The Invisible Government
by Dan Smoot
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A. William Loos, Executive Director of the Church Peace Union, is a member of the Executive Committee of the FPA-WAC. Mr. Loos attended the CFR meeting with high communist party officials in the Soviet Union in May, 1961.

Henry Siegbert, formerly a partner in the investment banking firm of Adolph Lewisohn & Sons, is a member of the Executive Committee of the FPA-WAC, and also a member of the CFR.

Chapter 4


On June 20, 1961, The San Francisco Examiner published a United Press International news story with a June 19, Washington, D. C. date line, under the headline "J.F.K. Backs Tax Cut Plan."

Here are portions of the article:

"President Kennedy today urged Congress and the people to give a close study to a monetary reform proposal which would empower him to cut income taxes in recession periods.

"He issued the statement after receiving a bulky report from the Commission of [sic] Money and Credit....

"The 27-member commission was set up in 1957 by the Committee for Economic Development (CED). Its three-year study was financed by $1.3 million in grants from the CED and the Ford and Merrill Foundation.

"One of the key recommendations was to give the President limited power to cut the 20 percent tax rate on the first $2000 of personal income, if needed to help the economy....

"The report also recommended extensive changes in the Federal Reserve System, set up in 1913 as the core of the Nation's banking system...."

This San Francisco Examiner article is a classic example of propaganda disguised as straight news reporting.

* * * * *

A story about the President supporting a plan for reducing taxes could not fail to command sympathetic attention. But the truth is that the tax reform proposals of the Commission on Money and Credit would give the President as much power and leeway to raise taxes as to lower them.

In its 282-page report, the Commission made 87 separate proposals. One would permit the President (on his own initiative) to reduce the basic income-tax rate (the one that applies to practically every person who has any income at all) from 20% to 15%. It would also permit the President to raise the basic rate from 20% to 25%.

The idea of giving the President such power is as alien to American political principles as communism itself is. The proposed "machinery" for granting such Presidential power would violate every basic principle of our constitutional system. Under the Commission's proposal, the President would announce that he was going to increase or decrease taxes. If, within sixty days, Congress did not veto the plan, it would become law, effective for six months, at which time it would have to be renewed by the same procedure. That is very similar to the Soviet way. It could not be more foreign to the American way if it had been lifted from the Soviet constitution.

Other proposals in the report of the Commission on Money and Credit, filed on June 18, 1961, after a three-year study:

1. The Federal Reserve Act would be amended to give the President control over the Federal Reserve System—which, as set up in 1913, is supposed to be free of any kind of political control, from the White House or elsewhere.

2. The Commission recommends elimination of the legal requirement that the Federal Reserve System maintain a gold reserve as backing for American currency. A bill was introduced in Congress (May 9, 1961, by U. S. Congressman Abraham Multer, New York Democrat) to implement this Commission recommendation. The bill would take away from American citizens twelve billion dollars in gold which supports their own currency, and enable government to pour this gold out to foreigners, as long as it lasts, leaving Americans with a worthless currency, and at the mercy of foreign governments and bankers (see the Dan Smoot Report, "Gold and Treachery," May 22, 1961).

3. The banking laws of individual states would be ignored or invalidated: banking laws of 33 states prohibit mutual savings banks; the Commission on Money and Credit wants a federal law to permit such banks in all states.

4. The Commission would circumvent, if not eliminate, state laws governing the insurance industry: the Commission proposes a federal law which would permit insurance companies to obtain federal charters and claim federal, rather than state, regulation.

5. The Commission would subject all private pension funds to federal supervision.

6. The Commission would abolish congressional limitations on the size of the national debt—so that the debt could go as high as the President pleased, without any interference from Congress.

7. The Commission recommends that Congress approve all federal public works projects three years in advance, so that the President could order the projects when he felt the economy needed stimulation.

Remembering how President Kennedy and his administrative officials and congressional leaders used political extortion and promises of bribes with public money to force the House of Representatives, in January, 1961, to pack the House Rules Committee, imagine how the President could whip Congress, and the whole nation, into line if the President had just some of the additional, unconstitutional power which the Commission on Money and Credit wants him to have.

* * * * *

The objective of the Commission on Money and Credit (to finish the conversion of America into a total socialist state, under the dictatorship of whatever "proletarian" happens to be enthroned in the White House) can be seen, between the lines, in the Commission's remarks about the "formidable problem" of unemployment.

The Commission wants unemployment to drop to the point where the number of jobless workers will equal the number of vacant jobs! And the clear implication is that the federal government must adopt whatever policies necessary to create this condition.

Such a condition can exist only in a slave system—like the socialist system of communist China where, for example, all "farmers" (men, women, and children) enjoy full employment; under the whips of overseers, on the collective farms of communism.

The Commission on Money and Credit was created on November 21, 1957, by the Committee for Economic Development (CED). In the 1957 Annual Report of the CED, Mr. Donald K. David, CED Chairman, gave the history of the Commission on Money and Credit. Mr. David said:

"CED began nine years ago [1948] to call attention to the need for a comprehensive reassessment of our entire system of money and credit.

"When the last such survey of the economic scene was made by the Aldrich Commission in 1911, we had no central banking system, no guaranteed deposits or guaranteed mortgages. There were no personal or corporate income taxes; no group insurance plans, pension funds, or Social Security system....

"Although CED had envisaged a commission created by government, the inability of government to obtain the consensus required for launching the study became as apparent as the need for avoiding further delay. So, after receiving encouragement from other research institutions, leaders in Congress, the Administration, and from various leaders in private life, CED's Trustees decided to sponsor the effort, assisted by a grant from The Ford Foundation...."

Here is the membership of the CED's Commission on Money and Credit:

Frazar B. Wilde, Chairman (President of Connecticut General Life Insurance Company)

Hans Christian Sonne, Vice-Chairman (New York; official in numerous foundations and related organizations, such as Twentieth Century Fund; American-Scandanavian Foundation; National Planning Association; and so on)

Adolf A. Berle, Jr. (New York; Berle has been in and out of important posts in government for many years; he is an anti-communist socialist; he resigned from the Commission on Money and Credit to accept his present job handling Latin American affairs in the State Department)

James B. Black (Chairman of the Board of Pacific Gas and Electric Company)

Marriner S. Eccles (Chairman of the Board of the First Security Corporation; formerly Assistant to the Secretary of the Treasury under Roosevelt; Governor of Federal Reserve Board; and official in numerous international banking organizations, such as the Export-Import Bank)

Lamar Fleming, Jr. (Chairman of the Board of Anderson, Clayton & Co., Houston, Texas)

Henry H. Fowler (Washington, D.C.; resigned from the Commission on February 3 to accept appointment from Kennedy as Under Secretary of the Treasury)

Gaylord A. Freeman, Jr. (President of the First National Bank, Chicago)

Philip M. Klutznick (Park Forest, Ill., resigned from the Commission on February 8, to accept appointment from President Kennedy as United States Representative to the United Nations Economic and Social Council)

Fred Lazarus, Jr. (Chairman of the Board of Federated Department Stores, Inc.)

Isador Lubin (Professor of Public Affairs at Rutgers University)

J. Irwin Miller (Chairman of the Board of Cummins Engine Company)

Robert R. Nathan (Washington, D.C.; has been in and out of many important government jobs since the first Roosevelt Administration)

Emil Rieve (President emeritus of the Textile Workers Union—AFL-CIO)

David Rockefeller (President of Chase Manhattan Bank)

Stanley H. Ruttenberg (Research Director for AFL-CIO)

Charles Sawyer (Cincinnati lawyer, prominent in Democratic Party politics in Ohio)

Earl B. Schwulst (President of the Bowery Savings Bank in New York)

Charles B. Shuman (President of the American Farm Bureau Federation)

Jesse W. Tapp (Chairman of the Board, Bank of America)

John Cameron Thomson (former Chairman of the Board of Northwest Bancorporation, Minneapolis)

Willard L. Thorp (Director of the Merrill Center for Economics at Amherst College)

Theodore O. Yntema (Vice President in Charge of Finance, Ford Motor Company)

William F. Schnitzler (Secretary-Treasurer of AFL-CIO; resigned from the Commission in 1960)

Joseph M., Dodge (Chairman of the Board of Detroit Bank and Trust Co.; resigned from the Commission in 1960)

Beardsley Ruml (well-known and influential new deal economist who held numerous posts with foundations and related organizations; is sometimes called the father of the federal withholding tax law, enacted during World War II; Dr. Ruml died before the Commission on Money and Credit completed its report)

Fred T. Greene (President of the Home Loan Bank of Indianapolis; died before the Commission completed its report)

The director of research for the Commission Was Dr. Bertrand Fox, professor at the Harvard Graduate School of Business Administration. His assistant was Dr. Eli Shapiro, Professor of Finance at the Massachusetts Institute of Technology.

Of the 27 persons who served as members of the Commission on Money and Credit, 13 (Wilde, Sonne, Berle, Fleming, Fowler, Lubin, Nathan, Rockefeller, Tapp, Thorp, Yntema, Dodge, Ruml) were members of the Council on Foreign Relations.

In other words, the Commission on Money and Credit was just another tax-exempt propaganda agency of America's invisible government, the Council on Foreign Relations.

