Colonel House to Woodrow Wilson

Dudley Malone was here today. He seems in quite a different frame of mind, and I think is genuinely sorry for the happenings of some weeks ago. He spoke of you with his old time affection. My fear now is that he and McAdoo will have trouble because they dislike one another so heartily.

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I talked the financial situation out with McAdoo when he was here Tuesday. I think it can be satisfactorily adjusted. Northcliffe comes for tomorrow and Sunday and I will be able to see how nearly the English position coincides with McAdoo's.

The English, of course, want to maintain the pound sterling, and I see a disposition on the part of McAdoo, Harding and others to substitute the dollar as the standard of value throughout the world. This, I am afraid, will finally come to be the crux of the difference between the two nations, and, if we are not careful, it will make for trouble.

I cautioned McAdoo to give, when he had to give, with a glad hand for, in any other way, we will lose both money and good will. As long as we have money to lend those wishing to borrow will be agreeable, but when the bottom of the barrel is reached, it may be a different story. It is their turn now to be pleasant later it will be ours in order to collect what they owe.

I remember, during one of the old time panics, a very rich man was asked by a friend of mine whether he was not terribly worried. He replied "No, I am not at all worried, but the banks that are carrying me are".

Affectionately yours,
EM House
Magnolia, Massachusetts.

P. S. While Woolley is not the ideal man for the Interstate Commerce Commission, yet he seems the best in sight from the South where one of the appointments belongs, and I hope you will feel that it is possible to appoint him I believe he will make a creditable record.The railroads are extremely anxious for you to name one very big man, if you can find one to accept. They seem to think that Rublee is of that calibre. I am surprised to know they would be satisfied with his appointment for he is of the Brandeis school.