The "Money Power" and The Left

Source: Tragedy and Hope, A History of the World in Our Time by Carroll Quigley, Volumes 1-8, New York: The Macmillan Company 1966.

This text has been taken from a non-paginated OCR of the book.

The Chief Links Between Wall Street,
the Left and Communists

Thomas W. Lamont

Thomas W. Lamont

Our concern at the moment is with the links between Wall Street and the Left, especially the Communists. Here the chief link was the Thomas W. Lamont family. This family was in many ways parallel to the Straight family. Tom Lamont had been brought into the Morgan firm, as Straight was several years later, by Henry P. Davison, a Morgan partner from 1909. Lamont became a partner in 1910, as Straight did in 1913. Each had a wife who became a patroness of Leftish causes, and two sons, of which the elder was a conventional banker, and the younger was a Left-wing sympathizer and sponsor. In fact, all the evidence would indicate that Tom Lamont was simply Morgan’s apostle to the Left in succession to Straight, a change made necessary by the latter’s premature death in 1918. Both were financial supporters of liberal publications; in Lamont’s case The Saturday Review of Literature, which he supported throughout the 1920’s and 1930’s, and the New York Post, which he owned from 1918 to 1924.

The Files of the House Un-American Activities
Committee

The chief evidence, however, can be found in the files of the HUAC which show Tom Lamont, his wife Flora, and his son Corliss as sponsors and financial angels to almost a score of extreme Left organizations, including the Communist Party itself. Among these we need mention only two. One of these was a Communist-front organization, the Trade Union Services, Incorporated, of New York City, which in 1947 published fifteen trade-union papers for various CIO unions. Among its officers were Corliss Lamont and Frederick Vanderbilt Field (another link between Wall Street and the Communists). The latter was on the editorial boards of the official Communist newspaper in New York, the Daily Worker, as well as its magazine, The New Masses, and was the chief link between the Communists and the Institute of Pacific Relations in 1928-1947. Corliss Lamont was the leading light in another Communist organization, which started life in the 1920’s as the Friends of the Soviet Union, but in 1943 was reorganized, with Lamont as chairman of the board and chief incorporator, as the National Council of American-Soviet Friendship.

Corliss Lamont Was One of the Chief Spokesmen for the
Soviet Point of View in America

During this whole period of over two decades, Corliss Lamont, with the full support of his parents, was one of the chief figures in “fellow traveler” circles and one of the chief spokesmen for the Soviet point of view both in these organizations and also in connections which came to him either as son of the most influential man in Wall Street or as professor of philosophy at Columbia University. His relationship with his parents may be reflected in a few events of this period.

Lamont Refuses to Testify Before Congress

In January 1946, Corliss Lamont was called before HUAC to give testimony on the National Council of American-Soviet Friendship. He refused to produce records, was subpoenaed, refused, was charged with contempt of Congress, and was so cited by the House of Representatives on June 26, 1946. In the midst of this controversy, in May, Corliss Lamont and his mother, Mrs. Thomas Lamont, presented their valuable collection of the works of Spinoza to Columbia University. The adverse publicity continued, yet when Thomas Lamont rewrote his will, on January 6, 1948, Corliss Lamont remained in it as co-heir to his father’s fortune of scores of millions of dollars.

The McCarran Committee Shows that China Was Lost to the Communists
by the Deliberate Actions of the State Department and the Institute of Pacific Relations

In 1951 the Subcommittee on Internal Security of the Senate Judiciary Committee, the so-called McCarran Committee, sought to show that China had been lost to the Communists by the deliberate actions of a group of academic experts on the Far East and Communist fellow travelers whose work in that direction was controlled and coordinated by the Institute of Pacific Relations (IPR). The influence of the Communists in IPR is well established, but the patronage of Wall Street is less well known.

The IPR Was Financed by the Carnegie and Rockefeller Foundations

The IPR was a private association of ten independent national councils in ten countries concerned with affairs in the Pacific.

The headquarters of the IPR and of the American Council of IPR were both in New York and were closely associated on an interlocking basis. Each spent about $2.5 million dollars over the quarter-century from 1925 to 1950, of which about half, in each case, came from the Carnegie Foundation and the Rockefeller Foundation (which were themselves interlocking groups controlled by an alliance of Morgan and Rockefeller interests in Wall Street). Much of the rest, especially of the American Council, came from firms closely allied to these two Wall Street interests, such as Standard Oil, International Telephone and Telegraph, International General Electric, the National City Bank, and the Chase National Bank. In each case, about l0 percent of income came from sales of publications and, of course, a certain amount came from ordinary members who paid $15 a year and received the periodicals of the IPR and its American Council, Pacific Affairs and Far Eastern Survey.

Large Funds Were Given to IPR by Wall Street
and the Large Foundations

The financial deficits which occurred each year were picked up by financial angels, almost all with close Wall Street connections. The chief identifiable contributions here were about $60,000 from Frederick Vanderbilt Field over eighteen years, $14,700 from Thomas Lamont over fourteen years, $800 from Corliss Lamont (only after 1947), and $18,000 from a member of Lee, Higginson in Boston who seems to have been Jerome D. Greene. In addition, large sums of money each year were directed to private individuals for research and travel expenses from similar sources, chiefly the great financial foundations.

The IPR Line Was Parroted by the State Department,
Ivy League Schools and Scholars Funded by Wall Street

Most of these awards for work in the Far Eastern area required approval or recommendation from members of IPR. Moreover, access to publication and recommendations to academic positions in the handful of great American universities concerned with the Far East required similar sponsorship. And, finally, there can be little doubt that consultant jobs on Far Eastern matters in the State Department or other government agencies were largely restricted to IPR-approved people. The individuals who published, who had money, found jobs, were consulted, and who were appointed intermittently to government missions were those who were tolerant of the IPR line. The fact that all these lines of communication passed through the Ivy League universities or their scattered equivalents west of the Appalachians, such as Chicago, Stanford, or California, unquestionably went back to Morgan’s influence in handling large academic endowments.