* * * * *

The above discussion of the Commission on Money and Credit, together with the roster of membership, was first published in The Dan Smoot Report dated July 3, 1961.

On September 22, 1961, Mr. Charles B. Shuman, President of the American Farm Bureau Federation, wrote me a letter, saying:

"I was a member of the Commission on Money and Credit but you will notice that I filed very strong objections to several of the recommendations which you brought to the attention of your readers. I do not agree with the Commission recommendations to authorize the President of the United States to vary the rate of income tax. Neither do I agree that the gold reserve requirement should be abandoned. I agree with several of your criticisms of the Report but I cannot agree that 'the objective of the Commission on Money and Credit (to finish the conversion of America into a total socialist state, under the dictatorship of whatever proletarian happens to be enthroned in the White House) can be seen, between the lines, in the Commission's remarks about the formidable problem of unemployment.'

"At its worst, it was a compromise of the divergent viewpoint of the conservative and liberal members of the Commission."

I will not argue with Mr. Shuman, an honest and honorable man, about the objective of the Commission; but I will reassert the obvious: recommendations of the Commission on Money and Credit, if fully implemented, would finish the conversion of America into a total socialist state.

* * * * *

As pointed out before, the various agencies which interlock with the Council on Foreign Relations do not have formal affiliation with the Council, or generally, with each other; but their effective togetherness is revealed by their unanimity of purpose: They are all working toward the ultimate objective of creating a one-world socialist system and making America a part of it.

This ambitious scheme was first conceived and put into operation, during the administrations of Woodrow Wilson, by Colonel Edward M. House, and by the powerful international bankers whom House influenced.

House founded the Council on Foreign Relations for the purpose of creating (and conditioning the American people to accept) what House called a "positive" foreign policy for America—a policy which would entwine the affairs of America with those of other nations until this nation would be sucked into a world-government arrangement.

Colonel House knew, however, that America could not become a province in a one-world socialist system unless America's economy was first socialized. Consequently, House laid the groundwork for "positive" domestic policies of government too—policies which could gradually place government in control of the nation's economy until, before the public realized what was happening, we would already have a socialist dictatorship.

The following passages are from pages 152-157 of The Intimate Papers of Colonel House:

"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.

* * * * *

Here are the Council on Foreign Relations members who joined Paul Hoffman in setting up the CED in 1942:

William Benton (former U.S. Senator, now Chairman of the Board of Encyclopaedia Britannica; former Assistant Secretary of State; Trustee and former Vice President, University of Chicago)

Will L. Clayton (founder of Anderson, Clayton & Co., Houston; former Assistant Secretary of Commerce and Under Secretary of State under Roosevelt and Truman; Eisenhower's National Security Training Commissioner)

Ralph E. Flanders (former United States Senator)

Marion B. Folsom (Eisenhower's Secretary of the Department of Health, Education, and Welfare; many other positions in the Roosevelt and Truman Administrations; Board of Overseers, Harvard)

Eric A. Johnston (former Director, Economic Stabilization Agency; many other positions in the Roosevelt-Truman-Eisenhower Administrations; former Director and President of U.S. Chamber of Commerce; now President of the Motion Picture Association of America)

Thomas B. McCabe (former Lend-Lease Administrator; former Chairman of the Board of Governors, Federal Reserve System; President of Scott Paper Company since 1927)

Harry Scherman (founder and Chairman of the Board, Book of the Month Club, Inc.)

* * * * *

Here are Council on Foreign Relations members who were Chairmen of the Committee for Economic Development from 1942 through 1959:

Paul G. Hoffman, 1942-48

Marion B. Folsom, 1950-53

Meyer Kestnbaum, 1953-55 (President, Hart Schaffner & Marx; Director, Fund for the Republic; Director, Chicago and Northwestern Railroad)

J. D. Zellerbach, 1955-57 (Eisenhower's Ambassador to Italy; President and Director of Crown-Zellerbach Corp.; Chairman of the Board and Director, Fibreboard Products, Inc.; Director, Wells Fargo Bank & Union Trust Co.)

Donald K. David, 1957-59 (Dean, Harvard University; Trustee of the Ford Foundation, Carnegie Institute, Merrill Foundation; Board of Directors, R. H. Macy & Co., General Electric Corp., First National City Bank of New York, Aluminum, Ltd., Ford Motor Co.)

Of the CED Board of Trustees listed in the CED's 1957 Annual Report, 47 were members of the Council on Foreign Relations.

* * * * *

The Research and Policy Committee of the Committee for Economic Development is the select inner-group which actually runs the CED. In 1957, the following members of the Research and Policy Committee were also members of the Council on Foreign Relations:

Frazar B. Wilde, Chairman

Frank Altschul (Chairman of the Board, General American Investors Corp.; Vice Chairman, National Planning Association; Vice President, Woodrow Wilson Foundation)

Elliott V. Bell (former economic adviser to Thomas E. Dewey; former research consultant to Wendell Willkie; now Chairman of the Executive Committee, McGraw-Hill Publishing Co., Inc.; Publisher and Editor of Business Week; Director of Bank of Manhattan Co., New York Life Insurance Co., Carrier Corp., Trustee of the John S. Guggenheim Memorial Foundation)

William Benton

Thomas D. Cabot (former Director of Office of International Security Affairs, State Department; now President of Godfrey L. Cabot, Inc.; Director of John Hancock Mutual Life Insurance Co., American Mutual Liability Insurance Co.; Trustee, Hampton Institute, Radcliff College; member of the Corporation of Massachusetts Institute of Technology)

Walker L. Cisler (former member of the Atomic Energy Commission, Economic Cooperation Administration, Military Government of Germany; now President of Detroit-Edison Co., Trustee, Cornell University)

Emilio G. Collado (former State Department career official; now Treasurer, Standard Oil Company of New Jersey)

Gardner Cowles (former Domestic Director, Office of War Information; now President, Des Moines Register & Tribune, Cowles Magazines, Inc.—Look, etc.—)

Donald K. David

William C. Foster (former Under Secretary of Commerce, Deputy Secretary of Defense; now Executive Vice President, Olin Mathieson Chemical Corp.)

Philip L. Graham (former law secretary to Supreme Court Justices Stanley Reed and Felix Frankfurter; now President and Publisher of The Washington Post and Times Herald)

Meyer Kestnbaum

Thomas B. McCabe

Don G. Mitchell (Chairman of the Board, Sylvania Electric Products, Inc.)

Alfred C. Neal (former official, Office of Price Administration; now member of the Board of Governors, Federal Reserve Bank of Boston; President of CED)

Howard C. Petersen (former council to Committee to Draft Selective Service Regulations; Assistant Secretary of War; now President, Philadelphia Trust Company; Trustee, Temple University)

Philip D. Reed (many positions in the Roosevelt and Truman Administrations; member, U. S. Delegation to UN Conference at San Francisco, 1945; now Chairman, Finance Committee, General Electric Co.; Director of Canadian General Electric Co., Bankers Trust Co., Metropolitan Life Insurance Co.)

Beardsley Ruml

Harry Scherman

Wayne Chatfield Taylor (many government positions including Assistant Secretary of Treasury, Under Secretary of Commerce; presently an economic adviser)

Theodore O. Yntema

* * * * *

In its annual report for 1957, the Committee for Economic Development boasted of some of its past accomplishments and its future plans.

Mr. Howard C. Petersen, Chairman of the CED's Subcommittee on Economic Development Assistance (and a member of the Council on Foreign Relations) said that his committee originated the idea of creating the Development Loan Fund, which was authorized by Congress in Section 6 of the Foreign Aid Bill of 1957, which Eisenhower established by Executive Order on December 13, 1957, and which may be the most sinister step ever taken by the internationalist foreign-aid lobby.

In 1956, when President Eisenhower requested an appropriation of $4,860,000,000 for foreign aid, he asked Congress to authorize foreign aid commitments for the next ten years. Congress refused the ten-year plan. In 1957, the internationalists' ideal of a permanent authorization for foreign aid was wrapped up in the Development Loan Fund scheme.

Only a few Congressmen raised any question about it. Below are passages taken from the Congressional Record of July 15, 1957, the day the Development Loan Fund was discussed in the House.

Congressman A. S. J. Carnahan (Democrat, Missouri) floor manager for the Foreign Aid Bill, rose to explain Section 6, which established the Development Loan Fund, saying:

"The United States, in order to provide effective assistance [to all underdeveloped countries of the world] ... must have available a substantial fund upon which it can draw. The fund must be large enough so that all of the underdeveloped nations of the free world will feel that they will have an opportunity to participate in it.

"We cannot wisely say that we should make a small amount available the first year and see how things work out. If we are able to offer assistance only to the select few, we will inevitably antagonize many other countries whose future friendship and cooperation will be important to us ... in addition to an initial authorization of an appropriation of $500 million, the bill includes authorization for borrowing from the Treasury $500 million beginning in fiscal 1959, and an additional $500 million beginning in fiscal 1960."

Thus, Congressman Carnahan, arguing for foreign aid, outlined some of the absurd fallacies of foreign aid: namely, if we give foreign aid at all, we must provide enough so that every foreign government in the world will always be able to get all it wants. We can exercise no choice in whom we give or lend our money to. If we give only "to the select few" we offend all others.

