THE NEW FEDERALIST April 23, 2001

A M E R I C A N Almanac

Woodrow Wilson and The Democratic Party's Legacy of Shame by Stu Rosenblatt

President Woodrow Wilson with his controller, Col. Edward House orchestrated a revival of the Klan from the White House.

When President George W. Bush began the bombing of Baghdad less than a month after taking office, for no reason

other than to "send a message," the tragedy of the 2000 Presidential non-election was brought to the fore. Ironically, by all election promises, a President Al Gore, Jr., should he have been elected, would have taken the same early and unprovoked attack against Iraq, in a psychotic attempt to cast the United States as the reincar­nated version of the decaying British Empire.

In July 2000, former Democratic Party Presidential pre-candidate Lyndon LaRouche warned the United States about the folly of allowing Bush and Gore to be "anointed" as the only choices, calling them "todays leading sub­stitutes for Tweedledum and Tweedledee." LaRouche hit the nail on the head—identifying the two Southern-boy crown princes of the "Lost Cause" Confederacy as the evil twins of Lewis Carroll's "Through the Looking Glass." "Tweedledum and Tweedledee" is all the more apt because it echoes another American "Southern Strategy" nightmare—the 1912 elec­tion race between Democrat Woodrow Wilson and his mirror image, Bull Moose candidate. Teddy Roosevelt, as we will see below.

In the year 2000 abomination known as the Al Gore campaign, the Democratic Party capitulat­ed to the evil policies of free trade, racism, and deregulation- The historical precedent for those policies can be found in the Presidency of Woodrow Wilson, nearly a century ago. Since then, Democrats have cloaked many of their treasonous schemes in the supposedly sacred robes of Wilson. The truth is that the Wilson administration ushered in an era of race hatred and violence, witchhunts against all opponents deemed political enemies, the handing over of our nation's economic policy-making to a private Wall Street-controlled Federal Reserve System, and the subjugation of our national sovereignty to the hated British Empire in the course of our entry into the bloodbath called World War I.

It was Woodrow Wilson who led the revival of the Ku Klux Klan throughout the nation with the private screening of the D.W. Griffith's movie, Birth of a Nation within the inner sanc­tum of White House. It was Wilson's circle of academics who wrote and produced the racist opus, and it was his cabinet who instituted bru­tal segregation throughout the Federal govern­ment, as soon as they took office.

This report will demonstrate there were no redeeming features to the Wilson administra­tion. It epitomized all that is evil, when the Southern Strategy controls the nation's highest offices. Yet, the illusion remains that Wilson was an enlightened leader, a liberal at home, and a great statesman who provided leadership in World War I. He continues to be admired for his crusade on behalf of the League of Nations. It is high time these illusions were shattered.

Either the truth be told, and the legacy of Wilson come to be viewed with scorn and con­tempt, or the Democratic Party, and the United States itself will very shortly cease to exist. It is long overdue for the Democratic Party to look inside its own glass house, examine the malig­nant contents as most brutally exemplified by the Wilson administration, and clean house. Time has nearly run out.

Revolution Against the Founding Fathers

The Wilson years in the White House (1913-21) represented nothing short of a total revolu­tion against the principles embedded in the

U.S. Constitution and the ideals of the American Founders, a willful rejection of the American Intellectual Tradition. Within the first year of the two-term Wilson administra­tion, the wheels were set into motion to create the set of policies and institutions that doomed the 20th Century. In one year, 1913, the year of Wilson's inauguration, the American System of Economics was all but buried: the Federal Reserve Bank was created; and, the Internal Revenue Service was brought into being; free trade was sanctified. All of this was done in exemplary British Parliamentary fashion, with the President enforcing Parliamentary disci­pline and straight party-line voting. And then, in 1915, the Virginia-bred Wilson led the revival of the Ku Klux Klan from the White House itself.

Wilson became the nation's 28th President as the result of an all-too-typical alliance of Wall Street financiers and Southern, neo-Confederate politicos. It marked the first time a Southerner had achieved the nation's highest office since the disreputable Presidency of Andrew Johnson (1865-69). At the same time, the Democratic Congress was dominated by Southern partisans. Yet, Wilson's victory was hardly a landslide: The only section of the nation he carried was the South, the former states of the Confederacy. The rest of the nation was deeply divided, and would remain so.

The Wilson Cabinet, assembled by his most intimate adviser, Col. Edward M. House, was composed of Southern racists and Wall Street toadies. Through House, whose father was a British emigre plantation owner and notorious Confederate blockade runner, exerting Svengali-like control over the suggestible Wilson, Wall Street dictated every move.1 Treasury Secretary William G. McAdoo and Postal Service Secretary Albert Burleson, both selected by House, exert­ed enormous influence inside the administra­tion, and most Congressional committee chair­manships fell to Southern Democrats for the first time since the Civil War. Backed by a Congress of wild-eyed Southern partisans, this combination ensured passage of the most pro-Confederate leg­islation in U.S. history.

Preceding his election as President, Wilson had served briefly as Governor of New Jersey, but had won recognition as a college professor and long-time president of Princeton University. He had written numerous texts on American history and Constitutional practice,

and was notorious for his\shameless promotion of the British Parliamentary system against that of the American Constitution.

Library of Congress

Jim Crow and British Banking

Wilson also unleashed the worst torrent of race hatred seen since the end of the Civil War. For the first time in U.S. history, the Federal government imposed Jim Crow "separate but equal" strictures within its own domain, segre­gating the government itself.

Passage of the free-trade tariff-reform bill was orchestrated by Alabama Congressman Oscar Underwood, Chairman of the House Ways and Means Committee. The bill reduced tariffs by an average of 15%, totally eliminated duties on many goods, and reversed the American System policy of using the protectionist tariff to generate revenue for the government. An ardent free trader himself, and long-time devo­tee of British economics mouthpiece Walter Bagehot2, Wilson had espoused the cause of British, unregulated trade all his life.3 A neo-Darwinian to the core, Wilson justified the free-trade dogma as "survival of the fittest," i.e. let the Wall Street/British cabal subjugate the world.

