-Caveat Lector-

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

--[2]--
5.

In September Butler was asked to address a convention of the Legion's 29th.
Division at Newark, New jersey. On the Sunday morning he was in the city, the
phone rang in his hotel room. It was MacGuire, who was in the lobby and asked
to see him.

Invited to Butler's room, MacGuire reminded the general that the time for the
American Legion convention was rapidly approaching. Was Butler finally ready
to take a contingent of veterans to Chicago and make the gold-standard speech?

Butler displayed increasing skepticism about the whole plan. In a gruff voice
he challenged MacGuire's proposal as a bluff without any real money behind it.
His visitor whipped a fat wallet out of his hip pocket, extracted a mass of
thousanddollar bills, and scattered them all over the bed. The eighteen
thousand dollars, he said smugly, would amply cover the expenses of Butler and
the veterans he led to Chicago.

The gesture caught Butler by surprise; losing his temper, he accused MacGuire
of trying to give him thousand-dollar bills whose numbers had been recorded,
so that once he cashed them, the plotters would have proof of his complicity.
MacGuire hastily assured him that he could have smaller denominations.

In his vexation Butler snapped at the bond salesman to take back the money
immediately, as he had no intention of getting involved in MacGuire's scheme.
But then, as he regained control of his anger, he sought to make it appear
that he was merely indignant at being forced to deal with an emissary. He
would negotiate, he told MacGuire firmly, only with principals.

After some hesitation MacGuire agreed to have him contacted by Robert S.
Clark, a banker who had inherited a large fortune from a founder of the Singer
Sewing Machine Company.

One- week later Clark phoned Butler at his home. They arranged a meeting at
the railroad station. Butler instantly
recognized the tall, gangling man, hair now steel-gray, who stepped off the
train as the lieutenant he had known thirty-four years earlier.

Butler drove him home for lunch, during which they exchanged memories of the
Boxer Campaign. Afterward they adjourned to the spacious, glassed-in porch,
and Clark got down to the business of his visit. He was going to the American
Legion convention in a private car attached to the Pennsylvania Limited, he
told Butler. He planned to have the train stop at Paoli to pick the general
up, and they would continue on to Chicago together. A suite of rooms had
already been reserved for Butler at the Palmer House.

Clark would see to it, he told the general, that Butler was calling for a
resolution demanding restoration of the gold standard. In discussing the
speech, the millionaire was induced to reveal that the author was none other
than John W. Davis, the 1924 Democratic candidate for President, and now chief
attorney for J. P. Morgan and Company.

Butler pointed out to Clark that the speech-did not seem to have anything to
do with the soldiers' bonus, which was presumably the purpose of his trip to
Chicago. Shrugging, Clark blandly repeated MacGuire's assurance that those
supporting the speech simply wanted to be sure that the bonus would be paid in
gold-backed currency, not in worthless paper.

Butler decided to draw blood and observe Clark's reaction. Sharp eyes honed on
his visitor's face, he suggested that the speech had all the earmarks of big-
business propaganda. The banker, taken aback, did not reply for a moment. He
seemed to be debating with himself whether to deny the allegation or take
Butler into his confidence. Then he astonished the general by a sudden burst
of candor.

He had a personal fortune of thirty million dollars, he revealed, and he was
greatly worried about losing it to a Roosevelt inflation-runaway government
spending unbridled by the need to back each paper dollar with gold. He was
willing to spend fully half his fortune if that would save the other half. He
was confident that if Butler made the speech at Chicago, the Legion would go
on record as demanding a return to the gold standard.

That would be an important step toward organizing the veterans of America to
put pressure on Congress and the President for such a bill.

Why, Butler asked him curiously, did he think the President would allow
himself to be pressured by such tactics? Clark expressed confidence that
Roosevelt would yield because he belonged, after all, to the same social class
that was solidly behind the gold standard. Once he had restored it, his fellow
patricians would rally around him and defend his position against criticism.

Butler was shocked by Clark's blatant snobbery, but even more by the
millionaire's assumption that the wishes of economic royalists should-and
would-prevail over the democratic processes of government. Once more his anger
boiled over. In a voice that cracked with indignation, he exploded that he
wanted nothing to do with a scheme to exploit veterans. Furthermore, he
rasped, he intended to see to it that the veterans of the country were not
used to undermine democracy but to defend it.

Clark's face turned crimson. Chagrined, he reproached Butler for being
stubborn and "different," hinting that such things as the mortgage on Butler's
house could be taken care of for him, and in a fully legal fashion.

