The New Federalist April 23, 2001 Pages 5 to 7

American 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
 Library of Congress

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 "today's 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 administra-
tion. 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 con-
tempt, 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.

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.

Rep. Oscar Underwood

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 Bagehot,2 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.
Wilson's Race Policy

Wilson's takeover of American economic policy 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 buildings, 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

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
 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.
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 coun-
try 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
 Library of Congress / 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 Wilson's 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 govern-
ment 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 responsibili-
ties 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
statehouse 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 Democrat-ic 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 them-
selves, "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

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).

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 repu-
tation 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 negro in politics is unalterable and uncompro-
mising. 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.

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

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).

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 govern-
ment 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 re-
sponded 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 inter-
locutor, 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

'The Inquiry'

Wells was at the center of all efforts to realize 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.
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.

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 counterinsurgency Palmer Raids of 1919, and the ensuing Red
Scare that ultimately led to the arrest and deportation of thousands of so-called commu-
nists. All of this would be repeated by Wilson's follower Harry Truman, in the witchhunt
of the late 1940s-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 during 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
an 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