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An Introduction to the "Little Sister" of The Royal Institute of
International Affairs: The U.S. Council on Foreign Relations
By Eric Samuelson, J.D.
[EMAIL PROTECTED]
"Since its founding... the CFR has been the preeminent intermediary between
the world of high finance, big oil, corporate elitism, and the U.S.
government. Its members slide smoothly into cabinet-level jobs in Republican
and Democratic administrations. The policies promulgated in its quarterly
journal, Foreign Affairs, become U.S. government policy." -- Jonathan Vankin
(1)
"As a teenager, I heard John Kennedy's summons to citizenship. And then, as a
student, I heard that call clarified by a professor I had named Carroll
Quigley." -- Democratic Presidential Nominee Bill Clinton
When Bill Clinton delivered his acceptance speech at the Democratic
convention, on July 16, 1992, Carroll Quigley's name was not exactly a
household word.(2) Quigley, Dean of The School of Foreign Service at
Georgetown University, had graduated magna cum from Harvard. He made Ripley's
"Believe It or Not" for being Harvard's youngest person to receive a Ph.D.
After teaching at Harvard and Princeton, he went to Georgetown where for 28
consecutive years alumni selected him as their most influential professor.
Clinton, Quigley's student, went on to become a Rhodes Scholar, a CFR member,
a Trilateral Commission member and a Bilderberger participant. He joined the
Council on Foreign Relations in 1989, attended a Bilderberg meeting in 1991
and was a current member of the Trilateral Commission at the time of his
nomination.(3) Clinton, before the American public, openly acknowledged his
Georgetown mentor and clued his followers from the convention podium. He then
went on in November to defeat former CFR/Trilateralist/Skull and Bones member
President George H.W. Bush.
The shadowy political and even "foreign" beginnings of the Council on Foreign
Relations have long been intentionally obscured. For more than three decades
the CFR received no notice by authors, the general public or serious
researchers. When mentioned, it is almost always in articles detailing how
many of the appointees of a given administration, as usual, have a "CFR
connection". (4)
Santa Barbara sociologist G. William Domhoff wrote in 1978 that the CFR had
been the subject of only two "academic studies." This, he said, provided "an
impressive commentary in itself on how little social scientists know about
policy-making in the United States."(5) A lack of academic commentary has
also been paralleled by little coverage in the media or press. It was not
until some 37 years after the creation of the CFR that a mainstream magazine
article was published in Harper's by Joseph Kraft in July 1958 entitled:
"School for Statesmen."(6)
A major clue was given by Georgetown University Professor Carroll Quigley in
an interview. Quigley, in his best Boston accent, dismissed the Radical-Right
interpretation as 'garbage'. But he then added: 'To be perfectly blunt, you
could find yourself in trouble dealing with this subject." He explained that
his career as a lecturer in the government institution circuit was all but
ruined because of the twenty or so pages he had written about the existence
of Round Table Groups. As we will see, the CFR was, indeed, a British Round
Table creation. This is one of the most important hidden secrets of the
NYC-based CFR.
The story of the British connection to the Council on Foreign Relations may
be traced back to George Peabody, J.P. Morgan, Andrew Carnegie, Nicholas M.
Butler and Col. Edward House -- all who may be described a British loyalists.