Congressman H. R. Gross (Republican, Iowa) asked a question:

"What interest rate will be charged upon the loans that are to be made?"

Congressman Carnahan:

"The legislation does not designate the interest rate."

Mr. Gross:

"What will be the length of the loan to be made?"

Mr. Carnahan:

"The legislation does not designate the length of the loans. The rules for the loans, which will determine the interest rates, the length of time the loans will run, the size of the installment repayments, and other administrative details, will be taken care of by the Executive Department."

Congressman John L. Pilcher (Democrat, Georgia) made the point that the manager of the Development Loan Fund, appointed by the President, could lend money to:

"any foreign government or foreign government agency, to any corporation, any individual or any group of persons."

Congressman Carnahan:

"That is correct."

Congressman Pilcher:

"In other words, it would be possible for an individual to borrow $1 million or $5 million to set up some business in some foreign country, if the manager so agreed; is that correct?"

Congressman Carnahan:

"If they met the criteria set up for loans."

Congressman Pilcher:

"The manager ... has the authority to collect or compromise any obligation in this fund. In other words, he can make a loan this month and if he so desires he can turn around and compromise it or cancel it next month which is a straight out grant in the disguise of a soft-loan program."

Congressman Porter Hardy, Jr. (Democrat, Virginia) said:

"The manager of the Fund has almost unlimited authority to do anything he pleases."

Congressman Barratt O'Hara (Democrat, Illinois), trying to quiet fears that this bill was granting unlimited, uncontrollable power to some appointed manager, said that the blank-check grant of authority was not really being made to the fund manager at all. The power was being given to the President of the United States, and the manager would merely "perform such functions with respect to this title as the President may direct."

Congressman Gross said:

"That is more power than any President should ask for or want the responsibility for."

Congressman Leon H. Gavin (Republican, Pennsylvania) pointed out that we already have 5 or 6 lending agencies in this field: The International Co-operation Administration; the Export-Import Bank; the International Bank; the International Monetary Fund; the International Development Corporation; and the World Bank. Why, then, do we need this new one, the Development Loan Fund?

Congressman Walter H. Judd (Republican, Minnesota) had already answered that question, explaining that Development Loan Fund money would go to foreigners who could not qualify for loans from other agencies.

Congressman Gross said that all foreign nations which will borrow from this Fund could get all the American private capital they need if they had political systems which made lending to them sensible or feasible.

In short, the Development Loan Fund (which the Committee for Economic Development boasts paternity of) is a scheme for giving American tax money to foreigners who have proven themselves such poor credit risks that they cannot obtain loans even from other governmental and UN agencies—and who will use the money to line their own pockets and to build socialistic enterprises which will eliminate possibilities of freedom in their own land, and will compete in world markets with American enterprise.

* * * * *

In its 1957 annual report, the CED also boasted about the work of its Area Development Committee. At that time, the two leading members of this particular committee of the CED (who were also members of the Council on Foreign Relations) were Mr. Stanley Marcus, President of Neiman-Marcus Co., in Dallas; and the late Dr. Beardsley Ruml, widely known New Deal socialist "economist." Mr. Jervis J. Babb, Chairman of the CED's Area Development Committee (President of Lever Brothers Company) said:

"The new area development program, approved by the Trustees [of CED] at their May [1957] meeting in Chicago is underway.... Already, close relationships have been established with organizations, both public and private, that are conducting research and administering programs relating to area development....

"Five of CED's College-Community Research Centers ... have been selected as a starting point of CED's area development pilot projects. The five centers are: Boston, Utica, Alabama, Arkansas, and Oklahoma."

The CED's Area Development work has brought CED personnel into close cooperation with the collection of tax-exempt "municipal planning" organizations housed in a Rockefeller-financed center at 1313 East 60th Street, Chicago, which has become national headquarters for the production and placement of experts—who fabricate "progressive" legislation for government at all levels; who rewrite our "archaic" state constitutions; and who take over as city managers, or county managers, or metropolitan managers, or regional managers whenever people in any locality have progressed to the point of accepting government by imported experts as a substitute for government by elected local citizens.

In other words, through the Area Development activities of the Committee for Economic Development, the invisible government of America—the Council on Foreign Relations—has a hand in the powerful drive for Metropolitan Government. Metropolitan Government, as conceived by socialist planners, would destroy the whole fabric of government and social organization in the United States.

* * * * *

Metropolitan Government would eliminate the individual states as meaningful political entities, would divide the nation into metropolitan regions sprawling across state lines, and would place the management of these regional governments in the hands of appointed experts answerable not to local citizens but to the supreme political power in Washington. (For detailed discussion, see The Dan Smoot Report, April 13 and 20, 1959, "Metropolitan Government—Part One," and "Metropolitan Government—Part Two.")

Through the Area Development activities of the Committee for Economic Development, the Council on Foreign Relations has supported the Urban Renewal program.

Urban Renewal with federal tax money was authorized in the National Housing Act of 1949, and enlarged in scope by amendments to the Housing Acts of 1954, 1956, and 1957; but it did not become a vigorously promoted nationwide program until late 1957, after the Council on Foreign Relations (through the CED) started pushing it.

* * * * *

Urban Renewal is a federally financed program of city planning which requires city governments to seize homes and other private property from some citizens and re-sell them, at below cost, to real estate promoters and other private citizens for developments that the city planners consider desirable.

Under the ancient, but awesome, right of eminent domain, city governments do not have the power to take private real estate from one citizen for the profit of another citizen. But in November, 1954, the Supreme Court in an urban renewal case, said that Congress and state legislature can do anything they like to the private property of private citizens as long as they claim they are doing it for public good.

Federal urban renewal has opened rich veins of public money for graft, corruption, and political vote buying; and it is destroying private property rights under the pretext that clearing slums will eliminate the causes of crime. Moreover, urban renewal authorizes the seizure not just of slum property, but of all private property in a whole section of a city, for resale to private interests which promise to build something that governmental planners will like.

Federal urban renewal—since the Council on Foreign Relation's CED started supporting it—has become a national movement with frightful implications and dangers. (For detailed discussion of urban renewal, see The Dan Smoot Report, September 29, 1958, and October 6, 1958.)

* * * * *

In its 1957 Annual Report, the Committee for Economic Development gave details on its educational work in public schools and colleges. This work was, at that time, carried on primarily by the CED's Business-Education Committee, and by two subsidiary operations which that Committee created: the College-Community Research Centers and the Joint Council on Economic Education. From the 1957 Annual Report of the Committee for Economic Development:

"CED's efforts to promote and improve economic education in the schools are of special appeal to those who are concerned ... both with education and the progress of the free enterprise system. The Business-Education program and the numerous College-Community Research Centers it has sponsored, together with the use of CED publications as teaching materials, represent an important contribution to economic education on the college level.

"In the primary and secondary schools, the introduction of economics into teaching programs is moving forward steadily, thanks largely to the Joint Council on Economic Education which CED helped to establish and continues to support....

"The Business-Education Committee continued in 1957 its work with the College-Community Research Centers and with the Joint Council on Economic Education.

"The Joint Council's program to improve the teaching of economics in the public schools is now operating in 39 states, and the 25 college-community research centers active last year brought to more than 3000 the number of business and academic men who have worked together on economic research projects of local and regional importance....

"In its work, the committee [Business-Education Committee] is finding especially valuable the experience gained through the operation of the College-Community Research Centers. These centers are financed partly by CED, partly by the Fund for Adult Education [a Ford Foundation operation] and partly by locally-raised funds....

"The Joint Council [on Economic Education] is making excellent progress in training teachers and incorporating economics education in all grade levels of public school systems. In addition to its national service programs, the Council has developed strong local or state councils which not only help guide its work but last year raised more than $500,000 to finance local projects.

"CED helped to establish and works closely with this independent organization [Joint Council on Economic Education] which is now conducting four major types of activities.

"1. Summer Workshops for Teachers. These working sessions, sponsored by colleges and universities, provide three weeks training in economics and develop ways to incorporate economics into the school curriculum. Over 19,000 persons have participated since the program began.

"2. Cooperating School Program. Twenty school systems are working with the Joint Council [on Economic Education] to demonstrate how economics can be incorporated into the present curriculum....

"3. College Program. Few students majoring in education now take economics courses; therefore, 20 leading institutions are working with the Joint Council [on Economic Education] to develop better training in economics for prospective teachers....

"4. High School-Community Projects. The Joint Council [on Economic Education] is helping to conduct demonstration programs which show how students can use community resources to improve their economics education. For example, the Whittier, California school system conducted a six-week program to help high school seniors understand the kind of economy in which they would live and work. They joined in research studies on regional economic problems being carried on by the Southern California College-Community research center...."

The Committee for Economic Development claims that its educational work in economics is dedicated to progress of free enterprise; and many of its programs in schools and colleges are educational; but its subtle and relentless emphasis is on the governmental interventionism that is the essence of New-Dealism, Fair-Dealism, Modern-Republicanism, and New-Frontierism—the governmental interventionism prescribed long ago as the way to socialize the economy of America in preparation for integrating this nation into a worldwide socialist system.