The graduated income tax followed hard on the heels of tariff reform, and imposed on the American public, for the first time, a direct tax as the government's primary source of income. Prescient policy-makers around Wilson could see a major war looming just over the horizon, and a general tax could certainly be used to shoulder the burden, especially in the face of the anticipated loss in revenue caused by the new tariff package.

Following a brutal fight, Congress passed the Federal Reserve Act on December 22, 1913, pri­vatizing the nation's credit system, and placing it in the hands of the Wall Street "Money Trust." Although Wilson's Progressive and Democratic allies were the traditional enemies of Wall Street, they had been cleverly manipulated by Colonel House into backing the Wall Street eco­nomic coup, with the Federal Reserve as its centerpiece.

American banking had been in disarray since the late 1890s with one panic following another. The 1907 Bank Panic nearly brought down the entire system, and provoked Wall Street to seek a new system. During the Taft administration, Wall Street had pushed the Aldrich Bill, which would have placed the bank­ing system under the control of the New York bankers, but it was defeated. Thwarted, they hatched a scheme in 1910 to sell the plan as a progressive-populist measure.

Meeting in secret on the elite Jekyll Island, off the coast of Georgia, the entire Wall Street cabal, including Morgan's Harry Davison, Kuhn Loeb's Paul Warburg, and Benjamin Strong of Bankers Trust, plotted a multifaceted campaign to sell bank reform as an attack on Wall Street itself!4 Once Wilson took office, the plan was launched, and following a brutal fight against Midwest and Southern populists grouped around William Jennings Bryan and Robert LaFollette, led by Rep. Robert Henry of Texas, the modern Federal Reserve System was rammed through the Congress.

The principal controls over monetary policy granted the Fed included the following: (1) power over the discount rate; (2) power over reserve requirements; (3) power to own, and market U.S. Treasury debt; and (4) power to issue credit, the most important measure given the private bankers. Twelve Reserve Districts

were created, and a governing board, composed largely of the private bankers themselves, was adopted to run the system. The credit of the sov­ereign government of the United States had been handed over to the hated Money Trust and its British cohorts to run the United States as they saw fit.

Colonel House hand-picked the new Federal Reserve Bank governing board, and ensured that both arch-racist and Wall Street henchman William McAdoo and Kuhn Loeb operator Paul Warburg, ran the board. Warburg had been a prime architect of the final version of the new system. Warburg was also Schiff's son-in-law, and Schiff, in turn, was second only to Morgan himself in command of "the Street." Schiff, how­ever, was also a close ally of Ernest Cassell, the personal banker of King Edward VII of England. In fact, the creation of the Fed cement­ed the Wall Street/City of London takeover of U.S. banking, and initiated the devolution of U.S. economic policy, with few interruptions, over the past 90 years.

Rep. Oscar Underwood

Wilson's Race Policy Wilson's takeover of American economic pol­

icy on behalf of Wall Street, was paralleled by the unleashing of racial hatred in the country, the quid pro quo extracted from Wilson by the Southern partisans, who had, in return, crushed the populist opposition to the banking agenda.

The racist revival suited Wall Street perfectly. The racial onslaught came in three waves:

official imposition of Jim Crow segregation orchestrated by Washington, followed by radicals in the Congress and local officials carrying out their own depredations, culminating in a general outpouring of hatred throughout the nation.

Treasury Secretary McAdoo, who would run for President himself in 1924—with the open support of the KKK—drafted the orders to impose "separate-but-equal" provisions throughout all Federal government offices with­in weeks of taking office in 1913. His counterpart at the Postal Service, Albert Burleson, a Texas crony of Colonel House, implemented this order in tandem with McAdoo.

McAdoo, who ran all Federal office build­

ings, ordered separate facilities for blacks to be built in all Federal buildings south of the Mason-Dixon line, as if the Civil War had never happened! Twenty-thousand black employees were immediately affected. All black employ­ees were to be segregated, and Wilson himself praised the move as "to the advantage of the col­ored people themselves."5

National Archive

Wilson's Cabinet (Above; Wilson is at far left), notably McAdoo (right)and Burleson (left), saw to it that most Congressional com­mittee chairmanships fell to Southern Democrats, for the first time since the Civil War.

Burleson followed suit, and within weeks of taking office, in a symbolic move that spoke vol­umes, he moved six black employees in the D.C. Post Office into the Dead Letter Department and built a cage around the one remaining Negro clerk, to "shield" him from the view of the white employees! This earned the ire of African-American leader W.E.B. DuBois and the rapidly expanding civil rights movement in the United States.

Sen. John Sharp Williams, a Mississippi Democrat, defended the administration policy against charges of "implied inferiority" as fol­lows: "There are no inalienable human rights, nor is there any principle of Democracy involved in the question of having separate rooms and separate desks and separate water closets for the two races."6

Once the Wilson administration had success­fully imposed this antebellum measure on the Federal government itself, a torrent of segrega­tionist bills flooded into the Congress, including laws to impose Jim Crow sanctions in the District of Columbia, race segregation of Federal employees nationwide, exclusion of Negroes from commissions in the Armed Forces, prohibi­tion of intermarriage between the "races," and exclusion of all Negro immigration.

In August 1913, the NAACP broke openly with Wilson and sent a scathing message of con­demnation to the President: "Never before has the Federal government discriminated against its civilian employees on the ground of color. Every such act has been that of an individual State. The very presence of the Capitol and of the Federal flag has drawn colored people to the District of Columbia in the belief that living there under the shadow of the National govern­ment itself, they were safe from the persecution and discrimination which follow them else­where because of their dark skins. . . . It has set the colored apart as if mere contact with them were contamination. The efficiency of their labor, the principles of scientific management are disregarded, the possibilities of promotion, if not now, will soon be severely limited . . . behind screens and closed doors they now sit apart as though pariahs. Men and women alike have the badge of inferiority pressed upon them by Government decree. How long will it be before the hateful epithets of 'nigger' and 'Jim Crow' are openly applied to these sections?"7

Mindful of such pressures, the President moved quickly for a showdown, by nominating a black Oklahoman, Adam Patterson, for a high position in McAdoo's Treasury Department. After the anticipated violent outburst from the Senate, Wilson quickly gave in and withdrew the nomination, having made a pretense of acceding to the demands of civil rights advo­cates.