IPR Scholars, the State Department and the Kremlin
Promote the Same Viewpoint

There can be little doubt that the more active academic members of IPR, the professors and publicists who became members of its governing board (such as Owen Lattimore, Joseph P. Chamberlain, and Philip C. Jessup of Columbia, William W. Lockwood of Princeton, John K. Fairbank of Harvard, and others) and the administrative staff (which became, in time, the most significant influence in its policies) developed an IPR party line. It is, furthermore, fairly clear that this IPR line had many points in common both with the Kremlin’s party line on the Far East and with the State Department’s policy line in the same area. The interrelations among these, or the influence of one on another, is highly disputed. Certainly no final conclusions can be drawn.

There Was a Great Deal of Intrigue Used
to Influence U.S. Policy

Clearly there were some Communists, even party members, involved (such as Frederick Vanderbilt Field)…. Furthermore, there was a great deal of intrigue both to help those who agreed with the IPR line and to influence United States government policy in this direction., but there is no evidence of which I am aware of any explicit plot or conspiracy to direct American policy in a direction favorable either to the Soviet Union or to international Communism. [The evidence alluded to here exists, however,

the real aim of these individuals and groups was to betray China into the hands of the communists in order to build a new Imperial System. The Soviet Union is a part of this secret Imperial Order and was set up by the Money Power in 1917. They planned to support and build Communist China into a new Super Power to rule Asia.]….

Many People in the U.S. Accept the Communist Ideology

The true explanation of what happened is not yet completely known and, as far as it is known, is too complicated to elucidate here. It is, however, clear that many persons who were born in the period 1900-1920 and came to maturity in the period 1928-1940 were so influenced by their experiences of war, depression, and insecurity that they adopted, more or less unconsciously, certain aspects of the Communist ideology (such as the economic interpretation of history, the role of a dualistic class struggle in human events, or the exploitative interpretation of the role of capital in the productive system and of the possessing groups in any society). Many of these ideas were nonsense, even in terms of their own experiences, but they were facile interpretative guides for people who, whatever their expert knowledge of their special areas, were lacking in total perspective on society as a whole or human experience as a whole…. This outlook was, for example, prevalent in that ubiquitous intriguer, Lionel Curtis, who was the original guide and parent of the IPR and of many similar organizations….

The Right’s Fairy Tale

The … Right[‘s] version of these events as written up by John T. Flynn, Freda Utley, and others … had a tremendous impact on American opinion and American relations with other countries in the years 1947-1955. This … Right fairy tale, which is now an accepted folk myth in many groups in America, pictured the recent history of the United States, in regard to domestic reform and in foreign affairs, as a well-organized plot by extreme Left-wing elements, operating from the White House itself and controlling all the chief avenues of publicity in the United States, to destroy the American way of life, based on private enterprise, laissez faire, and isolationism, in behalf of alien ideologies of Russian Socialism and British cosmopolitanism (or internationalism). This plot, if we are to believe the myth, worked through such avenues of publicity as The New York Times and the Herald Tribune, the Christian Science Monitor and the Washington Post, the Atlantic Monthly and Harper’s Magazine and had at its core the wild-eyed and bushy-haired theoreticians of Socialist Harvard and the London School of Economics. It was determined to bring the United States into World War II on the side of England (Roosevelt’s first love) and Soviet Russia (his second love) in order to destroy every finer element of American life and, as part of this consciously planned scheme, invited Japan to attack Pearl Harbor, and destroyed Chiang Kai-shek, all the while undermining America’s real strength by excessive spending and unbalanced budgets.

The Right’s Fairy Tale Does Have a Modicum of Truth

This myth, like all fables, does in fact have a modicum of truth. There does exist, and has existed for a generation, an international Anglophile network which operates, to some extent, in the way the … Right believes the Communists act. In fact, this network, which we may identify as the Round Table Groups, has no aversion to cooperating with the Communists, or any other groups, and frequently does so. I know of the operations of this network because I have studied it for twenty years and was permitted for two years, in the early 1960’s. to examine its papers and secret records. I have no aversion to it or to most of its aims and have, for much of my life, been close to it and to many of its instruments. I have objected, both in the past and recently, to a few of its policies (notably to its belief that England was an Atlantic rather than a European Power and must be allied, or even federated, with the United States and must remain isolated from Europe), but in general my chief difference of opinion is that it wishes to remain unknown, and I believe its role in history is significant enough to be known.

The Round Table Groups Have Played a Very Significant
Role in the History of the U.S.

The Round Table Groups have already been mentioned in this book several times, notably in connection with the formation of the British Commonwealth in chapter 4 and in the discussion of appeasement in chapter 12 (“the Cliveden Set”). At the risk of some repetition, the story will be summarized here, because the American branch of this organization (sometimes called the “Eastern Establishment’) has played a very significant role in the history of the United States in the last generation.

The Original Purpose of the Round Table Groups

The Round Table Groups were semi-secrel discussion and lobbying groups organized by Lionel Curtis, Philip H. Kerr (Lord Lothian), and (Sir) William S. Marris in 1908-1911. This was done on behalf of Lord Milner, the dominant Trustee of the Rhodes Trust in the two decades 1905-1925.

The original purpose of these groups was to seek to federate the English-speaking world along lines laid down by Cecil Rhodes (1853-1902) and William T. Stead (1849-1912), and the money for the organizational work came originally from the Rhodes Trust.

By 1915 Round Table groups existed in seven countries, including England, South Africa, Canada, Australia, New Zealand, India, and a rather loosely organized group in the United States (George Louis Beer, Walter Lippmann, Frank Aydelotte, Whitney Shepardson, Thomas W. Lamont, Jerome D. Greene, Erwin D. Canham of the Christian Science Monitor, and others). The attitudes of the various groups were coordinated by frequent visits and discussions and by a well-informed and totally anonymous quarterly magazine. The Round Table, whose first issue, largely written by Philip Kerr, appeared in November 1910.