* * * * *

Paul Hoffman's CED has come a long way since 1942. In 1957, the CED's College-Community Research Centers had "Projects in Progress" in 33 institutions of higher learning:

Bates College, Boston College, Boston University, Bowdoin College, Brown University, Colby College, Dartmouth College, Emory University, Harvard Graduate School of Business Administration, Iowa State College, Lewis & Clark College, McGill University, Northeastern University, Northwestern University, Occidental College, Pomona College, Reed College, Rutgers University, Southern Methodist University, Tulane University, University of Alabama, University of Arkansas, University of Iowa, University of Maine, University of Michigan, University of Minnesota, University of North Carolina, University of Oklahoma, University of Pennsylvania, University of Washington, University of Wisconsin, Utica College of Syracuse University, and Washington University.

* * * * *

In 1957, the following institutions of higher learning were participating in the CED's Joint Council on Economic Education "College Program" to develop training in economics for prospective teachers:

Brigham Young University, George Peabody College for Teachers, Indiana University, Montclair State Teachers College, New York University, Ohio State University, Oklahoma A & M College, Pennsylvania State University, Purdue University, Syracuse University, Teachers College of Columbia University, University of Colorado, University of Connecticut, University of Illinois, University of Iowa, University of Minnesota, University of Southern California, University of Tennessee, University of Texas, University of Washington.

* * * * *

In 1957, the following 20 school systems were working in the CED's Joint Council on Economic Education "Cooperating School Program," to demonstrate how economics can be incorporated in the school curriculum, beginning in the first grade:

Akron, Ohio; Albion, Illinois; Chattanooga, Tennessee; Colton, California; Dayton, Ohio; Fort Dodge, Iowa; Hartford, Connecticut; Kalamazoo, Michigan; Lexington, Alabama; Minneapolis, Minnesota; New York City, New York; Portland, Oregon; Providence, Rhode Island; Ridgewood, New Jersey; Seattle, Washington; Syracuse, New York; University City, Missouri; Webster Groves, Missouri; West Hartford, Connecticut; Whittier, California.

As indicated, the Business-Education Committee of the CED is the select group which supervises this vast "educational" effort reaching into public schools, colleges, and communities throughout the nation:

James L. Allen, Senior Partner of Booz, Allen & Hamilton; Jervis J. Babb, Chairman of the Board of Lever Brothers, Company; Sarah G. Blanding, President of Vassar College; W. Harold Brenton, President of Brenton Brothers, Inc.; James F. Brownlee, former government official who is Chairman of the Board of the Minute Maid Corporation, and a director of many other large corporations, such as American Sugar Refining Co., Bank of Manhattan, Gillette Safety Razor, R. H. Macy Co., Pillsbury Mills, American Express; Everett Needham Case, President of Colgate University; James B. Conant, former President of Harvard and Ambassador to Germany; John T. Connor, President of Merck & Co.; John S. Dickey, President of Dartmouth College; John M. Fox, President of Minute Maid Corporation; Paul S. Gerot, President of Pillsbury Mills; Stanley Marcus, President of Neiman-Marcus; W. A. Patterson, President of United Air Lines; Morris B. Pendleton, President of Pendleton Tool Industries; Walter Rothschild, Chairman of the Board of Abraham & Straus; Thomas J. Watson, Jr., President of International Business Machines Corporation; J. Cameron Thomson, Chairman of the Board of Northwest Bancorporation.

Note that three of these CED Business-Education Committee members—Conant, Dickey, and Marcus—are influential members of the Council on Foreign Relations and have many connections with the big foundations financing the great CFR interlock.

* * * * *

In addition to the educational work which it discusses in its 1957 Annual Report, the Committee for Economic Development utilizes many other means to inject its (and the CFR's) economic philosophies into community thought-streams throughout the nation.

Here, for example, are passages from a news story in The Dallas Morning News, June 30, 1953:

"Dallas businessmen and Southern Methodist University officials Monday [June 29] launched a $25,000 business research project financed through agencies of the Ford Foundation.

"Stanley Marcus of Dallas, a national trustee of Ford Foundation's Committee for Economic Development, said the project would go on two or three years under foundation funds. After that ... the City might foot the bill....

"The SMU project—along with several others like it throughout the nation—is designed to foster study in regional and local business problems, Marcus commented.

"Here's how the Dallas project will work:

"A business executive committee, composed of some of Dallas' top businessmen, will be selected. These men then will select a group of younger executives for a business executive research committee. This will be the working group, Marcus explained....

"At SMU, several of the schools' chief officials will act as a senior faculty committee.... Acting as co-ordinator for the project will be Warren A. Law ... who soon will get his doctorate in economics from Harvard University."

The "experimental" stage of this Business Executives Research Committee lasted five years in Dallas. During that time, the researchers filed two major reports: an innocuous one in 1955 concerning traffic and transit problems in Dallas; and a most significant one in 1956, strongly urging metropolitan government for Dallas County, patterned after the metro system in Toronto, Canada.

* * * * *

In October, 1958, Dr. Donald K. David, then Chairman of the Committee for Economic Development and Vice Chairman of the Ford Foundation (and also a member of the Council on Foreign Relations) went to Dallas to speak to the Citizens Council, an organization composed of leading Dallas business executives, whose president that year was Stanley Marcus.

Dr. David told the business men that they should give greater support and leadership to the government's foreign aid program; and, of course, he urged vast expansion of foreign aid, particularly to "underdeveloped nations."

That was the signal and the build-up. The next month—November, 1958—the experimental Business Executives Research Committee, which the CED had formed in 1953 and which had already completed its mission with its report and recommendation on metropolitan government for Dallas, was converted into "The Dallas CED Associates."

Here is a news story about that event, taken from the November 11, 1958, Dallas Morning News:

"A Dallas Committee for Economic Development—the first of its kind in the nation—has been founded at Southern Methodist University. It will give voice to Southwestern opinions—and knowledge—on economic, matters or international importance. Keystone will be an economic research center to be established soon at SMU.

"A steering group composed of Dallas and Southwestern business, industrial and educational leaders laid the groundwork for both committee and center in a weekend meeting at SMU."

The "steering group" included George McGhee and Neil Mallon.

Mr. McGhee (presently Assistant Secretary of State for Policy Planning) is, and has been for many years, a member of the Council on Foreign Relations.

Neil Mallon, then Chairman of the Board of Dresser Industries and a former official of the Foreign Policy Association, founded the Dallas Council on World Affairs in 1951. Dresser Industries is one of the big corporations which contribute money to the Council on Foreign Relations.

In the group with Mr. McGhee and Mr. Mallon were five SMU officials, a Dallas banker, a real estate man, and Stanley Marcus, the head man in the "steering group" which set up the Dallas Associates of the Committee for Economic Development.

The first literary product of the Dallas Associates of the CED—at least, the first to come to my attention—is a most expensive-looking 14-page printed booklet entitled "The Role of Private Enterprise in the Economic Development of Underdeveloped Nations." The title page reveals that this pamphlet is a policy statement of The Dallas Associates of CED. It is little more than a rewrite of the speech which Dr. Donald K. David had made to the Dallas Citizens Council in November, 1958, urging business to give support and leadership to the government's foreign aid programs.

Chapter 5


Whereas the Foreign Policy Association-World Affairs Center is primarily interested in fostering the foreign policy desired by the CFR, and the Committee for Economic Development is primarily interested in formulating economic and other policies which, through governmental controls, will lead us into total socialism—another, smaller (but, in some ways, more powerful) organization has (or, until mid-1961, had) the primary responsibility of infiltrating government: of selecting men whom the CFR wants in particular jobs, and of formulating, inside the agencies of government, policies which the CFR wants. This small but mighty organization was the Business Advisory Council.

Daniel C. Roper, F. D. Roosevelt's Secretary of Commerce, formed the Business Advisory Council on June 26, 1933. Roper set it up as a panel of big businessmen to act as unofficial advisers to President Roosevelt. He was disappointed in it, however. The biggest businessmen in America did, indeed, join; but they did not support the total New Deal as Roper had expected they would when he made them "advisers."

Roper, however, was a figurehead. The brains behind the formation of the Business Advisory Council were in the head of Sidney J. Weinberg, Senior Partner of the New York investment house of Goldman, Sachs & Co.—and also on the boards of directors of about thirty of the biggest corporations in America. Weinberg helped organize the BAC. He recruited most of its key members. He was content to let America's big businessmen ripen for a while in the sunshine of the New Deal's "new" philosophy of government, before expecting them to give that philosophy full support.

Secretary of Commerce Daniel C. Roper pouted and ignored the Business Advisory Council when he discovered that the big businessmen, enrolled as governmental "advisors," tried to advise things that governmental leaders did not like. But Sidney Weinberg was shrewd, and had a definite, long-range plan for the Business Advisory Council. He held the BAC together as a kind of social club, keeping the big business men under constant exposure to the "new" economic philosophies of the New Deal, waiting for the propitious moment to enlist America's leading capitalists on the side of the socialist revolutionaries, determined to destroy capitalism and create a one-world socialist society.