However, Wilson's move had set into motion

the next layer of radicalization: the unleashing of Congressional thugs and local officials far worse than McAdoo and Burleson. Mississippi Sen. James K. Vardaman had railed against the nomi­nation of Patterson, saying, "this appointment, if confirmed, will create in every negro in this coun­try a hope that he may some day stand on social and political equality with the white man."8

Mississippi's other Senator, John Williams, went even further. "Washington has always been considered, before the war and after the war, as being south of Mason's and Dixon's line. I do not care what is done up in Yankeedom. If they want negroes let them have them; but the people of this District do not want them, and we, who rather peculiarly represent the people of the District are Southerners, and do not want them."9

6 THE NEW FEDERALIST April 23, 2001

Library of Congres / Laura W Waring

W.E.B. Dubois, editor of Crisis, the national journal of the NAACP, was betrayed by Wilson.

At a public meeting in Washington. D.C., Vardaman made plain what the new racial dogma meant: "I unhesitatingly assert that politi­cal equality for the colored race leads to social equality. Social equality leads to race amalgama­tion, and race amalgamation to deterioration and disintegration.... I expect to favor and urge the enactment of laws that will make perfect the social and political segregation of the white and colored races. We cannot allow the idea of Lincoln and send the colored man away to a country of his own. The next best thing, therefore is to bring about complete segregation."10

With madmen such as these running amok, the country descended quickly into barbarism. Local officials began their own campaigns of discrimination, housing segregation escalated, employment segregation took off, and overt acts of violence became the norm.

The number of lynchings had been on the rise throughout the decade, but from 1910 to 1914, there were over 350 public lynchings in the United States, according to the NAACP. In 1915, there were 100 more!

DuBois on Wilson's Policy After six months in office, Wilson's policies

had become so offensive, that W.E.B. DuBois issued a number of scathing attacks against him, for abandoning even a semblance of any com­mitment to the black population.

DuBois was editor of Crisis, the national jour­nal of the NAACP, and the only black member of the Executive Board of the NAACP. Under DuBois' stewardship, the circulation of Crisis rose from 1,000 to 30,000 in three years, and then to over 100,000 during the eight years of the Wilson administration.

In the fall of 1912, faced with the choices of Teddy Roosevelt, Taft, or Wilson, DuBois had grudgingly endorsed Wilson for President, but one year later, he wrote a searing letter to the President questioning the entire policy on race relations.

The following quote makes the point: "Sir, you now have been President of the

United States for six months and what is the result? It is no exaggeration to say that every enemy of the Negro race is greatly encouraged; that every man who dreams of making the Negro race a group of menials and pariahs is alert and hopeful. Vardaman, Tillman, Hoke Smith, Cole Blease and Burleson are evidently assuming that their theory of the place and destiny of the Negro race is the theory of your administration. They and others are assuming this because not a single act and not a single word of yours since election has given anyone reason to infer that you have the slightest interest in the colored people, or desire to alleviate their intolerable position. A dozen worthy Negro officials have been removed from office, and you have nomi­nated but one black man for office, and he, such a contemptible cur, that his very nomination was an insult to every Negro in the land.

"To this negative appearance of indifference has been added positive action on the part of your advisers, with or without your knowledge, which constitutes the gravest attack on the liberties of our people since Emancipation. Public segrega­tion of civil servants in government employ, nec­essarily involving personal insult and humilia­tion, has for the first time in history been made the policy of the United States government."11

'Our Crowd' bankers Jacob Schiff (left) and Paul Warburg (center) were the moneybags behind Wilson, while Baruch (right) personified the mar­riage of 'the Street' with the Confederacy.

Wilson and the Klan Once Wilson got his economic package

through the Congress, he ordered his minions to temporarily retreat from the more egregious racial bills in preparation, while the campaign of racial hatred escalated outside the precincts of official legislation.

Wilson himself restarted the race baiting in

mid-1914, when he entertained a group of black activists led by Boston publisher and civil rights spokesman William Monroe Trotter in the White House. When Trotter confronted the President on his offensive policies, Wilson defended his record saying, claiming it "was not intended to do injustice . . . and was for the benefit of both races."12 Prejudice would disappear, asserted Wilson, only when blacks freed themselves of dependence on white society, and proved their ability to act independently.

As the meeting descended into shouting, the thin-skinned President ordered the delegation out of his office, creating a cause celebre through­out the nation. Trotter had drawn out the President for all to see, but Wilson was playing out his own agenda.

The stage was now set for a revival of the Ku Klux Klan, and it would be initiated directly by the bigot in the White House. The highlight was the release of a feature-length motion picture, D.W. Griffith's The Birth of a Nation in late 1915. The movie was based on the play The Clansman, which glorified the Ku Klux Klan, and was writ­ten by Wilson's classmate at Johns Hopkins University, Thomas Dixon. The Clansman includ­ed language lifted directly from Wilsons A History of the American People. On Feb. 18, 1915, Birth of a Nation became the first film ever previewed in the White House before an audience including the President, his family, and relevant staff.

"It is like writing history with lightning," Wilson's exclaimed after viewing the film. "And my regret is that it is all so terribly true." Despite all attempts to downplay the Wilson endorsement, the quote was quickly put into circulation.