The Leaders of the Round Table Groups

The leaders of this group were: Milner, until his death in 1925, followed by Curtis (1872-1955), Robert H, (Lord) Brand (brother-in-law of Lady Astor) until his death in 1963, and now Adam D. Marris, son of Sir William and Brand’s successor as managing director of Lazard Brothers bank. The original intention had been to have collegia! leadership, but Milner was too secretive and headstrong to share the role. He did so only in the period 1913-1919 when he held regular meetings with some of his closest friends to coordinate their activities as a pressure group in the struggle with Wilhelmine Germany. This they called their “Ginger Group.” After Milner’s death in 1925, the leadership was largely shared by the survivors of Milner’s “Kindergarten,” that is, the group of young Oxford men whom he used as civil servants in his reconstruction of South Africa in 1901-1910. Brand was the last survivor of the “Kindergarten”: since his death, the greatly reduced activities of the organization have been exercised largely through the Editorial Committee of The Round Table magazine under Adam Marris.

Financial Backers of the Found Table Groups

Money for the widely ramified activities of this organization came originally from the associates and followers of Cecil Rhodes, chiefly from the Rhodes Trust itself, and from wealthy associates such as the Beit brothers, from Sir Abe Bailey, and (after 1915) from the Astor family. Since 1925 there have been substantial contributions from wealthy individuals and from foundations and firms associated with the international banking fraternity, especially the Carnegie United Kingdom Trust, and other organizations associated with J. P. Morgan, the Rockefeller and Whitney families, and the associates of Lazard Brothers and of Morgan, Grenfell, and Company.

The Existing Financial Network in New York and London

The chief backbone of this organization grew up along the already existing financial cooperation running from the Morgan Bank in New York to a group of international financiers in London led hy Lazard Brothers. Milner himself in 1901 had refused a fabulous offer, worth up to S100,000 a year, to become one of the three partners of the Morgan Bank in London, in succession to the younger J. P. Morgan who moved from London to join his father in New York (eventually the vacancy went to E. C. Grenfell, so that the London affiliate of Morgan became known as Morgan, Grenfell, and Company). Instead, Milner became director of a number of public banks, chiefly the London Joint Stock Bank, corporate precursor of the Midland Bank. He became one of the greatest political and financial powers in England, with his disciples strategically placed throughout England in significant places, such as the editorship of The Times, the editorship of The Observer, the managing directorship of Lazard Brothers, various administrative posts, and even Cabinet positions. Ramifications were established in politics, high finance, Oxford and London universities, periodicals, the civil service, and tax-exempt foundations.

Front Organizations Established in Key Countries

At the end of the war of 1914, it became clear that the organization of this system had to be greatly extended. Once again the task was entrusted to Lionel Curtis who established, in England and each dominion, a front organization to the existing local Round Table Group. This front organization, called the Royal Institute of International Affairs, had as its nucleus in each area the existing submerged Round Table Group. In New York it was known as the Council on Foreign Relations, and was a front for J. P. Morgan and Company in association with the very small American Round Table Group. The American organizers were dominated by the large number of Morgan “experts,” including Lamont and Beer, who had gone to the Paris Peace Conference and there became close friends with the similar group of English “experts” which had been recruited by the Milner group.

In fact, the original plans for the Royal Institute of International Affairs and the Council on Foreign Relations were drawn up at Paris.

The Council of the RIIA (which, by Curtis’s energy came to be housed in Chatham House, across St. James’s Square from the Astors, and was soon known by the name of this headquarters) and the board of the Council on Foreign Relations have carried ever since the marks of their origin. Until 1960 the council at Chatham House was dominated by the dwindling group of Milner’s associates, while the paid staff members were largely the agents of Lionel Curtis. The Round Table for years (until 1961) was edited from the back door of Chatham House grounds in Ormond Yard, and its telephone came through the Chatham House switchboard.

The Council on Foreign Relations in New York Was Dominated
by J. P. Morgan

The New York branch was dominated by the associates of the Morgan Bank. For example, in 1928 the Council on Foreign Relations had John W. Davis as president, Paul Cravath as vice-president, and a council of thirteen others, which included Owen D. Young, Russell C. Leffingwell, Norman Davis, Allen Dulles, George W. Wickersham, Frank L. Polk, Whitney Shepardson, Isaiah Bowman, Stephen P. Duggan, and Otto Kahn. Throughout its history the council has been associated with the American Round Tablers, such as Beer, Lippmann. Shepardson. and Jerome Greene.

Wall Street Contacts

The academic figures have been those linked to Morgan, such as James T. Shotwell, Charles Seymour, Joseph P. Chamberlain, Philip Jessup, Isaiah Bowman and, more recently, Philip Moseley, Grayson L Kirk, and Henry M. Wriston. The Wall Street contacts with these were created originally from Morgan’s influence in handling large academic endowments. In the case of the largest of these endowments, that at Harvard, the influence was usually exercised indirectly through “State Street,” Boston, which, for much of the twentieth century, came through the Boston banker Thomas Nelson Perkins.

Wall Street Law Firms

Closely allied with this Morgan influence were a small group of Wall Street law firms, whose chief figures were Elihu Root, John W. Davis, Paul D. Cravath, Russell Leffingwell, the Dulles brothers and, more recently. Arthur R Dean. Philip D. Reed, and John J. McCloy. Other nonlegal agents of Morgan included men like Owen D. Young and Norman H. Davis.

J. P. Morgan and Company Were the Center of the
Round Table Group in America

On this basis, which was originally financial and goes back to George Peabody, there grew up in the twentieth century a power structure between London and New York which penetrated deeply into university life, the press, and the practice of foreign policy. In England the center was the Round Table Group, while in the United States it was J. P. Morgan and Company or its local branches in Boston, Philadelphia, and Cleveland. Some rather incidental examples of the operations of this structure are very revealing, just because they are incidental. For example, it set up in Princeton a reasonable copy of the Round Table Group’s chief Oxford headquarters. All Souls College. This copy, called the Institute for Advanced Study, and best known, perhaps, as the refuge of Einstein, Oppenheimer, John von Neumann, and George F. Ken nan. was organized by Abraham Flexner of the Carnegie Foundation and Rockefeller’s General Education Board after he had experienced the delights of All Souls while serving as Rhodes Memorial Lecturer at Oxford. The plans were largely drawn by Tom Jones, one of the Round Table’s most active intriguers and foundation administrators.

