-Caveat Lector-

an excerpt from:
The Plot to Seize the White House
Jules Archer(C)1973
Hawthorne Books, Inc.
New York, NY

FOREWORD

This is the true story of a remarkable American who, during the early New Deal
years, was sought by wealthy plotters in the United States to lead a putsch to
overthrow the government and establish an American Fascist dictatorship.

According to retired Representative John W. McCormack, former Speaker of the
House, if the late Major General Smedley Butler of the U.S. Marine Corps had
not been a stubborn devotee of democracy, Americans today could conceivably be
living under an American Mussolini, Hitler, or Franco.

An ironic aspect of the conspiracy General Butler unmasked is that few
Americans have ever heard about it, or even know anything about the general.
As children all of us were taught about the treason of Aaron Burr and Benedict
Arnold, whose betrayals were safely cobwebbed by the distant past. But school
texts that deal with the New Deal are uniquely silent about the powerful
Americans who plotted to seize the White House with a private army, hold
President Franklin D. Roosevelt prisoner, and get rid of him if he refused to
serve as their puppet in a dictatorship they planned to impose and control.

There is strong evidence to suggest that the conspirators may have been too
important politically, socially, and economically to be brought to justice
after their scheme had been exposed before the McCormack-Dickstein Committee
of the House of Representatives. The largely anti-Roosevelt press of the New
Deal era scotched the story as expeditiously as possible by outright
suppression, distortion, and attempts to ridicule General Butler's testimony
as capricious fantasy.

This is the true story of a remarkable American who, during the early New Deal
years, was sought by wealthy plotters in the United States to lead a putsch to
overthrow the government and establish an American Fascist dictatorship.

According to retired Representative John W. McCormack, former Speaker of the
House, if the late Major General Smedley Butler of the U.S. Marine Corps had
not been a stubborn devotee of democracy, Americans today could conceivably be
living under an American Mussolini, Hitler, or Franco.

An ironic aspect of the conspiracy General Butler unmasked is that few
Americans have ever heard about it, or even know anything about the general.
As children all of us were taught about the treason of Aaron Burr and Benedict
Arnold, whose betrayals were safely cobwebbed by the distant past. But school
texts that deal with the New Deal are uniquely silent about the powerful
Americans who plotted to seize the White House with a private army, hold
President Franklin D. Roosevelt prisoner, and get rid of him if he refused to
serve as their puppet in a dictatorship they planned to impose and control.

There is strong evidence to suggest that the conspirators may have been too
important politically, socially, and economically to be brought to justice
after their scheme had been exposed before the McCormack-Dickstein Committee
of the House of Representatives. The largely anti-Roosevelt press of the New
Deal era scotched the story as expeditiously as possible by outright
suppression, distortion, and attempts to ridicule General Butler's testimony
as capricious fantasy.

PART ONE

The Plot

1

Perspiring on the raw-wood platform in the broiling heat of a July day in
Washington, Major General Smedley Darlington Butler, retired, took off his
coat, rolled up his sleeves, and opened his collar. His violent deep-set eyes
surveyed ten thousand faces upturned among the lean-tos, shanties, and tents
on Anacostia Flats.

Bums, riffraff, drifters, and troublemakers-those were some of the
descriptions being applied to the Bonus Army. Many of the ragged veterans who
had marched on the Capital had been sleeping in doorways and under bridges,
part of the vast army of twelve million unemployed. Some were the same men who
had fought under Smedley Butler in the Spanish-American War, the Philippines
campaign, the Boxer Rebellion, the Caribbean interventions, the Chinese
intervention of 1927-1928, and World War I.

Butler bad come to Washington in 1932 at the urging of James Van Zandt, head
of the Veterans of Foreign Wars, to lend moral support to veterans at a
crucial moment. Congress had just voted down the Patman Bonus Bill to pay
veterans the two-billion-dollar bonus promised them in bonus certificates
payable in 1945. Bonus Army Commander Walter W. Waters, a former army
sergeant, and other leaders feared that their discouraged followers would now
give up and return home.

