Creature From Jekyll Island by G. Edward

will be recalled from previous chapters that, perhaps more than any other person in America, he had helped maneuver the United States into World War I on the side of a desperate Britain and, by so doing, had also rescued the massive loans to Britain and France made by the Morgan interests. Not only had he been responsible for Wilson's nomination at the Democratic convention, but had become the President's constant companion, his personal adviser, and in many respects his political superior. It was through House that Wilson was made aware of the wishes of the Money Trust, and it was House who guided the President in every aspect of foreign and economic policy. An admiring biographer, Arthur Smith, writing in the year 1918, says that House 'holds a power never wielded before in this country by any man out of office, a power greater than that of any political boss or Cabinet member.'1 A more recent biographer, George Viereck, was not exaggerating when he described House as 'Chief Magistracy of the Republic,' 'Super-ambassador,' 'The pilot who guided the ship.' Continuing, he said:

For six years two rooms were at his disposal in the North Wing of the White House.... In work and play their thoughts were one. House was the double of Wilson. It was House who made the slate for the Cabinet, formulated the first policies of the Administration and practically directed the foreign affairs of the United States. We had, indeed, two Presidents for one!...

1- Arthur Smith, The Real Colonel House (New York: George H. Doran Company, 1918), p. 14.

2. Viereck, p. 4.

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THE CREATURE FROM JEKYLL ISLAND

The Schiffs, the Warburgs, the Kahns, the Rockefellers, the Morgans put their faith in House. When the Federal Reserve legislation at last assumed definite shape, House was the intermediary between the White House and the financiers.

Daily entries in the personal journal of Colonel House reveal the extent to which his office had become the command post for the Jekyll Island team. The following sample notations are typical: December 19, 1912. I Talked with Paul Warburg over the telephone regarding the currency reform. I told of my

Washington trip and what I had done there to get it in working order.

March 24, 1913. I had an engagement with Carter Glass at five.

We drove, in order not to be interrupted.... I spoke to the President about this after dinner and advised that McAdoo and I whip the Glass measure into final shape, which he could endorse and take to Owen [Chairman of the Senate Banking Committee] as his own.

March 27, 1913. Mr. J.P. Morgan, Jr., and Mr. Denny of his firm, came promptly at five. McAdoo came about ten minutes

afterwards. Morgan had a currency plan already formulated and printed. We discussed it at some length. I suggested he have it typewritten [so it would not seem too prearranged]

and sent to us today.

October 19, 1913. I saw Senator Reed of Missouri in the late afternoon and discussed the currency question with him.

October 19,1913. Paul Warburg was my first caller, and he came to discuss the currency measure.... Senator Murray Crane followed Warburg. He has been in touch with Senators

Weeks and Nelson of the Currency Committee.

November 17, 1913. Paul Warburg telephoned about his trip to Washington. He is much disturbed over the currency

situation and requested an interview, along with Jacob Schiff and Cleveland H. Dodge.

January 21, 1914. After dinner we [Wilson and House] went to the President's study as usual and^ began work on the

Federal Reserve Board appointments.

1. Viereck, pp. 4,35,37.

2. Seymour, Vol. I, pp. 161-68.

THE CREATURE SWALLOWS CONGRESS 459

As far as the banking issue was concerned, Colonel House was the President of the United States, and all interested parties knew it.

Wilson made no pretense at knowledge of banking theory. He said:

'The greatest embarrassment of my political career has been that active duties seem to deprive me of time for careful investigation. I