The American Branch Exerted Its Influence Through
Five American Newspapers

The American branch of this “English Establishment” exerted much of its influence through five American newspapers (The New York Times, New York Herald Tribune. Christian Science Monitor, the Washington Post, and the lamented Boston Evening Transcript). In fact, the editor of the Christian Science Monitor was the chief American correspondent (anonymously) of The Round Table, and Lord Lothian, the original editor of The Round Table and later secretary of the Rhodes Trust (1925-1939) and ambassador to Washington, was a frequent writer in the Monitor. It might be mentioned that the existence of this Wall Street, Anglo-American axis is quite obvious once it is pointed out. It is reflected in the fact that such Wall Street luminaries as John W. Davis, Lewis Douglas, Jock Whitney, and Douglas Dillon were appointed to he American ambassadors in London.

The Double International Network Extended into New Countries through
Institute of International Affairs

This double international network in which the Round Table groups formed the semi-secret or secret nuclei of the Institutes of International Affairs was extended into a third network in 1925, organized by the same people for the same motives. Once again the mastermind was Lionel Curtis, and the earlier Round Table Groups and Institutes of International Affairs were used as nuclei for the new network. However, this new organization for Pacific affairs was extended to ten countries, while the Round Table Groups existed only in seven. The new additions, ultimately China, Japan, France, the Netherlands, and Soviet Russia, had Pacific councils set up from scratch. In Canada, Australia, and New Zealand, Pacific councils, interlocked and dominated by the Institutes of International Affairs, were set up. In England, Chatham House served as the English center for both nets, while in the United States the two were parallel creations (not subordinate) of the Wall Street allies of the Morgan Bank. The financing came from the same international banking groups and their subsidiary commercial and industrial firms. In England, Chatham House was financed for both networks by the contributions of Sir Abe Bailey, the Astor family, and additional funds largely acquired by the persuasive powers of Lionel Curtis. The financial difficulties of the IPR Councils in the British Dominions in the depression of 1929-1935 resulted in a very revealing effort to save money, when the local Institute of International Affairs absorbed the local Pacific Council, both of which were, in a way, expensive and needless fronts for the local Round Table groups.

The Chief Aim of the Elaborate and Semi-secret Organization

The chief aims of this elaborate, semi-secret organization were… to coordinate the international activities and outlooks of all the English-speaking world into one (which would largely, it is true, be that of the London group);

to work to… help backward, colonial, and underdeveloped areas to advance toward stability, law and order, and prosperity along lines somewhat similar to those taught at Oxford and the University of London (especially the School of Economics and the Schools of African and Oriental Studies). (Democratic socialism, finance capitalism, monopoly capitalism, secularism, internationalism, ect.)

These organizations and their financial backers were in no sense reactionary or Fascistic persons, as Communist propaganda would like to depict them. Quite the contrary. They were gracious and cultured gentlemen of… social experience who were much concerned with the freedom of expression of minorities and the rule of law for all, who constantly thought in terms of Anglo-American solidarity, of political partition and federation, and who were convinced that they could gracefully civilize the Boers of South Africa, the Irish, the Arabs, and the Hindus, and who are largely responsible for the partitions of Ireland, Palestine, and India, as well as the federations of South Africa, Central Africa, and the West Indies. Their desire to win over the opposition by cooperation worked with Smuts but failed with Hertzog, worked with Gandhi but failed with Menon, worked with Stresemann…. If their failures now loom larger than their successes, this should not be allowed to conceal the high motives with which they attempted both.

Contrary to published claims, the real goal of these individuals and organizations is to further the development of a New Imperial Order and World Empire.]

Round Table Groups Jettison Communists When Congress
Discovers Their Activities

It was this group of people, whose wealth and influence so exceeded their experience and understanding, who provided much of the framework of influence which the Communist sympathizers and fellow travelers took over in the United States in the 1930’s.

It must be recognized that the power that these energetic Left-wingers exercised was never their own power or Communist power but was ultimately the power of the international financial coterie

and, once the anger and suspicions of the American people were aroused, as they were by 1950, it was a fairly simple matter to get rid of the Red sympathizers.FN1

The Reece Committee to Investigate Tax Exempt Foundations

Before this could be done, however, a congressional committee, following backward to their source the threads which led from admitted Communists like Whittaker Chambers, through Alger Hiss, and the Carnegie Endowment to Thomas Lamont and the Morgan Bank, fell into the whole complicated network of the interlocking tax-exempt foundations.

The Eighty-third Congress in July 1953 set up a Special Committee to Investigate Tax-Exempt Foundations with Representative B. Carroll Reece, of Tennessee, as chairman.

It soon became clear that people of immense wealth would be unhappy if the investigation went too far and that the “most respected” newspapers in the country, closely allied with these men of wealth, would not get excited enough about any revelations to make the publicity worth while, in terms of votes or campaign contributions. An interesting report showing the Left-wing associations of the interlocking nexus of tax-exempt foundations was issued in 1954 rather quietly. Four years later, the Reece committee‘s general counsel, Rene A. Wormser, wrote a shocked, but not shocking, book on the subject called Foundations: Their Power and Influence. See the Staff Reports prepared by the Committee under the direction of Norman Dodd. 1

Jerome D. Greene Is One of the Key Figures in the Establishment of the
Council on Foreign Relations

One of the most interesting members of this Anglo-American power structure was Jerome D. Greene (1874-1959). Born in Japan of missionary parents, Greene graduated from Harvard’s college and law school by 1899 and became secretary to Harvard’s president and corporation in 1901-1910. This gave him contacts with Wall Street which made him general manager of the Rockefeller Institute (1910-1912), assistant to John D. Rockefeller in philanthropic work for two years, then trustee to the Rockefeller Institute, to the Rockefeller Foundation, and to the Rockefeller General Education Board until 1939. For fifteen years (1917-1932) he was with the Boston investment banking firm of Lee, Higginson, and Company, most of the period as its chief officer, as well as with its London branch. As executive secretary of the American section of the Allied Maritime Transport Council, stationed in London in 1918, he lived in Toynbee Hall, the world’s first settlement house, which had been founded hy Alfred Milner and his friends in 1884. This brought him in contact with the Round Table Group in England, a contact which was strengthened in 1919 when he was secretary to the Reparations Commission at the Paris Peace Conference. Accordingly, on his return to the United States he was one of the early figures in the establishment of the Council on Foreign Relations, which served as the New York branch of Lionel Curtis’s Institute of International Affairs.

