War is a Racket!

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The citizens of the country were in turmoil. “The President is a socialist” they cried. A large group of protesters formed to demonstrate around the county. “We need to take back the country and follow the Constitution” were the slogans used by some of the most affluent New York investors.

They had lost a fortune in investments and were convinced that the country was headed in a hopeless direction of Socialism. They saw the rapid demise of all they had built up. Something must be done……

You may think that this was a description of the “Tea Baggers” and the harsh words were for President Obama. Well, think again. The President is Franklin Roosevelt and the time is during the Great Depression. Roosevelt had just begun execution of a program called the “New Deal”.

The “Tea Baggers” of that time were called the American Liberty League and they had actually more in mind than just protesting. What they had in mind was a coup d’etat, a forceful overthrow of the US Government. So some of the wealthiest men in the country along with the help of a large group of investment bankers held a secret meeting in New York to organize and bankroll this devious plan.

They then appointed a go-between messenger, Gerald McGuire, of the American Liberty League, to enlist the help of a U.S. Marine Major General by the name of Smedley Butler to gain control and lead the military.

They claimed that they already had control of the newspaper publications and also had immediate access to 3 million dollars to start the coup and up to 300 million if it was needed. That was a huge amount of money in the 1930’s!

Smedley Butler wasn’t just any sort of General. He had been awarded the Distinguished Service Medal from both the Army and the Navy. He was also one of only 20 people to receive the Marines Brevet Medal and one of only a handful to twice, let me repeat that, twice receive the Medal of Honor. A national hero if there ever was one.

Initially Gerald McGuire approached the General saying he was from the Committee for a Sound US Dollar, a organization determined to force Roosevelt back to the Gold Standard. He implied that the organization had the support of several political leaders and was bankrolled by the country’s most affluent individuals and corporate leaders.

After several meeting with Smedley not showing any interest whatsoever, McGuire dropped all pretenses and at a restaurant meeting laid it all on the line. McGuire indicated that he had the support of key industrial figures and had 3 million in cash to bankroll the cause. He stated that he would like General Butler to lead a force of 500,000 disgruntled Veterans and they were to overthrow the US government.

The president and other existing US leadership would keep their positions but the General was to become the secretary of the Office for General Affairs and decisions were to be given to him as to the new formed government.

General Butler expressed interest in this so he joined with the group. After some months of planning, the time for action was now. In the autumn of 1934, General Butler called a press meeting to discuss matters of grave importance. But when the press meeting occurred, he didn’t demand the surrender of the US Government. Instead he related to the reporters the details of the plot, complete with names and dates.

He had been just playing along with the conspirators all this time. General Butler had also enlisted the help of a undercover reporter by the name of Paul French who was keeping a detailed record of the plot.

After the startling press meeting, Paul French and the General were called before the House Un-American Activities Committee for a full accounting. After their testimony and also testimony from James Zandt, National Commander of the Veterans of Foreign Wars, who also had been approached to lead 500,000 veterans on a march on Washington, the HUAC concluded that there was compelling evidence of a coup plot. They stated that there was no doubt that certain persons had made an attempt to establish new governmental control in this country.

Suddenly all the newspapers ran stories as to a “plot without plotters” and ridiculed that US corporate leaders could participate in such “Rabble Rousing” behavior. The governments action was of complete inaction. Criminal charges were brought against no one and the collection of listed people in the report were immediately excused from ever testifying. In addition, the go-between, Gerald Mcguire died suddenly 1 month after the report was made public. But the plan had been stopped abruptly even before a shot was fired.

Who knows what might have happened if it wasn’t for the actions of one man, General Smedley Butler, who by the way was also known as the “Fighting Quaker”.

This is a quote from the book that he published in his later years, “War is a Racket!”

I spent 33 years and four months in active military service and during that period I spent most of my time as a high class thug for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902–1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents.

About Post Author

Carol Bell

Carol is a graduate of the University of Alabama. Her passion is journalism and it shows. Carol is our unpaid, but very efficient, administrative secretary.
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13 years ago

Amazing how much like Peter Sellars that Butler looks. It would make a great movie.

Reply to  Mother Hen
13 years ago

Yea he does. I loved Peter Sellers and have watched all of his movies, even the not so good ones.

Jess
13 years ago

Damn, I feel so really ignorant. Maybe History is being revised or I just was not too interested in it. Thanks for a little insight into something I had NO idea about.

13 years ago

Butler was a brave an unusual sort. I’m really glad you published this. I wrote a piece awhile back but it was from a different slant and yours is much more interesting.

http://parsleyspics.blogspot.com/2009/12/war-is-racket.html

Reply to  Leslie Parsley
13 years ago

Leslie, interesting piece with some interesting comments.

13 years ago

What most Americans do not know is that we are still to this day regarded as amoral imperialist in Central and South America. Some of the things Hugo Chavez says sound nuts, out of context. But if you put his anti-American sentiments in the context of our less than admirable tinkering in Latin American affairs you can at least see where he is coming from. We have helped right wingers overthrow democratically elected governments in Latin America too many times, each time resulting in a lot of people being killed by the right wingers we aided and armed.

Reply to  C.H. McDermott
13 years ago

Lawyer knows personally from what he speaks. I believe he spent a few years in Latin America during his school years if I’m not mistaken. Costa Rica?

13 years ago

The most heroic thing he ever did was expose the plotters.

Reply to  Holte Ender
13 years ago

Good point Holte.

13 years ago
osori
13 years ago

wow.WOW! I vaguely recall rumors of a plot which I’d discounted. I had no idea there was anything to it, and what’s more Smedley Butler’s (benign) involvement in the matter. This is great Krell. Great post, great subject matter. I’ll have to delve further into this.

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