Tag Archives: Gerald MacGuire

The Wall Street Coup, Part Two

The Wall Street Coup Part Two Tales of History and Imagination

Hi all the following is Part Two of a Two Part Tale. Part One is Here

If I may, folks, I’d like to resume this Tale by doing something totally irresponsible. Before we come back to General Butler, I want to take us on a digression which has no great bearing on, or relation to our story.
Today we pick up the tale on a hot, balmy night in Miami, Florida – the time, 9.35pm, February 15th 1933. 

In Bayfront Park that night, a man stood in his open top car, and gave an impromptu speech to an enraptured crowd. As he concluded, stating this was his first time in Miami in seven years, but it would not be his last – it almost became just that. The sound of six gunshots pealed through the air, to the shock of all in attendance. 

In the crowd that night, an unemployed 32 year old brick-layer named Giuseppe ‘Joe’ Zangara. I imagine Joe looking rather flustered, having worked his way frantically through the crowd, looking for a single good vantage point – this is only my imagination at work. At only 5.1” tall, Zangara had to perch atop a bench, steadying himself against a Mrs Lillian Cross, 5.4”, standing in front of him. He leant over Mrs Cross’ right shoulder, aimed his 32 calibre pistol, and pulled the trigger, yelling 

“Too many people are starving!”

Joe Zangara may have succeeded in his assassination attempt, but for the fact Mrs Cross was all kinds of fierce. The first bullet passed so close to her it burned the side of her face, but she spun around and wrestled Zangara for the gun. This caused the remaining shots to veer off wildly. Five people near the car were struck by bullets, including mayor of Chicago Anton Cermak. Cermak died days later, with a bullet still in his lung.
Lillian got the better of Zangara, the furious crowd then piling in on him. The crowd were ready to tear him limb from limb, were it not for the speaker – President Elect Franklin Roosevelt – calling for the man to be handed to the police, to be dealt with through legal avenues.  

Roosevelt, Miami Feb 15 1933

The authorities did deal with Giuseppe Zangara. He was up before the courts, and sentenced to eighty years in prison. When Mayor Cermak passed, a subsequent murder charge was added. He was re-charged and found guilty of murder – spending just ten days on death row before he was executed, on March 20th 1933. 

When I first heard this tale, perhaps 20 years ago, the teller inferred Zangara was a stooge, a patsy; some unknowing schlub doing the dirty work for a cadre of shadowy elites. Subsequently I’ve heard others state he was from Calabria, Italy – close to Sicily – Therefore he must’ve been a Mafia tough, or possibly an anarchist. As far as anyone could gather, Zangara was none of those things. He was an angry, frustrated, and extremely unstable guy – sick and tired of struggling by on whatever work he could get. His meagre savings had waned in the depression, and the guy was doing it hard. One factor contributed to his actions; from the age of six he’d been in near constant agony from adhesions on his gall bladder. He lived the majority of his life suffering from crippling stomach pains. Joe Zangara was not a man who valued his own continued existence terribly highly when he tried to kill FDR.

We can safely assume MacGuire and his backers never went to Zangara to take care of their ‘Gold Standard’ problem – though I wonder what General Butler made of the incident with just a few months’ hindsight.

Back to Smedley Butler’s timeline. When we last saw Major General Butler, he’d met with Robert S. Clark; former soldier, multi-millionaire banker and heir to a sewing machine fortune. Clark attempted to bribe the general for his support, by offering to pay his mortgage for him. Clark was willing to spend half his fortune, if need be, to stop Roosevelt. Butler, took this badly, and all but threw Clark out of his house…but not before Clark made a phone call to his guy – Gerald MacGuire – to go with plan B. Plan B was to flood the American Legion (a prominent veterans’ group) with telegraphs demanding the leadership call for a return to the Gold Standard. This subsequently happened. 

Smedley Butler could well have expected the bankers would move on and look for another ex-general to do their bidding. 

To his surprise, Gerald MacGuire kept showing up to his public speeches. In Boston he offered to throw a banquet in his honour. He would pay him $1,000 to attend, and of course make a pro-Gold Standard speech. Butler declined. In October, he was preparing for a trip to Brooklyn, to deliver a speech in support of a former Marine running for political office. This speech was unannounced to the public, but MacGuire somehow knew all about that too. Days prior he dropped in on Butler asking if he could tag along. Butler told him no. MacGuire then offered to pay Butler $750 every time he just mentioned the Gold Standard in a positive way in a speech. 

This spooked the General – how did MacGuire even know about this engagement? Did he really have eyes and ears everywhere? It started to dawn on Butler this group may actually be extremely dangerous. He felt he should report them to someone – but also knew he didn’t yet know enough about their schemes to do so. If he went to authorities now, he’d come off looking like a lunatic.