This crude attempt to bribe him was too much for the dumbfounded general.
Bellowing his indignation, he roared an order at the millionaire to follow him
into the living room. Clark meekly trailed him into a large hall resplendent
with flags, banners, decorations, plaques, scrolls, citations, and other
symbols of esteem that had been presented to the general during his long
career in the Marines. The hall was flanked at both ends by huge canopies on
tall poles-"Blessings Umbrellas" awarded by unanimous vote of the people of
Chinese cities only to their greatest benefactors.

Quivering with rage, Butler pointed out to Clark that most of the awards in
the hall had been given to him by poor people all over the world, and he vowed
that he would never betray their faith. Ordering Clark to inspect them until
he understood the enormity of his mistake, Butler stormed off to his study,
pacing back and forth in an effort to simmer down.

In a few minutes a chastened Clark joined him and meekly asked permission to
make a phone call to MacGuire at the Palmer House in Chicago. As Butler
listened stony-faced, Clark informed MacGuire that for "excellent" reasons the
general would not be coming to the convention. MacGuire was reminded that he
had money enough to do the job alone and could "send those telegrams." At the
completion of the call, Clark then apologized so contritely that his host,
mollified, forgave him.

To lighten the strained atmosphere, the conversation now returned to the Boxer
days until it was time to drive Clark to the station to catch a six o'clock
train from Paoli.

Butler felt ambivalent about having revealed his true feelings. On the one
hand, it made him feel better to get them off his chest; tact and restraint
and subterfuge were alien to his nature. On the other hand, it seemed hardly
likely that after his explosion the plotters could possibly believe they could
persuade or buy him. He would have no further opportunity to ferret out their
plans.

A few days later he carefully studied a newspaper account of the proceedings
of the American Legion convention in Chicago. The story revealed that a huge
flood of telegrams had poured into the convention urging delegates to endorse
a return to the gold standard. A resolution to this effect had been proposed
and carried.

Butler felt mingled amusement and disgust.


6.

To the general's surprise MacGuire stopped off to see him, this time in a
hired limousine, on the way back from the convention. The man said nothing
about the contretemps with Clark, although Butler was certain he must have
heard about it, and his manner was as buoyant and friendly as ever. He boasted
to Butler about having put over the gold-standard resolution.

The general pointed out wryly that no action had been taken at the convention
to endorse the soldiers' bonus. MacGuire airily repeated his contention that
there was no point in that until the country had sound currency.

Shortly afterward MacGuire came to Newtown Square again and surprised the
general with the news that a dinner had been arranged by Boston veterans in
his honor. He was promised transportation in a private car, and, MacGuire
beamed, Butler would be paid a thousand dollars to speak at the dinner-in
favor of the gold standard, of course.

Butler was dumbfounded at MacGuire's incredible persistence. Surely the
indefatigable bond salesman had realized by this time that he was barking up
the wrong tree! But perhaps, the general speculated, MacGuife felt challenged
to "make the sale," in much the same manner that he undoubtedly sought to
overcome the sales resistance of reluctant prospects for his bonds. And
apparently MacGuire was convinced that only Smedley Butler had the prestige
and popularity among veterans that his coterie needed to put over their
scheme.

Irked by the new attempt to bribe him, Butler rasped that he had never been
paid a thousand dollars for any speech and had no intention of accepting such
a sum to let words be put m his mouth. Chagrined but undiscouraged, MacGuire
cheerfully promised to come up with some other more acceptable plan to utilize
the general's talents as a public speaker.

In October a former Marine running for office in Brooklyn, New York, begged
Butler to make some campaign speeches in his behalf. Butler was hesitant
because he was about to leave on a tour of the country for the Veterans of
Foreign Wars, speaking for the bonus and for membership in the V.F.W. as the
best way to get it. But loyalty to the men who had served under him took him
first to Pennsylvania Station.

To his astonishment he was met by MacGuire. The bond salesman somehow knew
where he was headed and asked to accompany him. Butler consented, more and
more intrigued by the ubiquitous MacGuire who kept turning up everywhere he
went like a bad penny. He found himself even growing perversely fond of
MacGuire for his stubborn refusal to take No for an answer. In the Marines
Butler had always had a soft spot for incorrigible rascals who brightened up
monotonous routine by their unpredictable shenanigans.

Besides, he was still curious to learn more about what the plotters in the
gold scheme were up to. MacGuire now revealed a new plan to involve the
general through his impending lecture tour for the V.F.W. Wasn't he, MacGuire
probed, going to use the opportunity to speak out on public issues important
to the veterans? Butler wasn't sure whether this was simply a shrewd guess or
whether MacGuire somehow had eyes and ears all over the country.