When Waters introduced Smedley Butler to the huge crowd of veterans gathered
along the Anacostia River to hear him, he was greeted with an enthusiastic
roar of acclaim that echoed through Washington like thunder. They all knew Old
Gimlet Eye, one of the most colorful generals who had ever led troops into
battle. He was even more famous and popular among rankand-file leathernecks,
doughboys, and bluejackets for the fierce battles he had fought against the
American military hierarchy on behalf of the enlisted man. He was also
admired, respected, and trusted because of his one-man fight to compel
Americans to remember their tragic war casualties hidden away in isolated
veterans' hospitals.

Smedley Butler was a wiry bantam of a man, shoulders hunched forward as though
braced against the pull of a heavy knapsack, his hawk nose prominent in the
leathery face of an adventurer. Silhouetted against a flaming sunset, he made
a blazing speech of encouragement in the blunt language that had kept him in
hot water with the nation's highest-ranking admirals and generals, not to
mention Secretaries of State and Navy.

"If you don't hang together, you aren't worth a damn!" he cried in the famous
hoarse rasp that sent a thrill through every veteran who had heard it before.
He reminded them that losing battles didn't mean losing a war. "I ran for the
Senate on a bonus ticket," he said, "and got the hell beat out of me." But he
didn't intend to stop fighting for the bonus, and neither should they, he
demanded, no matter how stiff the opposition or the names they were called.

"They may be calling you tramps now," he roared, "but in 1917 they didn't call
you bums! . . . You are the best-behaved group of men in this country today. I
consider it an honor to be asked to speak to you. . . . Some folks say I am
here after something. That's a lie. I don't want anything." All he wanted, he
told the cheering veterans, was to see that the country they had served dealt
with them justly. He concluded his exhortation by urging, "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!"

Afterward he was mobbed by veterans eager to speak to him. Until 2:30 A.m. he
sat sprawled on the ground in front of his tent, listening sympathetically to
tales of lost jobs, families in distress, and troublesome old wounds. He slept
three hours, then woke to resume talks with the veterans.

Sharing a Bonus Army breakfast of potatoes, hard bread, and coffee, he learned
that the food was running out, and veterans were muttering about rioting
against Congress if it did. Before he left for his home in Newtown Square, a
small town outside of Philadelphia, he warned the Bonus Marchers, "You're all
right so long as you keep your sense of humor. If you slip over into
lawlessness of any kind, you will lose the sympathy of a hundred twenty
million people in the nation."

It was the government, however, that unleashed the violence. Under orders from
President Herbert Hoover, General Douglas MacArthur led troops in driving the
Bonus Army out of Washington at bayonet point and burning down their
shacktowns.

By August 1 rumors spreading from the last stronghold of the veterans, an
encampment at Johnstown, Virginia, indicated that the infuriated Bonus
Marchers were determined to organize a new nonpartisan political organization
of veterans and wanted General Butler to lead it. Reporters pressed him to
comment.

"I have heard nothing about it at all, although I was in Washington about two
weeks ago to address the veterans," he replied with a shrug. "I have neither
seen nor- heard from Mr. Waters or any of the other leaders of the Bonus
Expeditionary Force."

Meanwhile he phoned the governors of a number of states and won their
agreement to provide relief for those of their veterans who wanted to return
home. He phoned Waters in Washington to urge that the remnants of the Bonus
Army break camp and start back home under this plan, and he issued a blast at
the Hoover Administration as heartless for its treatment of the veterans and
its failure to help them, their wives, and their children return home without
further humiliation.

That November lifelong Republican Smedley Butler took the stump for Franklin
D. Roosevelt and helped turn Herbert Hoover out of the White House.

On July 1, 1933, General Butler's phone rang soon after he had had breakfast.
Calling from Washington, an American Legion official he had met once or twice
told Butler that two veterans were on their way from Connecticut to see him
about an important matter and urged him to make time for them.

About five hours later, hearing a car pull up into his secluded driveway at
Newtown Square, Butler glanced out the porch window. His lips pursed
speculatively as two fastidiously dressed men got out of a chauffeur-driven
Packard limousine.

At the door the visitors introduced themselves as Bill Doyle, commander of the
Massachusetts American Legion, and Gerald C. MacGuire, whom Butler understood
to have been a former commander of the Connecticut department.