Green Sells Fraudulent Securities of Ivor Kreuger

As an investment banker, Greene is chiefly remembered for his sales of millions of dollars of the fraudulent securities of the Swedish match king, Ivor Kreuger. That Greene offered these to the American investing public in good faith is evident from the fact that he put a substantial part of his own fortune in the same investments. As a consequence, Kreuger’s suicide in Paris in April 1932 left Greene with little money and no job. He wrote to Lionel Curtis, asking for help, and was given, for two years, a professorship of international relations at Aberystwyth, Wales. The Round Table Group controlled that professorship from its founding by David Davies in 1919, in spite of the fact that Davies, who was made a peer in 1932, had broken with the Round Table because of its subversion of the League of Nations and European collective security.

Greene Returns to America

On his return to America in 1934, Greene also returned to his secretaryship of the Harvard Corporation and became, for the remainder of his life, practically a symbol of Yankee Boston, as trustee and officer of the Boston Symphony Orchestra, the Gardner Museum in Fenway Court, the New England Conservatory of Music, the American Academy in Rome, the Brookings Institution, the Rockefeller Foundation, and the General Education Board (only until 1939). He was also director of the Harvard Tercentenary Celebration in 1934-1937.

Greene Was Wall Street’s Chief Conduct of Funds
for the IPR

Greene is of much greater significance in indicating the real influences within the Institute of Pacific Relations than any Communists or fellow travelers. He wrote the constitution for the IPR in 1926, was for years the chief conduit for Wall Street funds and influence into the organization, was treasurer of the American Council for three years, and chairman for three more, as well as chairman of the International Council for four years.

There Is a Very Real Power Structure in Existence

Jerome Greene is a symbol of much more than the Wall Street influence in the IPR. He is also a symbol of the relationship betAveen the financial circles of London and those of the eastern United States which reflects one of the most powerful influences in twentieth-century American and world history. The two ends of this English-speaking axis have sometimes been called, perhaps facetiously, the English and American Establishments. There is, however, a considerable degree of truth behind the joke, a truth which reflects a very real power structure. It is this power structure which the… Right in the United States has been attacking for years in the belief that they are attacking the Communists. This is particularly true when these attacks are directed, as they so frequently are at “Harvard Socialism,” or at “Left-wing newspapers” like The New York Times and the Washington Post, or at foundations and their dependent establishments, such as the Institute of International Education.

Misdirected Attacks by the Right

These misdirected attacks by the… Right did much to confuse the American people in the period 1948-1955, and left consequences which were still significant a decade later. By the end of 1953, most of these attacks had run their course. The American people, thoroughly bewildered at widespread charges of twenty years of treason and subversion, had rejected the Democrats and put into the White House the Republican Party’s traditional favorite… Dwight D. Eisenhower. At the time, two events, one public and one secret, were still in process. The public one was the Korean War of 1950-1953: the secret one was the race for the thermonuclear bomb.

– 30 –

FN1 NoSnow: It’s a little bit difficult to take Professor Quigley seriously at this point. First, because Quigley himself has said that the “Money Power” set up the Soviet Union in 1917. Then, Quigley says, the real aim of Sovietizing Russia and China, (an aim which was a secret), is the set-up of a new Imperial Order. Finally, if the “Reds” were dispensed with, as Quigley says, in the aftermath of the Reece and McCarran investigations…. how does a Soviet spy, Lester Bowles Pearson, (exposed as such in the McCarran hearings) nonetheless then become President of the CIIA — the Canadian counterpart of the CFR (and the secretariat in Canada to the Institute of Pacific Relations) and rise into federal politics in Canada despite the RCMP’s having been warned by the FBI?

If the “Reds” were cleared out, why is Communist Pierre Trudeau a member of the CIIA? How does he become Prime Minister of Canada? Trudeau, on succeeding Pearson in the Prime Minister’s Office, appointed elite Soviet spies to run Canada’s national security, police, and communications.

It doesn’t sound to me as if the Reds were cleared out at all; nor, given the plans alleged by Quigley for a Soviet new world empire, would it be logical. Said Quigley:

the real aim of these individuals and groups was to betray China into the hands of the communists in order to build a new Imperial System. The Soviet Union is a part of this secret Imperial Order and was set up by the Money Power in 1917.

Norman Dodd‘s revelations (in the video clip above) of White House secret instructions to the tax-free foundations to affect education so as to Sovietize America, substantiate Quigley’s allegations.

The Reds were not cleared out; they’ve just got themselves a much better cover story, and better propaganda departments.

– – –

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Simon Reisman (FTA negotiator) Suspected Communist Subversive: RCMP

Exclusive to
“No Snow in Moscow”

I have obtained an authentic copy of an old draft article by noted journalist Peter Worthington (born February 16, 1927) which contains names of suspected Communists in the federal government of Canada, as revealed in the RCMP’s now-quashed “Featherbed File”.

Prime Minister Pierre Elliott Trudeau squelched the Featherbed file with an Order-in-Council before he left office.  Trudeau himself was named in it as a suspected Communist subversive.

Many headlines could be drawn from this article. However, the one that comes to my mind first is that Sol Simon Reisman, who negotiated the Canada-US Free Trade Agreement (FTA), was a suspected Communist subversive. RCMP Featherbed investigators objected in vain to the renewal of Reisman’s high-level security clearance with the federal government of Canada.

In 1982, Trudeau ordered a royal commission convened:  the Royal Commission on the Economic Union and Development Prospects for Canada, known as the Macdonald Commission, and chaired by Trudeau’s friend and co-Bilderberger, Liberal Minister of Finance, Donald Stovel Macdonald.

The Macdonald Commission reported to Conservative Prime Minister Brian Mulroney in 1985.  It recommended free trade with the USA, and the conversion of Canada to a socialist welfare state.

