by Dreams End » Fri Dec 02, 2005 12:32 pm
I didn't know much about this. I found the link in the comments of one of Jeff's old posts. Evidently the one book about this is out of print and very expensive. <br><br>It outlines a DuPont backed coup attempt against Roosevelt. The idea was to have a group of veterans ascend on DC and grab Roosevelt with demands about returning to the gold standard. Stupidly, the tried to engage Smedly "War is a Racket" Butler in the plot. Naturally, he turned them in but nothing came of the investigation.<br><br>I was particularly interested in the groups that spawned from these efforts. all kinds of little rightwing hate groups whose real agenda is to promote and protect corporate interests. I'll bet others here no more about this story than I do and I'd be interested in comments. Footnotes for this story and more about it's role as a precursor to the Kennedy Assassination can be found at the link.<br><br>I almost bought "Deep Politics" by Scott yesterday (hard to believe I've never read it.) My bank account overcame the impulse, unfortunately, but I wonder if he goes this far back or if his analysis starts in the sixties. <br><!--EZCODE QUOTE START--><blockquote><strong><em>Quote:</em></strong><hr><br>The Attempted Coup Against FDR<br>By Barbara LaMonica<br><br>The stock market crash of 1929 and the ensuing Great Depression dramatically thrust the question of government’s role to the forefront of American political and corporate life. The election of Franklin Delano Roosevelt represented a revolutionary realignment of political power: the ascendancy of the Democratic party facilitated by new voting coalitions of rural south and industrialized north which dislodged the Republican Party’s nearly seventy-year dominance, signaling the abandonment of laissez-faire economics in favor of state regulation. The losers in this political process coalesced into right-wing Republicanism, and the next sixty years of American history is, in part, the story of their attempt to regain power, reinstitute Lassiez-faire policies, and dismantle the New Deal.1 I would like to suggest that the forces behind the assassination of President Kennedy were born in the furies which the Great Depression unleashed between these competing sectors of American political and economic life.<br><br>I believe that in 1934 there was a foreshadowing of the JFK assassination. A conspiracy was uncovered in which right-wing elements of big business, namely the DuPont family and the Morgan banking interests, planned to finance and arm a veteran’s army to march on the White House and hold President Roosevelt captive.2 The conspiracy was reported by two- time Congressional Medal of Honor winner Marine Corps Major General Smedley Darlington Butler. Although the House Committee to Investigate Un-American Activities found his allegations credible, it failed to call major conspirators to testify, and the Committee deleted crucial testimony from its final report to the public. The press relegated the story to the back pages, and discredited those, including Major Butler, who tried to alert the public to the threat against republican government. No prosecutions were forthcoming from the Justice Department, in part because the main witness who would have substantiated Butler’s claims died suddenly from pneumonia at the age of 37. In short, there was a cover-up, maybe worse.<br>Background<br><br>Franklin Delano Roosevelt was elected in November 1932, three years into the Great Depression. National income was cut by more than half and five thousand banks had crashed, wiping out nine million savings accounts. More than fifteen million workers had lost their jobs. Not only was the question "What to do" being asked, but also "Who was to blame?" A Senate investigation into the machinations of Wall Street found that investors organized raids on the stock market, pulled out all their money hoping for prices to drop, and then bought low. Insiders were also afforded the opportunity to buy securities at prices much lower than the public. Financiers were lining their pockets with fantastic bonuses, and the committee found that "...the Stock Exchange was no more than a glorified gambling casino where the odds were weighted heavily against the eager outsiders."3<br><br>The severity and persistence of the Depression raised questions in the minds of the public about business leaders and capitalism itself. Underlying this questioning was the perennial debate over what role the government should take. Although Roosevelt wanted and needed the support of business, he also knew that the government must advance beyond representing the "single interest" that is big business and represent the needs of all segments of society. Such interests as farm groups and unions were to be given a voice in the government which had been previously denied them so that, as Senator Robert Wagner argued, "...the strong may not take advantage of the weak."4 Roosevelt himself felt that reforms that from time to time would impose policies distasteful to representatives of industry would be essential to lasting relief. While asking Congress to pass the Securities Act to regulate the Stock Exchange, Roosevelt stated,<br><br><!--EZCODE QUOTE START--><blockquote><strong><em>Quote:</em></strong><hr> In the working out of a great national program seeking the primary good of the greater number, it is true that the toes of some people are being stepped on, and are going to be stepped on. But these toes belong to the comparative few who seek to retain or to gain position or riches or both by some short cut that is harmful to the great<hr></blockquote><!--EZCODE QUOTE END--><hr></blockquote><!