Butler led the visitors into his study at the rear of the house, and they took
chairs opposite his desk. MacGuire, who did most of the talking, was a fat,
perspiring man with rolls of jowls, a large mouth, fleshy nose, and bright
blue eyes. He began a somewhat rambling conversation during which he revealed
that he, too, had been a Marine, with a war wound that had left a silver plate
in his head. Doyle established his combat credentials by mentioning that he
also had a Purple Heart.

Butler's compassion for wounded veterans made him patient as MacGuire
encircled the subject of their visit in spirals that only gradually narrowed
until their apex pierced the point. The point, it seemed, was that MacGuire
and Doyle, speaking for a coterie of influential Legionnaires, were intensely
dissatisfied with the current leadership of the American Legion. Considering
it indifferent to the needs of rank-and-file veterans, they revealed that they
hoped to dislodge the regime at a forthcoming Legion convention to be held in
Chicago. They urged Butler to join them and stampede the convention with a
speech designed to oust the "Royal Family" controlling the organization.

Their dissatisfaction with the leadership of the American Legion did not find
Butler unsympathetic. He had long been privately critical of the
organization's close ties with big business and its neglect of the real
interests of the veterans it presumably represented. These convictions were to
be made dramatically public before the year was out, but now he declined his
visitors' proposal on grounds that he had no wish to get involved in Legion
politics and pointed out that, in any event, he had not been invited to take
part in the Legion convention.

MacGuire revealed that he was chairman of the "distinguished guest committee"
of the Legion, and was on the staff of National Commander Louis Johnson, a
former Secretary of Defense. At MacGuire's suggestion Johnson had included
Butler's name as one of the distinguished guests to be invited to the Chicago
convention. Johnson had then taken this list to the White House, MacGuire
said, and had shown it for approval to Louis Howe, Roosevelt's secretary. Howe
had crossed Butler's name off the list, however, saying that the President was
opposed to inviting Butler. MacGuire did not know the reason, but Bill Doyle
assured Butler that they had devised a plan to have him address the convention
anyhow.

Butler remained silent. He was used to oddball visitors who called with all
kinds of weird requests. Curiosity, and the leisure afforded by retirement,
often led him to hear them out in order to fathom their motives.

He thought about his visitors' finely tailored suits and the cbauffeur-driven
Packard and their claim to represent the "plain soldiers" of the Legion. The
story about the rejection of his name on the Legion convention guest list by
the White House struck him as more than peculiar, in view of the fact that the
President had gratefully accepted his campaign help in a "Republicans for
Roosevelt" drive eight months earlier. Why should F.D.R. suddenly be so
displeased with him?

It crossed his mind that the purpose of the story, true or false, might be
intended to pique him against the Roosevelt Administration, for some obscure
reason. Keeping his suspicions to himself, he heard out his visitors in the
hope of learning why they were so anxious to use him.

They explained that they had arranged for him to attend the convention as a
delegate from Hawaii, which would give him the right to speak. When he still
declined, they asked whether he wasn't in sympathy with their desire to oust
the "Royal Family." He was, he said, because the leadership had simply been
using the organization to feather their own nests, but he had absolutely no
intention of attending the convention without an invitation.

His disappointed visitors took their leave but asked permission to return in a
few weeks.

A month later Doyle and MacGuire returned. Without waiting to inquire whether
Butler had changed his mind, MacGuire quickly informed him that there had been
a change of plans. The general had been right to object to coming to the
convention as just another delegate, MacGuire acknowledged. It would have been
ineffective, and a waste of the general's immense prestige.

MacGuire outlined a new plan in which Butler would gather two or three hundred
Legionnaires and take them to Chicago on a special train. They would be
scattered throughout the audience at the convention, and when Butler made an
appearance in the spectators' gallery, they would leap to their feet
applauding and cheering wildly. The proceedings would be stampeded with cries
for a speech that would not die down until Butler was asked to the platform.

Incredulous at the audacity with which this scheme was being unfolded to him,
Butler asked what kind of speech his visitors expected him to make. MacGuire
produced some folded typewritten pages from an inside jacket pocket. They
would leave a speech with him to read. MacGuire urged Butler to round up
several hundred Legionnaires, meanwhile, to take to Chicago with him.