Sol Simon Reisman, Free Trade negotiator, and RCMP suspected communist subversive

Sol Simon Reisman, Free Trade negotiator, and RCMP suspected communist subversive

In May of 1986, Canadian and American negotiators began to work out a so-called trade deal, known as the Canada-US Free Trade Agreement (FTA).  The Canadian team was led by former deputy Minister of Finance Simon Reisman and the American side by Peter O. Murphy, former deputy United States trade representative in Geneva.

The FTA was deepened by the coming into force on January 1, 1994 of NAFTA, the North American Free Trade Agreement involving Canada, the USA and Mexico, and spanning the continent.

A number of informed and well placed observers have identified the NAFTA and the Security and Prosperity Partnership of North America (SPP) which followed it on the pretext of so-called terrorist attacks of September 2001, as the building blocks of a North American Union modeled on the European Union.  Today, The European Union is called both Marxist and “post-democratic” by some members of the press and intellectuals such as Professor John Fonte.

American Charlotte Iserbyt has warned of an impending North American Soviet Union, citing Mikhail Gorbachev who in 2002 called the European Union the “New European Soviet”.

American-Lithuanian Vilius Bražėnas viewed the series of trade deals on this continent in a similar light.  Bražėnas, a survivor of Communism, died on October 3, 2010 at the age of 97.  In his final passionate articles, he warned against the FTA, NAFTA, the FTAA and related trade-zone accords as tantamount to a multiple coup-d’état which in the end would impose a Communist regional union in North America.

Former Soviet dissident, Vladimir Bukovsky, who survived over a decade as a prisoner of Soviet mental hospitals, has warned on video and in print that the European Union is “the old Soviet model in western guise.”

Is anyone listening? I know I am.

U.S. Congressman Lawrence Patton McDonald, April 1 1935 to September 1, 1983

U.S. Congressman Lawrence Patton McDonald, April 1 1935 to September 1, 1983

In particular because U.S. Congressman Lawrence Patton McDonald in 1983 publicly warned America that the Marxist Council on Foreign Relations (CFR) and the Marxist Trilateral Commission and other related non-governmental entities were pushing for a Communist regional union through a series of apparently harmless trade deals.

In the words of Congressman McDonald himself on Crossfire, speaking of the CFR and related circles of elites:
 

“[T]heir objective is to try to bring about a gradual transition in our society -– a dissolving of sovereignty -– and a moving steadily to the left on the political spectrum.”

Canada’s FTA under Reisman certainly shifts Canada to the left while initiating the North American merger process.

Speaking specifically of the CFR during an interview with Larry McDonald on the television program Crossfire, McDonald said:

Council on Foreign Relations (CFR)[Y]ou are looking at a group (the CFR et als) that has worked to bring about a dissolution of national sovereignties on the road to world government.”

McDonald then quotes Arthur Schlesinger in the May-June 1947 issue of the Partisan Review:

”He [Schlesinger] said that the objective -– the secret policy of which we can’t tell the American public because they’re not sophisticated enough to see the value — is that through a steady result of erosion of NEW DEALS, we bring the American society steadily to the left, and through a signed concept of benign containment, we merge into the vital center of the socialist left.  Those were his words, not mine.”

Congressman McDonald continues further on replying to Crossfire host Pat Buchanan’s question whether the concept of the UN as the basis of a world government is not passé:

”Well, I think there are those who realize that moving straight from a prototype of the United Nations into world government perhaps is tactically impossible.  But phasing out increasingly national sovereignty into REGIONAL GOVERNMENT and phasing out sovereignties into international treaties ….” is the order of the day.

Today, with these warnings in mind, I invite you to read Peter Worthington’s old draft article exposing the chief negotiator of the FTA — which forms the initial basis of a clearly incoming REGIONAL UNION in North America — as someone the RCMP had warned the federal government not to trust because he likely was a Communist subversive.

However, the warnings fell on deaf ears, no doubt because the very Prime Minister’s Office the RCMP attempted to alert was itself already infested with one-world government types and suspected Communist subversives such as Soviet agent Lester B. Pearson, and Soviet mole Pierre Elliott Trudeau.

As a consequence, the very basis of Communist regional union in North America was negotiated by someone Canada’s national police and security apparatus long believed to be a Communist subversive.

Following is an exclusive typed transcript made by me from Worthington’s own typed, draft article, which he hand-edited.

For ease of reading, i am retyping the draft clean, without indicating Mr. Worthington’s deletions and insertions.  Images and captions have been added by me.

TRANSCRIPT — DRAFT — THE FEATHERBED FILE
by Peter Worthington (circa 1979)

(Scan of actual draft article is embedded below)

Operation Featherbed, a 14-year RCMP investigation into suspected subversives in high places, tried to warn the federal government it was being systematically infiltrated.

Trudeau, Pearson, Diefenbaker ignore RCMP warnings of high-level communist penetration of Canada

Trudeau, Pearson, Diefenbaker ignore RCMP warnings of high-level communist penetration of Canada

But the governments of John Diefenbaker, Lester Pearson, and Pierre Trudeau dismissed the Featherbed warnings as unsubstantiated Communist witch-hunting.

Besides, it would have been too embarrassing to repudiate people their governments had promoted to positions of influence.

Featherbed suspected that Communist infiltration of the federal bureaucracy had been set in train in 1923 with the co-option of O.D. Skelton, renowned as the “father of the civil service”.

The Featherbed analysts concluded that over the years, any promising “agents of influence” were talent-spotted at Communist study clubs in universities and brought into the civil service.

Inside, a shadowy network promoted “birds of a feather,” which gave the operation its code-name.

Robert Bryce (1984)

Robert Bryce (1984)

Among the more prominent (civil servant) subjects of Featherbed investigation were Robert Bryce, who rose from the Finance Ministry to the top post as cabinet secretary; his successor as deputy minister of finance, Sol Simon Reisman; and the husband-and-wife team of Bernard and Sylvia Ostry.1
Bernard Ostry, suspected by RCMP as being a Communist subversive

Bernard Ostry, suspected by RCMP as being a Communist subversive

Bernard Ostry became deputy minister of communications despite RCMP objections.  He was recently appoint(ed) at $65,000 a year as government special adviser on culture and communications based in Paris.

