The Warring States of NPF - Term Paper Assignment

Wrote a big essay. It's too big, I need to cut it down to 6 pages of content, not including title page and bibliography. Double Spaced, Font size 12.

Feel free to be critical of this. I just wanted to post my homework because I actually enjoyed writing it.

Like honestly tell me what I should drop out, where I've fucked up. I trust you people, you're all legitimately intelligent human beings.

Term Paper Assignment
October 18th, 2012
By
William Alexander MacNeil
for
Paul Corey

" Always open and end yuour papers with a quote- it's classy as balls. " (Professor Smarmiarty, Nuklearpower Power Forums #1213508, 17/10/2012)

The Business Plot was a conspiracy theory from 1933. The theory was brought forward by retired Marine Corps Major General Smedley Darlington Butler, who stated that he had been approached by powerful patrons to lead a veteran�s organization in a small but powerful strike to overthrow and usurp power in the US government, and supplant President Franklin Roosevelt (D) with Butler himself. While Major General Butler was ridiculed by the media, his accusations were considered to be credible by the McCormack-Dickstein Committee (Which would later be known as the Special Committee on Un-American Activities Congressional Committee).

In 1932, a mass of World War 1 veterans and their families, numbering 43,000, gathered in Washington, District of Columbia (D.C.). They set up semi-permanent encampments and insisted they would not leave until their service certificates were given their full and immediate cash redemption. These certificates given in lieu of the payment of benefits awarded via the World War Adjusted Compensation Act were not redeemable until 1945, though they did promise compound interest. While the World War Adjusted Compensation Act immediately paid out for anyone who had been involved in the wartime effort for a value of $50 or less (at $1.00 a day serving, or $1.25 a day serving overseas), those who served more than 50 days (or 40 days overseas) were instead given these redemption certificates, which had a maximum value of $500 (Or $625, overseas). These funds were desired to help veterans survive through the economic depression.

When they were forcibly evicted and their possessions burned and destroyed, Major General Butler spoke out against President Herbert Hoover, and though claiming his beliefs to be republican, stated openly his intent to support Presidential nominee Franklin D. Roosevelt in the 1932 Presidential election.

President Roosevelt was a frightening notion to many conservative businessmen. His promises of ending unemployment conjured images of socialism and reckless government spending, and had the effect of increasing unemployment across the country. Roosevelt also removed the gold standard over time, and removed the gold clause in many contracts (Which was detrimental to debtors; as gold was valued at $1.69 at the time, a debt of $10,000 could be called to be paid in its gold value, transforming into a debt of $16,900, a massive increase of 70% of an individual�s debt with no protection to the debtor.) Accusations were flung of Roosevelt being a Socialist, and a Communist, and �Out to destroy private enterprise by sapping the gold backing of wealth to subsidize the poor.� ( Jules Archer (1973). Skyhorse Publishing. p. The Plot to Seize the White House: The Shocking True Story of the Conspiracy to Overthrow FDR.)

Ending the gold standard was not an easy transition; while it halted the steady decline of the value of the U.S. dollar, inflation showed a counter effect; �Since higher prices were not yet accompanied by higher wages, inflation meant lower [real] incomes for those fortunate enough to be employed. Until the effects of increased investment spending ramified through the economy, there was little reason for investment incomes and hence consumption to rise dramatically. Industrial production remained volatile." (Barry J. Eichengreen (1992). Golden Fetters: The Gold Standard and the Great Depression, 1919�1939. NY, NY: Oxford University Press.)
Roosevelt attempted to stifle inflation by encouraging foreign investment. To facilitate this, Roosevelt arranged for the Reconstruction finance Corporation purchase Gold with the American Dollar, increasing the value of gold and decreasing the value of the dollar. This did not have sufficiently immediate effect, as foreign investors and importers held back, anticipating a further dollar drop, increasing their profit margin. During this, discouraged Americans invested in an increase amount of foreign goods, to stave off further devaluing of their income. "The volume of U.S. imports rose by 10 percent between 1932 and 1933. In contrast, exports stagnated. The consequence was a deteriorating balance of trade." (Barry J. Eichengreen (1992). Golden Fetters: The Gold Standard and the Great Depression, 1919�1939. NY, NY: Oxford University Press). The National Industry Recovery Act had an unsavoury surprise as well; by providing a mandated minimum $0.40 hourly wage, and altering in an upwards manner the wage system of many industries, it caused upward pressure on labour costs. The Dollar and Import/Export did not stabilize until 1934.