As 1933 wrapped, big business were increasingly vocal in their hatred for President Roosevelt. Several moguls, and a growing number of editorialists in mainstream newspapers, began asking a question – Was FDR a secret communist? They increasingly painted a picture of a ‘creeping socialism’ – their new buzzword –  a stripping of Americanism by stealth. Roosevelt wasn’t there to save us from ruin, he was in the White House to kill the American Dream and capitalism itself. In November they collectively pearl-clutched as Roosevelt recognised the USSR as a legitimate confederation of states. When he announced no more American soldiers would be sent to South or Central America as muscle-men for big business, the moguls and business papers were livid. 

And what’s more, FDR’s recovery was slow and methodical. That Mussolini chap appeared to be working wonders at lightning speed. Unions? Forget about it! The man even reputedly had the trains running on time. Of course this was done with all the subtlety of a guy who runs over a child at 70 miles per hour, then doesn’t even stop to check on the victim. Hitler had been in power since January, and was of increasing interest to certain moguls. A wave of fascist organisations were taking over Europe at the time. Portugal in 1933. Austria and Bulgaria in 1934. Yugoslavia in 1935. Greece in 1936. Spain just prior to the Second World War. This is not mentioning the many nascent movements the Fascists supported into power later; from Slovakia to Vichy France, Romania to Norway. This flurry of action made this deplorable world view seemed fresh and exciting to many a Wall Street banker or industrial titan. 

Many wondered, what would it be like having their own Authoritarian strongman in the White House? 

On the upside, MacGuire disappeared suddenly. Butler later found out he was sent off on an all expenses paid mission to Europe – all paid for by the shadowy cabal. He learned this when he received a postcard from the Riviera in early 1934. MacGuire was in Berlin when he sent a second postcard in June.
Meanwhile, in July 1934, Fortune magazine – a favourite of the rich – added further evidence of the mood of the boardroom. They spent an entire issue, in excess of 120 pages, effusively praising Mussolini and Fascism. 

MacGuire returned in August, dropping by Butler’s on the 22nd. He told the General he was sent to investigate the role of former soldiers in the fascist movement, specifically their role in the formation of dictatorships. MacGuire wasn’t crazy for Mussolini, or Hitler – but was quite taken by the Croix de Feu in France. 

On 6th February 1934, France’s left wing Government came under attack – quite literally – from a confederation of Far Right groups. As a needed aside, MacGuire appears in the telling quite impressed by the Croix de Feu’s role – and I need to add context to his telling.

The French Government were under heavy financial pressure and in the process of enacting austerity measures, some of this in relation to American business interests calling in overseas debt following the stock market crash. The final straw was a series of financial scandals involving corrupt people with ties to politicians, and the final, final straw was the Stavisky Affair. 

Alexandre Stavisky was a conman and pawnshop owner who was on the run from the authorities after getting caught selling counterfeit bonds, and borrowing large sums of money against a collection of glass trinkets. He claimed the costume jewellery were emeralds formerly owned by the Empress of Germany. Just prior to February 6th, Stavisky showed up dead from an alleged self inflicted gunshot wound. Others claimed forensic evidence stated it wasn’t self-inflicted – unless Stavisky had arms long enough to drag across the floor as he walked. They pointed the finger at the Gendarmes who found his body. As with similar cases, ie. Jeffrey Epstein, it was revealed the fraudster had powerful friends. One friend, Prime Minister Camille Chautemps, was even said to have protected him.  The anti-Semitic far right were particularly livid that Chautemps would help Stavisky, a jew.

The Croix de Feu were a coalition of military veterans led by a Colonel Francois de la Roque. Anti-Semitic, right wing and staunchly pro business – they looked much like Fascists. They did support a woman’s right to vote, however, and the establishment of a minimum wage. They were also wary of the Germans in general, and of Hitler in particular. Historians have long argued whether they qualify as fascists, but certainly they were a very hateful far right group. 

It was their inaction that day that made them of interest – something that I don’t think comes across in MacGuire’s conversation with Butler. While other groups attempted on February 6th 1934 what similar groups tried in Washington DC on January 6th 2021 – de la Roque ordered his group to stay out of the attempted putsch. 

They peacefully protested in the South of Paris. The other groups failed in their coup without their considerable muscle. Soon after, feeling intense pressure from the public – Chautemps government resigned in disgrace. The Croix de Feu, having not disgraced themselves on February 6th, ended up in a position of influence over the right wing government who followed – although they had personally burnt bridges among the far right. 

MacGuire’s interpretation of the incident is somewhat different to mine. He saw their role on the day as far more active… Back to the narrative. 

MacGuire stated his organisation wanted to build something similar in America – a super-organisation of former soldiers they could use to seize power. Butler responded if they did such a thing he’d gather his own army together to fight them. MacGuire countered they had no plans to depose Roosevelt – they planned to convince him he needed to hire an ‘assistant president’ – a ‘Secretary of General Affairs’. The people would understand. Roosevelt was clearly unwell. If the people didn’t, the organisation would run a propaganda campaign. They were helpers, not usurpers. A sick, old man needed support. What’s more, the cabal wanted Smedley Butler to head the movement. 