Butler declared that he believed that democracy was in danger from growing
antidemocratic forces within the country and that he planned to appeal to the
nation's veterans to unite against this threat. At the same time he wanted to
alert them to the risk of being dragged into another war by the propaganda of
organizations camouflaged with patriotic trappings.

MacGuire looked thoughtful. Then he asserted that the group he represented
really had the identical objectives. He urged Butler to let him go along on
the tour. He would stay in the background, enlisting veterans in "a great big
superorganization to maintain our democracy."

Butler lost no time in squelching that idea. He admitted that he couldn't keep
MacGuire off any train he rode, but made it firmly clear that he would not be
associated with the plans of MacGuire and his rich friends in any way. He
softened the reprimand by saying that he did not want to hurt the feelings of
a wounded veteran, but MacGuire would have to understand that he could not be
used to aid money schemes.

MacGuire said peevishly that he couldn't understand why Butler refused to be a
businessman like himself. The general expressed blunt suspicions of MaeGuire's
real reasons for wanting to trail in the wake of his V.F.W. tour. MacGuire
protested that he had no intention of doing anything subversive.

Then he made the general a new offer. If Butler would merely insert in each of
his V.F.W. speeches a short reference to the need for returning to the gold
standard, in order to benefit veterans when a bonus bill was passed, MacGuire
and his backers would pay him $750 per speech-three times what the V.F.W. was
paying him. Butler replied emphatically that he would refuse to abuse the
veterans' trust in him even if the offer were for $100,000

Frustrated, MacGuire took his departure abruptly.

Soon afterward Butler began his swing around the country for the V.F.W. He was
no longer bothered-for the momentby the persistent attentions of Jerry
MacGuire, who left for Europe on December 1, on a mission for his backers.

MacGuire took his departure against the background of a steadily rising chorus
of hatred for "that cripple in the White House" by big-business leaders. It
was reflected in the antiRoosevelt slant of both news and editorials in the
businessoriented press. In the eyes of America's industrialists and bankers,
the President, if not an actual secret Communist, was dedicated to destroying
the nation's capitalist economy by the New Deal, which they labeled "creeping
socialism."

Many believed that unless F.D.R. were stopped, he would soon take America down
the same road that the Russians bad traveled. They were horrified by his
recognition of the Soviet Union on November 16, 1933, seeing it as a sinister
omen. They were equally appalled by his speech six weeks later promising that
the United States would send no more armed forces to Latin America to protect
private investments.

Some business leaders envied their counterparts in Italy, who had financed
Mussolini's rise to power. Il Duce's efficiency in .1 making the trains run on
time" was highly lauded, along with the dictatorial control of labor unions by
his corporate state. Thomas Lamont, a J. P. Morgan partner, praised the
dictator for his methods of providing low-paying jobs, cutting the public
debt, and ending inflation.

"We all count ourselves liberal, I suppose," Lamont told the Foreign Policy
Association. "Are we liberal enough to be willing for the Italian people to
have the sort of government they apparently want?"

Butler, who had not known that MacGuire bad left for Europe, received a
postcard from him from the French Riviera, reporting only that be and his
family were having a wonderful time. Another card came from MacGuire in June,
1934, this time from Berlin. Butler surmised that the bond salesman's long
stay in Europe bad to be on business, paid for by his boss or all his backers.
But what kind of business? More shenanigans in connection with the gold
standard?

Continuing his tour for the V.F.W., Butler observed more and more storm
signals flying in the United States as he traveled around the country. The
nation was rapidly becoming polarized between the forces of Left and Right.
Demagogues with apparently inexhaustible funds for propaganda and agitation
led "patriotic" crusades against Communists, Jews, and "Jewish bankers," who
were alleged to be behind the New Deal.

That June Roosevelt further inflamed big business by a whole new series of New
Deal acts that crippled stock speculation, set up watchdog agencies over the
telephone, telegraph, and radio industries, stopped farm foreclosures,
prevented employers from hindering unionization and compelled them to accept
collective bargaining. As an epidemic of turbulent strikes broke out, the
orchestration of Roosevelt hatred in the nation's press rose to a fresh
crescendo.

To Herbert Hoover the New Deal represented "class hatred . . . preached from
the White House," "despotism," and "universal bankruptcy." Butler was
intrigued by the July, 1934, issue of Fortune, the Luce magazine read by
America's leading industrialists and bankers, which devoted a whole edition to
glorifying Italian fascism.

It was produced by Laird S. Goldsborougb, foreign editor for Time, who asked
Fortune's wealthy readers "whether Fascism is achieving in a few years or
decades such a conquest of the spirit of man as Christianity achieved only in
ten centuries,." He concluded, "The good journalist must recognize in Fascism
certain ancient virtues of the race, whether or not they happen to be
momentarily fashionable in his own country. Among these are Discipline, Duty,
Courage, Glory, Sacrifice."