According to Butler�s testimony, he met with the co-conspirators MacGuire and Doyle on July 1st, 1933. Gerald C. MacGuire was employed as a bond salesman, working for Murphy & Company. Doyle�s employment is not listed; Both MacGuire and Doyle lead the Connecticut and Massachusetts branches of the American Legion respectively, though some sources are in debate on whether Doyle was current or former leader. Butler was requested to attempt to gain position as the National Commander of the American Legion.

At a second meeting two or three days later, they encouraged him to speak publically, and presented him with a speech they insisted be read, which among other things included an urging back to the gold standard. This was rationalized ��so that when veterans were paid the bonus promised to them, the money they received would not be worthless paper." (Jules Archer (1973). Skyhorse Publishing. p. The Plot to Seize the White House: The Shocking True Story of the Conspiracy to Overthrow FDR.)

Near or on August 1st, MacGuire met with Butler. A disagreement over the American Legion occurred, with MacGuire claiming that Col. Murphy underwrote the formation of the Legion, with Boyle countering that it was ��nothing but a strike breaking outfit.� (McCormack�Dickstein Committee report). Doyle was not present at this meeting or at any time after. During late September, Butler met with MacGuire at one point; later with Robert Sterling Clark, the heir to the Singer Corporation Fortune. During 1934, Butler received postcards in the mail from MacGuire from Europe; MacGuire also writes a letter to Clark and Clark�s attorney describing the Croix-de-Feu, a French variant on the growing European fascist parties. It was also described as �corporatism�.

On August 22, MacGuire and Butler met for a final time at the Bellevue-Stratford Hotel; they discussed foreign politics, and the shape of the Italian, German, and French governments and organizations. Butler, when asked to recall this situation, could not name the French parliamentary party in question.
MacGuire at this point attempted to sway Butler that forming a similar veterans� setup to support the president would be ideal. When Butler expressed doubt, due to MacGuire�s previous desire to unseat the president, MacGuire countered with, �Don't you understand, the set-up has got to be changed a bit. We have the President with us now. He has got to have more money. There is no more money to give him. Eighty percent of the money now is in Government bonds and he cannot keep this racket up much longer. He has got to do something about it. He (Roosevelt) has either got to get more money out of us, or has got to change the method of financing the Government, and we are going to see to it that he docs [sic] not change the methods. He will not change it. He is with us now." (Committee Report, Page 4)

Their conversation continued with Butler being offered a leadership position, with Butler countering that his only interest in it would be preventing MacGuire from pushing and allowing a fascist control to take hold. Butler openly stated, "I am interested in it, but I don't know about heading it. I am greatly interested in it, because you know, Jerry, my interest, my one hobby, is maintaining a democracy. If you get these 500,000 soldiers advocating anything smelling of Fascism, I am going to get 500,000 more and lick the hell out of you, and we will have a real war right at home." (Committee Report, Page 4) This was Butler and MacGuire�s final meeting.

After this point, MacGuire met with Paul Comly French, who later testified on their meeting before committee that MacGuire had told French his honest intentions were a fascist government, with intentions to do to Roosevelt as Mussolini had done to the Italian government.

All these statements were taken and recorded by the McCormack-Dickstein Committee, after Major General Butler brought them to the committee�s attention. French was questioned and gave his testimony, and published an article in the Philadelphia Record, and the New York Evening Post. Butler�s testimony was backed up by French numerous times. The day after this article was published, the New York Times published an article declaring it a giant hoax.

It is important to note the majority of materials presented here were suppressed in court documents. More than half of French�s testimony was stricken, as was a great deal of detail from Butler�s testimony. Some of the suppressed information includes accusations as to participatory parties in the plot; the court documents include indications that Irenee Du Pont, Grayson Murphy, William Doyle, John Davis, Al Smith, John J. Raskob, Robert Clark, and Gerald MacGuire were all participatory agents in the plot; all these names were stricken from publication, and suppressed. They were recovered by a journalist named John L. Spivak, who was researching Nazism and anti-Semitism. (Schmidt, Hans (1998). Maverick Marine: General Smedley D. Butler and the Contradictions of American Military History, University Press of Kentucky. ISBN 0813109574.)

