I referred to the Business Plot in a few posts recently and I’d like to address some of the nay sayers and critics. These may be found in Wikipedia article on the topic in the section Later Reactions.
First, let’s look at the historic backdrop, the political situation in the United States in the 1930s.
Troops returning from World War I were paid $60 and a train ticket home. There was no Veteran’s Administration or GI Bill.
In 1919, most veterans had received $60 in mustering pay and a train ticket home for their trouble. The American Legion organization was consequently established to serve as a veterans’ union to increase their bargaining power in government and petition for aid. All That’s Interesting
Marine Major General and two time Medal of Honor winner Smedley Butler had been passed up for the position of Commandant by President Herbert Hoover. The Great Depression was in full swing and Hoover’s policies were doing nothing to resolve the economic crisis.
The unemployment rate was 25% and many were veterans. They had been given bonus bonds that would be redeemable 20 years after issuance; in 1945. The veterans wanted their money rather than have to wait. The “Bonus Army” made up of about 43,000 veterans and their supporters and families made camp in Washington DC in 1932. They were there to protest for the Patman bill that would give them their bonuses immediately.
The veterans made camp in the Anacostia flats while they awaited the congressional decision on whether or not to pay the bonus. The motion, known as the Patman bill, was decisively defeated, but the veterans stayed in their camp. On July 19, Butler arrived with his young son Thomas, the day before the official eviction by the Hoover administration. He walked through the camp and spoke to the veterans; he told them that they were fine soldiers and they had a right to lobby Congress just as much as any corporation. He and his son spent the night and ate with the men, and in the morning Butler gave a speech to the camping veterans. He instructed them to keep their sense of humor and cautioned them not to do anything that would cost public sympathy. On July 28, army cavalry units led by General Douglas MacArthur dispersed the Bonus Army by riding through it and using tear gas. During the conflict several veterans were killed or injured. Butler declared himself a “Hoover-for-Ex-President-Republican” Wikipedia
Butler was very popular and his employment consisted of giving speeches to veterans and other groups around the nation.
Butler’s speech and short book War is a Racket (1935) showed his pacifist conversion. Possibly a reversion as he was raised a Quaker. This speech was 2 years after the Business Plot.
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 muscle man 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. Smedley Butler in November 1935 issue of the magazine Common Sense. New England Historical Society
When Franklin D Roosevelt was elected corporations and banks who had enjoyed the lassaiz-faire economic policies of Hoover were alarmed. They had gotten wealthier while the rest of the nation suffered. FDR’s promise of two chickens in every pot had them scared.
The following is an excerpt from Thom Hartmann’s book Unequal Protection and can be read at Google Books. Referring to the FDR’s perceived challenge to corporate power.
The corporate response was ferocious, and the memory of that may be why no president since has followed in Roosevelt’s footsteps.
The summer of 1934 was a watershed. In July of that year, the cover story of Fortune Magazine sang the praises of Mussolini’s new economic/political invention. The opening paragraph read;
“Facism is a religion,” says Mussolini. And he also says, “The twentieth century will be known in history as the Century of Fascism.” To look at these two statements and then realize that Fascism has all but conquered half of Europe and part of Asia is to wonder whether Fascism is achieving in a few years or decades such a conquest of the spirit of man as Christianity achieved in ten centuries.”
The article closed with this summary, reflecting an opinion held by many of America’s business elite. After qualifying that, “No 100 percent journalist can be more than a few percent Fascist,” the magazine’s concluding paragraph said: “But the good journalist must recognize in Fascism certain ancient virtues of the race, whether or not they happen be to momentarily fashionable in his own country. Among these are Discipline, Duty, Courage, Glory, Sacrifice.” from Unequal Protection by Thom Hartmann (available from Penguin Random House).
There were societies in America that openly supported Hitler and his National Socialist German Worker’s Party. They wanted to emulate the dictator’s regime in the United States.
The German American Bund was founded in March 1936. However, the Bund was not the first pro-Nazi organization in the United States. Both the Free Society of Teutonia (1924–1932) and the Friends of New Germany (1933–1936) openly supported Nazism. Holocaust Encyclopedia
In 1939 the Bund staged a 20,000 member strong demonstration in Madison Square Gardens. This is pictured above in the banner and here at Rare Historic Photos
A crowd of more than 20,000 people gathered under signs that read “Wake Up America—Smash Jewish Communism” and “Stop Jewish Domination of Christian America.” The crowds booed at any mention of President Roosevelt. They also chanted “Heil Hitler” during the rally. The Bund’s slogan “Free America” was repeated frequently. Kuhn gave the closing speech at the rally. He called for a “white, Gentile-ruled United States” that was free from what he called “Jewish domination.” Holocaust Encyclopedia
To summarize thus far; the results of the Great Depression and the election of FDR were angry unemployed veterans, scared business leaders singing Mussolini’s praises and organizations of Hitler sympathizers. There were even articles in popular magazines contemplating the benefits of dictatorships over democracy.
To be continued.