The showing in the White House was part of a much larger mobilization orchestrated by the emerging Hollywood film industry in and the neo-Confederates to incite a mass revival of the KKK, as part of an incipient fascist/nativist political movement. This movement would ulti­mately become the political base of men like Wilson's son-in-law, the racist Treasury Secretary William McAdoo.

After the White House showing, Dixon arranged a screening of Birth at the Supreme Court. Josephus Daniels, the Secretary of the Navy, arranged a meeting for Dixon with Chief Justice Edward White to ensure a larger atten­dance. During the course of the meeting, Justice White admitted that he too had been a member of the Klan, and promised to attend the screening.

The next evening, Birth of a Nation was shown to a group of several hundred dignitaries, including Senators, Congressmen, the diplomat­ic corps, and several Justices of the Supreme Court, including Justice White. Birth of a Nation had its national endorsement.13

Quick to sense something both evil and lucra­tive, Wall Street jumped in. Financing for Birth of a Nation was arranged in part by Felix Kahn, relative of Otto Kahn, a partner in Kuhn Loeb. And it was Schiff's Kuhn Loeb that arranged the startup money for Paramount Pictures, which was a direct spinoff of the movie.

The papers of incorporation for United Artists Corp. were drafted by William G. McAdoo, Wilson's son-in-law, and D.W. Griffith was recruit­ed by Wilson to make propaganda films in sup­port of American entry into World War I.

As for the immediate purpose of Birth of a Nation, Dixon himself said in a letter to Wilson's press secretary Joseph Tumulty, his intent was to "revolutionize Northern sentiments by a pre­sentation of history that would transform every man in the audience into a good Democrat.

"Make no mistake about it, we are doing just that thing. . . . Every man who comes out of our theaters is a Southern partisan for life."14

Coordinated with the movie's public release, were Klan rallies in Atlanta, and then around the country.

The revival of the Klan brought with it a

wave of lynchings and race riots. Lynchings escalated each year from 1917-1919, coinciding with America's entry into the war.

Wilson had unleashed the devil. The Klan would number over 100,000 new members, and the majority of these were in the industrial Northern states of Indiana, Ohio, and Michigan. The Southern Strategy had now called forth a mass movement and transformed the more sane sections of the nation into a hotbed of racialism and nativism. A culturally degraded America would become the marcher-lord for a new Anglo-American empire.

Southern Racist Groomed for the Presidency

As early as 1902, a small group of Wall Street-allied publishers and monied interests were determined to put Woodrow Wilson into the White House. He was precisely what they want­ed: born in Staunton, Virginia, the son of the leader of the Presbyterian Church during the Civil War, and a dyed-in-the-wool Confederate.15

A hard-core Anglophile to boot, Wilson was enamored with the British Empire and all things English. A picture of Prime Minister William Gladstone hung above his desk at school, and while at Princeton, he immersed himself in the writings of Gladstone, Edmund Burke, and most of all, free-trade apostle Walter Bagehot. He even founded a Liberal Debating Club at Princeton and was named Prime Minister of the Club.

Wilson was "launched" while doing graduate work at Johns Hopkins University in Baltimore. Hopkins was the hotbed of social Darwinism in the U.S., and hosted British race scientist Thomas Huxley as a featured speaker in 1876, when the school opened amidst celebrations of the U.S. Centennial.

Huxley's influence on the impressionable Wilson was enormous, and Wilson immersed himself in his writings as well as those of Herbert Spencer, John Ruskin and other Darwinists. Two of Wilson's closest associates were also trained at Hopkins: Thomas "The Clansman" Dixon and Walter Hines Page, Wilson insider, and his Ambassador to Great Britain.

The greatest influence on Wilson was, howev­er, British arch-racist Bagehot. Wilson all but plagiarized Bagehot's book The English Constitution in the early 1880s, when he authored a text entitled Congressional Government, a shameless attack on the U.S. Constitution and the Founding Fathers, and a clarion call for the imposition of the British model on the U.S.: "Inasmuch as the Senate is thus separated from class interests, and quite as representative of the nation at large as is the House of Representatives, the fact that it is less quickly sensitive to the hasty or impulsive movements of public opinion, constitutes its value as a check, a steadying weight, in our very democratic system. Our English cousins have worked out for them­selves a wonderfully perfect scheme of govern­ment by gradually making their monarchy unmonarchical. They have made it a republic [sic!] steadied by a reverenced aristocracy and pivoted upon a stable throne. And just as the English system is a limited monarchy because of the Commons and Cabinet, ours may be said to be a limited democracy because of the Senate.. . . It is of value in our Democracy in proportion as it is undemocratic . . . the British government is perfect in proportion as it is unmonarchical, and ours safe in proportion as it is undemocrat­ic; that the Senate saves us from headlong popu­lar tyranny."

He concluded: "As at present constituted, the federal government lacks strength because its powers are divided, lacks promptness because its authorities are multiplied, lacks wieldiness because its processes are round­about, lacks efficiency because its responsibili­ties are indistinct and its action without compe­tent direction . . . on the other hand, the British System is perfected party government."16

The book became an overnight bestseller among academic circles, going through over 15 reprintings. Wilson's career was off and running.

He wrote book after book, over the next 20 years, all despicable tracts either defending the Confederacy in the Civil War, or attacking the American System of Economics and govern­ment. 17

Wilson became president of Princeton in 1902, redesigning it on the Cambridge University model, down to the fine details. No black students were admitted during the entirety of his tenure.

While at Princeton, Wilson became a regular on the speakers' circuit, and began to impress the "right people" on Wall Street as Presidential timber.