He also planned to contact James Van Zandt, a veteran, future Republican politician and – as it turns out – the man who invited Butler to speak to the Bonus Army at the start of this tale, to seek his support. MacGuire was sure Butler’s friend would want a part of this.

Butler stated he had no intentions of carrying out a putsch. MacGuire told him he wouldn’t need to. Roosevelt would be so grateful for the help, he’d hand the reins over. He’d been grooming General Hugh Johnson for such a role already – but was finding the man far too indiscreet. FDR planned to fire him in the coming days. It turns out FDR did in fact fire Johnson soon after this conversation, and the man was loose-lipped – he took a job as a newspaper columnist, writing a slew of anti-Roosevelt hit-pieces. 

But how would one fund such a plot? MacGuire replied he now had access to a $3 Million budget. He could get hold of up to $300 million if needed. The Mogul J.P. Morgan was involved, as was Al Smith – yet another former Democratic Party presidential candidate, and a former Mayor of New York to boot. Smith was an associate of the powerful DuPont family. This shocked Butler, Smith was one of Roosevelt’s guys. 

MacGuire claimed Smith would soon break from the Roosevelt camp via an angry invective in the papers. He did just that soon after, joining The ‘American Liberty League’ – a shadowy organisation led by several former high ranking democrats – and top ranking business people from General Motors, DuPont and Sun Oil Company – among others. 

What’s more, if Butler chose to turn them down – well, he was their top pick in spite of J.P. Morgan lobbying for another contender – but he was not their only option. Their second choice was sure to back them. J.P. Morgan had rallied hard for General Douglas MacArthur. They expected MacArthur could be bought, not least of all, as his father-in-law – Edward Statesbury – was involved in their organisation. Hanford MacNider, a former leader of the American Legion was a distant third choice. MacGuire was going down to Miami. He planned to catch up with Butler once he returned. The meeting was over. 

(To the Podcast listeners: We’ll be back in a minute). 

Part Two:

The following month The American Liberty League – an anti-Roosevelt coalition of captains of business, bankers and former politicians launched, with a suspiciously familiar roster of members. Irenee DuPont, J.P. Morgan, Al Smith, MacGuire’s boss – a man named Colonel Grayson Murphy, – and of course sewing machine heir Robert Sterling Clark. 

It’s list of patrons included the families behind Pittsburgh Plate Glass, Andrew W Mellon Associates, Rockefeller Associates, General Motors and Sun Oil. J. Howard Pew, who later co-founded the John Birch Society, yet another founder. Al Smith and his buddy John J Raskob (a former Democratic Party member and businessman) were directors of the league. They quickly branded Roosevelt’s New Deal “Jewish Communism”, stating their opposition. In the South a “Southern Committee to Uphold the Constitution” a similarly-minded group, but with a focus on KKK ideology, also arose. 

A lot of things suddenly happened as predicted. Butler got on the phone to warn James Van Zandt a cabal of fascist businessmen would be in touch with him. Van Zandt took heed. Next he considered travelling to Washington DC, to report the plotters. The more he thought about it, the more convinced he was the authorities would laugh him out of the building. 

In part one I glossed over the fact Butler was briefly Police Chief of Philadelphia. It’s quite a story in itself. The Philadelphia police were notoriously corrupt; in bed with gangsters and bootleggers. Butler was brought in to enforce prohibition, which he soon came to view as a stupid law in need of repeal. He cleaned up much police corruption. He also, as Foucault’s best boomerangs only can, brought in a militaristic style to policing, honed in Nicaragua and Haiti –  from which a thru line can be drawn directly to some of the worst aspects of American policing to this day. I left that out because I wanted you to like this man. We can admit he has a complex legacy right?

Anyway, while in Philadelphia he made several friends in the media. He approached his friend Tom O’Neil, an editor for the Philadelphia Record. O’Neil was shocked by the plot, and only too happy to lend him the talents of investigative reporter Paul Comly French. French started off by going through Butler’s own background with a fine-toothed comb. If the General was plotting to blackmail America’s moguls he would ferret it out. If he was correct some of America’s moguls were planning a takeover, they needed conclusive proof Smedley Butler was above board. 

In the meantime, Butler continued to speak on behalf of the soldiers – and challenge the practice of sending them abroad to fight and die for the further enrichment of big business.   

The midterm elections came and went. The American Liberty League did their best to hobble Roosevelt’s supporters – to little effect. The Democratic Party won by a landslide. 

Something else was happening in Washington DC. A reporter named John L. Spivak, who specialised in uncovering American fascists, anti-semites, racist Southern Sheriffs and other undesirables – caught word of a group of fascist businessman plotting to take over the White House. John McCormack and Samuel Dickstein of the McCormack-Dickstein committee, subsidiary of the House Un-American Activities Committee also picked up on the plot. They went straight to Smedley Butler to ask him what he knew. With proof from Paul Comly French that he was no traitor, he freely told them everything he knew. 