* * * * *

The right time came in 1939, when World War II started in Europe and Roosevelt developed his incurable ambition to get in that war and become President of the World. Plans for America's frenzied spending on national defense began in 1939. With mammoth government contracts in the offing, Weinberg had no trouble converting the Business Advisory Council of leading businessmen into an agency for helping governmental leaders plan the policies for war and for the post-war period.

* * * * *

In September, 1960, Harper's Magazine published an article by Hobart Rowen, entitled "America's Most Powerful Private Club," with a sub-title, "How a semi-social organization of the very biggest businessmen—discreetly shielded from public scrutiny—is 'advising' the government on its top policy decisions." Here are passages from the article:

"The Business Advisory Council meets regularly with government officials six times a year.... On two of these six occasions ... the BAC convenes its sessions at plush resorts, and with a half-dozen or more important Washington officials and their wives as its guests, it indulges in a three-day 'work and play' meeting....

"The guest list is always impressive: on occasion, there have been more Cabinet officers at a ... BAC meeting than were left in the Capital....

"These meetings cost the BAC anywhere from $6,000 to $12,000 or more, paid out of the dues of members ... which have been judged tax-deductible by the Internal Revenue Service....

"After the 1952 election, the BAC was having its fall 'work and play' meeting at the Cloister, just off the Georgia coast and a short distance from Augusta, where Ike was alternating golf with planning his first-term Cabinet. [Sidney] Weinberg and [General Lucius D.] Clay [members of the BAC executive committee] ... hustled ... to Augusta, conferred with Ike [a 'close, intimate, personal friend' of both men]....

"The result was historic: Ike tapped three of the BAC leaders ... for his Cabinet. They were Charles E. Wilson of General Motors as Defense Secretary; [George M.] Humphrey, then boss of the M. A. Hanna Co., as Treasury Secretary; and Robert T. Stevens of the J. P. Stevens & Co., as Army Secretary....

"Afterwards, [Secretary] Humphrey himself dipped into the BAC pool for Marion Folsom of Eastman Kodak as Under Secretary of the Treasury [later Secretary of Health, Education, and Welfare]....

"Membership in the Council gives a select few the chance to bring their views to bear on key government people, in a most pleasant, convivial, and private atmosphere....

"The BAC, powerful in its composition and with an inside track, is thus a special force. An intimation of its influence can be gleaned from its role in the McCarthy case.... BAC helped push Senator Joe McCarthy over the brink in 1954, by supplying a bit of backbone to the Eisenhower Administration at the right time. McCarthy's chief target in the Army-McCarthy hearings was the aforementioned Robert T. Stevens—a big wheel in the BAC who had become Secretary of the Army. The BAC didn't pay much—if any—attention to Joe McCarthy as a social menace until he started to pick on Bob Stevens. Then, they burned up.

"During the May 1954 meeting at the Homestead [expensive resort hotel in Hot Springs, Virginia, where the BAC often holds its 'work and play' sessions with high government officials and their wives], Stevens flew down from Washington for a weekend reprieve from his televised torture. A special delegation of BAC officials made it a point to journey from the hotel to the mountaintop airport to greet Stevens. He was escorted into the lobby like a conquering hero. Then, publicly, one member of the BAC after another roasted the Eisenhower Administration for its McCarthy-appeasement policy. The BAC's attitude gave the Administration some courage, and shortly thereafter former Senator Ralph Flanders (a Republican and BAC member) introduced a Senate resolution calling for censure."

* * * * *

Active membership in the Business Advisory Council is limited to about 70. After a few years as an "active," a member can become a "graduate," still retaining his full voting and membership privileges.

I have obtained the names of 120 "active" and "graduate" members of the BAC, listed below. Those who are members of the Council on Foreign Relations are identified by "CFR" after their names.

Winthrop W. Aldrich (CFR)

William M. Allen (President of Boeing Airplane Company; member Board of Directors of Pacific National Bank of Seattle)

S. C. Allyn (CFR)

Robert B. Anderson

Clarence Avildsen (Chairman, Avildsen Tools & Machines, Inc.)

William M. Batten (President, J. C. Penney Company)

S. D. Bechtel (CFR)

S. Clark Beise (President, Bank of America; member Board of Directors, National Trust and Savings Association, San Francisco)

Roger M. Blough (CFR)

Harold Boeschenstein (President, Owens-Corning Fiberglas Corporation; Chairman of the Board, Fiberglas Canada, Ltd.; member of the Board of Directors of National Distillers Products Corporation, International Paper Company, Toledo Trust Company, Dow, Jones & Co.)

Fred Bohen (President of Meredith Publishing Company—Better Homes and Gardens, Better Farming; member of Board of Directors of Meredith Radio & Television Stations, Iowa, Northwest Bancorporation, Central Life Assurance Society, Allis-Chalmers Manufacturing Co., Northwestern Bell Telephone Co., Iowa-Des Moines National Bank)

Ernest R. Breech (Executive Vice President, Ford Motor, Company; member of Board of Directors of Transcontinental & Western Air, Inc., Pan-American Airways; President of Western Air Express)

George R. Brown (Chairman of the Board, Texas Eastern Transmission Corp.; Executive Vice President, Brown & Root, Inc. of Houston; President of Board of Trustees, Rice University)

Carter L. Burgess (CFR)

Paul C. Cabot (President of State Street Investment Corp.; partner in State Street Research & Management Co.; member of the Board of Directors of J. P. Morgan & Co., Continental Can Co., Inc., National Dairy Products Corp., Tampa Electric Co., The B. F. Goodrich Co.; Treasurer of Harvard University)

James V. Carmichael (President, Scripto, Inc.; member of Board of Directors of Lockheed Aircraft Corp., Trust Company of Georgia, Atlanta Transit Co., The Southern Co.)

Walker L. Cisler (CFR)

General Lucius D. Clay (CFR)

Will L. Clayton (CFR)

John L. Collyer (CFR)

Ralph J. Cordiner (Chairman of the Board and President of General Electric Co.)

John E. Corette (President of Montana Power Co.)

John Cowles (CFR)

C. R. Cox (CFR)

Harlow H. Curtice (retired President of General Motors Corp.; Chairman of the Board of Directors of Genesee Merchants Bank & Trust Co.; member of the Board of Directors of the National Bank of Detroit)

Charles E. Daniel (head of Daniel Construction Co., member of Board of Directors of First National Bank of Greenville, South Carolina, La France Industries, J. P. Stevens Co., Inc., Textron, Inc.; Trustee of Clemson College)

Donald K. David (CFR)

Paul M. Davies (President and Chairman of the Board of Food Machinery & Chemical Corp.; member of Board of Directors of American Trust Company of California, National Distillers Products Corp., Caterpillar Tractor Co.; Professor at Stanford University; Director of Stanford Research Institute, San Jose State College, Pacific School of Religion; Trustee of Committee for Economic Development)

Frank R. Denton (Vice Chairman and Director of Mellon National Bank and Trust Company, Pittsburgh; member of the Board of Directors of Swindell-Dressler Corp., Westinghouse Electric Co., Jones & Laughlin Steel Corporation, Pullman, Inc., National Union Fire Insurance Co., Shamrock Oil & Gas Corp., M. W. Kellogg Co., Pullman Standard Car Manufacturing Co., Trailmobile, Inc., National Union Indemnity Co.; Trustee of Pennsylvania State University, Kansas University Endowment Association)

Charles D. Dickey (Vice President, member of the Board of Directors, and Chairman of the Executive Committee of Morgan Guaranty Trust Co.; member of the Board of Directors of General Electric Co., Beaver Coal, Kennekott Copper Corp., Braden Copper Co., Merck & Co., Inc., Panhandle Eastern Pipeline Co., New York Life Insurance Co., Church Life Insurance Corp., Church Fire Insurance Corp.)

Frederick G. Donner (CFR)

William Y. Elliott (CFR)

Ralph E. Flanders (CFR)

Marion B. Folsom (CFR)

Henry Ford II (President of Ford Motor Co.; Chairman of the Board of American Heritage Foundation)

William C. Foster (CFR)

G. Keith Funston (President of New York Stock Exchange; member of the Board of Directors of Metropolitan Life Insurance Co.; Trustee of Trinity College of Connecticut, Virginia Theological Seminary, Samuel H. Kress Foundation)

Frederick V. Geier (CFR)

Elisha Gray II (President and Director of Whirlpool Corp.)

Crawford H. Greenewalt (President and Director of E. I. du Pont de Nemours Company, Christiana Securities Company; member of the Board of Directors of Massachusetts Institute of Technology; Trustee of the Carnegie Institute, Washington)

General Alfred M. Gruenther (CFR)

Joseph B. Hall (President of Kroger Company, Manufacturers and Merchants Indemnity Co., Selective Insurance Co.; member of the Board of Directors of Robert A. Cline, Inc., AVCO Manufacturing Corp., Cincinnati and Suburban Bell Telephone Co., General Stores Corp.; member of the Board of the Federal Reserve Bank of Cleveland)

W. Averill Harriman (CPR)

William A. Hewitt (President and member of the Board of Directors of Deere & Company)

Milton P. Higgins (CFR)

Paul G. Hoffman (CFR)

Eugene Holman (CFR)

John Holmes (President, member of the Board of Directors, and retired Chairman of Swift & Company; member of the Board of Directors of Continental Illinois National Bank and Trust Company, General Electric Corporation)

Herbert Hoover, Jr. (CFR)

Preston Hotchkis (Vice Chairman of the Board of Directors and Treasurer of Founders' Insurance Company; Executive Vice President and member of the Board of Directors of Fred H. Bixby Ranch Company; member of the Board of Directors of Metropolitan Coach Lines, Pacific Mutual Life Insurance Co., Pacific Telephone & Telegraph Co., Blue Diamond Corp.)