While this report includes extensive background information to this situation, it is critical if we are to examine the situation in fair view. Expunged texts holding names to parties professed to be involved by the observed conspirator, MacGuire, does lead to a suspicion. The immediate attack article on the part of the New York Post against Major General Butler is also an interesting issue. After doing some research into the New York Times database, the article describing it as a hoax was conspicuously absent; few in relation to this incident are available as a resource. The nearest similar available article is included below, titled �Credulity Unlimited�:

A Washington correspondent asked: "What can we believe?" Apparently anything, to judge by the number of people who lend a credulous ear to the story of General BUTLER'S 500,000 Fascists in buckram marching on Washington to seize the Government. Details are lacking to lend verisimilitude to an otherwise bald and unconvincing narrative.� [November 22, 1934, Thursday - (NYT) - Editorial]

For myself, the fact that so much of the testimony was suppressed does cause no small amount of suspicion in me; the idea of information being withheld is already a hot-button for suspicion among the populace. To see clearly that core information was suppressed for no plainly obvious reason brings validity to those fears, lending credence to the theory of conspiracy.

The committee chose not to call on any conspirators besides MacGuire; Both Major General Butler�s rank, and public opinion of the man placed his words above reproach. Butler went on national radio to denounce the cover-up, but little grew from this. In fact, it was not until 1967, when Mr. Spivak uncovered the Committee�s internal report that clearly confirmed Butler�s story:

MacGuire denied [Butler's] allegations under oath, but your committee was able to verify all the pertinent statements made to General Butler, with the exception of the direct statement suggesting the creation of the organization. This, however, was corroborated in the correspondence of MacGuire with his principle, Robert Sterling Clark, of New York City, while MacGuire was abroad studying the various form of veterans' organizations of Fascist character. [John Spivak, A Man in His Time (New York: Horizon Press, 1967)]

The substance of this theory is based on economics and money. A corporate group wanted to instate a more favourable government to protect their wealth. This in itself is not unbelievable; it is a somewhat common thing. Roosevelt was manipulating the economy in an effort to stabilize the dollar value and control inflation. His results were ultimately effective, though it was not clear until after 1934.

All evidence presented was brought forward in testimony by Major General Smedley Butler and Reporter Paul French. Butler and French professed to knowing each other and referred to the opposite as their friend; thus the testimony could potentially have all been falsified in an effort to discredit and damage the reputations of several powerful men. However, Major General Butler was a war hero carrying singular honors, and a Quaker; his honesty would have been considered above reproach. The Committee reporting internally that evidence presented was sound lends further validity to their words.

Finally, after a truly exhaustive amount of time spent researching in an attempt to find some form of specific cultural bias or hatred, no accurate link was found to exist. While some of the writings on this topic that came later spoke of anti-Semitic themes and undertones, none of the original articles within the year, nor the testimony of Butler or French contain any reference to �Zionists� or otherwise denounce the Jewish peoples. Therefore, at this time and to my awareness, there is no basis for treating this conspiracy plot as one based on racially motivated fear or hatred.

After much consideration, and against my instinctive desire to distrust all conspiracies brought before me, I feel I believe that the conversations happened as related between MacGuire and General Butler. However, I find inconsistencies between MacGuire�s statements to General Butler, and MacGuire�s later testimony; he claims he held leadership of the Connecticut legion, then states otherwise in court that he had merely been on guest committee of the Portland, Oregon Legion in 1933. MacGuire practices double-talk and name-dropping of powerful individuals in his recorded testimony, both nefarious practices for controlling and protecting himself.

I must confess to an emotional bias, as this is a poignant reminder of the control that Corporate America exerts over their economy, and the point of the Occupy Rallies. One of the origin points of this conspiracy plot was from an occupy movement of the Bonus Expedition Force; for this reason I want to believe, and am biased towards believing the conspiracy.

Ultimately, the McCormack-Dickstein Committee found that Butler�s evidence presented was sound, but that it did not have enough weight to convict MacGuire on any charges. Therefore I am left to believe that MacGuire had the intention of forming a Veteran�s Army Rebellion, but did not follow through with it, nor did he have in actuality any of the political backing he claimed. Because otherwise, J.P. Morgan, which has been in constant focus the last few years as being in part responsible for the housing crisis in the U.S., was involved in a plot that had it's core focus on the destruction of a key time in democracy and economic stabilization.

" Open it with that quote by smarty and this one here from me. " (A Zarkin' Frood, Nuklearpower Power Forums #1213508, 17/10/2012)

Bibliography:
Jules Archer, The Plot to Seize the White House (New York: Hawthorne Books, 1973)
John Spivak, A Man in His Time (New York: Horizon Press, 1967)
McCormack-Dickstein Committee. (2011, December 13). In Wikisource, The Free Library. Retrieved 15:12, October 17, 2012, from http://en.wikisource.org/w/index.php...&oldid=3544540
(Scans of the notations are available online, at the source listed above.)