On November 20th 1934, Butler met with the McCormack-Dickstein Committee, giving a full rundown of the wooing of The American Liberty League. At the same time, an article by Paul Comly French ran in the New York Post and Philadelphia Record. It’s headline “$3,000,000 Bid for Fascist Army Bared”

Later that day French too gave evidence. He’d not just done his homework on Butler, but had met with MacGuire himself, on September 13th 1934. He presented himself as ‘Butler’s Personal Secretary’.MacGuire was rather more candid with French, stating they needed a ‘Man on a White Horse’ to lead the coup, and that man could only be Butler. They planned to arm a militia of half a million former soldiers through their connections at the Remington Arms Company – paying for the weapons with DuPont money. The money for the militia’s wages would be doled out from a National City Bank account by himself and attorney for J.P. Morgan, John W. Davis. 

French also mentioned MacGuire pursued two former leaders of The American Legion, who pledged their support for the putsch. Once successful they planned to register all persons in the USA, in an effort to “stop a lot of these Communists”. They planned to tackle unemployment by rounding up the unemployed in concentration camps and forcing them into slavery. 

MacGuire was then called in, and grilled. He denied everything. He was on a rather healthy $150 a week – a little over $3,000 a week adjusted for inflation to 2022, but he couldn’t explain away over $30,000 he’d spent in recent months. That figure would only grow. The Committee concluded their initial proceedings, finding it likely several of the USA’s wealthiest citizens were plotting to instigate a coup. They determined to dig further. The moguls denied this of course, and – with the support of their powerful media connections – publicly branded Smedley Butler a fantasist and lunatic. His testimony, they claimed, was a publicity stunt. 

A large number of senators and congressmen demanded the investigation must go further. Plans were made to subpoena sixteen people. The case was also referred to the Attorney General. MacGuire was called back and questioned further. His testimony was contradictory, showing him as a liar. Former leaders of the American Legion were called in, as was James Van Zandt – who corroborated Butler’s testimony. Further information emerged – If Smedley Butler refused, another potential ‘man on a white horse’ was Colonel Theodore Roosevelt jr. Theodore was shocked anyone would think he’d ever usurp his fourth cousin. Robert Sterling Clark was, rather conveniently, over in Paris and happy to refute Butler’s accusations – when he got home. 

But then on November 26th the committee released a statement it saw no reason for calling in a raft of business moguls or Generals. They reasoned testimony against them was largely hearsay. 

The hearings dragged on till January, all the while the corporate media did all they could to discredit Butler. Eventually Clark sent his lawyer to speak on his behalf – as he was still overseas. The lawyers answers as to why MacGuire was given a verified sum of $75,000 by Clark were unconvincing. In January 1935, Butler took to the airwaves on WCAU Philadelphia to tell his story to the American people directly.  At the end of the month Dickstein stated this investigation would go further.

The committee released their findings on February 15th 1935. They found there had been a plot to overthrow the president – but the newspapers buried the story. And no-one chose to take any further action. MacGuire, Clark, former presidential candidates, business moguls, bankers – they were all let off the hook. They could have, at the very least, prosecuted MacGuire for perjury – Even he walked. If there is any justice in his case, it may be that MacGuire would be dead within months, aged just 37, of a sudden case of pneumonia. 

The American Liberty League continued to fund a number of hostile fascist organisations till they disbanded in 1940. Roosevelt, found the mainstream press continued to push the “Creeping Socialism” line. He took to the radio as Smedley Butler had. His ‘Fireside Chats’ were extremely popular with the American people. It’s a trend that continues to this day – I’m watching New Zealand’s Prime Minister Jacinda Ardern doing something similar on Instagram as I edit this piece.

For all the animosity of the super rich – they enjoyed a period of unprecedented wealth under New Deal politics – all the way up to the mid 1970s. Yes, they paid levels of tax many would now consider unbelievable – if you were earning in excess $200,000 a year (around $2.4 million today) 94c in every dollar over $200,000 went to the taxman. 

The ‘great acceleration’ this tax money fed, made for a true golden age for capitalism – as the American economy boomed like never before, and the world moved at an unrivalled pace – in every way imaginable. Wealth, technology, life expectancy, living standards, education – and also infuriatingly, oil consumption, pollution, deforestation and greenhouse gas production. 

As for our hero? Smedley Darlington Butler, one time muscleman for big business turned peace campaigner. One time oppressor of other nations in the name of American capitalism, turned America’s staunchest defender of democracy – against those same capitalists…. He died of cancer aged only 58, on July 21st 1940. Friends, family and former colleagues saw him off, and no doubt remembered him fondly but – like Lillian Cross – I don’t believe the extent of his courage was truly recognised in his own time. 

The Wall Street Coup – Part One

The Wall Street Coup, Part One Tales of History and Imagination


Hi all, this is part one of a two-parter. Part Two is Here.