A Secret Society was established by Cecil Rhodes in connection with
Rothschild, Morgan, Carnegie, and Rockefeller. A small highly secret group
called the Round Table directed operations.(7)
The story begins at least when George Peabody moved to London and took up
English residence in 1837 -- the same year Queen Victoria ascended the
throne. He joined with other merchant bankers who traded in dry goods in
"high finance." This consisted of exclusive service to "governments, large
companies and rich individuals." (8) Soon after his arrival in London,
Peabody was summoned by Baron Nathan Mayer Rothschild. Rothschild offered to
pay all his entertainment bills. Hence, the famous Peabody July 4th dinners
were bought and paid for by funds from the Rothschilds.(9) In 1837, Peabody
was warned, in advance, by his British friends of their decision "to withdraw
credits from the worldwide markets and thereby depress commercial values; so
he was fully liquid and ready to pounce on the American properties rendered
bargains by the British move."(10) In the crash of 1837 Peabody made a
fortune purchasing depressed property in America.(11) In 1854 the American
Ambassador to London, James Buchanan, stormed out of the room when George
Peabody toasted Queen Victoria before President Pierce.(12) Peabody "was the
founder of the Morgan financial empire." (13) In 1859 Junius Morgan assumed
control of George Peabody and Company. He traded Union bonds. The Civil War
was "a bonanza for German-Jewish bankers on Wall Street, who raised loans
from the numerous Union sympathizers in Germany." (14) Peabody's American
agent was the Boston firm of Beebe, Morgan and Company -- headed by Junius
Morgan.(15) When J. Pierpont Morgan was in Vienna, his father wrote that
Alexander Duncan had an opening in Duncan, Sherman & Company -- a bank
affiliated with George Peabody in London. Pierpont "soon was acting as George
Peabody & Company's American representative.(16)
Andrew Carnegie (1835-1919), in 1872, was paid a $150,000 commission for
placing $6 million of bonds of a Pennsylvania branch road in Europe. He made
another $75,000 on a second trip. While in England in 1873, on one of his
frequent trips to Great Britain, he met Henry Bessemer and saw the Bessemer
process of making steel. He then organized Carnegie, McCandless & Company
with a capital of $700,000 and built a new steel plant named the Edgar
Thompson Steel Works (to flatter the president of the Pennsylvania Railroad
to get generous rebates). (17)
In the original edition of Andrew Carnegie's 1893 book, Triumphant Democracy,
he stated: "Time may dispel many pleasing illusions and destroy many noble
dreams but it will never shake my belief that the wound caused by the wholly
unlooked for and undesired separation of the Mother from her child is not to
bleed forever. Let men say what they will, therefore I say, that surely as
the sun in the heavens once shone upon Britain and America united, so surely
is it one morning to rise, shine upon, and greet again the United States, the
British American Union."(18) In 1948 a bio of Carnegie ended: "There is bound
to be universal peace, he believed, through the final interlocking of the
national interests throughout the world. At first a coalition of America and
England -- a union of the English-speaking race. Then a United States of
Europe. And finally a unification of the entire human race."(19) Carnegie was
a vice president and generous financial supporter of the Anti-Imperialist
League from its formation in 1898 until his death. His profits went from
almost $3.5 million in 1887 to $40 million in 1900. (20) He consolidated his
holdings into Carnegie Steel Co. in 1899. On December 12, 1900 an informal
parliament of "all the biggest men of New York" was held as a dinner party to
the president of the Carnegie Steel Company -- "Smiling Charlie" Schwab.
After an all night session, some weeks later, Morgan sent Schwab to Carnegie:
"Go and find his price." The resulting price of $492,000,000, dubbed a
"stupendous ransom," was paid to Carnegie with $300,000,000 in bonds and
preferred stock. (21) Carnegie's assets were actually worth only $80 million
but Morgan merged other corporations to create U.S. Steel Company controlling
65% of U.S. steelmaking capacity. (22) At the end of his steel career, in
1901, he turned over his Carnegie Steel to J.P. Morgan who merged it with
three other steel giants (the Tennessee Coal and Iron Company, the Illinois
Steel Company and Colorado Fuel and Iron) to form the U.S. Steel Corporation
-- the first billion dollar corporation in America. (23)
Andrew Carnegie financed three temples of peace: Central America Court of
Justice, the Pan American Union and the Palace of Peace at the Hague (which
cost $1.5 million to construct in 1903). (24) He was also a member of the
Philippine Independence Committee (1904) and a vice president of the Filipino
Progress Association (1905-1907). In 1905 Carnegie gave $10 million to
provide pensions for retired college professors. Those who gathered at
Carnegie's mansion on November 15, 1905, included Charles W. Eliot (Harvard),
Woodrow Wilson (Princeton), Arthur Hadley (Yale) and David Star Jordan
(Stanford).(25)
The Carnegie Endowment for International Peace was set up in 1910. The
initial direction of the fund was given by Carnegie to Dr. Nicholas Murray
Butler (1862-1947). Butler got excited about the peril of the Allies in World
War I and decided that the best way to establish peace was to help get the
United States into the War. (26) Butler was President of Columbia University
