Home anti imperialism Canada’s War Years and C.D. Howe’s Battle with the British Empire

Canada’s War Years and C.D. Howe’s Battle with the British Empire


From the Canadian Patriot Review

As we saw in that story, with their deaths, Prime Minister William Mackenzie King lost whatever reasonable council he had access to and fell hopelessly under the sway of British intrigue during the war years while Canada’s Department of External Affairs became a Rhodes Scholar/Fabian society run hub.

This 30 year post-war period was characterized by the British Empire’s purging of American intelligence of all remnants of patriots loyal to FDR’s anti-colonial vision for the post-war world (including waves of assassinations across both the USA and Europe).

Part two of the Origins of the Deep State series began in 1945 and showcased the meticulous takeover of Canada’s science, culture and economic policies over the 30 post-WWII years leading up to the era of globalization and post-industrialism of the 1970s.

Many readers have asked me what happened to the period of 1940-1945? Was Canada’s experience during the war simply not a story worth telling?

With the 75th anniversary of WWII now upon us, and the need to re-activate the National Bank as an instrument for national development amidst the looming financial meltdown, the time has come to finally tell the story World War II.

Canada’s ‘Minister of Everything’ C.D. Howe

The Buildup to the War

The Nazi King Edward VIII, Wallace Simpson and Hitler in 1937

Churchill immediately reversed the previous British blockade against Colonial industrialization and permitted all that Howe requested, knowing that if Hitler won the war, contrary to the appeasement policy, Britain would be reduced to junior partner in the New World Order, if it were permitted to exist at all. For Britain to be saved, Canada’s productive and scientific potential needed to be unleashed post haste.

Beyond the aforementioned inner circle of Prime Minister King’s Cabinet that led the anti-British/pro-American dynamic, other personalities within the Cabinet also butted heads with minions of the Empire at various points before and during the war [5]. It were these personalities, and the lessons learned by their battles with the British agenda, that Prime Minister King had been induced to nationalize the Bank of Canada in 1937 [6]. This nationalization of the previously privatized central bank was ushered in with the following words:

“Once a nation parts with the control of its currency and credit, it matters not who makes the nation’s laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government   and recognized as its most conspicuous and sacred responsibility, all talk of the sovereignty of Parliament and of democracy is idle and futile.”                                                                                                

-Prime Minister William Lyon Mackenzie King, upon nationalizing the Bank of Canada in 1937 [7]

The Churchill Reflex Thwarts the Hope for a Canadian Credit System 1940-45

How a properly functioning National Bank is designed to function. The only time this occurred was during WW2.

From 1940-1943 Canada had produced over 600 ships, 1100 aircraft, and half a million cars and trucks. Canada was renowned for having the fourth largest Air Force and the third largest Navy by 1945, and one of the most able scientific bodies under the National Research Council.

Howe’s success as Minister of Transportation before the war, Minister of Munitions and Supplies during the entirety of the war and then Minister of Reconstruction afterwards was based on two factors: 1) His dedication to the idea that Canada could produce anything as good as any other nation with the assistance of the United States committed to similar aims, and 2) his entire disdain for bureaucratic parliamentary procedure in favour of a process of informed top down decision making. Both factors guided Howe’s use of Crown Corporations as public instruments around which to organize the economy, of which Howe created 28 during the war alone [12]. Howe knew that without such national instruments, then economic progress driven by the advancement of civilian nuclear power, aviation, aerospace, industrial innovation, nor major infrastructure works could ever occur as “the markets” left to their own devices tend always towards momentary profits without any consideration for the future needs of society. In real terms, no free market system can ever exist as long as private central banks and international cartels can politically manipulate nations of the world.

The uncharacteristic lack of any direct resistance to progress by agents of the British Monarchy during this time and after the war is due entirely to the fact of the Delphic technique referred to above.

