William G. McAdoo to Woodrow Wilson

Title

William G. McAdoo to Woodrow Wilson

Creator

McAdoo, W. G. (William Gibbs), 1863-1941

Identifier

WWP21585

Date

1917 July 3

Source

Library of Congress, Woodrow Wilson Papers, 1786-1957

Text

Dear Mr. President

I had a most interesting conference with the representatives of the largest life insurance and accident insurance companies in the United States yesterday afternoon. About sixty-five companies were represented. The session was not only illuminating but clarifying. By practically unanimous vote the representatives of the insurance companies approved the principle of indemnification by the Government of its armed forces in the field. The problem is too big for the insurance companies, and if it were not, the premiums they would have to charge in order to protect themselves absolutely against the risk would be extremely high if not excessive. The Government would have to pay these premiums. It would be much better, therefore, if the Government were to carry its own risk.

This is the right solution and the one I have always favored. I believe a thoroughly practical plan can be worked out quickly and that it will receive the overwhelming approval of the country. At the same time, it will tend more to popularize the war, I think, than any single thing that could be done. This consideration is, of course, subordinate to the higher consideration of humanity and justice. Our Government ought to set an example to the world of a just and generous policy toward our soldiers and sailors which will give every man who enters the ranks the assurance, in advance, of protection for his dependents and of compensation for disabilities he may suffer, not as a gratuity but as a part of the consideration for his patriotic service. If this is done, we can eliminate the scandals as well as the inequities and favoritism of our past pension experience, because this can be made a substitute for future pensions and it will, at the same time, prove far more satisfactory to the beneficiaries and far more economical for the Government.

I can progress with this matter rapidly, and I believe it is possible to get action at the present session of Congress (and it ought to be had if possible at this session) if I am allowed to go forward unhampered. After I had, with your approval, issued the call for the conference, I learned that this matter had been under investigation by the Council of National Defense, which had referred it to the Department of Commerce, and also that the Department of Labor had been making an investigation. These investigations have produced information of value, and I desire to have the cooperation of all of these agencies in the work that must be done. As soon as I learned of the activities to which I have referred, I invited the Secretary of War, the Secretary of the Navy, and Secretary of Commerce and the Secretary of Labor to attend the conference or to send representatives. They were all represented at the conference except the Secretary of Labor, who was unable to attend. I also invited Mr. Gompers, who was out of town. I asked, however, Judge Mack to attend, as he is the Chairman of the Subcommittee of the Labor Committee of the Advisory Commission Council of National Defense, and he has done some work on this matter. Judge Mack was present.

I enclose for your information copies of letters exchanged between Mr. Baker and myself. I think there is a cordial desire to cooperate, but I think it is essential that you should say to Mr. Baker that I had taken the matter up with your approval and as a result of your reference to me of a letter from one of the insurance companies, and that you would be glad if all concerned would cooperate with me in setting this work forward. I am sure that such a suggestion will put at rest any tendency, if such exists, on the part of others, to work at cross purposes or independently in this matter. I cannot go forward with satisfaction or success unless I am permitted to have direction of the matter.

This insurance is a proper function of the War Risk Insurance Bureau; it is, again, a matter of finance; therefore it relates properly to the Treasury, and this is the Department which ought to administer it. I earnestly hope that you will immediately adopt the suggestion I have made, and speak to the Secretary of War. Otherwise, I am afraid that there may be an unnecessary and unpleasant mix-up, to which I certainly do not wish to become a party. Having gone to the extent I have already gone, with your approval, it will be extremely awkward if there should be any alteration of plan.

Cordially yours,
WG McAdoo,

The President,
The White House.

To

Wilson, Woodrow, 1856-1924

Files

http://resources.presidentwilson.org/wp-content/uploads/2017/06/WWI0436.pdf

Collection

Citation

McAdoo, W. G. (William Gibbs), 1863-1941, “William G. McAdoo to Woodrow Wilson,” 1917 July 3, WWP21585, World War I Letters, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.