--EZCODE QUOTE END--><br><br>Roosevelt did step on some toes. Roosevelt and the New Dealers were determined to eliminate the abuses of the financial system by subjecting it to federal regulation. Threatened by prospects of government regulation and taxation of individual wealth as well as corporate profits to fund relief programs and public works, industrialists took up the offensive.<br><br>In 1934, two events aroused the wrath of the DuPonts and the Morgans. First, there were rumors that pressure was being exerted to open a Senate investigation into the munitions industry’s alleged role in America’s entry into WWI. The DuPonts were the leading armament producers in the world. They had already earned the title "Merchants of Death" because of the huge profits they made during the Civil War and the War of 1812. The DuPonts always tried to bury this fact in carefully crafted public relations euphemisms such as" DuPont - Better things for better living through chemistry." The DuPonts have always remained reticent about revealing the extent of their wealth, corporate holdings and armament productions. Certainly, a Senate investigation revealing their irregular dealings and huge profits during a time of national hardship, when many Americans were already questioning whether financiers really had the national interest at heart, could be disastrous for industrialists like the DuPonts. It could only lead to more popular support for the reforms Roosevelt was trying to implement.5<br><br>The second event that alarmed the big financiers, striking directly at the heart of the Morgan empire, was the passage of the Securities Acts of 1933 and 1934. This legislation proposed federal supervision of securities traded over state boundaries, and established the Securities and Exchange Commission empowered to enforce the regulations. Some of the abuses that the commission was to address were insider trading, bear raiding, and manipulating stocks to create the illusion of activity. One of the most alarming propositions was that companies selling stocks would have to reveal their financial histories to the public. In choosing a chairman for the Securities and Exchange Commission, Roosevelt needed a man who would strike a balance between the more radical, anti-business theorists of the New Deal, and the entrenched business interests whose support Roosevelt needed. Confiding to his advisors with the cavalier phrase "I’ll set a thief to catch a thief," Roosevelt appointed Joseph P. Kennedy as the first Chairman of the Securities and Exchange Commission.6 With this appointment Kennedy became responsible for drafting legislation which would regulate the business dealings of his former Wall Street colleagues. Furthermore, an alliance between the Roosevelt and Kennedy families was indelibly printed upon the minds of reactionary elements of business. I will return to this Kennedy-Roosevelt alliance and its repercussions later.<br>The Coup<br><br>During this same period, retired Marine Corps General Smedley Darlington Butler was approached by two members of the American Legion: Bill Doyle, and Gerald C. MacGuire (who was also a bonds salesman for a Morgan concern). The American Legion, ostensibly a veterans’ benevolent society, was founded by wealthy industrialists who used the Legionnaires as strike busters.7 The men invited Butler to address an upcoming Legion convention. They were dissatisfied with how the organization was being run, and hoped Butler’s influence would help them oust the present leadership. Butler politely listened, but refused, saying he did not wish to get involved in Legion politics. A short time thereafter the two men called upon Butler again. They seemingly disregarded Butler’s former refusal to attend the convention. They had a new plan. Butler would now bring a few hundred Legionnaires with him to the convention and scatter them throughout the audience. MacGuire assured Butler that the Legionnaires’ expenses would be covered as he showed him a bank book with deposits totaling over $100,000. When Butler appeared in the spectator gallery, the Legionnaires were to leap to their feet demanding he speak. MacGuire then produced the prepared speech he wanted Butler to give. The speech urged the convention to adopt a resolution calling for Roosevelt to return to the Gold Standard.<br><br>Up until that time the dollar was backed by gold, meaning the US Treasury could only print as much money as there was gold reserve backing that money in Fort Knox. Going off the Gold standard allowed for more money to printed and pumped into the economy, partially to fund the proposed relief programs. Those who had a lot of money were opposed to going off the Gold standard for fear their money would have less value. So Butler was to convince the veterans, who were due a second bonus payment, that if they were not paid in money backed by gold, their bonuses would be compromised. Butler became suspicious. Who was trying to use him in this way? Where did MacGuire get all this money and for whom was he really working? And wasn’t the Gold Standard argument merely a means to alienate the veterans from Roosevelt by convincing them his policies would render their money worthless?8 Feigning interest in order to learn more about the purpose of the intrigue, and who was behind it, Butler said he might be interested, but he needed to know the plan was foolproof. Butler also said he wanted to talk to the top man, and not intermediaries. After some hesitation MacGuire revealed that Singer Sewing Machine heir Robert Sterling Clark was instrumental, as was Grayson M.P. Murphy. Murphy ran a Wall Street brokerage house, was a director of Guaranty Trust, a Morgan Bank, and also had interests in Anaconda Copper, Bethlehem Steel and Goodyear Tire.9<br><br>Other meetings followed. At one point MacGuire took out his wallet and threw down 18 $1000 bills saying he wanted to pay Butler for his help. Robert Sterling Clark himself paid Butler a visit, and hinted at such things as Butler’s mortgage payments. Finally MacGuire revealed their real plans: he wanted Butler to lead an insurrection army to march on the White House, "force" Roosevelt to resign, and install a Secretary of General Affairs to take Roosevelt’s place and reinstate the Gold Standard.