Sylvia Ostry, suspected by the RCMP as being a Communist subversive

Sylvia Ostry, suspected by the RCMP as being a Communist subversive

Sylvia Ostry, former chief of Statistics Canada, the Economic Council of Canada, and deputy minister of consumer and corporate affairs, was appointed last fall to head the economics and statistics branch of the Organization of Economic Co-operation and Development in Paris.

Soviet mole Pierre Trudeau and Soviet espionage agent Lester Pearson

Soviet mole Pierre Trudeau and Soviet espionage agent Lester Pearson

Operation Featherbed also plumbed the pasts of prime ministers Lester Pearson and Pierre Trudeau — Trudeau for his travels to Warsaw, Moscow, Peking and Havana, Pearson for allegedly having supplied information while a diplomat, that was transmitted to Moscow by a U.S. spy ring.

(Trudeau once called for his Featherbed file, “chuckled” as he read the report about his travels, associations and indiscretions, and sent it back to RCMP files).

Featherbed began as a search for suspected Communist subversives in the hierarchy of the civil service, branched out delving into university professors, lawyers, the media and trade unions.

It involved extensive surveillance, wiretapping and bugging under the code-name Operation Mercury (Featherbed was the analytical side).  The winnowed-down conclusions were summarized in a thick, black-edged book that held the names of 245 “professional” people as members of the Communist Party secret underground in Canada.

Not all the subjects of initial investigation found their way into the wrap-up black book.

Featherbed opened files on 87 CBC staffers as suspected subversives but there was no evidence of any operating network and only a handful were named in the final summation.

Tim Buck, head of the Communist Party in Canada

Tim Buck, head of the Communist Party in Canada

And Featherbed never learned the identity of “our agent in Canadian Press” that Communist Party of Canada chief Tim Buck frequently boasted about to his mistress, Bess Nascolo.  A bug in Nascolo’s house on Jones Ave., Toronto, picked up the drunken boasts after a shipment of Russian embassy vodka.

Featherbed believed that Lewis Rasminsky, former governor of the Bank of Canada, was only flirting with Communism when he attended party cell meetings in the Depression, as many disillusioned people did, and that he had rejected the ideology.

After a Featherbed investigation, the RCMP Security Service blocked the intended 1969 appointment of Grace Hartman to the government’s national commission on the status of women.  She became head of the Canadian Union of Public Employees.

Featherbed also conducted an investigation of Shirley Carr, vice-president of the Canadian Labor Congress.

What prompted Featherbed’s start in 1958 was an accusation by the U.S. Senate Internal Sub-Committee that Robert Bryce had been a member of a Communist closed party cell at Harvard university in 1935-37.

Herbert Norman, a known Communist, killed himself rather than expose 70 or more other Soviet agents

Herbert Norman, a known Communist, killed himself rather than expose 70 or more other Soviet agents

The subcommittee the previous year had cited Herbert Norman, then ambassador to Cairo, as a Communist.

Norman leaped to his death in Cairo a day after he told his doctor that if he were called to testify in a royal commission, he would to identify 60 to 70 Canadians as Communists.

Norman was a good friend of Lester Pearson and Robert Bryce and Pearson’s denunciation of U.S. interference in Canadian affairs caused the jittery RCMP brass to sever relations with the FBI.

When they were resumed, the FBI handed the information about the Silvermaster spy ring to the RCMP.  The ring’s courier, Elizabeth Bentley, told the FBI that Norman was a source of information sent to Moscow.

John Grierson, suspected but not charged with Soviet espionage (his secretary, Freida Linton, was charged)

John Grierson, suspected but not charged with Soviet espionage (his secretary, Freida Linton, was charged)

She also said that she had reported to her Soviet at spy handlers that Pearson also had been a source of information, along with John Grierson, head of the National Film Board, and his secretary, Freda Linton.

Featherbed was launched with the concept that the Silvermaster ring — which led to the indictments of Alger Hiss, assistant to the U.S. Secretary of State, and Harry Dexter White, a senior official in the U.S. Treasury Department — had its counterpart in Ottawa.

The initial investigation turned up 12 suspected equivalents in the Ottawa civil service hierarchy.  The files on the dozen were taken away by W. H. Kelly, director of RCMP Security and Intelligence, and never returned to Featherbed investigators.

After the U.S. subcommittees naming Bryce, he voluntarily went to RCMP headquarters to explain.

He admitted having attended Communist party study cells at Harvard and contended to his RCMP questioners that “you’re making too much of it.  I was only flirting with the Communists.”

Featherbed with the help of the FBI investigated his claim but concluded that Bryce had played a greater role in the study cells than he owned up to.

Harold "Kim" Philby, British Secret Service (MI6), in a 1955 file photo

Harold “Kim” Philby, British Secret Service (MI6), in a 1955 file photo

The delving also turned up a class parade photo taken at Trinity College, Cambridge, in the early 1930s. [Sitting] in the front row were Bryce, Lester Pearson, Herbert Norman and Kim Philby.

Philby went on to penetrate and sell out British Intelligence as a Soviet KGB master agent and now lives in Moscow.  The picture raised questions but answered none.

RCMP of Operation Mercury put Bryce under surveillance for many months but found nothing incriminating.

The Mercury Mounties wiretapped Simon Reisman for a long time and intercepted phone calls from a Russian embassy military attache identified as “A. Lobatchev.”

The RCMP Watching Service glued on to Reisman but never found him meeting with Lobatchev.  However, Featherbed found that Reisman’s wife had attended a Communist party training school in Port Hope, Ont., in 1954.

When Reisman’s top security clearance came up for renewal, the RCMP put in a report that it shouldn’t be renewed.  But the government’s security screening panel disagreed.

Bernard Ostry was the subject of RCMP surveillance under the code-name “Apache.”  That came after British Intelligence reported in 1962 that Ostry had attended a meeting of the Communist Party of Britain.

The Watching Service reported that Ostry had met Russian Intelligence Service agent Rem Krassilnikov at the Green Gables restaurant in Ottawa.

The RCMP took Bernard Ostry’s file to Trudeau but he dismissed their objections to his promotion to deputy minister of communications, the department that includes intercepting Soviet communications and bugging of embassies.

