Woodrow Wilson and Wall Street

Woodrow Wilson was clearly a Wall Street owned politician. Therefore it is not surprising that he promoted, and signed into law, the Federal Reserve Act. It is also not surprising that he vigorously championed America’s entry into World War I. After all, J.P. Morgan made hundreds of millions of dollars selling American weaponry to the Allies and selling European war debt to his clients.

To get a feel a for the political scene prevailing early in the 20th century in the United States, let us take a look at the following passage from a book written by Woodrow Wilson’s eventual Secretary of the Treasury, William McAdoo. On pages 165 and 166 of his book Crowded Years, we read:

“The major contributions to any candidate’s campaign fund are made by men who have axes to grind-and the campaign chest is the grindstone…. The fact is that there is a serious danger of this country becoming a pluto-democracy; that is, a sham republic with the real government in the hands of a small clique of enormously wealthy men, who speak through their money, and whose influence, even today, radiates to every corner of the United States.

Experience has shown that the most practicable method of getting hold of a political party is to furnish it with money in large quantities. This brings the big money-giver or givers into close communion with the party leaders. Contact and influence do the rest.”

We learn of Wall Street’s early influence on Wilson on pages 114 and 115 of America’s Sixty Families by Ferdinand Lundberg where we read the following:

“For nearly twenty years before his nomination Woodrow Wilson had moved in the shadow of Wall Street…. In 1898 Wilson, his salary unsatisfactory, besieged with offers of many university presidencies, threatened to resign. Dodge and McCormick thereupon constituted themselves his financial guardians, and agreed to raise the additional informal stipendium that kept him at Princeton. The contributors to this private fund were Dodge, McCormick, and Moses Taylor Pyne and Percy R Pyne, of the family that founded the National City Bank. In 1902 this same group arranged Wilson’s election as president of the university.”

Further on down the line, Woodrow Wilson became the Governor of New Jersey. On page 105 of The Federal Reserve Bank by H.S. Kenan, we read about how it transpired:

“Woodrow Wilson, President of Princeton University, was the first prominent educator to speak in favor of the Aldrich Plan, a gesture which immediately brought him the Governorship of New Jersey and later the Presidency of the United States. During the panic of 1907, Wilson declared that: ‘all this trouble could be averted if we appointed a committee of six or seven public-spirited men like J.P. Morgan to handle the affairs of our country'”

The Aldrich Plan was the precursor to the Federal Reserve Act, which Wilson signed into law in the year 1913.

Wilson was elected as President of the United States in 1912. On pages 109 and 113 of America’s Sixty Families, Ferdinand Lundberg explains the significance of the election to Wall Street. He writes:

“Wilson’s nomination represented a personal triumph for Cleveland H. Dodge, director of the National City Bank, scion of the Dodge copper and munitions fortune…. The nomination represented no less a triumph for Ryan, Harvey, and J.P. Morgan and Company. Sitting with Dodge as co-directors of the National City Bank at the time were the younger J.P. Morgan, now head of the [Morgan] firm, Jacob Schiff, William Rockerfeller, J. Ogden Armour, and James Stillman. In short, except for George F. Baker, everyone whom the Pujo Committee had termed rulers of the ‘Money Trust’ was in this bank.”

These quotes are cited from pages 447, 448, 454, and 455 of The Creature from Jekyll Island, A Second Look at the Federal Reserve, by G. Edward Griffin.

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