The intimate papers of Colonel House arranged as a narrative by Charles Seymour.

158 INTIMATE PAPERS OF COLONEL HOUSE

To such an extent had Colonel House formulated his
ideas upon national problems before the election of Wilson.
'In regard to "Philip Dru,"' wrote House in 1916, 'I want
to say that there are some things in it I wrote hastily and in
which I do not concur, but most of it I stand upon as being
both my ethical and political faith.'
II
Four great legislative problems confronted Wilson, and
their solution constitutes his chief claim, in matters of domestic politics, to the title of statesman. They concerned the
revision of the tariff, with the introduction of an income tax
law, the creation of the Federal Reserve banking system, the
control of trusts, and the regulation of industrial relations.
In meeting them Wilson displayed the inspiring leadership
essential to success; he showed himself as convincing and
sympathetic when he dealt with Congress as a whole, as he
was reserved in his dealings with individual Congressmen. By
the end of the special session which passed both the Tariff and
Currency Acts, his moral supremacy was firmly established
and his mastery of the party was complete. He was hailed
as the Moses who had led the party out of the legislative
ineffectiveness supposedly characteristic of all Democrats.
In each of the great problems House took deep interest.
He brought to the President the variety of opinions which he
culled from his numerous personal contacts, he utilized his
relations with party leaders to assist the passage of the bills
through Congress. But it was in the currency question that
he took chief interest, for this he had long studied and from
its solution might be expected positive, tangible benefits in a
short time. As cotton planter and one-time banker in Texas
he appreciated the dangers of an inelastic currency, and as
a liberal he distrusted the financial power which certain
metropolitan banking firms were able to wield over national
commerce and industry.