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.
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).
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.