<br><br>Why would the plotters choose Butler? Butler, a two-time congressional medal of honor winner was one of the few well-loved military men. Only Butler could induce veterans, who would ordinarily have nothing to do with insurrection to follow him. The plotters felt they could seduce Butler with money and power. They misjudged him.<br><br>Butler was an extraordinary man. Of Quaker stock, he served for thirty years in the Marines and enjoyed great popularity among the men he commanded as well as among the rank and file veterans. His military experiences in China, Nicaragua, Haiti, and Cuba eventually led him to suspect that these interventions were nothing more than scouting expeditions for big business. He felt that the lives of American boys were being sacrificed for the profits of United Fruit. In retirement Butler become very outspoken about this. He went on speaking engagements, and even penned a book entitled "War is a Racket".10 He was also one of the few military men to support the Bonus Marchers. These veterans had camped outside the capital demanding the money owed them, only to have their tents burned down by the likes of Generals MacArthur, Patton, and Eisenhower acting on orders from President Hoover.<br><br>Butler was still unconvinced that there was a real plot; however, MacGuire made some starling predictions. He predicted there would be an announcement in the press about the formation of a new organization, the American Liberty League. The American Liberty League, funded by the DuPonts, was to complement the coup by functioning as a propaganda organ to discredit the overthrown Roosevelt in the public’s mind (a technique which should be all too familiar to students of the character postmortem on JFK).11 MacGuire was also able to predict, well in advance, important personnel changes in the White House. This apparent forecasting ability indicated to Butler that conspirators were even within the New Deal administration. Butler, now taking the conspiracy seriously, approached some of his friends in Congress and the media. The House Committee to Investigate Un-American Activities, chaired by Congressmen John McCormack and Samuel Dickerstein, agreed to hear Butler’s testimony.12<br>What The Committee Revealed<br><br>Not surprisingly, when called as a witness, MacGuire denied any plot. He claimed he was part of The Committee For Sound Dollar and Sound Currency, Inc., which was spearheading a lobbying effort on behalf of the Gold Standard. However, his contradictory testimony and his inability to satisfactorily explain the large amounts of money which were deposited in several of his accounts compromised his credibility as a witness. At one point he said he was acting as purchasing agent of securities for Clark, but he never produced any evidence that he ever purchased any securities at all.13 It was also revealed that Clark had sent MacGuire on a trip to Germany, Italy, Spain, and France allegedly to study ‘economic’ conditions. But records of the Committee for a Sound Dollar, where MacGuire filed his reports, indicated he was studying something more. In each of the countries he met with veterans in paramilitary groups. These were the types of groups that carried out coups and assassinations in Germany and Italy on behalf of Hitler and Mussolini. A similar group operated in France, the Croix de Feu, about which MacGuire wrote this glowing report: "... this French super organization is composed of about 500,000 men, and each of them was the leader of 10 others, and that is the kind of organization that we should have in the United States."14 Finally, Butler’s story was corroborated by Commander James Van Zandt of the Veterans of Foreign Wars who claimed he was also approached to lead an insurrection army. It was also alleged by Butler that MacGuire had guaranteed arms on credit from the Remington Arms Company. Investigation by the committee revealed that the DuPonts had just bought the controlling interest in Remington Arms.15<br><br>The committee stated in its final report that it found credible evidence of a contemplated plot to overthrow the elected government with a military coup. Nevertheless, some alleged co-conspirators (supposedly revealed to Butler by MacGuire) such as General Hugh Johnson, (who was head of FDR’s National Recovery Administration), former NY Governor Al Smith and General Douglas MacArthur were never subpoenaed.16<br>Media Treatment Of The Plot<br><br>The media gave little or scant coverage to the committee’s final report. The Luce Press, which always led the charge in attacking Roosevelt and bolstering Fascism, ran a story called "A Plot Without Plotters"17 which sought to discredit Col. Butler. He was called a "hothead." Other evidence of Butler’s unsavory character, according to Luce, was that he had once given a speech in which he criticized Mussolini. His advocacy of the penniless Bonus Veteran Army was transformed into haranguing. The committee chairmen fared no better under Luce’s pen. They were accused of only seeking publicity (despite their having sought to suppress the most explosive parts of their discoveries). The New York Times showed an astonishing lack of interest. Reference to the alleged coup was relegated to two paragraphs at the bottom of page five.18 However, not every newspaper discounted the plot. The independent Philadelphia Record ran a cartoon