This week’s tale opens on a ‘Hooverville’ – a makeshift village of the dispossessed; all in attendance hit hard by the Great Depression of 1929. The location? A swampy, muddy field in Anacostia Flats – near downtown Washington DC. It is July 17th 1932. A shantytown on a mission, this camp holds ten thousand American military veterans. They’ve gathered together, under the leadership of one Walter Waters – a former sergeant from Portland, Oregon – to demand the Government keep a promise made to them years ago. Hailing from all across the USA, many have hiked the length or breadth of the country to be here. Others have freight-hopped boxcars, like characters in a Steinbeck novel. They’re mostly veterans of the First World War. All are members of the Bonus Army. 

As fighting men, they were promised a sizeable bonus for their part in World War One – but when the bill came due in 1924, the Government deferred payment. Though the Great Depression was a few years off, the boom which preceded it was still a year away and money was tight. The veterans would have to make do with promissory notes for the amount agreed; plus compound interest – to be paid in 1945. This seemed reasonable to many at the time; but now, with one in four working Americans jobless, millions homeless – close to half the nation’s banks insolvent – that money was needed more than ever. The men of the bonus army were tough and resourceful, but were struggling – often in jobs hit hard and early by the depression. Besides, many felt they had done their bit, and then some. They made the world safe for democracy and capitalism, and in their time of greatest need, was it really too much for democracy and capitalism to come through for them, and hand over the two billion dollars collectively owed them? 

Some politicians listened. A bill was introduced, and passed through Congress to grant the men an early payout. But then President Herbert Hoover threatened if it went through, he would use his powers to veto it immediately. He didn’t need to – the Senate did the dirty work for him, killing the proposal stone dead. The Bonus Army were tired, dejected, and much in need of an inspirational leader to revive their spirits. On the podium on July 17th, one such leader; Major General Smedley Butler. 

Butler was a retired Marine Major General with one of the most impressive records in Marine history – more on that later. A soldier’s general, he spent much of his career fighting alongside the men – in 120 battles – mostly south of the border and throughout Asia. He was well known as a guy who always had the soldiers’ backs. A guy who would never ask another to do something he wasn’t willing to do himself. On retirement, Butler joined the public speaking circuits, as a vocal advocate for soldiers’ rights. The Bonus Army asked him, as an ally, if he could come to Anacostia Flats and speak with the men. He gladly obliged.

 Onstage, a worked up Butler addressed the men in his gruff, booming voice that belied his small, wiry frame.

“It makes me so damn mad a whole lot of people speak of you as tramps. By God they didn’t speak of you as tramps in 1917 and 18.” He exclaimed, in response to media commentary the men were an unkempt rabble. “You are the best-behaved group of men in this country today. I consider it an honour to be asked to speak to you”. 

Furthermore, he called on the men to remain peaceful – the people will be on their side so long as they kept to the rules.

“Don’t make any mistake about it, you’ve got the sympathy of the American people – Now don’t you lose it!” 

He called on the Bonus army to keep it together, and continue their fight for the bonus. If they lost this battle don’t despair – they hadn’t lost the war. Recalling a recent personal experience of defeat “I ran for the Senate on a bonus ticket, and got the hell beat out of me”

Many of these men were then considering a free train ride home, a government bribe aimed at thinning out the crowd. The army would then swoop in and break up the camps. No doubt Butler knew this. knowing many who had a home to return to would take that ticket, he advised – 

“When you get home, go to the polls in November and lick the hell out of those who are against you. You know who they are… Now go to it!” 

Two weeks’ later, the army did break up the camps, sent in by General Douglas MacArthur. There was an ugly, messy, tear gas filled stoush. Cavalry officers, men with bayonets, even six tanks and machine guns were rolled out to move the unarmed protesters – many of whom had nowhere else to go at this point. Two protesters from the Bonus Army were killed. The Bonus Army continued their fight however – and in November 1932 the voting public – sick and tired of President Hoover’s callous, ineffectual management of the depression – emphatically voted for the Democrat, Franklin Delano Roosevelt. In his first 100 days, FDR brought in a raft of policies to lift the economy out of the doldrums. Given multi-letter acronyms, some referred to his plans as ‘Alphabet Soup’. One policy – and this is very pertinent to our tale – was to uncouple paper money from the Gold Standard.

Under the gold standard all money must be backed by an equivalent sum in gold. By dumping this, moving the economy towards ‘fiat money’ – money was realigned more as a current reflection of the expected future value of the wider economy. Politicians could much more easily speculate on a brighter future under Fiat money. The term a riff of the Latin ‘Fiat Lux’, ‘Let there be light’, one could proclaim “let there be money”, and treasury could print the money needed to pay workers to literally rebuild the nation. Amid the wide-ranging public works, vast infrastructure projects kicked off – many of which paid huge future dividends. Projects like freeways, schools, city halls, wastewater plants – even the Hoover Dam – started prior to Roosevelt’s New Deal was completed on New Deal funding – owed much to FDR’s plans. People were working, paying taxes and spending. This created virtuous circles. The USA was on it’s way towards resuscitating the nation’s economy by the eve of World War Two. 