Holding on to his fraying temper, Butler pointed out that none of the
Legionnaires he knew could afford the trip or stay in Chicago. MacGuire
quickly assured him that all their expenses would be paid. But Butler, who was
constantly being approached with all kinds of wild schemes and proposals, was
not prepared to take the plotters seriously until they could prove they had
financial backing. When he challenged MacGuire on this point, the veteran
slipped a bankbook out of his pocket. Without letting the name of the bank or
the account be seen, he flipped over the pages and showed Butler two recent
deposits-one for $42,000 and a second for $64,000-for "expenses."

That settled it. No wounded soldiers Butler knew possessed $100,000 bank
accounts. His instincts sharpened by two years' experience, on loan from the
Marines, as crime-busting Director of Public Safety for Philadelphia, warned
him that there was something decidedly unsavory about the proposition.

He decided to blend skepticism, wariness, and interest in his responses, to
suggest that he might be induced to participate in the scheme if he could be
assured that it was foolproof. He would profess himself interested, but
unconvinced as long as be suspected that there was more to be learned about
the scheme. So far they had told him practically nothing except what was
barely necessary for the role they wanted him to play. He determined to get to
the bottom of the plot, while trying not to scare them off in the process.

After they bad left, he read over the speech MacGuire had left with him. It
urged the American Legion convention to adopt a resolution calling for the
United States to return to the gold standard, so that when veterans were paid
the bonus promised to them, the money they received would not be worthless
paper. Butler was baffled. What did a return to the gold standard have to do
with the Legion? Why were MacGuire and Doyle being paid to force this speech
on the convention-and who was paying them?

Butler detected an odor of intrigue. Some kind of outlandish scheme, he was
convinced, was afoot. Knowing little about the gold standard, why Roosevelt
had taken the country off it or who stood to gain by its restoration and why,
he began thumbing through the financial pages of newspapers and
magazinessections of the press he had never had any occasion to read.

The first important fact he learned was that the government no longer had to
back up every paper dollar with a dollar's worth of gold. This meant that the
Roosevelt Administration could increase the supply of paper money to keep its
pledge of making jobs for the unemployed, and give loans to farmers and
homeowners whose property was threatened by foreclosure. Banks would be paid
back in cheapened paper dollars for the gold-backed dollars they had lent.

Conservative financiers were horrified. They viewed a currency not solidly
backed by gold as inflationary, undermining both private and business fortunes
and leading to national bankruptcy. Roosevelt was damned as a socialist or
Communist out to destroy private enterprise by sapping the gold backing of
wealth in order to subsidize the poor.

Butler began to understand that some wealthy Americans might be eager to use
the American Legion as an instrument to pressure the Roosevelt Administration
into restoring the gold standard. But who was behind MacGuire?

A short while after MacGuire's second visit, he returned to see Butler again,
this time alone. MacGuire asked how he was coming along in rounding up
veterans to take with him to the convention. Butler replied evasively that be
had been too busy to do anything about it. He then made it clear that he could
have no further interest in the plan unless MacGuire was willing to be candid
and disclose the sources of the funds that were behind it.

After some hesitation MacGuire revealed that they had been provided by nine
backers, the biggest contributor putting up nine thousand dollars. Pressed to
explain their motives, MacGuire insisted that they were simply concerned about
helping veterans get their bonus and a square deal.

People who could afford such contributions, Butler reflected ironically, were
hardly the type who favored a two-billion-dollar bonus for veterans.

When he prodded MacGuire further, the fat veteran revealed that one of his
chief backers was a wealthy Legionnaire he worked for, Colonel Grayson M.-P.
Murphy, who operated a brokerage firm at 52 Broadway in New York City. Butler
pointed out the contradiction between MacGuire's claim that his group was
concerned with the problems of the poor rank-and-file veteran and the fact
that his backers were all obviously wealthy men. MacGuire simply shrugged and
frankly admitted that as far as he personally was concerned, he was primarily
involved in the transaction as a businessman and was being well taken care of
for his efforts. It would be equally profitable for Butler, he hinted, if the
general were disposed to cooperate.

Butler pumped him about Colonel Murphy's connection with the plan. Murphy,
MacGuire revealed, was one of the founders of the Legion and had actually
underwritten it with $125,000 in 1919 to pay for the organizational field
work. He had been motivated by a desire to see the soldiers "cared for."