Much like FDR and following the lead of American System methods of thinking, Howe was a dirigist capitalist, NOT a free market monetarist as today’s authoritative sources portray him (including those directors of the right-wing think tank named after him). The system of Crown corporations created by Howe also allowed him to bypass parliamentary red tape, and make direct decisions without submitting to bureaucratic machinery, or political hackery so powerful within the Westminster Party System upon which the Canadian Parliament is based. It has always been the top down decisions made by strategic statesmen bearing insight into the nature of mind and their commitment to progress which have represented the greatest threats to the British Empire. Howe and FDR’s orientation embodied the type of thinking that gave nightmares to such characters as were found within the Rhodes Trust, Fabian Society and CIIA networks, and due to the weakness of the Imperial system at this point, they largely had to accept it. The greatest weapon used to subvert this orientation at this time went by the name of John Maynard Keynes. These networks had continuously attempted to impose fixed system Keynesian thinking upon Canada’s productive planning and have all but destroyed Canada for their efforts.

Keynes Destroys Canada. Roosevelt Saves It.

Keynes representing the British Empire during the 1944 Bretton Woods Conference

Canada is renowned for being the first country to completely adopt Keynesian economic practices into its national programming. Contrary to the belief that this was the reason for Canada’s ability to coordinate itself, it was actually a painful crutch. The failure of Canada to adapt to a Rooseveltian mode of economic practice resulted in two crises that nearly saw the collapse of the Canadian economy, and in both cases was saved by Franklin Roosevelt’s interventions.

Needing to produce much more than the financial resources of Canada would permit, and nearly snapping under the pressure of the lack of American dollars, two emergency agreements were reached via FDR’s intervention into Canada. The first was the Ogdensburg Agreement of August 18, 1940 which saw America provide a gift of fifty Destroyers in exchange for the stationing of U.S. Military bases in Newfoundland, and Bermuda [13]. This was followed soon after by the Hyde Park Agreement which was signed on April 20, 1941 providing a U.S. contract for $200-$300 million worth of defense articles to be produced by Canadian industry paid in American dollars.

In both cases, America was not yet in the war and due to political restraints imposed by the Neutrality Act, could only contribute to the war effort indirectly via Canada. The Ogdensburg Agreement is notable for striking an end to British preferred free trade status and a large reduction of Canada-USA tariffs, alongside the creation of the Joint Board of Defense. These measures effectively achieved much of what Laurier’s Reciprocity Treaty of 1911 [14] was kept from doing 30 years prior, and brought Canada-U.S relations into a new dynamic of cooperation which catalyzed the unprecedented growth, and creative technological advancement of the Canadian economy during the coming years.

Walter Lockhart Gordon and his underling Lester B. Pearson, soon-to-be Finance Minister and Prime Minister of Canada respectively.

The key shift in this process lay in the 1963 assassination of President John F. Kennedy, and the last self-conscious representative of the true constitutional principles of the American system of political economy occupying the presidency of the United States. The same Rhodes Trust networks that strove to sabotage Diefenbaker’s Northern Vision program, while simultaneously purging the Liberal Party of its C.D. Howe impulses, were also providing the logistical planning for the assassination of Kennedy, as seen in the vital role played by British Intelligence’s Major Louie Mortimer Bloomfield and his Montreal-based Permindex assassination bureau. [16]


(1) See the previous issue of the Canadian Patriot for the full story.

(2) Recounted in Robert Bothwell and William Kilbourn, C.D. Howe: A Biography, Toronto University Press, 1979, p.99

(3) Bruce Hutchison, The Incredible Canadian, Longmans, Green and Company, Toronto, 1952, p. 280

(4) An earlier example of this British phenomenon can be witnessed in the National Policy of Sir John A. Macdonald in 1867, a policy which adopted measures of protectionism and rail construction used against Britain by the United States for a century, and now had them applied by Canada against the United States in order to destroy the potential won by American System Canadian statesmen like Isaac Buchanan and Thomas Coltrane Keefer in moving Canada closer towards sovereign nationhood and closer ties with Lincoln’s America through rail development, industrialization, and investments into science.

(5)Various anecdotal stories have been preserved of battles with British policy waged on all fronts by members of King’s cabinet such as Minister of Defense Ralston’s battles with British puppet Gen. MacNaughton regarding MacNaughton’s prolonging the war under Churchill’s orders by the bungling the failed Dieppe raid of 1944 and Minister of Finance Harold Ilsley’s fight with Churchill over Britain’s demands that Canada turn in French gold being held in Canadian banks.