A move from the gold standard was in no small part also meant to put the brakes on rich Americans or investors in the American economy, exchanging all their paper money for gold – as is often the case in times of recession – then moving that wealth offshore for the foreseeable future. 

The downside to this plan? – it drove inflation, lowering the value of each solitary dollar. This was also a threat to anyone still wealthy enough to have millions of dollars in cash stored away. How would America’s wealthiest citizens react to this? We’ll come to that, but for now, back to Smedley Butler.

On the morning of July 1st 1933, General Butler took a phone call from an acquaintance at the American Legion – a large servicemen’s organisation that, unlike the Bonus Army, regularly took the businessman’s side. Legionnaires were often used as strike breakers in industrial actions. The call was to advise a couple of war veterans from the Legion were on their way to meet with him. Five hours later a chauffeur driven limousine pulled up outside. Two well dressed men got out. These men were Bill Doyle, commander of the Massachusetts division, and Gerald MacGuire, former commander of the Connecticut chapter and, by day, bond broker on Wall Street. Butler was wary of the Legionnaires’, but always happy to give any old soldier a hearing. He warmly welcomed the men in. 

After small talk on adventures and war wounds, the visitors got to their point. They represented a shadowy group of veterans who were tired of the Legion’s leadership. They hoped to roll them in the upcoming convention in Chicago, and needed Butler’s help. They asked Smedley to take to the stage at the convention, and call for the ouster of the ‘royal family’ – as they referred to the leadership. 

Though no fan of the ‘royal family’, Butler had no interest whatsoever in getting involved. It was none of his business who ran the legion. 

The men countered – would he at least attend as an honoured guest? Well, not an honoured guest exactly… They could sneak him in as the delegate from Hawaii? Again he demurred. The two men returned to their limo and left. 

This would be far from the last time they would meet – MacGuire especially. A month later they returned to the Butler household with a new plan. Butler could gather three hundred legionnaire friends of his, then travel to Chicago by train. The men would holler for Butler till the Royal Family had to let him speak. The men had a written speech for the general to deliver. Butler pointed out most of his friends in the legion didn’t have the money for a ticket to Chicago. The men replied they had sufficient funds to pay for that, showing Butler proof of a $100,000 operational budget. 

Butler was a man with a ferocious temper; he was a hair’s breadth from letting rip at the men. 

But he was also curious as to their endgame. Playing it cool he told the men he’d think about it. He could be interested in their scheme, but needed to know much more before he could commit himself.

Once Doyle and MacGuire left, Butler read through the speech. It demanded the legion lobby government for a return to the Gold Standard. Their reasoning? bonus payments should be backed by something far more tangible than fiat money. 

So… Who was Smedley Butler? 

Smedley Darlington Butler was born on July 30th, 1881 to a distinguished, largely pacifist Quaker family – Largely, as both grandfathers fought for the Union army in the American Civil War. His family were previously active in the fight against slavery in the underground railway network – helping runaway slaves to freedom – and when war broke out, they felt they too must play their part. They were politically active and influential – his lineage including Congressmen. His own father, Thomas Butler, was one such politician. 

As a child, Smedley dreamt of becoming a soldier. Aged 12 he joined up with the Boy’s Brigade – giving him at least some sense of military life. The Battleship USS Maine exploding in Havana Harbour on February 15th 1898 gave Smedley the reason he needed to sign up. Prior to the Maine incident, a war of independence between Cuba and their colonisers, Spain, had been in full swing for several years. The Maine was stationed in the harbour to protect American business interests in Cuba. A boiler had malfunctioned, causing a catastrophic explosion, but speculation ran rife the Spanish had blown the ship up. A large number of Americans were livid with Spain and called for a declaration of war. The politicians soon obliged. Many young men, including a sixteen year old Smedley Butler, enrolled in the armed forces to fight the Spanish. Butler signed on as a Marine. 

The USS Maine

Cutting his teeth in Cuba, he returned home in 1899. Promoted to lieutenant, he was then deployed to the Phillipines, where he led a battalion. This war was a continuation of the war with Spain, taking place on another of their colonies. Showing the kind of derring do that later became his trademark – he led an assault on the heavily armed stronghold of Noca-leta – battling through a rain of heavy gunfire to capture the enemy base. In downtime he had a massive tattoo of the Marine corps emblem tattooed onto his chest, which made him deathly ill for a time, as the tattooist had used a dirty needle. 