(1901-1945), helped establish the Carnegie Endowment for International Peace
and served as its President (1925-1945). Norman Dodd, research director for
the Reece Committee, was invited to examine the warehoused records of the
Carnegie Endowment for International Peace. The minutes, inspected by a Dodd
researcher, revealed that in 1910 the Carnegie trustees asked: "Is there any
way known to man more effective than war, to so alter the life of an entire
people?" The trustees ultimately decided that war was the most effective way
to change people. A year later the minutes showed that the trustees asked:
"How do we involve the United States in a war?" And they answered: "We must
control the diplomatic machinery of the United States," by first gaining
"control of the State Department." The trustees also sent a confidential
message to President Wilson insisting that the war not end too quickly. Dodd
also found that all high appointments in the State Department took place only
after they had been cleared by the Council of Learned Societies (established
by the Carnegie Endowment for International Peace). (27) The Church Peace
Union was established at a meeting at the home of Andrew Carnegie in 1914
with an endowment of over $2 million. (28) Andrew Carnegie, J.P. Morgan and
Otto Kahn backed the 1915 Anglo-French loan. (29) The 1915 loans were said by
Morgan to be made for "trade" purposes. (30)
The League of Free Nations was created in early 1918 (in 1920 it became the
Foreign Policy Association). (31) The Foreign Policy Association "grew out of
a meeting of nineteen writers, editors, educators, and such with a view to
selling Wilsonian policies and the League of Nations to the public." (32) The
Foreign Policy Association, however, soon began to play "second fiddle" to
the CFR.
In June 1918, a "more discrete" club of New York "financiers and
international lawyers" was formed headed by Elihu Root (an Andrew Carnegie
lawyer). (33) The 108 members of the original Council on Foreign Relations
were described by Whitney Shepardson as "high-ranking officers of banking,
manufacturing, trading and finance companies, together with many lawyers."
(34) International Bankers provided the money: "In Britain the organization
was (initially) called the Institute for International Affairs (IIA) while in
New York it operated as the Council for Foreign Relations (CFR). The finances
for the group came from wealthy international bankers..." (35) The CFR was
founded "by East Coast bankers, lawyers and academicians..." (36) By April
1919, however, the CFR "went dormant." (37)
A Texan named House was a key individual before and during the Wilson
administration. He helped establish the income tax, the Federal Reserve
System, coined the phrase "league of nations," drafted the covenant for the
League of Nations and presided over the creation of the Council on Foreign
Relations (C.F.R.).
Col. Edward M. House (the title came from a Texas Governor) inherited a
fortune estimated at around $1.5 million. He was born in Houston, Texas --
the son of a wealthy planter and banker. (38) Originally the House ("Huis")
family was Dutch. House's family had lived in England for 300 years before
his father came to Texas. (39) Thomas William House came to Texas to fight
under Sam Houston and was an American agent for London Banking interests
"said by some to the House of Rothschild..." (40) Edward House attended
school in England for several years as a young boy: "Much of his youth and
adult life was spent in the British Isles, which he regularly visited." (41)
The elder House said he wanted to raise his sons to "know and serve England."
(42) House surrounded himself with prominent members of the Fabian Society.
(43) Between 1892 and 1902 he elected four Texas Governors. (44)
In the winter of 1911-1912, House wrote Philip Dru: Administrator. House said
he was working for "Socialism as dreamed of by Karl Marx..." The book was a
fictional plan for the conquest of America by gaining control of both the
Republican and Democratic parties and using them to create a socialist world
government. Central portions of the plan included a graduated federal income
tax and a central bank. (45) The book also outlined an inheritance tax and
suggested taking functions away from the states. (46) It suggested a
conspiracy "insinuated into the primaries, in order that no candidate might
be nominated whose views were not in accord with theirs." (47) House passed
the book to his father-in-law in New York City -- Dr. Sidney E. Mezes. Mezes,
who read and approved the book, was Director of the College of the City of
New York and former President of the University of Texas. House then sent the
book to future Wilson cabinet member David F. Houston. Houston declared the
work economically sound but said the fiction in it was so thin that he
advised it be rewritten as a serious work. (48)
After his November 1912 election, Woodrow Wilson, on vacation in Bermuda,
read Philip Dru. (49) Arthur Howden Smith wrote: "In nine months the Wilson
administration completely reorganized the financial structure in accordance
with the conceptions outlined in 'Philip Dru.'" (50) From 1912-1914, Wilson's
legislative program "was largely the program of House's book..." (51) The New
York Times in January 1913 found the authorship of Philip Dru to still be a
puzzle. (52) In 1915 House was still trying to conceal his connection as
author of the book. (53) Among those who read the novel was Franklin Delano
Roosevelt -- then Assistant Secretary of the Navy -- whose mother was then
and always a close friend of Colonel House. (54) It was published by B.W.