In that summer of 1934 it was not difficult to detect the acrid smell of
incipient fascism in the corporate air. Smedley Butler's large hawk nose was
soon to detect more than a mere whiff of it.


7.

Resting at home after his exhausting V.F.W. tour, which had included
emotionally draining visits to the casualties hidden away in eighteen
veterans' hospitals, Butler received a phone call from a familiar voice. Jerry
MacGuire insisted that he had to see the general immediately because he had
"something of the utmost importance" to impart.

Butler and his wife had planned to drive into Philadelphia that afternoon, so,
curiosity aroused, he agreed to meet MacGuire at the Bellevue Hotel. It was
August 22, 1934, three days after a German plebescite had approved vesting
sole executive power in Adolf Hitler as fuhrer of Nazi Germany.

Shortly before three o'clock Butler entered the empty hotel lobby, where he
found the pudgy bond salesman waiting for him. MacGuire wrung his hand
enthusiastically as though they were long-lost comrades from Butler's old 4th
Battalion in Panama. Leading the way to the rear of the lobby, MacGuire took
him into the hotel's empty restaurant, which was not operating for the summer.

They took a table in a secluded corner of the room, and MaeGuire began
describing bow enjoyable his trip to Europe bad been. Butler patiently waited
for him to get down to business. He wondered, not without sympathy, whether it
was the silver plate in MacGuire's head that made him so prolix.

MacGuire finally asked whether the general planned to attend the forthcoming
American Legion convention in Miami. Butler replied curtly that he did not. He
felt irritated by MacGuire's arrogant assumption that the stale scheme of
using the Legion for his gold cliques propaganda was a matter of the "utmost
importance" to Butler.

MacGuire then insinuated that it was time to "get the soldiers together."
Butler agreed grimly, but his cryptic tone, he was sure, implied a
considerably different purpose for organizing the veterans than MacGuire had
in mind.

MacGuire revealed what he had been up to on the Continent during the previous
seven months. His backers had sent him abroad to study the role that veterans'
organizations had played in working for and bringing about dictatorships. In
Italy MaeGuire had found that Mussolini's real power stemmed from veterans
organized in his Black Shirts; they had made him dictator and were the chief
protectors of his regime.

Beginning to suspect what MacGuire had in mind, Butler tried to seem matter-
of-fact as he asked whether MacGuire thought Mussolini's form of government
was a good example for American veterans to work toward. MacGuire didn't think
so.

His investigations on the Continent, he revealed, had convinced him that
neither Mussolini nor Hitler, nor the kind of paramilitary organizations they
had built, could be made attractive to the American veteran. But he had
discovered an organization that could be, be revealed in elation.

He bad been in France during a national crisis brought about by nationwide
wage slashes. Riots had erupted in Paris early in February, ending in the
calling of a general strike that had paralyzed the country. Civil war had been
averted only by the formation of a National Union ministry made up of all
parties except Socialists, Communists, and Royalists.

A key role in ending the crisis had been played by a rightwing veterans'
organization called the Croix de Feu. It was a superorganization, MacGuire
explained, an amalgamation of all other French veteran organizations, and was
composed of officers and noncoms. The Croix de Feu had 500,000 members, and
each was a leader of ten others, so that their voting strength amounted to
5,000,000.

It occurred to Butler that if MacGuire's description was accurate, the Croix
de Feu was an elitist outfit minus the democratic voice of the greatest
majority of veterans-tbe buck privates, who were expected only to follow and
obey, exactly as they had been ordered to do in wartime.

MacGuire now told Butler that his group planned to build an American version
of the Croix de Feu. Asked its purpose, the fat man hesitated, then replied
that it was intended to "support" the President. Butler asked wryly why
Roosevelt should need the support of 500,000 "supersoldiers" when he had the
whole American people behind him.

Looking petulant and impatient, MacGuire ignored the question, pointing out
that the crux of the matter was Roosevelt's dilemma in not having enough money
to finance the New Deal, and the danger that he might disrupt the American
system of finance to get it. MacGuire and his group were firmly determined
that the President would not be allowed to do it.

Despite MacGuire's exasperating circumlocution and the twists in his logic, a
fresh pattern was becoming clear to Butler. Far from "supporting" Franklin
Delano Roosevelt, MacGuire and the interests behind him were obviously
planning to compel the President to yield to their demands about American
finances. The American version of the Croix de Feu was intended to be a
powerful paramilitary organization to enforce those demands.