From the Philippines, Butler fought alongside a multi-national peacekeeping force against The Boxer Rebellion in China. America, of course, had business interests in China that needed protection – a constant of Butler’s service.  One of his first missions was to protect an American compound near Tientsin against fifty thousand Boxers. He was in charge of a considerably smaller force. At one point in the conflict he risked his own life by weaving through enemy gunfire to rescue an injured Marine private. Remarkably, the Marines broke the siege, sending the Boxers running. He was shot in the thigh by a stray bullet, while taking out the high-walled Boxer compound at Tientsin, but fought through the injury. While healing from the battle, he was promoted to captain. He went on to fight at Peking, his leg injury not yet fully healed. 

In 1902 Butler was in Panama. In 1903 a revolution erupted in Honduras, and Butler was sent in to protect America’s banana exporters. He continued to serve with distinction, and in 1908 was promoted to Major. 1909 saw him stationed in Panama, then Nicaragua, both hot spots with American business interests. In the latter mission, he protected a highly unpopular government – who had seized power – but who also had the virtue of being friendly to American businesses. 

One tale from Nicaragua – in 1912, Major Butler was sent in to liberate a captured railway line with a crew of 100 men. The train was being guarded by a much larger force. Rather than risk being outgunned, Butler turned to asymmetrical warfare – putting his own life on the line. walking towards the rebel forces with two cloth sacks in hand, he demanded the rebels hand the train over to him. He told the rebels if anyone tried to stop him taking the train, he was carrying two bags full of dynamite. Get in his way they’d all be blown to kingdom come. His bluff worked. 

He briefly rose to governor of the district of Granada In Nicaragua. This mission sat particularly uncomfortably with Butler. He knew this time, in no uncertain terms, the majority of the population detested the conservative government of Adolfo Diaz. He was becoming increasingly aware of his role – in his own words “A high class muscle man for Big Business… a racketeer, a gangster for Capitalism”. Later that year he was ordered to, and successfully carried through, the rigging of a governmental election in Diaz’ favour. 

In 1914, Butler was sent to Mexico. He served in the midst of their rebellion both as spy, carrying out reconnaissance work, and a soldier. By 1915 he was stationed in Haiti. 

Germany had economic interests in the island nation – at an unsettled time in which four regimes ruled that year alone. Washington DC worried if a revolution broke out, Germany would swoop in and establish a naval base. The marines were sent in to protect the American sphere of interest and restore order. It was coincidental American business interests – banks particularly – had money tied up in the nation? Butler was sent after the Cacos – precursors of Papa Doc Duvalier’s Tontons Macoute. At times the marines were outnumbered 20 to one, but Butler’s marines prevailed, battling through fields of sugar cane and taking out compounds in the middle of the night. Butler was put in charge of the Haitian police force for a time – a role he reprised in the 1920s, as the police chief of Philadelphia. By 1916, now Lieutenant Colonel Butler, he became increasingly worried of his role in other nation’s affairs – to quote Butler

“War is a racket…in which the profits are reckoned in dollars, and the losses in lives”.  

When the USA entered the First World War, Butler begged to be sent. After much lobbying he was sent, but to Camp Pontanezen, a French camp through which most American soldiers came and went. Promoted to General, for once he was not in a combat role – but he did have responsibility for some strategically important, and at the time poorly maintained real estate. Butler soon had the camp orderly, and won the respect of many of the soldiers passing through the camp. The First World War seemed futile to the seasoned warrior. He later wrote “what on earth (are) these American boys …doing getting wounded and killed and buried in France?”. 

Smedley Butler served for some time postwar. In 1927 he was stationed in China, as that nation fell apart, amid battling warlords. He was sent into Shanghai, to protect the interests of the Standard Oil Corporation. All up he saw action in eleven countries – in excess of 120 battles or armed conflicts. Back home by 1930, people were starting to question just what the marines had been doing in some of those occupations in Central and South America. Butler, near retirement, shed light on some of those activities – the 1912 interference in a Honduran election top of his list. The most awarded soldier in American history in his own time, he had quite a reputation to preserve. He was increasingly willing to tarnish that reputation, if it meant keeping future marines safe from being sent into conflict for the sole benefit of big business. By the early 1930s, Smedley Butler was a popular advocate of soldiers rights and a notable anti-war campaigner.   

In 1931, he was passed over for the top position in the Marine Corps, then slipped up at a speaking engagement. Speaking on the need to still keep a defence force, for protection against foreign invaders – he shared a story of a friend’s armoured car ride with Benito Mussolini. The two men flew through the countryside at a constant seventy miles an hour. The pace was constant as they shot through any towns or villages in their way. Coming to one settlement Mussolini’s car ran straight over a young child without even attempting to brake, much less stop to check on the victim. Horrified, Butler’s friend screamed, only to be lectured by Mussolini. The child “was only one life, and the affairs of the state could not be stopped by one life”. Smedley Butler wanted a far less interventionist military – but as long as monsters like Mussolini existed, the USA had to keep a defence force. The speech caused an international incident. Italy demanded Butler be court-martialled. He was arrested and charged with conduct unbecoming his position. The public were furious over Butler’s arrest – and the wave of anti-Mussolini sentiment was so palpable, Il Duce asked for the charges against Butler to be dropped. Butler went free.