In 1902, the first exploratory Wilson Presidential gambit was launched by Col. George Harvey, the publisher of Harper's Weekly, a conservative paper backed by J.P. Morgan. Harvey had been an active supporter of Bourbon Democrat Grover Cleveland, and was leading a faction of the party determined to rid the Democrats of the control of William Jennings Bryan, the anti-Wall Street populist crusader.18

With Morgan's approval, Harvey launched a campaign to draft Wilson for President and enlisted support from Wall Street tycoons

William Whitney and Thomas Fortune Ryan, a native Virginian, ultra-conservative Morgan ally. Other Wall Street men quickly joined, including August Belmont (whose family had backed Democratic traitor, Gen. George McClellan, in his 1864 Presidential race against Abraham Lincoln), Arthur Ochs of the New York Times, the ultra-conservative paper the New York Sun, and a host of Southern papers includ­ing the Louisville Courier Journal, Columbia Ledger, and Charleston News and Courier.

However, initially, Wilson failed to catch on, and the effort was put on hold in 1908. Biding their time, these same forces sponsored Wilson's successful bid for the New Jersey state¬ house in 1910. Always attuned to "popular opin­ion," Wilson "reinvented" himself as a "pro­gressive," a mixed political bag, at best. The Progressive movement included nationalist agrarian populists, such as Democrat William Jennings Bryan, and Republican Robert LaFollette, who were anti-Wall Street; as well the elitist pro-Wall Street variety, such as Teddy Roosevelt, and Wilson himself. As a Progressive, Wilson caught the attention of the liberal press and the mainstream of the Democratic Party.

Though a Progressive in name, Wilson never, as Governor, initiated any substantive reforms from the statehouse. He merely toyed with the safe issues such as electoral reform, "corrup­tion," etc. Wilson was flirting with the Presidency, not trying to deliver jobs or ser­vices.

Birth of a Nation launched a revival of the Ku Klux Klan, following a preview at the Wilson White House. These are scenes and ads for the movie.

The 1912 Campaign Soon after he was sworn in as Governor,

Wilson launched his campaign for the Presidency in earnest. He quickly dropped the support of the Morgan interests, including a celebrated break with Colonel Harvey, and began courting the Progressive mainstream, the Southern yahoos, and Wall Street's elite Jewish banking families, who dubbed them­selves, "Our Crowd." The Southern Strategy— the alliance of Wall Street tycoons and the

remains of the Confederacy—took over the Wilson effort.

Five Southerners ran Wilson's apparatus: Walter McCorkle, a native Virginian who was President of the Southern Society of New York; Walter Hines Page, who hailed from a slave-owning family of North Carolina, then editor of World's Work; William McCombs, Arkansas native and Wilson's prize student and admirer from Princeton; William G. McAdoo, Georgia native who became a promi­nent businessman in New York, and would later marry Wilson's daughter, serve as Treasury Secretary, and run for President as the candidate of the KKK; and Col. Edward M. House, an Anglophile agent from Texas, son of a plantation owner, and the key controller of Wilson from 1912-1916.

The campaign was launched in November 1910, immediately following the gubernatorial election in New Jersey, with the formation of Wilson for President clubs in Staunton and Norfolk, Virginia, and a speech by McAdoo to the Southern Society chapter in New York toast­ing Wilson as the next President of the United States. The official campaign kickoff occurred in Atlanta in March 1911, where Wilson called for "the South to rise and take its place in the councils of the nation."19 Wilson was endorsed immediately by the Atlanta Journal and other like-minded papers in Georgia.

In the early part of 1912, Wilson publicly dumped the circles of Colonel Harvey, Morgan's man, and embraced those of Our Crowd's Jacob Schiff, number two on Wall Street. The venue was a speech delivered by Wilson at Madison Square Garden calculated to recruit the Our Crowd circles around Schiff and Paul Warburg, to support Wilson's candidacy.

Following the speech, Schiff committed $2,500 to the campaign and opened the door for his allies to join. Wall Street scion Henry Morgenthau pledged $4,000 a month, and became finance chairman of the campaign. Others quickly followed suit

Contrary to the ignorant myths expounded today by and about the Wall Street members of Jewish "high society" in the pre-World War I years, the Our Crowd grouping was deeply pro-Confederate, as manifested by one of its leading members, Bernard Baruch, who was one of Wilson's most important promoters.

Baruch not only symbolized the alliance of Wall Street and the Confederacy—he was the Confederacy! Baruch hailed from Camden, South Carolina. He was legendary among Wall Street speculators, the Michael Milken of his

day, the ultimate inside trader, and totally in the pocket of the Morgan bankers, by the way.

Baruch's father had been a surgeon in the Confederate Army, and an ardent partisan. After the Civil War, he joined the Ku Klux Klan as a terrorist night-rider. After the war, he moved to New York, where, during renditions of "Dixie" at the New York Opera House, the he would leap to his feet and lead the "rebel yell." Belle Baruch, Bernie's mother, descended from a family of slave-traders and rum-run­ners. Though nominally a devout Jew, she attended the religious services in New York City of the Protestant Rev. Thomas "The Clansman" Dixon, and reportedly, swooned at his sermons!

The final controller of Wilson was Louis Brandeis, a nominal foe of Schiff and Warburg, known as the "people's attorney," who sold Wilson on the merits of deregulation, "regulat­ing' the trusts," and privatizing the Federal banking system. Brandeis was the author of both Wilson's "New Freedom" campaign theme, and the 1913 Federal Reserve Act.

While the money came from Wall Street, the flavor of the 1912 campaign wafted up from the South. Wilson's Rasputin, Col. Edward House recruited legions of Elmer Gantry-style stemwinders, the most prominent being arch-racist Albert Burleson of Texas, to rally the troops for Wilson on the campaign trail.

(The recent dismal election effort of Al Gore was modeled on the Wilson campaign: free trade arrangements, tariff reform, and populist attacks on the Wall Street monied interests, plus promises to minorities and labor of a "bet­ter shake" after the election. While Wilson's campaign was bankrolled by Jacob Schiff, Al Gore's daughter, Karenna, one of his top cam­paign managers, is now a Schiff herself, having married into the family during the 2000 cam­paign.)