But when Butler pressed him on its purpose, MacGuire denied emphatically any
intention to frighten the President. In fact, he explained, the whole idea was
really to support and help Roosevelt, who was obviously overworked, by
providing him with an "Assistant President" to take details of the office off
his shoulders. It was quite constitutional, MacGuire insisted. The aide would
be called a Secretary of General Affairs.

According to MacGuire, the President himself had been grooming an aide for
such a role-General Hugh S. Johnson, controversial administrator of the
National Recovery Administration (N.R.A.). But, MacGuire confided, Johnson had
been too looselipped to suit Roosevelt, and as a result was slated to be fired
within three or four weeks.

Pressed to explain how be acquired this information, MacGuire assured Butler
that his group was close to the White House and bad advance information on all
such secret matters. Confused, Butler didn't know quite what to make of these
oddly faceted revelations, but he was subsequently reminded of MacGuire's
prediction when Johnson resigned in pique from the administration soon
afterward and began attacking Roosevelt and the New Deal in a syndicated
column for the Scripps-Howard press.

Butler did not have to feign new interest in MacGuire's proprosals; obviously
much more was now involved than simply lobbying efforts for restoration of the
gold standard. MacGuire, interpreting the general's absorption as an omen of
cooperation, grew more candid about the plan of his group.

They would work up public sympathy for the overburdened President, he
explained eagerly, by a campaign explaining that Roosevelt's health was
failing. The "dumb" public would accept the need to give him "relief' by
having a Cabinet official take the chores of patronage and other routine
worries of the office off his shoulders. Then the President's status would
become like that of the President of France, a ceremonial figurehead, while
the Secretary of General Affairs ran the country.

Thus, at one stroke, the country would be rid of Roosevelt's misrule and would
be put back on the gold standard. And now, MacGuire concluded triumphantly,
how did the general feel about beading the new "superorganization" that would
be the power behind bringing about these sweeping changes?

Unable to contain himself any longer, Butler exploded that if MacGuire and his
backers tried to mount a Fascist putsch, he would raise another army Of
500,000 veterans to oppose themand the nation would be plunged into a new
civil war.

Upset, MacGuire hastily assured the general that he and his group had no such
intentions, but only sought to ease the burdens of the Presidency. Butler
sarcastically expressed doubt that Roosevelt would appreciate their concern
and turn his executive power over to their "Secretary of General Affairs,"
while limiting himself to ceremonial functions. Besides, Butler pointed out
tersely, any attempt to build a huge paramilitary army of half a million men
would require enormous funds.

MacGuire revealed that be now had $3 million in working funds and could get
$300 million if it were needed. He added that in about a year Butler would be
able to assemble 500,000 veterans, with the expectation that such a show of
force would enable the movement to gain control of the government peacefully
in just a few days.

Butler was stunned. Either MacGuire was a madman, psychotic, or fantastic
liar, or what he was describing was a treasonous plot to end democracy in the
United States.

He demanded to know who was going to put up all the money. MacGuire replied
that Clark was good for $15 million and that the rest would come from the same
people who had financed the "Chicago propaganda" about the gold standard at
the American Legion convention, and who were now behind the planned march on
Washington.

What plans, Butler wanted to know, did they have to take care of the
veterans?' The "superorganization," MacGuire said, would pay privates ten
dollars and captains thirty-five dollars a month for one year, and after that
it would no longer be necessary. But how did the plotters plan to manage the
legal aspects of setting up an Assistant President in the White House?
MacGuire explained that the President would be induced to resign because of
bad health. Vice-President Nance Garner, who didn't want to be President,
would refuse the office. By the rule of succession, Secretary of State Cordell
Hull was next in line, but be was far too old and could easily be set aside to
make way for a Secretary of General Affairs to take Roosevelt's place as
President.

MacGuire again urged Butler to head the paramilitary army.

The scale of the plot, as it was unfolding to him, took Butler's breath away.
It occurred to him now that MacGuire's backers had been contemplating the
creation of a Fascist veterans' army at the time MacGuire had first approached
him to "get the soldiers together" behind their gold-standard campaign. That
explained why MacGuire had wooed him so persistently, despite the general's
obvious reluctance and outbursts of temper when patriotic indignation overcame
his attempts to play along and learn what the plotters were up to.

No false modesty prevented Butler from recognizing that he was perhaps the
best-known, and certainly the most popular and charismatic, military figure in
the United States. He also suited the plotters' plans perfectly because he was
noted for a brilliant, hard-hitting style of oratory that, they undoubtedly
reasoned, could be' put to the service of demagoguery in the same spell-
binding way Hitler and Mussolini had magnetized millions into following them.
His rasping voice and fiery spirit captured audiences and held them
hypnotized.