Huebsch -- "a favorite publisher of the Left and for many years a valued
collaborator of American Fabian Socialist groups." (55) In 1917 a bookseller
wrote regarding the House book: "As time goes on the interest in it becomes
more intense, due to the fact that so many of the ideas expressed...have
become laws of this Republic, and so many of his ideas have been discussed as
becoming laws." He ended with the question: "Is Colonel E.M. House of Texas
the author? If not, who is?" Seymour admitted: "Colonel House was, in truth,
the author; to his other occupations he added that of novelist." (56) Both
Franklin K. Lane and W. J. Bryan commented on the influence of Philip Dru on
Wilson. (57) In 1918, Franklin K. Lane, Woodrow Wilson's Secretary of the
Interior, stated in a private letter: "All that book has said should be,
comes about...The President comes to Philip Dru, in the end." (58) House's
book has been said to have outlined the next 40-50 years in code (DRU is also
said to be the code for David Rex Universe). (59)
Charles Seymour called Col. House "the unseen guardian angel of the (Federal
Reserve) bill." (60) The banker J. Horace Harding held a dinner at which
House "convinced the financial overlords that the Democratic donkey, with
Wilson in the saddle, would not kick over the traces....The Schiffs, the
Warburgs, the Kuhns, the Rockefellers, the Morgans put their faith in
House..." (61) On November 17, 1913, Paul Warburg requested an interview,
with House, to include Jacob Schiff and Cleveland Dodge. Dodge was grateful
for a "substantial subscription for the Y.M.C.A. fund." Warburg did most of
the talking. Schiff favored only four regional reserve banks. (62) Schiff
said House was the Moses and they would be the Aarons: "He asked if I knew my
Bible well enough for this to be clear to be. I told him I did." (63) Schiff
then wrote to House on December 23, 1913: "I want to say a word of
appreciation to you for the silent, but no doubt effective work you have done
in the interest of currency legislation..." (64) After getting the Federal
Reserve through, House then turned to international affairs. (65) House "had
powerful connections with international bankers in New York. He was
influential...with great financial institutions represented by such people as
Paul and Felix Warburg, Otto H. Kahn, Louis Marburg, Henry Morgenthau, Jacob
and Mortimer Schiff and Herbert Lehman. House had equally powerful
connections with bankers and politicians of Europe." (66) Jacob Schiff died
on September 25, 1920. Of all the other living bankers named by Smoot, all,
without an exception, were later founding members of the CFR in 1921. (67)
The original 270-secret crowd that created the Federal Reserve System "were
all in the original (CFR) membership." They included Jacob Schiff, Averell
Harriman, Frank Vanderlip, Nelson Aldrich, Bernard Baruch, J.P. Morgan and
John D. Rockefeller. (68)
Associates of J.P. Morgan and Company created an American parallel group to
the Milner Group before the first World War. (69) The RIIA was an
above-ground group: "During the Versailles Treaty talks after the war, Round
Table members Lionel Curtis, Balfour, Milner, and others formed an
above-ground group called the Royal Institute of International Affairs for
the purpose of coordinating Anglo-American cooperative efforts. They decided
also to form an American branch, but gave it a different name in order to
secure its antecedents. Thus was born the Council on Foreign Relations,
originally staffed by J.P. Morgan men and financed by Morgan money." (70) The
two groups were established to prevent the American people from reacting with
patriotic fury if it was discovered that the CFR was in fact a subsidiary of
the British Round Table. (71) The man most responsible for creating subgroups
of the Round Table was Lionel Curtis. He established local chapters of the
Round Table called the Royal Institute of International Affairs: "In the
United States, the Round Table 'front group' was named the Council on Foreign
Relations (CFR)." (72)
A savy observer has described the CFR's British front-role: "The interlock
problem is conspicuous for another reason, one which has never been addressed