“I don’t want to hear any more about the Ostrys,” Trudeau said. “I would work with the devil if necessary.  Don’t bother me any more about the Ostrys.”

The RCMP had filed objections to Sylvia Ostry’s promotions on the basis of her Communist associations.  Trudeau dismissed that, too.

The RCMP could never reveal, even to Trudeau, the source for their objections to the Ostrys.

With Trudeau’s disinterest, Featherbed ground to a listless effort in 1972 and died completely by 1975.

A stroke of luck had uncovered secret Communist party memberships of several higher-ups in the trade union movement and in the civil service.

An RCMP “garbage patrol” picked up the membership list of secret section number seven of the United Jewish People’s Order in Montreal.  Section seven was the UJPO’s underground party apparatus for professional people.

Tom Kent, Queen's University: suspected by RCMP as being a Communist subversive *

Tom Kent, Queen’s University: suspected by RCMP as being a Communist subversive *


The subject of one Featherbed file, Tom Kent, complained to Pearson that it was unfair.  Kent was a policy advisor to the prime minister and assistant deputy minister of immigration.*

Featherbed’s file on Kent outlined his connections with Communist front groups while he was managing editor of the Winnipeg Free Press.

Professor C. B. Macpherson: suspected by the RCMP of being a Communist subversive

Professor C. B. Macpherson: suspected by the RCMP of being a Communist subversive

Of the many university professors in Featherbed’s files, the most important was deemed to be Prof. C. B. MacPherson of University of Toronto.

The RCMP bugged MacPherson’s island cottage near Gananoque for the regular visits by two Russian Intelligence Service officers from the Ottawa embassy.

Kay MacPherson:: suspected by the RCMP of being a Communist subversive

Kay MacPherson:: suspected by the RCMP of being a Communist subversive

MacPherson’s wife, Kay, was leader of the Voice of Women movement that paraded for rejection of nuclear weapons by Canada.

Twenty years after Igor Gouzenko defected, Featherbed analysts got around to poring through the neglected kit-bags full of papers seized in the spy-ring roundup.

In the yellowing notebooks and memo pads, they found names and phone numbers of calls made in wartime.  Tracing the numbers back to wartime government phone books, they traced calls made to civil servants who by then (1965) had risen high in the bureaucracy.

They also found evidence implicating a wartime RCAF wing commander and an army colonel in the Soviet spy rings.  But by then, the trail had gotten too cold.  Ironically, the colonel was by then dealing with Soviet trade missions for the government.

Another trail too late to pick up was a curious coincidence that went unexplained.

That was the belated discovery that Col. Nicolai Zabotin’s spy ring had used an electronics shop in Rideau St., Ottawa, as a “live letter drop.”

A card was put in the shop window to signal that a letter was waiting to be picked up.  The card’s appearance usually coincided with the visit to the manager’s office at the rear by two middle-rank civil servants.

The pair rose high in the bureaucracy and retired with honors and indexed pensions.

Operation Featherbed folded for lack of government interest.

– 30 –

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1 Trudeau himself was feared by the RCMP to be a Communist agent.  (Trudeau undoubtedly was one.  At Moscow in 1952, Trudeau led a Communist delegation organized by the Canadian Communist Party.  The Moscow meeting was an “economic summit” organized by Soviet intelligence.  See my exclusive English translations of a 7-part series on the summit, “I’m Back From Moscow,” penned by Trudeau for the leftist daily, Le Devoir.  Lester Pearson absolutely was a Soviet agent, denounced by defecting Soviet military intelligence, Elizabeth Bentley to the FBI.  However, Worthington soft-pedals the grave accusations of Elizabeth Bentley against Pearson in the McCarran hearings.  (In 2012, Worthington, still kicking and alive, soft-pedaled his own accusations against Communist Trudeau of the 1970s and 80s, thus bleaching Pierre’s reputation when Red offspring Justin was running for the “Liberal” leadership.  Police suspected Bernard and Sylvia Ostry, as well.  Now, grasp this, if you can.  According to Don Newman, in his autobiography, xxxxxx, Trudeau routinely held his federal Cabinet meetings at the private palatial home of none other than suspected Communists, Bernard and Sylvia Ostry, straddling the border between Hull, Quebec and Ontario.  Also at those meetings was private citizen and Canadian RIIA member, Paul Desmarais Senior of Power Corporation.  On the downtown Montreal business premises of Power Corporation in the 1960s, 1967 to be precise in this case, a “Secret Committee” of Reds posing as Liberals in the federal cabinet of Soviet Agent Lester Pearson, came up with a plan to create a “separatist” party.  Communist René Lévesque was instructed by them to organize and lead it.

The party;s name?  The Parti Québécois.  Its 1972 manifesto in French only, written to appease the extreme left members who swelled its ranks in 1968, flowing in from the Communist RIN party that had been disbanded, calls for a Communist independent state of Quebec.  (See Free download page for my exclusive English translation of the 1972 manifesto.)

We thus find a major multinational corporation embracing, hosting and harboring obvious Communist infiltrators of the Liberal Party of Canada, setting up plans for a Communist party and a Communist State of Quebec on Power Corporation premises.  Power Corporation is also a major presence at the Canadian branch of the Royal Institute of International Affairs (the RIIA in London, an international banker front for a secret society whose object still is the infiltration of national governments to subvert national sovereignty on the road to world government).

 
Scan of Worthington’s draft article from which
the above transcript was prepared:

http://en.calameo.com/books/000111790cf331953e601

______
 
* I have come up with a good piece of evidence that Tom Kent was/is indeed a Communist subversive. In March 2007, the Caledon Institute published in pdf format a booklet authored by Kent entitled Federalism Renewed.  The section of it entitled “City Limits” declares the Provinces of Canada (Provincial Legislatures) as defunct institutions of the previous Century.  Kent recommends replacing our Provincial Legislatures with a new form of “federalism” which bears a strong resemblance to the Communist expanded administrative municipal regions documented in Moscow in 1975 by Maurice (Morris) Zeitlin writing in Communist Workers’ World.  I can tell from the same article that Kent also knows why Stephen Harper declared Quebec “a nation” in 2006:  precisely to disintegrate Canada to use Quebec to “negotiate” Kent’s “new federalism”.