His reputation for fearless honesty, for speaking his mind bluntly no matter
whose corns he trod on, also made him the ideal candidate to sell the
plotters' propaganda to the nation's veterans, if he could be persuaded to
view their scheme as ultrapatriotic. A combination of these reasons had
unquestionably inspired Jerry MacGuire's insistent campaign to win him as the
head of the putsch. It explained why MacGuire had refused to take No for an
answer, counting on his persuasive powers as a bond salesman to break down
Butler's sales resistance by camouflaging the raw nature of the conspiracy,
and tempting him into the plot with the biggest bribe ever offered to any
Americanthe opportunity to become the first dictator of the United States. In
a word, MacGuire was convinced that with Smedley Butler as their Man on the
White Horse, the plotters would have their greatest chance of success.

Increasingly uneasy and on guard, Butler now resolved to play along carefully
until he bad penetrated the full secret blueprint of the conspiracy. Keeping
his voice cordial, he expressed interest in MacGuire's scheme, but exhibited
enough doubts to induce him to reveal more in the effort to reassure Butler
and win him over.

Butler became convinced that if MacGuire was telling the truth, far richer and
more powerful men than just Robert S. Clark bad to be involved. Clark had told
Butler that he had been willing to spend $15 million of his fortune in the
plotters' schemes to restore the gold standard. But MacGuire had revealed that
the people behind him could, and would if necessary, raise $300 million for
the putsch.

Butler determined to find out who they were. He demanded assurances from
MacGuire that reputable and important people were really behind the plan to
create an American Croix de Feu, pointing out that he could not afford to risk
his reputation by getting involved in any second-rate adventure.

Convinced that at last he was on the verge of winning the general's support,
MacGuire eagerly sought to impress him with the caliber of the influential
movers and shakers of America who were involved in the plot. He revealed that
in Paris he had made his headquarters at the offices of Morgan and Hodges.
Butler tried to conceal his astonishment.

There was only one Morgan in the financial world--J. P. Morgan and Company.
MacGuire left no doubt in his mind that the nation's biggest financiers were,
indeed, involved. According to the bond salesman, there had been a meeting in
Paris to decide upon the selection of the man to head the superorganization.
MacGuire and his group had held out for Butler, but the Morgan interests
distrusted the general as "too radical," preferring Douglas MacArthur instead.

MacArthur's term as Chief of Staff expired in November, and the Morgan
interests felt that if Roosevelt failed to reappoint him, he would be bitter
enough to accept their offer. Butler observed that MacArthur would be likely
to have difficulty in lining up veterans behind him, because his dispersion of
the Bonus Army had made him highly unpopular.

MacGuire indicated that the Morgan coterie's second choice was Hanford
MacNider, an Iowa manufacturer who was a former commander of the American
Legion. But MacGuire emphasized that his own group was still insisting that
Butler was the only military leader in the country capable of rallying the
veterans behind him. The Morgan interests had acknowledged Butler's immense
prestige and popularity, he revealed, but were apprehensive that as head of
the paramilitary force Butler might lead it in the "wrong direction."

Butler observed that MacNider would have no more popular appeal than MacArthur
because he had gone on record as opposing the bonus. MacGuire then revealed
that MacNider would be cued to change his stand, and would do so. Butler
remembered this prediction when, three weeks later, MacNider suddenly reversed
his position and came out in support of the bonus.

If Butler could not be persuaded to head the new superorganization, MacGuire
said, the offer would definitely be made to MacArthur, whether or not the
latter was reappointed Chief of Staff. He confided that there would be an
administration fight over MacArthur's reappointment, but he would get it
because be he was the son-in-law of Philadelphian Edward T. Stotesbury, a
Morgan partner.

It was a bold prediction, since never before in American history had a Chief
of Staff been allowed to succeed himself. Butler was all the more startled and
impressed with MacGuire's sources of information when his prediction came true
several months later.

MacGuire also informed Butler that James Van Zandt, the national commander of
the V.F.W., would be one of those asked to serve as a leader of the new
superorganization. He would be approached by one of MacGuire's envoys at the
forthcoming V.F.W. convention in Louisville, Kentucky.

Butler asked when the new superorganization would surface and begin
functioning, and what it would be called. MacGuire said that he didn't know
the name of it yet but that the press would announce its formation in two or
three weeks and that the roster of its founders would include some of the most
important men in America. One of them, MacGuire revealed, would be none other
than former New York Governor Al Smith, who bad lost the 1928 presidential
race to Hoover as the candidate of the Democratic party.