Amory Houghton (CFR)

Theodore V. Houser (retired Chairman of the Board of Sears, Roebuck & Co.; member of the Board of Directors of Sears, Roebuck & Co., Bell and Howell Co., Quaker Oats Co., Massachusetts Institute of Technology; Trustee of Northwestern University, Williams College)

A. W. Hughes (Chairman of the Board of Directors, J. C. Penney Co.)

Gilbert W. Humphrey (President of M. A. Hanna Company, Hanna Mining Company; Chairman of the Board of Hausand Steam Ship Company; member of the Board of Directors of Industrial Rayon Corp., General Electric Corp., National City Bank of Cleveland, Texaco, Inc.; Trustee of Committee for Economic Development)

Eric A. Johnston (CFR)

Alfred W. Jones (Chairman of the Board of Sea Island Company, Talbott Corp.; member of the Board of Directors of Seaboard Construction Co., Brunswick Paper & Pulp Co., The Mead Corp., Thompson Industries, Inc., First National Bank of Atlanta, Georgia Power Co., Florida-Georgia TV Co.)

Devereux C. Josephs (CFR)

Ernest Kanzler (retired Chairman of the Board of Universal C.I.T. Credit Corp,; member of the Board of Directors of C.I.T. Financial Corp., Bendix Aviation Corp.)

Frederick Kappel (President and Director of American Telephone & Telegraph Company; retired President of Western Electric Co.; member of the Board of Directors of Chase Manhattan Bank, Metropolitan Life Insurance Co.)

John R. Kimberly (CFR)

E. H. Lane (Chairman of the Board of Lane Company, Inc.)

Joseph L. Lanier (Chairman of the Board of Wellington Sears Company; President of West Point Manufacturing Company of Georgia; member of the Board of Directors of Cabin Crafts, Inc., First National Bank of Atlanta, Rivington Carpets, Ltd. of Britain)

Barry L. Leithead (President and Director of Cluett, Peabody and Company, Inc.; Chairman of Cluett, Peabody and Company of Canada, Ltd.; member of the Board of Directors of B. F. Goodrich Company)

Augustus C. Long (Chairman of the Board of Texaco, Inc.; member of the Board of Directors of Freeport Sulphur Co., Equitable Life Assurance Society of the United States, Federal Reserve Bank of New York)

Donold B. Lourie (President and Director of Quaker Oats Company; member of the Board of Directors of Northern Trust Co., International Paper Co., Pure Oil Co.; Trustee of Princeton University)

George H. Love (Chairman of the Board of Pittsburgh-Consolidation Coal Company, M. A. Hanna Company; member of the Board of Directors of Union Carbide & Carbon Corp., Mellon National Bank & Trust Company of Pittsburgh, Pullman Co., General Electric Co., National Steel Corp., Hanna Mining Co.; Trustee of Princeton University, University of Pittsburgh)

James Spencer Love (Chairman of the Board of Burlington Mills Corp.; Chairman and President of Burlington Industries, Inc.; Trustee of University of North Carolina, Davidson College)

George P. MacNichol, Jr. (President and Director of Libbey-Owens-Ford Glass Company; member of the Board of Directors of Wyandotte Chemical Co., Federal Reserve Bank of Cleveland)

Roswell F. Magill (member of Cravath, Swaine & Moore, Lawyers; Trustee of Mutual Life Insurance Company of New York, Macy Foundation, Guggenheim Foundation)

Deane W. Malott (President, Cornell University; member of the Board of Directors of Pitney-Bowes, Inc., B. F. Goodrich Co., General Mills, Inc., Owens-Corning Fiberglas Corp.; former Vice President of Hawaiian Pineapple Co.; Professor of Business at Harvard, Chancellor of University of Kansas)

James W. McAfee (President of Union Electric Company of Missouri, Edison Electric Institute; member of the Board of Directors of St. Louis Union Trust Co., American Central Insurance Co., North American Co.)

S. Maurice McAshan (President, Anderson, Clayton & Company)

Thomas B. McCabe (CFR)

John L. McCaffrey (retired Chairman of International Harvester Co.; member of the Board of Directors of Harris Trust & Savings Bank of Chicago, American Telephone & Telegraph Co., Corn Products Co., Midwest Stock Exchange; Trustee of the University of Chicago, University of Notre Dame, Eisenhower Exchange Fellowships, Inc.)

Leonard F. McCollum (CFR)

Charles P. McCormick (Chairman of the Board and retired President of McCormick & Co., Inc.; member of the Board of Directors of Massachusetts Mutual Life Insurance Co., Equitable Trust Co. of Baltimore, Advertising Council; Chairman of the Board of Regents, University of Maryland)

Neil H. McElroy (Chairman of the Board, Procter & Gamble Co.; Secretary of Defense 1957-1961)

Earl M. McGowin (Vice President of W. T. Smith Lumber Co.; member of the Board of Directors of The Southern Company of New York, Alabama Power Co.)

James H. McGraw, Jr. (CFR)

Paul B. McKee (Chairman of Pacific Power & Light Co.)

John P. McWilliams (retired President and Chairman of the Board of Youngstown Steel Door Co.; member of the Board of Directors of National City Bank of Cleveland, Eaton Manufacturing Co., Goodyear Tire & Rubber Co., Union Carbide & Carbon Corp.)

George G. Montgomery (Chairman of Kern County Land Co.; member of the Board of Directors of American Trust Co., Bankers Trust Co., Castle & Cook, Ltd., General Electric Co., Matson Navigation Co., Matson Assurance Co., Oceanic Steam Ship Co., Pacific Lumber Co.)

Charles G. Mortimer (Chairman and retired President of General Foods Corp.; member of the Board of Directors of National City Bank of New York, Union Theological Seminary)

William B. Murphy (President of Campbell Soup Co.; member of the Board of Directors of Merck & Co.)

Aksel Nielsen (President of Title Guaranty Co., Mortgage Investments Co.; member of the Board of Directors of C. A. Norgren Co., United American Life Insurance Co., Landon Abstract Co., Empire Savings & Loan Association, United Airlines)

Thomas F. Patton (President and Director of Republic Steel Corp., Union Drawn Steel Co.; member of the Board of Directors of Air-Vue Products Corp., Maria Luisa Ore Co., Berger Manufacturing Company of Massachusetts, Iron Ore Company of Canada, Liberia Mining Co., Ltd., Liberian Navigation Corp., Union Commerce Bank, Tankore Corp., Standard Oil Company of Ohio; Trustee of Ohio State University)

Charles H. Percy (President and Director of Bell & Howell Co.; member of the Board of Directors of Chase Manhattan Bank, Harris Trust & Savings Bank, Burroughs Corp., Fund for Adult Education of the Ford Foundation; Trustee, University of Chicago)

Theodore S. Petersen (President and Director of Standard Oil of California; member of the Board of Directors of Pacific Mutual Insurance Co.; Trustee of Committee on Economic Development; consulting Professor, Stanford University)

Gwilym A. Price (Chairman and President of Westinghouse Electric Corp.; member of the Board of Directors of Mellon National Bank & Trust Company of Pittsburgh, Eastman-Kodak Co., Carnegie Corp., National Union Fire Insurance Co., Great Atlantic & Pacific Tea Co.; Trustee of Allegheny College, The Hanover Bank, Carnegie Institute, Carnegie Institute of Technology; Chairman of the Board of Trustees, University of Pittsburgh; Chairman of Crusade for Freedom)

Edgar Monsanto Queeny (Chairman of the Board, Monsanto Chemical Co.; member of the Board of Directors of American Airlines, Union Electric Co. of Missouri, Chemstrand Corp., Sicedison S.P.A. of Italy, World Rehabilitation Fund; Trustee Herbert Hoover Foundation)

Clarence B. Randall (Chairman of the Board, Inland Steel Co.; member of the Board of Directors, Bell & Howell Co.; Trustee, University of Chicago)

Philip D. Reed (CFR)

Richard S. Reynolds, Jr. (President of Reynolds Metals Co.; Chairman of the Board of Robertshaw-Fulton Controls Co.; member of the Board of Directors of Manufacturers Trust Co., British Aluminum, Ltd., U. S. Foil Co., Central National Bank of Richmond)

Winfield W. Riefler (CFR)

William E. Robinson (Chairman of the Coca-Cola Co.; member of the Board of Directors of Manufacturers Trust Co.; Coca-Cola Export Co., Libbey-Owens-Ford Glass Co., Trustee of New York University; former Director and Publisher of New York Herald-Tribune)

Donald J. Russell (President and Director of Southern Pacific Co.; Texas and New Orleans Railroad Co.; Chairman of the Board of St. Louis-Southwestern Railroad; Director of Stanford Research Institute; Trustee of Stanford University)

Stuart T. Saunders (President of Norfolk and Western Railway; Director of First and Merchants National Bank of Richmond)

Blackwell Smith (CPR)

C. R. Smith (President, American Airlines)

Lloyd B. Smith (President, A. O. Smith Corp.; Chairman, A. O. Smith of Texas)

John W. Snyder (Executive Vice President, Overland Corp.; Secretary of Treasury of the United States 1946-1953)

Joseph P. Spang, Jr. (retired President and Chairman of Gillette Co.; member of the Board of Directors of Gillette Co., Sheraton Corp. of America, First National Bank of Boston, U. S. Steel Corp., International Packers, Ltd.)