That was too much for Butler, who sardonically pointed out that wealthy men
had been using the Legion ever since to break strikes. MacGuire hastily
assured him that Murphy had had nothing to do with that aspect of the
organization.

When Butler questioned Murphy's motive in wanting the gold-standard speech
made at the convention, MacGuire explained that he and the other backers
simply wanted to be sure that the veterans would be paid their bonus in sound
goldbacked currency, not in "rubber money."

He showed Butler several checks for large amounts signed by Murphy and two
other men-Robert S. Clark and John Mills. Clark's name rang a bell with
Butler. He had known a Second Lieutenant Robert S. Clark in China during the
Boxer Campaign who had been called "the millionaire lieutenant."

The-money, MacGuire said, would be used to open an expense account for Butler
in Chicago. He hoped that the general would now get busy rounding up veterans
to take to the convention.

Butler remained noncommittal. He intended to procrastinate as long as be
could, continuing to pump MacGuire until he bad enough information to make a
complete report to the government. The President, he felt, ought to know what
schemes his rich opponents were up to to overturn New Deal policies.

After the visit, Butler brooded over the implication of MacGuire's revelation
that his employer, key founder and sponsor of the American Legion, was
involved. Tall, heavyset, Grayson Mallet-Prevost Murphy * [* The. Grayson
Mallet-Prevost Murphy referred to here and throughout the book died on October
19, 1937.] not only operated one of Wall Street's leading brokerage houses but
was also a director of Guaranty Trust, a Morgan bank, and had extensive
industrial and financial interests as a director of Anaconda Copper, Goodyear
Tire, and Bethlehem Steel. A West Point graduate, Murphy was a veteran of the
Spanish-American War and World War I with the rank of colonel. Butler's bushy
eyebrows rose when he also learned that the financier had been decorated by
Benito Mussolini, who had made him a Commander of the Crown of Italy.

Butler found out that he had been one of twenty American officers who had met
in Paris in February, 1919 reportedly on orders from the commanders of the
A.E.F., to counter revolutionary unrest in Europe following the end of World
War 1, by forming a veterans' organization with the alleged purpose of looking
after veterans' welfare and uniting them to defend America at home as they had
abroad.

Murphy had put up $125,000 to get the American Legion going, and it had been
organized in the spring with a caucus of about a thousand officers and men.
The Legion bad then solicited funds and support from industrialists. Swift and
Company executives had written other firms, "We are all interested in the
Legion, the results it will obtain, and the ultimate effect in helping to
offset radicalism."

The average veteran who joined the Legion in the 1920's had been unaware that
big-business men were backing it to use it as a strikebreaking agency. When
workers struck against wage cuts, Legion posts were informed that the strikers
were Communists trying to create national chaos so that the Reds could take
over. Legionnaires were given baseball bats to break up strikes and civil
rights demonstrations. The American Civil Liberties Union later reported, "Of
the forces most active in attacking civil rights, the American Legion led the
field."

The rank and file, however, had grown increasingly restless and impatient with
the "Royal Family" that ran the Legion, especially after the Depression had
left so many jobless. Veterans forced to sell apples on street corners were
angered by a Legion leadership that opposed the bonus and government spending
as inflationary. That was why so many thousands had bypassed the Legion to
join the Bonus March on Washington.

Adding up the facts, Butler was struck by a startling contradiction. MacGuire
bad claimed to speak for rank-and-file discontent with the Legion's bosses and
professed to want to oust them, yet he was an agent for a top founder of the
Legion who was obviously one of the powers behind the throne. MacGuire had
revealed that the Legion still owed Murphy part of the $125,000 foundation
money be had provided and had tacitly acknowledged that Murphy "makes the
kings."

MacGuire obviously bad to be lying in his claim that he-or Murphy-wanted to
topple the present leadership. Why? Perhaps it was a ruse to channel and
control popular discontent in the Legion, hopefully with Butler's help, for
the purposes of the nine wealthy men behind MacGuire. Butler awaited
MacGuire's next move with deep interest.

pp.ix-x, 1-14
-----
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
Omnia Bona Bonis,
All My Relations.
Adieu, Adios, Aloha.
Amen.
Roads End
Kris

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