Butler raised his bushy eyebrows in astonishment. It seemed incredible that
the derby-hatted "happy warrior," who had grown up in New York's East Side
slums, could be involved in a Fascist plot backed by wealthy men. But he knew
that Smith was now a business associate of the powerful Du Pont family, who
bad cultivated him through Du Pont official John J. Raskob, former chairman of
the Democratic party. Under their influence, Smith had grown more and more
politically conservative following his defeat, while still remaining a
Democrat.

Could it really be possible that a leading standard-bearer of the Democrats
was committed to help overthrow the chief Democrat in the White House? In
slight shock Butler asked MacGuire why Smith was involved. MacGuire replied
that Smith bad decided to break with the Roosevelt Administration and was
preparing a public blast against it which would be published in about a month.

Pressed for more information about the new superorganization,

MacGuire told Butler that it would be described publicly as a society "to
maintain the Constitution." Butler observed dryly that the Constitution did
not seem to be in any grave danger, then he bluntly asked what MacGuire's
stake was in the enterprise. -MacGuire shrugged that he was a businessman, and
besides, be, his wife, and his children had enjoyed a long, expensive stay in
Europe, courtesy of his backers.

Taking his leave, MacGuire said that he was going to Miami to agitate again
for the gold standard, as well as to get the new paramilitary organization
rolling. He promised to contact Butler again after the Legion convention.

After be had gone, the bemused general was almost tempted to dismiss the whole
plot as the product of a disordered imagination-his or MacGuire's. But a grim
sense of foreboding told him that be was in the eye of a gathering storm.


8.

There were too many things that MacGuire had told him that rang true, and
could not possibly have been invented. Even as Butler brooded over the affair
and wondered what to do about it, another of MacGuire's uncannily accurate
predictions materialized two weeks after their talk.

In September, 1934, the press announced the formation of a new organization,
the American Liberty League, by discontented captains of industry and finance.
They announced their objectives as "to combat radicalism, to teach the
necessity of respect for the rights of persons and property, and generally to
foster free private enterprise."

Denouncing the New Deal, they attacked Roosevelt for "fomenting class hatred"
by using such terms as "unscrupulous money changers," "economic royalists,"
and "the privileged princes of these new economic dynasties."

Butler's eyes widened when he read that the treasurer of the American Liberty
League was none other than MacGuire's own boss, Grayson M.-P. Murphy, and one
of its financiers was Robert S. Clark. Heading and directing the organization
were Du Pont and J. P. Morgan and Company men. Morgan attorney John W. Davis
was a member of the National Executive Committee--the same Davis that Clark
had identified as author of the gold-standard speech MacGuire had tried to get
Butler to make to the American Legion convention in Chicago.

Heavy contributors to the American Liberty League included the Pitcairn family
(Pittsburgh Plate Glass), Andrew W. Mellon Associates, Rockefeller Associates,
E. F. Hutton Associates, William S. Knudsen (General Motors), and the Pew
family (Sun Oil Associates). J. Howard Pew, longtime friend and supporter of
Robert Welch, who later founded the John Birch Society, was a generous patron,
along with other members of the Pew family, of extremist right-wing causes.
Other directors of the league included Al Smith and John J. Raskob.

Two organizations affiliated with the league were openly Fascist and
antilabor. One was the Sentinels of the Republic, financed chiefly by the
Pitcairn family and J. Howard Pew. Its members labeled the New Deal "Jewish
Communism" and insisted "the old line of Americans of $1,200 a year want a
Hitler."

The other was the Southern Committee to Uphold the Constitution, which the
conservative Baltimore Sun described as "a hybrid organization financed by
northern money, but playing on the Ku Klux Klan prejudices of the south." Its
sponsor, John H. Kirby, collaborated in anti-Semitic drives against the New
Deal with the Reverend Gerald L. K. Smith, leader of the first Silver Shirt
squad of American storm troopers.

"The brood of anti-New Deal organizations spawned by the Liberty League," the
New York Post subsequently charged, "are in turn spawning Fascism."

Butler was stunned by this fulfillment of MacGuire's prediction. As he later
testified, just at the time MacGuire had said it would, the American Liberty
League had appeared and was all that MacGuire had said it would be. And it was
obviously no coincidence that Grayson M.-P. Murphy, Robert S. Clark, and the
Morgan interests were deeply involved.

