houses of the legislature elective and conferring American citizenship upon the inhabitants of the island. American Power in the Caribbean. While extending more self-government to its dominions, the United States enlarged its sphere of influence in the Caribbean. The supervision of finances in Santo Domingo, inaugurated in Roosevelt's administration, was transformed into a protectorate under Wilson. In 1914 dissensions in the republic led to the landing of American marines to "supervise" the elections. Two years later, an officer in the American navy, with authority from Washington, |