"The extent of Colonel House's influence upon the legislative plans of the Administration [Wilson's] may be gathered from a remarkable document.... In the autumn of 1912, immediately after the presidential election [when Wilson was elected for his first term] there was published a novel, or political romance, entitled Philip Dru: Administrator.

"It was the story of a young West Point graduate ... who was caught by the spirit of revolt against the tyranny of privileged interests. A stupid and reactionary government at Washington provokes armed rebellion, in which Dru joins whole-heartedly and which he ultimately leads to complete success. He himself becomes a dictator and proceeds by ordinance to remake the mechanism of government, to reform the basic laws that determine the relation of the classes, to remodel the defensive forces of the republic, and to bring about an international grouping or league of powers....

"Five years after its publication, an enterprising bookseller, noting the growing influence of House in the Wilson Administration, wrote with regard to the book: 'As time goes on the interest in it becomes more intense, due to the fact that so many of the ideas expressed by Philip Dru: Administrator, have become laws of this Republic, and so many of his ideas have been discussed as becoming laws.... Is Colonel E. M. House of Texas the author?' ...

"Colonel House was, in truth, the author....

"'Philip Dru' ... gives us an insight into the main political and social principles that actuated House in his companionship with President Wilson. Through it runs the note of social democracy reminiscent of Louis Blanc and the revolutionaries of 1848....

"Through the book also runs the idea that in the United States, government is unresponsive to popular desires–a 'negative' government, House calls it....

"The specific measures enacted by Philip Dru as Administrator of the nation, indicated the reforms desired by House.

"The Administrator appointed a 'board composed of economists ... who ... were instructed to work out a tariff law which would contemplate the abolition of the theory of protection as a governmental policy.'

"'The Administrator further directed the tax board to work out a graduated income tax....

"Philip Dru also provided for the 'formulation of a new banking law, affording a flexible currency bottomed largely upon commercial assets.... He also proposed making corporations share with the government and states a certain part of their earnings....

"'Labor is no longer to be classed as an inert commodity to be bought and sold by the law of supply and demand.'

"Dru 'prepared an old age pension law and also a laborer's insurance law....'

"'He had incorporated in the Franchise Law the right of Labor to have one representative upon the boards of corporations and to share a certain percentage of the earnings above the wages, after a reasonable percent upon the capital had been earned. In turn, it was to be obligatory upon them (the laborers) not to strike, but to submit all grievances to arbitration.'"

Need it be pointed out that "Louis Blanc and the revolutionaries of 1848," on whom Colonel House patterned his plan for remaking America, had a scheme for the world virtually identical with that of Karl Marx and Frederick Engles–those socialist revolutionaries who wrote the Communist Manifesto in 1848?


In 1918, Franklin K. Lane, Woodrow Wilson's Secretary of the Interior, in a private letter, wrote, concerning the influence of 'Philip Dru' on President Wilson:

"All that book has said should be, comes about.... The President comes to Philip Dru, in the end."

The end is a socialist dictatorship of the proletariat, identical with that which now exists in the Soviet Union. We have already "come to" a major portion of Colonel House's program for us. The unrealized portions of the program are now promises in the platforms of both our major political parties, they are in the legislative proposals of the Administration in power and of its leaders in Congress; they are the objectives of the Council on Foreign Relations, whose members occupy key posts in Government, from the Presidency downward, and who dominate a vast network of influential, tax-exempt "educational" agencies, whose role is to "educate" the Congress and the people to accept the total socialist program for America.

The Committee for Economic Development (which created the Commission on Money and Credit) is the major propaganda arm of the Council on Foreign Relations, in the important work of socializing the American economy.


Paul G. Hoffman is the father of CED. Hoffman, an influential member of the CFR, was formerly President of Studebaker Corp.; former President of Ford Foundation; Honorary Chairman of the Fund for the Republic; has held many powerful jobs in government since the days of Roosevelt; and is now Director of the Special United Nations Fund for Economic Development–SUNFED–the UN agency which is giving American tax money as economic aid to communist Castro in Cuba. Hoffman, in 1939, conceived the idea of setting up a tax-exempt "economic committee" which would prepare new economic policies for the nation and then prepare the public and Congress to accept them.

Hoffman founded the Committee for Economic Development in 1942. The organization was incorporated in September of that year, with Paul G. Hoffman as Chairman. Major offices in the Committee for Economic Development have always been occupied by members of the Council on Foreign Relations–persons who generally have important positions in many other interlocking organizations, in the foundations, in the big corporations which finance the great interlock, and/or in government.