Even yet another of MacGuire's predictions came true a fortnight later, when
Al Smith published a scathing attack on the New Deal in the New Outlook,
breaking publicly with the President over economic policies. If Butler had had
any lingering doubts about the authenticity of MacGuire's claim to have inside
knowledge of what American big-business leaders were up to, the appearance of
the American Liberty League on schedule, and Al Smith's break with the White
House, convinced him that MacGuire's revelations of a plot to seize the White
House were no crackpot's fantasy. MacGuire had called the shots every time.

Butler was now genuinely alarmed. For the first time it dawned upon him that
if the American Liberty League was, indeed, the " superorganization" behind
the plot that it seemed to be, the country's freedom was in genuine peril.
Such money and power as the men behind the League possessed could easily
mobilize a thinly disguised Fascist army from the ranks of jobless, embittered
veterans and do what Mussolini had done in Italy with the financial support of
the Italian plutocracy.

Getting in touch with Van Zandt, Butler told the V.F.W. commander that he had
been approached to lead a coup as head of a veterans' army. He warned that the
conspirators intended to try to involve Van Zandt, too, at the V.F.W.
convention in Louisville. Thanking him for the warning, Van Zandt assured
Butler that he would have nothing to do with the plotters.

Butler was tempted to leave for Washington immediately to warn the President
or his advisers. He now knew enough to expose the whole plot. But he was
pragmatist enough to realize that on his unsupported word, without the
slightest shred of evidence, he was likely to be greeted with polite
skepticism, if not ridicule. Heads would shake. Poor Smedley Butler. How
sad--a fine, brave Marine general like that, losing touch with reality. Too
many campaigns, too many tropical fevers.

At best they might believe that MacGuire had, indeed, told him all those
fantastic things, but then MacGuire, obviously, had to be some kind of
psychotic nut. And Butler would have to be an idiot to have taken him
seriously, to have believed that many of the nation's greatest leaders of the
business and financial world would get involved in a conspiracy to depose the
President and take over the White House!

MacGuire, of course, would deny everything. So would Robert S. Clark. So would
everyone connected with the American Liberty League-if this was, indeed, the
superorganization MacGuire had revealed was behind the plot.

The enemies Butler had made among the military brass during his colorful
career would help the press ridicule his revelation. "Old Gimlet Eye," they
would scoff, "is at it again-stirring up a storm, making headlines. Worst
publicity hound that ever wore a uniform!"

But Smedley Butler had never in his life backed off from his duty as he saw
it. Convinced that the democracy he cherished was in genuine danger, he
steeled himself for the ordeal of public mockery and humiliating attacks that
he knew would follow his exposure of the conspiracy. He Was enough of an
expert tactician, however, to know that he couldn't win his battle without
supporting troops. He would need corroborative testimony by someone whose
word, when combined with his own, would have to be respected and force a full-
scale investigation.

Butler confided in Tom O'Neil, city editor of the Philadelphia Record.
Observing that the whole affair smacked of outright treason to him, he asked
O'Neil to assign his star reporter to dig into the story. O'Neil agreed, and
reporter Paul Comly French, whose news features also appeared in the New York
Post, was instructed to seek confirmation of the plot. Butler knew and
respected French, who had done an intelligent and honest job of covering his
fight against crime and corruption in Philadelphia ten years earlier.

French set about determining whether MacGuire and his group were operating
some kind of racket to extort money out of the rich by selling them political
gold bricks, or whether a cabal of rich men, enraged by the President and his
policies, was putting up big money to overthrow F.D.R. with a putsch.

In view of the powerful people the general had named in connection with the
plot, French knew that his assignment was a keg of dynamite. Even if he could
somehow confirm the existence of the plot and identify the conspirators, he
and the general were bound to meet with incredulity when they sought to expose
the blueprint for treason and the traitors.

Much would depend upon establishing and documenting the credibility of Smedley
Butler, the chief witness. If the general's career showed him to be given to
gross exaggeration or chronic lying, or to be an officer of dubious character
whose word could not be trusted, then his sworn testimony against those he
charged with treason would be held worthless.

If, on the other hand, an examination of his life and career proved that he
was a man of incorruptible character, integrity, and-patriotism, then his
testimony would have to be given the gravest consideration, especially when
supported and corroborated by the findings of French's investigation.

Whatever the outcome, the reporter knew that the denouement would be a stormy
one. To Butler's enemies he was a highly controversial, unorthodox fighting
man whose irrepressible temper and tongue kept him in the headlines. To his
friends he was a patriotic war hero with strong convictions about democracy
and a deserved reputation for bluntly speaking out the truth, regardless of
consequences.

What kind of man, actually, was the Marine general who was accusing many of
America's leading financiers and industrialists of seeking him as the
indispensable man for their Fascist plot to seize the White House?

pp.14-34
--[cont]--
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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