From The American Political Tradition (1948) by Richard Hofstadter:
In March 1919 Wilson's old friend of the New Jersey period, George L. Record, who had played a large part in converting him to progressivism, sent him a remarkable letter, analyzing the inadequacy of Wilson's conceptions to the present era. Wilson, Record wrote frankly, had ignored the great issue which is slowly coming to the front, the question of economic democracy, abolition of privilege, and securing to men the full fruits of their labor or service.
There is no glory … in standing for the principles of political democracy … [which] is like standing for the Ten Commandments….
The issue of political democracy has passed. The issue is now one of industrial or economic democracy. The League of Nations idea will not help your position, either now or in history, because, like all your other policies, it does not go to the root of the problem. Wars are caused by privilege.
Every modern state is governed by the privileged, that is, by those who control industry by owning railroads, lands, mines, banks, and credit. These men thus obtain enormous and unearned capital, for which there is no use in the country where it is produced, because the poverty of the workers limits the home market. Those who control this surplus capital must seek new countries and new people to exploit, and this clash of selfish interests leads to war. The cure for war is the reign of justice, i.e., the abolition of privilege in each of the great nations. I do not believe that you can set up machinery which will maintain justice in international relations among governments which deny justice to their own people. If the League works, it will be when and to the extent that justice is established within the countries which are parties to the League. Indeed, it is entirely possible, if not probable, that such a league established by the present governments of the Allies, if it has any real power, is very likely to be used as an international bulwark of privilege. That danger looms large after you pass of the scene….
Record urged Wilson to supplement his international program with a social-democratic program at home, including a demand for public-utility ownership and limitation of great fortunes. It might be impossible to realize this program, he admitted, but Wilson's failure would be only temporary. Future generations would recognize his wisdom and acclaim him "a truly great man."