Tweedledee' Roosevelt In truth, the key to the 1912 campaign was the

role of Wall Street-owned Theodore Roosevelt. In a two-way race, the "dinosaur" William Howard Taft stood a fair chance of defeating Wilson. But more interestingly, Republican Progressive and bona fide enemy of the Eastern establishment, Sen. Robert LaFollette of Wisconsin had mounted a serious threat against Taft in the Republican primaries, and might have won the Presidency.

Roosevelt chose to enter the race, both to head off LaFollette and to ensure the election of Wall Street's anointed candidate Wilson. Hence the Fall became a fight between "Trust Regulating" Wilson, and his "New Freedom," and "Trust Recognizing" Teddy Roosevelt's "New Nationalism." There was not a dime's worth of difference between them: As analyst William Allen White had said, "Between the New Nationalism and the New Freedom was that fan­tastic imaginary gulf that always has existed between tweedle-dum and tweedle-dee."20

While Wilson campaigned as a populist against the trusts, Morgan, and other big-money interests, he also attacked the American System of tariffs, regulated trade, and industrial devel­opment, in a preview of the treasonous agenda of his administration.

Wilson also alienated the core constituen­cies of the nation: labor, farmers, and African-Americans. His college texts became a scandal among urban immigrant constituencies, and he spent much of the campaign carrying out dam­age control, all the while winning votes among Southern racists. His support in the labor move­ment was very thin, not surprisingly, since he included labor unions in his diatribes against the "monopolies." But his relationship to the black community was the most despicable.

Black voters were ignored by both Taft and Roosevelt: Taft was a well-known racist, while Roosevelt publicly attacked W.E.B. DuBois and the civil rights layers, and refused to even con­sider a civil rights plank on his Bull Moose plat­form. The country was awash in a tide of racial assaults, lynchings, and Jim Crow laws, so the terrified black community had nowhere to turn but Wilson.

Yet Wilson spurned them. He refused to adopt a civil rights plank himself, and his repu­tation at Princeton (no black enrollment), cou­pled with his insulting racialist writings, repelled African-American leaders. Worse still, were his coterie of racist advisers and campaign managers. Typical was an editorial written by campaign insider Josephus Daniels, editor of the Raleigh News and Observer:

"The attitude of the South regarding the

April 23, 2001 THE NEW FEDERALIST 7

Teddy Roosevelt (right) entered the 1912 Presidential race to ensure Wilson's victory over both incumbent President Taft (left) and his chal­lenger Robert LaFollette (center).

negro in politics is unalterable and uncompro­mising. We take no risks. We abhor a northern policy of catering to negroes politically just as we abhor a northern policy of social equality.

"Out of bitter experience the South has evolved certain paramount convictions. Southerners are not seeking merely a sectional policy, but also a national policy on this subject of the race question, for they know that short of a national policy they will never be secure. The South is solidly Democratic because of the real­ization that the subjection of the negro, politi­cally, and the separation of the negro, socially, are paramount to all other considerations in the South short of preservation of the Republic itself. And we shall recognize no emancipation, nor shall we proclaim any deliverer, that falls short of these essentials to the peace and the welfare of our part of the country."21

Behind Daniels lurked the Senators and Congressmen who were running Wilson's effort in the South, typified by Mississippi Sen. James Vardaman who was calling for repealing the 14th and 15th Amendments.

Nevertheless, the black community eked out a weak pledge from Wilson at the end of the campaign, to seriously consider their issues, and so they endorsed the "lesser of evils." Even DuBois renounced his membership in the Socialist Party to endorse Wilson and campaign for him. However, there would be no honey­moon for this President.

With the Republican Party hopelessly split between Roosevelt and Taft, Wilson swept into the White House, winning the "solid South" and also bringing with him a Democratic majority in the Congress. The key committee chairs would all be Southern conservative Democrats; the White House was occupied by an Anglophile son of the Confederacy. The nation would have Hell to pay. The Southern Strategy had succeeded.

The Versailles Treaty, whose economic clauses destroyed which Germany, were written by Morgan Bank's Thomas Lamont (left), at the behest of Britain's Lloyd George (center) and Clemenceau of France (right).

Wilson, World War I, and Imperialism

The foreign policy of the Wilson administra­tion was no less venal and no less controlled by Anglophile elements than was his domestic pol­icy. There were two determining principles: support for economic free trade and its military consequences; and the total abrogation of national sovereignty and its replacement by globalized imperial authority, typified by Wilson's fanatical support for the British-inspired League of Nations.

Under Wilson's direction, the U.S. invaded Mexico several times, overthrew the govern­ment of the Dominican Republic, and invaded and eventually occupied the nation of Haiti. Haiti was always a symbol of the fight against

colonialism. In 1916, the duplicitous Wilson campaigned

for re-election on the theme, "He kept us out of war." Yet all the while, Wilson, and especially his Anglophile advisers, were steering the U.S. on a course for entry into the war on the British side. The centerpiece of Wilsonian foreign poli­cy was the U.S. intervention into the war to fur­ther British imperial aims. We should have entered the war earlier on the side of Germany, who repeatedly responded positively to Wilson's efforts to end the war. If there were to have been any intervention, it should have been to crush the British Empire, never to ally with it.

Wilson was guided in his decisions by a coterie of hard-core Anglophile agents who were deter­mined to wreck traditional American foreign pol­icy, which was anti-British and anti-imperial, and finish the job begun by Teddy Roosevelt in trans­forming the United States into a marcher-lord for British imperial policy. The agents who led Wilson into this included: Col. Edward House, Secretary of State Robert Lansing, and Morgan-agent and House protege Walter Lippmann. Lippmann's editorials at the New Republic, pro­vided Wilson with the intellectual ammunition to justify entering the war, with the avowed purpose of promoting British geopolitics and cementing the Anglo-American alliance.22

The modern-day echo of Wilson's war to "make the world safe for democracy" can be seen in Al Gore's attacks, through the

Principals' Committee, on Iraq, the Balkans, and Sudan. President George W. Bush's policies are a continuation of the Gore approach, which was itself inherited from former President George Bush's "New World (Dis)Order." All of this was spawned by Wilsonian foreign policy.