by Congress. It seems that certain huge Yankee foundations, namely
Rockefeller, Ford, and Carnegie, have been conscious instruments of covert
U.S. foreign policy, with directors and officers who can only be described as
agents of U.S. intelligence. According to Quigley, the roots for this can be
traced to the establishment of an American branch of the British Royal
Institute in 1921, which itself had grown out of the Rhodes Trust. The
American branch, called the Council on Foreign Relations, was a largely a
front for J. P. Morgan and Company." (73)
The Council on Foreign Relations Handbook of 1936 stated: "On May 30, 1919,
several leading members of the delegations to the Paris Peace Conference met
at the Hotel Majestic in Paris to discuss setting up an international group
which would advise their respective governments on international affairs. The
U.S. was represented by Gen. Tasker H. Bliss (Chief of Staff, U.S. Army),
Col. Edward M. House, Whitney H. Shepardson, Dr. James T. Shotwell, and Prof.
Archibald Coolidge. Great Britain was unofficially represented by Lord Robert
Cecil, Lionel Curtis, Lord Eustace Percy, and Harold Temperley." The May 30th
meeting was held at the billet of the British delegation and proposed an
Anglo-American Institute of International Affairs -- one branch in London and
one in New York. (74) The New York and London locations were appropriate
since "nearly all of them were bankers and lawyers." (75)
The British moved quickly to establish their branch. (76) The establishment
of the American branch was much slower. When the American delegates got home
their fellow citizens were "absorbed in isolationism and prohibition,
throughly inhospitable to the ideas of the League of Nations." (77)
So far no complete list of the fifty dinner guests has been located. It has
been stated, however: "The twenty-one Americans, who, together with (their
29) British counterparts, founded in Paris The Institute of International
Affairs, were a diverse group that included Col. Edward M. House, Herbert
Hoover, Gen. Tasker Bliss, Christian Herter, and such scholars as Charles
Seymour, later President of Yale, Professors Archibald Cary Coolidge of
Harvard and James T. Shotwell of Columbia." (78) There were two camps. One
was headed by the U.S. official negotiators Tasker H. Bliss and Edward House
along with advisors Herbert Hoover and Thomas W. Lamont -- along with their
aides. The other side was composed of the twelve scholars that had served the
American delegation in an advisory capacity. (79) Most of the scholars were
from Harvard, Yale and Columbia. (80)
The returning Inquiry scholars lacked the funds to create the envisioned
American Institute of International Affairs but offered diplomatic
experience, expertise and high-level contacts: "The men of law and banking,
by contrast, could tap untold resources of finance...This was the synergy
that produced the modern Council..." (81) The money to found the CFR came in
part from J.P. Morgan, John D. Rockefeller, Bernard Baruch, Otto Kahn Jacob
Schiff and Paul Warburg. (82)
Another source suggests that the original CFR itself had fund-raising
problems: "They took the name of an organization already in existence. The
original Council on Foreign Relations had been formed in New York in July,
1918, but in little more than a year had become inactive owing to an
inability to raise the necessary funds. It was with 66 members of this
original crowd that the peacemongers from Paris merged to form the
organization we know today." (83)
J.P. Morgan's personal attorney, John W. Davis (and later Republican
presidential candidate), was the founding President of the CFR. Paul Carvath,
the first Vice-President of the CFR, also represented the J.P. Morgan
interests. The council's first chairman was Morgan partner Russell
Leffingwell. Morgan also had the loyalty of many professors due to his large
academic endowments. (84) Paul Cravath was also the founder of the famous law
firm of Cravath, Swaine & Moore. (85)
In summary, the Federal Reserve System, the League of Nations and the Council
on Foreign Relations had both common origins and creators. Last, but not
least, the CFR was of British -- not U.S. origin.
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