A. E. Staley, Jr. (Chairman of A. E. Staley Manufacturing Co.; Trustee, Millikin University)

Frank Stanton (President, Columbia Broadcasting System; Chairman of Center for Advanced Study in Behavioral Sciences; Trustee of Rand Corp.; member of the Board of Directors of New York Life Insurance Co.)

Robert T. Stevens (President and former Chairman of the Board, J. P. Stevens & Co.; member of the Board of Directors of General Electric Co., Owens-Corning Fiberglas Corp.; Trustee of Mutual Life Insurance Co. of New York; Secretary of the Army 1953-1955)

Hardwick Stires (partner, Scudder, Stevens & Clark Investment Counsels)

Lewis L. Strauss (CFR)

H. Gardiner Symonds (Chairman and President of Tennessee Gas and Transmission Company of Houston; Vice Chairman of Petro-Texas Chemical Corp.; Chairman of Bay Petroleum Corp., Tennessee-Venezuela South America, Chaco Petroleum of South America, Tennessee de Ecuador, South America, Tennessee-Argentina, Midwest Gas Transmission Co.; member of the Board of Directors of General Telephone & Electronics Corp., Carrier Corp., Food Machinery & Chemical Corp., National Bank of Commerce of Houston, Southern Pacific Co., Advertising Council; Trustee of Committee for Economic Development; member of the Business School, Stanford University)

A. Thomas Taylor (Chairman of International Packers, Ltd.; Vice President and Director of Swift & Company; member of the Board of Directors of Wedron Silica Co.)

Reese H. Taylor (Chairman of Union Oil Company of California; member of the Board of Directors of Federal Reserve Bank of San Francisco, Westinghouse Electric Corp., Collier Carbon & Chemical Corp., Manufacturers Trust Company; Trustee, University of Southern California, Cornell University Council)

Charles Allen Thomas (President and member of the Board of Directors of Monsanto Chemical Co.; member of the Board of Directors of Chemstrand Corp., First National Bank of St. Louis, St. Louis Union Trust Co.; Trustee of Carnegie Corp.; member of the Corporation of the Massachusetts Institute of Technology)

Juan T. Trippe (CFR)

Solon B. Turman (President and Director of Lykes Brothers Steam Ship Co., Inc.; Vice Chairman of Lykes Brothers, Inc.; Chairman of Gulf and South American Steam Ship Co.)

John C. Virden (Chairman and Director of Eaton Manufacturing Co.; member of the Board of Directors of Cleveland Electric Illuminating Co., Youngstown Steel Door Co., Goodyear Tire & Rubber Co., Interlake Iron Corp., Diamond Alkali Co.)

J. Carlton Ward, Jr. (President of Vitro Corp., American Heavy Minerals Corp.; member of the Board of Directors of U. S. Manganese Co.; Trustee, Cornell University)

Sidney J. Weinberg (partner in Goldman, Sachs & Co.; member of the Board of Directors of Cluett, Peabody & Co., Inc., Continental Can Co., Inc., General Cigar Co., General Electric Co., General Foods Corp., B. F. Goodrich Co., Ford Motor Co., McKesson & Robbins, Inc., National Dairy Products Corp., Champion Paper & Fibre Co., Van Raalte Co., Inc.; former Governor of New York Stock Exchange)

Walter H. Wheeler, Jr. (CFR)

John Hay Whitney (CFR)

Langbourne M. Williams (CFR)

Thomas J. Watson, Jr. (CFR)

Of these 120 BAC members, 41 are members of the Council on Foreign Relations. Most of those who are not CFR members have affiliations with foundations or other organizations that are interlocked with the CFR.

Sidney Weinberg, for example (father of the BAC), is not listed (in any Council on Foreign Relations Annual Report in my files) as a member of the CFR; but he is a member of the board of many corporations which support the CFR; and has many close connections with CFR leaders through foundations and other CFR subsidiary agencies.

All Secretaries of Commerce since 1933 have served as ex-officio General Chairman of the BAC.

On July 10, 1961, Roger M. Blough announced that the Business Advisory Council had changed its name to Business Council; had severed its connection with the Commerce Department; and would in the future give its consultative services to any governmental agency that asked for them. The BAC had been under intense criticism for the expensive entertainment it had been giving to governmental officials it advised.

Chapter 6


The Advertising Council, 25 West 45th Street, New York 36, N. Y. (with offices at 203 North Wabash Avenue, Chicago; 1200 18th Street, N. W., Washington; 425 Bush Street, San Francisco) serves as a public relations operation to promote selected projects supported by the Council on Foreign Relations and its interlocking affiliates.

The Advertising Council was created in 1942 (then called War Advertising Council) as a tax-exempt, non-governmental agency to promote wartime programs of government: rationing, salvage, the selling of war bonds, and so on.

The Advertising Council's specific job was to effect close cooperation between governmental agencies and business firms using the media of mass communication. A governmental agency would bring a particular project (rationing, for example) to the Advertising Council, for help in "selling" the project to the public. The Council would enlist the aid of some advertising agency. The agency (giving its services for nothing, as a contribution to the war effort) would prepare signs, newspaper mats, advertising layouts, broadcasting kits and what not. The Advertising Council might then enlist the free services of a public relations firm to get this material into newspapers and magazines; get it inserted in the regular ads of business firms; get it broadcast, free, as public-service spot announcements by radio networks; get it inserted into regular commercials on radio broadcasts; get slogans and art work stamped on the envelopes and business forms of corporations.

The Advertising Council rendered a valuable service to advertisers, broadcasting organizations, and publishers. Everyone wanted to support projects that would help the war effort. The Advertising Council did the important job of screening—of presenting projects which were legitimate and urgent.

Even the advertising agencies and public relations firms, which contributed free services, profited from the arrangement. They earned experience and prestige as agencies which had prepared nationally successful campaigns.

* * * * *

The Advertising Council continued after the war to perform this same service—selecting, for free promotion, projects that are "importantly in the public interest." Indeed, the service is more valued in peace time than in war by many advertisers and broadcasting officials who are badgered to support countless causes and campaigns, most of which sound good but some of which may be objectionable. Investigating to screen the good from the bad is a major job. The Advertising Council does this job. The Council is respected by industry, by the public, and by government. It is safe to promote a project which the Advertising Council claims to be "importantly in the public interest."

Thus, officials of the Advertising Council have become czars in a most important field. They arbitrarily decide what is, and what is not, in the public interest. When the Advertising Council "accepts" a project, the most proficient experts in the world—leading Madison Avenue people—go to work, without charge, to create (and saturate the media of mass communication with) the skillful propaganda that "sells" the project to the public.

Officials of the Advertising Council are aware of their power as moulders of public opinion. Theodore S. Repplier, head of the Advertising Council, was quoted in a June, 1961, issue of Saturday Review, as saying:

"There are Washington officials hired to collect figures on about every known occupation, to worry about the oil and miners under the ground, the rain in the sky, the wildlife in the woods, and the fish in the streams—but it is nobody's job to worry about America's state of mind, or whether Americans misread a situation in a way that could be tragic.

"This is a dangerous vacuum. But it is also a vacuum which explains to a considerable degree the important position the Advertising Council holds in American life today."

Note, particularly, that the Advertising Council is responsible to no one. If a business firm should decide on its own to include some "public service" project in its advertising, and the project evoked public indignation, the business firm would lose customers. The Advertising Council has no customers to please. Yet, the Advertising Council is a private agency, beyond the reach of voter and taxpayer indignation which, theoretically, can exercise some control over public agencies.

* * * * *

Who are these autocrats who have become so powerful that they can condition, if not control, public opinion? They are the members of the Public Policy Committee of the Advertising Council. Here were the 19 members of the Advertising Council's Committee, on June 23, 1958:

Sarah Gibson Blanding, President of Vassar College; Ralph J. Bunche, United Nations Under Secretary; Benjamin J. Buttenwieser, partner in Kuhn, Loeb & Co.; Olive Clapper, publicist; Evans Clark, member of the New York Times editorial board; Helen Hall, Director of Henry Street Settlement; Paul G. Hoffman, Chairman of this Public Policy Committee; Charles S. Jones, President of Richfield Oil Corporation; Lawrence A. Kimpton, Chancellor of University of Chicago; A. E. Lyon, Executive Secretary of the Railway Labor Executives Association; John J. McCloy, Chairman of the Chase Manhattan Bank; Eugene Meyer, Chairman of the Washington Post & Times-Herald; William I. Myers, Dean of Agriculture at Cornell University; Elmo Roper, public opinion analyst; Howard A. Rusk, New York University Bellevue Medical Center; Boris Shishkin, Assistant to the President of AFL-CIO; George N. Shuster, President of Hunter College; Thomas J. Watson, Jr., President of International Business Machines Corporation; Henry M. Wriston, Executive Director of the American Assembly.