Wilson, an early advocate of world govern­ment, connived with House and his key inter­locutor, Lord Edward Grey, the British Foreign Minister, to bring the United States into World War I. They had a dual purpose: Defeat and dis­member Germany and its allies; and impose global government under a League of Nations. Both ideas were the brainchild of H.G. Wells, then the key ideologue of the British Empire.

As Presidential pre-candidate Lyndon LaRouche has previously spelled out, the out­line for what became World War I was already in the works by no later than the infamous Fashoda incident of 1898: Using typical divide and conquer methods, the British sought to break up the American-German-Russian-French alliance of the 1890s and turn the allies against one another, lest British maritime con­trol of the world be broken.

Wells put out his clarion call for the War to End Wars (a monograph he issued in 1914, at the out­break of hostilities), in an apocalyptic 1913 tract

entitled The World Set Free. Here he described how, after a ruinous war has wrecked the entire social order, the survivors set out to construct a world state, unfettered by national boundaries or rivalries. Central to the macabre work is the use of an atomic weapon to terrorize a prostrate world into submission. As Wells wrote: "Enlightened control of mankind will be realized under the 'great conceptions of universal rule.' " 23

For Wells, this war would spell the end of the nation-state, any remaining legacy of economic and social justice, and destroy the image of man as in the living likeness of the Creator. The insti­tution that Wells wanted to erect to oversee this outcome was the League of Nations.

In 1915, the Bloomsbury group, an influential English "literary" and political salon, created the League of Nations Society directly under Wells' influence. Wells penned a series of articles in 1917 that were published in a book under the title. In the Fourth Year. He wrote, "There is no alterna­tive if we are to have a satisfactory permanent pacification of the world, but local self-develop­ment in these regions under honestly conceived international control of police and transit and trade . . . there is no other way of peace."24

Seminal influences on Wilson included (clockwise from top left): British race scien­tist Thomas Huxley; H.G. Wells, shown here as a student in Huxley's laboratory; and Morgan-agent Walter Lippmann. Lord Grey ran the British side of the operation to bring America into the war.

' T h e Inquiry' Wells was at the center of all efforts to real­

ize this "vision." He had served in British Intelligence, wrote numerous tracts, and sent out feelers out throughout the world, including a letter in November 1917, to Bainbridge Colby in the United States. Colby was his direct con­duit to President Wilson, urging the President to act on his plans. Though no reply from Wilson to these messages has ever been uncovered, in Wilson's Fourteen Points and Wells' commu­nique, shared the same worldview.

Wells' personal protege and Wilson appointee Walter Lippmann was also in the middle of the U.S. war effort and peace plans. Near the end of the war, Lippmann was named by Colonel House to head up "The Inquiry," a top secret think-tank, that drew up most of the postwar U.S. plans. It was Lippmann who wrote the Fourteen Points peace proposal. Thus, American entry into the war, the definition of its war aims, and its postwar plans, were all direct­ed by the British for their own purposes.

To ensure that a reluctant American public was dragged into the war, Wilson also launched the worst domestic repression ever visited on the nation. He created the Committee for Public Information, to use the most provocative, lying, anti-German propaganda to guarantee support for the allied effort. The approach only suc­ceeded, however, because of the heavy-handed repression meted out by Attorney General Gregory and his accomplices William McAdoo and Albert Burleson.

These men invoked the Espionage Act, the Trading with the Enemy Act, and the Sedition Act of 1918 to arrange wholesale persecution of all dissidents. Thousands of American citizens were incarcerated and many more terrorized into sup­porting the not-very-popular War to Make the World Safe for Democracy. This Nacht und Nebel (night and fog) campaign fed into the counterin¬ surgency Palmer Raids of 1919, and the ensuing Red Scare that ultimately led to the arrest and deportation of thousands of so-called commu­nists. All of this would be repeated by Wilson's fol­lower Harry Truman, in the witchhunt of the late 18940s-early 1950s, known as "McCarthyism."

The concluding chapter of this despicable story was written at the Versailles negotiations at the end of the war. Here, the H.G. Wells sce­nario was played out in full. Wilson personally led the U.S. delegation to Versailles, and while he had his own, slightly different agenda, the British ensured that three outcomes ensued: 1) that the world was carved up to meet British plans; 2) the German nation would be humiliat­ed and dismembered, including the imposition of unpayable reparations that would foster the likely outbreak of yet another world war; and 3) the creation of a global government agency, the League of Nations, to end national sovereignty, once and for all.

The abominable economic clauses adopted at Versailles, which placed Germany into hock in perpetuity, were written by Wall Street and Morgan Bank controller Thomas Lamont at the insistence of British Prime Minister Lloyd George and French Prime Minister Georges Clemenceau. They were roundly attacked by the well-known British economist John Maynard Keynes. The assault on national sovereignty embodied in the League of Nations Treaty was typified by Article 10, which even took away the sovereign right of the nation-states to declare war. Wilson was adamant on all these points, thus openly opposing the core conceptions of the Founding Fathers on the right to economic development, national sovereignty, and the community of principle among nations as the centerpiece of all U.S. foreign policy.

It was at Versailles, that many of the blun­ders that continue to plague the United States and the world, were originated. The bankers' assault against Germany spawned both World War II, and the moden-day looting practices of the International Monetary Fund, and the British and Wall Street money-center banks. The League of Nations prohibitions against national sovereignty are echoed in today's

United Nations "peacekeeping" efforts to police the world, while halting all efforts at durable economic development.

Unfortunately, the name of Woodrow Wilson is still invoked among both Democratic and Republican Party circles, as a man to be emu­lated and venerated. It is high time the real story of Wilson be told, and his name evoke the scorn among all Americans it so richly deserves. Either the Presidency of Woodrow Wilson is repudiated, especially among Democrats, today, or this nation will have no chance of survival.