Mussolini’s request didn’t kill the story as he hoped. Butler’s friend, the journalist Cornelius Vanderbilt, confirmed the tale, adding Mussolini patted his knee immediately after, stating “Never look back, Mr Vanderbilt – Always look ahead in life”. 

Benito Mussolini

As the Great Depression bit, citizen Butler – a lifelong Republican – gave his support to the Democrat, Roosevelt. This was not just at the ballot box, but through his public speaking. In one speech he proclaimed himself “a member of the Hoover for Ex-President league” Whether Butler would have done this unprompted is mere speculation – the fact is the ‘Roosevelt Republican Organisation’, a political pressure group something akin to The Lincoln Project in Trump’s time,  approached him for support. He was happy to oblige them.

We really should rejoin Butler in 1933, as he tours the nation giving public lectures and speeches.

The Wooing Continues…

As an influential man; a man with the ear of an army’s worth of dispossessed soldiers; a man who recently took a public stand against a sitting president – Smedley Butler appeared worthy of pursuit to Gerald MacGuire and his masters. As we’ll discuss in part two, they had a particular interest in winning over an army’s worth of soldiers. Who else could they call on for that? Douglas MacArthur? He’d ordered the attack on the Bonus Army, so was persona non grata at the time. Throughout the remainder of 1933, MacGuire pursued Butler at every opportunity.

In September, while Butler was in Newark, New Jersey on a speaking engagement, MacGuire dropped by his hotel room. When Butler asked him was there really any real money behind this shadowy organisation – MacGuire threw $18,000 in notes on the bed. This was just loose change, but could get him and a gang of legionnaires to Chicago. Butler demanded he pick the money back up immediately – was he trying to get him arrested? The moment he tried to do anything with any of those thousand dollar notes, he’d leave a traceable footprint tying him to the scheme. MacGuire countered he could arrange smaller denominations. 

Moving forwards, Butler advised him, he would only speak to the backers directly. Arrangements were made for a face to face meeting in Chicago with Robert Sterling Clark, a millionaire banker and heir of a founder of the Singer sewing machine company. 

Butler knew Clark, as it happened. As a young man Clark was a Marine Lieutenant who fought alongside Butler in the Boxer campaign. The two men spoke on the phone, then met face to face, at Butler’s house. In their talk, Clark let slip the writer behind the gold standard speech was none other than John W. Davis. Davis had been a Solicitor General for Democratic President Woodrow Wilson from 1913 to 1918. After a brief stint as Ambassador to Britain, he ran as the Democratic nominee for President in1924, losing to the Republican Calvin Coolidge. As a private citizen, Davis returned to the law – defending big business interests. Though now remembered – if at all – as the guy who argued against school desegregation in the landmark Brown v Board of Education case, he was then the head counsel of the mogul J.P. Morgan.

As they talked in his study, Butler challenged Clark head on – this speech had very little to do with soldiers, still unpaid, getting their bonus. It felt like another racket, another big business plot. What was his interest in all this? Clark briefly hesitated, took in a deep breath, then honestly answered. He was a wealthy man, with a $30 million fortune to think about. The movement away from the Gold Standard was driving up inflation, which would massively devalue of his fortune. Clark was convinced Roosevelt would beggar him, and was willing to spend half of his fortune to force the country back onto the Gold Standard.

But why would Roosevelt give in to pressure if a group of old soldiers started making some noise over this? Clark answered Roosevelt was a blue blood like him – He had class loyalties to people like him, and would bow to pressure given half a chance. When he did, the blue bloods would descend to offer their support, and all would be forgiven. 

Butler told Clark he wouldn’t let veterans be used to undermine democracy. He wanted no part in this scheme. Clark countered. Butler was working because he had to – all his years of service may have brought a wealth of experience, but no great financial fortune. Butler had a large mortgage still to pay. If Smedley was willing to do this, the cabal would pay his mortgage for him. 

Butler was enraged – and though he knew he should stick to the plan – just keep on collecting evidence on these people – he lost it with Clark, hollering at him to go out into the hallway. Go look at all the mementos of his long career – all on display out there. They were rewards for loyalty to his nation, and to his people. He would not risk that reputation for anything. Buddy you picked the wrong guy. 

Minutes later, Clark sheepishly returned, and asked if he could use Butler’s phone. He made a call to MacGuire to advise him go with plan B. In Chicago the Royal Family would be inundated with telegrams demanding they back a return to the gold standard. He then left. 

Days later, Butler read in the papers – they indeed had been inundated with such telegrams. He may have been excused if he thought this was the last he’d hear of the shadowy cabal… but what kind of tale would that make?  

Sorry all, this will have to be a two-parter. Readers, podcast listeners – my own slowly growing ‘bonus army’ please return in two week’s time and we’ll conclude this tale.