Of these 19, 8 are members of the Council on Foreign Relations—Bunche, Buttenwieser, Hoffman, McCloy, Roper, Shishkin, Shuster, Wriston. The remaining 11 are mostly "second level" affiliates of the CFR, or under the thumb of CFR members in the business world.

* * * * *

Some Advertising Council projects really are "in the public interest." The "Stop Accidents" campaign and the "Smokey Bear" campaign to prevent forest fires are among several which probably have done much good.

There has never been an Advertising Council project which insinuated anything to remind anyone of the basic American political idea written into our organic documents of government—the idea that men are endowed by God with inalienable rights; that the greatest threat to those rights is the government under which men live; and that government, while necessary to secure the God-given blessings of liberty, must be carefully limited in power by an inviolable Constitution. But there have been many Advertising Council projects which were vehicles for the propaganda of international socialism.

The Advertising Council has promoted Law Day, which is an annual occasion for inundating America with "World Peace Through World Law" propaganda, designed to prepare the people for giving the World Court jurisdiction over American affairs, as a major step toward world government (see The Dan Smoot Report, September 14, 1959, "The World Court").

The Advertising Council has promoted the "mental health" project, which, superficially, appears to be an admirable effort to make the public aware of the truth that we have more mentally ill people than we have facilities for—but whose underlying, and dubious, purpose is to promote the passage, in all states, of "mental health" laws fabricated by international socialists in the World Health Organization and in the U. S. Public Health Service. These laws, to "facilitate access to hospital care" for mentally ill people, provide no new facilities, prescribe no better treatment, nor do anything else to relieve the suffering of sick people.

The new "mental health" laws, which the Advertising Council is helping to persuade people in all states to accept, eliminate the constitutional safeguards of a person accused of being mentally ill, thus making it easier for bureaucrats, political enemies and selfish relatives to commit him and get him out of the way.

The Advertising Council has touted ACTION—American Council to Improve Our Neighborhoods, Box 462, Radio City Station, New York 20, N. Y.—an organization for urban renewal. Of the 66 persons on the ACTION Board of Directors, a controlling majority are:

known members of the Council on Foreign Relations—such as Philip L. Graham and Stanley Marcus;

known members of important CFR affiliates—such as, Sidney Weinberg of the Business Advisory Council;

union bosses like Harry C. Bates, Ben Fischer, Joseph D. Keenan, Jacob S. Potofsky, Walter Reuther;

bureaucrats in charge of various "Housing Authorities," including Dr. Robert Weaver, Kennedy's present Housing Administrator whose appointment was challenged in the Senate because of Dr. Weaver's alleged communist front record;

"liberal" politicians dedicated to the total socialist revolution—such as, Joseph S. Clark, Jr., U. S. Senator from Pennsylvania;

officials of construction and real estate firms which can make mammoth profits on urban renewal projects and who are also "liberal" in their support of all governmental controls and subsidies, the tools for converting capitalism into socialism—such as, William Zeckendorf;

representatives of organizations also "liberal" in the sense indicated above—such as, Philip M. Klutznick of B'nai B'rith, and Mrs. Kathryn H. Stone of the League of Women Voters.

* * * * *

The Advertising Council supports United Nations propaganda.

The 1959 annual report of the United States Committee for the United Nations pays special tribute to the "radio-TV campaign, conducted through the cooperation of the Advertising Council and the National Association of Broadcasters." Here are some passages, from this tribute, which show how the Advertising Council gets one-world socialist propaganda into millions of American homes:

"Perry Como read the UN spot personally to his audience of 33,000,000."

"Jack Paar ... [showed] a filmed visit to the UN by his daughter, Randy ... following a splendid statement [by Paar]. This 7-minute segment of the show reached a minimum of 30,000,000 viewers."

"The campaign received tremendous recognition also on Meet the Press, the Today Show, I Love Lucy, the Desilu Playhouse, and the Jack Benny Show, among many others."

"Broadcast kits went out to every radio and television station in the country."

A recent accomplishment of the Advertising Council was its saturation bombing (1961) of the American public with propaganda in support of Kennedy's Youth Peace Corps.

Chapter 7


All American advocates of supra-national government, or world government, claim their principal motive is to achieve world peace. Yet, these are generally the same Americans whose eager interventionism helped push America into the two world wars of this century.

The propaganda for involving America in the bloodshed and hatreds of Europe—in World War I and World War II—was the same as that now being used to push us into world government. In World War I, we rushed our soldiers across the wide seas to die in the cause of making the world safe for democracy—of eliminating evil in the world so that there would not be any more war! This was precisely what the world-government interventionists wanted us to do. The so-called American isolationists were not pacifists who recommended refusal to take up arms in defense of their own country: most of them were patriots who would have been among the foremost to fight in defense of America. Being intelligent citizens of a peaceful and civilized nation, they wanted to keep it that way.

The world-government interventionists used the extraordinary arguments of a man who, though living in an orderly and law-abiding neighborhood, says that he must go carousing around in adjoining communities and get involved in every street fight and barroom brawl he can find in order to avoid violence! Such a man not only becomes a party to lawless violence which he claims to deplore, but also creates hatreds and resentments which will ultimately bring to the sane citizens of his own peaceful neighborhood the evils which they had managed to keep out.

This is what Woodrow Wilson's intervention in World War I did to the United States. It sacrificed the lives of 250,000 American men—not to mention the hundreds of thousands crippled and otherwise wrecked by war. But this sacrifice of American youth did not make the world safe for anything. It helped make the world a breeding place for communism, fascism, naziism, and other varieties of socialism; and it planted the seeds for a second world war more destructive than the first.

But the world-government interventionists—when their bloody crusade proved worse than a tragic failure—did not admit error. They tried to place all the blame on the isolationists who had tried to keep us from making the ghastly mistake.

* * * * *

If we had stayed out of World War I, the European powers would have arrived, as they have been doing for thousands of years, at some kind of negotiated peace which would have saved not only hundreds of thousands of American lives, but millions of European lives as well. By entering World War I, we merely converted it into total war, prolonged it, and made it more savage.

The destruction and slaughter of World War I created power vacuums and imbalances and economic chaos, which inevitably led to World War II.

Again, the world-government advocates, who claimed to want peace, insisted that we go to war. They also intensified their efforts to entangle America, irretrievably, in political and economic union with European nations so that there would never again be any possibility of the United States staying out of the endless wars and turmoil of the old world.

It is, perhaps, fruitless to question the motives of people leading the campaign to push America into world government. All organizations which have been active in this movement—World Fellowship, Inc., Federal Union, Inc., Atlantic Union Committee, United World Federalists, and so on—have had a sprinkling of communist-fronters among their directors and members. But they have also had the official support of many prominent and respected Americans: Harry Truman, Dwight Eisenhower, John Kennedy, Richard Nixon, Estes Kefauver, John Sparkman, Adlai Stevenson, Dean Acheson, John Foster Dulles, Christian Herter, cabinet officers; senators and congressmen; Supreme Court justices; prominent churchmen, businessmen, financiers, entertainers, judges, union officials; newspaper and magazine editors; famous columnists and radio-television commentators.

* * * * *

Although the cry of "peace" is the perennial clarion call of all world-government advocates, many of them have, in recent years, added the claim that their recommendations (for converting America into a province of world government) are means of "fighting communism." Indeed, some of the most vigorous advocates of one-worldism have wide reputations as anti-communists—Walter Judd, a Republican Congressman from Minnesota, for example. Even Clarence Streit (leader of the now-defunct Federal Union, Inc., and father of that organization's very active and influential tax-exempt successor, Atlantic Union Committee) has ugly things to say about communism.

The fact is that every step the United States takes toward political and economic entanglements with the rest of the world is a step toward realization of the end objective of communism: creating a one-world socialist political and economic system in which we will be one of the subjugated provinces.

Because of the wealth we have created as a free and independent nation, we would be the most heavily taxed province in any conceivable supra-national government—whether in a "limited, federal union of the western democracies," which is what the Atlantic Union Committee people say they want; or in a total one-world system, which is what all advocates of international union really have as their final goal.

Because of our population, however, we would have minority representation in any supra-national government now being planned.

Americans would be subjected to laws enacted by an international parliament in which we would have little influence; taxing us, regulating our economic activities, controlling our schools, and dictating our social and cultural relations with each other and with the rest of the world.

* * * * *

America was founded, populated, and developed by people seeking escape from oppressive governments in Europe. Now our own leaders ask us to give up the freedom and independence which our forebears won for us with blood and toil and valorous devotion to high ideals, to become subjects in a governmental system that would inevitably be more tyrannical than any which our forefathers rebelled against or any that presently exist. If the world government included the despotic and oligarchic and militaristic, and feudalistic and primitive systems of Asia, the Middle East, Africa, and Latin America, it would necessarily become the bloodiest and most oppressive tyranny the world has ever known.

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