Notes 1. Arthur Link, The Road to the White House,

Princeton, N J., Princeton University Press; 1947; p. 476. 2. Col. Edward M. House was the son of Thomas

House, a British emigre to the U.S., who was set up in various businesses by British sponsors. He amassed a fortune and augmented it as a leading Confederate blockade-runner throughout the Civil War. He pur­chased plantations in Texas, entered politics and became Mayor of Houston. The family was among the richest in Texas, and Edward House became the chief beneficiary of the money and power bequeathed by his father. The House family was also linked to the Baker family, and other oligarchical networks that dominated Texas policy-making. House all but ran Texas politics for the remainder of the century, and entered the national scene as a bitter enemy of the populist / traditionalist wing of the Democratic party grouped around William Jennings Bryan.

House became an intimate of Wilson in 1911, and was his chief adviser until 1916. He exerted enormous influence over Wilson on all issues and was the chief conduit of Anglophile policy-making on the President. He steered Wilson into World War I, and entered into ongoing back-channel dealings with British leader Lord Edward Grey on all matters, including the League of Nations gambit and other British pet projects.

3. Walter Bagehot was a high-ranking member of the British policy-making elites during the middle of the 19th Century. He was the editor and controller of the London Economist from 1861 to 1877. and was shadow adviser to Lord Palmerston, Prime Minister William Gladstone and Prime Minister Benjamin Disraeli dur­

ing that period. A member of the elitist and lunatic Metaphysical Society, Bagehot was an ardent propo­nent of the ideas of Charles Darwin, Jean-Baptiste Lamarck, and the racialist dogmas of "survival of the fittest" and "natural selection." He was an open sup­porter of slavery, and a enemy of the United States.

4. In his school days at Princeton and Johns-Hopkins University, Wilson wrote papers defending Sen. John Calhoun and denouncing protectionism. In 1882, he went out of his way to testify at the U.S. Tariff Commission hearings in Atlanta against protective tariffs and in favor of free trade. Following this pre­sentation, Wilson formed an Atlanta branch of the Free Trade Club of New York.

Wilson routinely defended the free-trade concepts of Adam Smith, Richard Cobden, and John Bright, in his lectures at Princeton. The idea of unregulated trade, as imbibed from his mentor Bagehot. was axiomatic in Wilson's thinking.

5. For a full account of the machinations by Morgan and Warburg at Jekyll Island in 1910, and the formation of the Federal Reserve System, see Richard Freeman New Solidarity, "The History of the Federal Reserve," Jan. 19, 1981.

6. Kendrick Clements, Woodrow Wilson, World Statesman, Chicago, Ivan Dee Publications, 1987; p. 98.

7. Joel Williamson, The Crucible of Race, New York. Oxford University Press, 1984; p. 367

8. Williamson, ibid., p. 372 9. Clements, op. cit, p. 98 10. Williamson, op. cit, p. 378 11. Williamson, ibid., p. 379. 12 W.E.B. DuBois,

Writings, New York, Dover Literary Classics, 1986; pp. 1145-6.

13. Clements, op. cit., p. 99 14. Mark Calney, "D.W. Griffith and the Birth of a

Monster: How the Confederacy Revived the Klan and Created Hollywood," New Federalist, Jan. 11, 1993

15. Wilson's father, Joseph Ruggles Wilson, was a Presbyterian minister and the leader of the Presbyterian church in the South. According to one biographer, he moved the family from Staunton, Virginia to Augusta, Georgia, because the Shenandoah Valley lacked the necessary zeal in its support for the Confederacy that the elder Wilson desired. In Georgia, the family church became a cen­ter of Confederate activity. The church became a hos­pital for the wounded, and Confederate soldiers regu­larly bivouacked on church grounds. These were among the earliest childhood memories of the young Woodrow Wilson.

16. Link; Road to White House, p. 14 17. Among Wilson's books: Congressional Government: An open call for the

overthrow of the American Constitutional govern­ment, and overt praise of the British system of govern­ment, and the application of social Darwininsm to American politics

Division and Reunion: a barely concealed paean to the Confederacy against the Lincoln government, including the following gem: "Stupendous as was the [Civil] [W]ar struggle from every point of view, its deepest and most and most extraordinary qualities are revealed only when it is viewed from the side of the southern Confederacy. On the part of the North, it was a wonderful display of spirit and power, a splen­did revelation of national strength and coherency, a capital proof of quick, organic vitality throughout a great democratic body politic... . On the part of the South, on the other hand, the great struggle was main­tained by sheer spirit and devotion, in spite of con­stantly diminishing resources and constantly waning hope. Her whole strength was put forth, her resources spent, exhausted, annihilated; and yet with such con­centration of energy that for more than three years she seemed as fully equal to the contest as did the

north itself. And all for a belated principle of govern­ment, an outgrown economy, an impossible purpose. There is. in history, no devotion not religious, no con­stancy nor want for success, that can furnish a paral­lel to the devotion and constancy of the South in this extraordinary war." (pp. 251-52)

A History of the American People: includes his assessment of post-Civil War South that is used in Dixon's The Clansman.

18. Samuel Tilden of New York was the first near­ly successful Presidential candidate, in 1876, of the "Bourbon Democrats." Formed in 1868, the Bourbons were the Wall Street faction, self-declared opponents of "big government regulation" (the tariff), and the original "anti-corruption reformers."

Their man Grover Cleveland, between Cleveland's two terms, he was a partner in a law firm that repre­sented J.P. Morgan.

19. Link. op. cit., p. 315. 20. Link, ibid., p. 476. 21. Link, ibid., p. 501. 22. Walter Lippmann, Force and Ideas, New

Brunswick, N.J., Transaction Publications, 2000, "The Defense of the Atlantic World," pp. 69-75.

23. Norman and Jeanne MacKenzie, H.G. Wells, A Biography, New York, Simon and Schuster, 1970; pp. 298-99

24. MacKenzie, ibid., p. 315