(6) Whether it can be stated with full confidence that the nationalization of the Bank of Canada harbored an honest intention is still uncertain, as the potential yet still exists that a greater power for good may have been available before this maneuver occurred. It can certainly be said that the provincial control over credit directed to progress was at various intervals preferable to a federal control of finance committed to control and sabotage progress, which has tended sadly to be the effect of Britain’s vast control of Canada’s federal bureaucracy, while the provinces have enjoyed a large degree of sovereign autonomy due to section 92 of the BNA Act of 1867. Provincial nation-building case studies can be seen in B.C. Premier W.A.C. Bennett’s creation of the Bank of British Columbia in 1964 to attempt to finance his lifelong dream of northern development, and Quebec Premier Daniel Johnson Sr.’s fight to develop the hydroelectric potential of Quebec. In each case, republics governed by bold statesmen catalyzed and supported the sovereign rights of these provinces to develop, where they would have failed had they attempted their programs all on their own. Where John F. Kennedy supported Bennett in the case of the Columbia River Treaty and Peace River development, President Charles de Gaulle supported Daniel Johnson’s cause.

(8) The LSR was instituted as a think tank in 1932 by a nest of Rhodes Scholars and London School of Economics trained Fabian Society operatives by the names of Graham Spry, Eugene Forsey, Frank Underhill, F.R. Scott, Escott Reid and J.S. Woodsworth. Woodsworth, a self professed eugenicist was selected to head up the LSR’s political party named “The Cooperative Commonwealth Federation (CCF), later to be renamed the New Democratic Party (NDP).

(9) This strategy is also the root of the old adage “When you can’t beat em, join em”.

(10) Other figures in Canada’s struggle for development included Prime Minister Louis St. Laurent, and Prime Minister John Diefenbaker. For more on this phenomenon, refer to Diefenbaker and the Sabotage of the Northern Vision, by this author, Canadian Patriot #4, Jan. 2013.

(11) Michael Bliss, The Right Honourable Men: The Descent of Canadian Politics from Macdonald to Chretien, Toronto, HarperCollins Publishers, 2004, p.165

(12) Among the most important Crown corporations were Atomic Energy Canada, A.V. Roe (Supersonic jets), Air Canada, and Polymer Corporation

(13) It is probable that Roosevelt’s intention to have American military bases stationed in Newfoundland and Bermuda was a part of the Post-Imperial Grand Design which FDR’s son laid out in his 1946 book “As He Saw It”.  Newfoundland was renowned as the only part of Canada that had rejected the Articles of Confederation of 1867 and was the most likely British territory to join America after WW2.

(14) The failed Reciprocity Treaty of 1911 was the attempt by Prime Minister Wilfrid Laurier to secure free trade with the Americans on agricultural products alongside a substantial continental protective tariff against British dumping of cheap product. Laurier’s ouster from office was led by a vigorous campaign by the Masonic Orange Order, as well as the newly formed Round Table Movement of Lord Alfred Milner. After falling from power, Laurier wrote:

“Canada is now governed by a junta sitting at London, known as “The Round Table”, with ramifications in Toronto, in Winnipeg, in Victoria, with Tories and Grits receiving their ideas from London and insidiously forcing them on their respective parties.”

(15) 1943 Liberal Party platform cited in Bruce Hutchison’s The Incredible Canadian, 1952, pg.329

(16) Jeff Steinberg and Joseph Brewda, Permindex Ties Revealed to JFK Murder, 1001 Club, published in the Feb. 2013 issue of the Canadian Patriot, p.37

Matthew Ehret is the Editor-in-Chief of the Canadian Patriot Review , a BRI Expert on Tactical talk, is regular author with Strategic Culture, the Duran and Fort Russ and has authored 3 volumes of ‘Untold History of Canada’ book series. In 2019 he co-founded the Montreal-based Rising Tide Foundation and can be reached at [email protected]

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The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Duran.