showing big business pointing to a soapbox Communist as the threat, while General Butler marches in with evidence revealing armed Fascists hiding beneath a banker’s coat.19 References to the alleged conspiracy disappeared from the press. Nevertheless, individual reporters did attempt to pursue the story. Paul Comley French of the Philadelphia Record and investigative journalist John Spivak went to the Justice Department. They asked why no one implicated was ever questioned; and since MacGuire had perjured himself, did they intend to file criminal prosecution? The Justice Department indicated it had no plans to carry matters any further at the moment. MacGuire, the only man who could have testified against the rest, died soon after of complications from pneumonia. His physician claimed that his death was partly due to the stress of the charges made by Butler. Grayson M.P. Murphy, the Morgan banker and treasurer of the American Liberty League, died soon after.20<br>Aftermath And Beyond<br><br>Although the coup never materialized, the unrelenting propaganda attack against Roosevelt and the New Deal reforms continued, spearheaded by the American Liberty League. The League listed as its main contributors the DuPont family, representatives of the Morgan interests, Robert Sterling Clark, the Pew Family (Sun Oil), and Rockefeller Associates. Its Treasurer was Grayson M.P. Murphy, MacGuire’s immediate boss. The League itself was ostensibly dedicated to the virtues of the Constitution, individual freedom and free market capitalism. But it claimed that all New Deal reforms were inspired by Communists within the Roosevelt administration.21 In the election of 1936, the League spent twice as much money as the Republican Party in trying to defeat Roosevelt. Although the League disbanded after Roosevelt won his second term, it spawned a series of extreme right-wing groups and paramilitary bands which constituted a network that endured through the 1960s, and whose descendants are with us today. Their propaganda was anti-Communist and anti-Semitic; their tactic was violence. Some groups which the League financed were the Sentinels of the Republic (which labeled the New Deal "Jewish Communism"), the Minutemen and the Minutewomen. Another group, the Southern Committee to Uphold the Constitution, was associated with the Silver Shirt Squad of the American Storm Troopers. The goals of this organization, headed by a Texas oil magnate, were to create a mass movement of whites in the South to dilute Roosevelt’s Dixie vote, and to stir up anti-black racism in order to attack organizing drives by the unions from the North. Significantly, these same hate sentiments were being stirred up against JFK, and for the same reasons. These groups formed the dark underside to the League, which tried to present a polite public face.22 But some industrialists, like Henry Ford, had no qualms about explicitness. American Fascists groups hawked his anti-Semitic tracts like "The International Jew."<br><br>The main function of these hate groups was to enforce the will of right-wing corporate America, seeking to regain the political power it lost in the 1932 election. On the grassroots level, this intention translated into supporting the efforts of management to stop workers from unionizing. The most glaring example of this is the struggle at the General Motors plants (General Motors was owned by the DuPonts). The DuPonts employed the Black Legion, a sort of Northern Klux Klux Klan, which would terrorize workers, bomb union halls, and torture and murder organizers. The Legion was organized into arson squads, execution squads, and anti-Communist squads. Discipline within its own ranks was maintained with the weapons of torture or death and was strictly enforced. The LaFollette Committee found that the Legion had penetrated police departments, high government offices, and the Michigan Republican Party.23<br><br>These groups also acted as intelligence networks. They infiltrated unions, leftwing groups, and universities, and they sold their information to industry. One example of such an intelligence agency was the American Vigilant Intelligence Federation, headquartered in Chicago and operated by Harry Jung.24 Jung later relocated to New Orleans where he was an associate of Guy Bannister, who also hailed from Chicago. Banister’s Detective Agency was spying for right-wing businesses as well. Some believe it may have been in Jung’s hotel in New Orleans that the famous Congress of Freedom meeting took place in the Spring of 1963. At this meeting, with Edwin Walker and Joseph Milteer in attendance, a police informant reported there was talk of murdering national leaders.<br><br>In the Thirties, corporate America’s fear of government regulation threatened by Roosevelt’s New Deal, ("Socialism" in their minds), gave them a reason to embrace Fascism. It justified their financing of paramilitary hate groups to carry out violent, anti-government and anti-union campaigns exploiting the vehicles of racism, anti-Semitism and anti-Communism. By the Sixties these groups had become entrenched in the grassroots landscape.<br><br>The institutionalization of the military industrial complex and the national security state, with which corporate America would meld, developed during World War II and its aftermath. The DuPonts, as well as other industrialists, implicated in the attempted coup against FDR played a major role in these developments.<br><br>The Nye Committee Hearings to investigate the munitions industry were finally held in 1935. Committee findings revealed that the DuPonts were heavily invested in fascist Italy, and had played a major role in the rearming of Germany.25 According to the Versailles Treaty, which ended WWI, it was illegal to sell arms to Germany, but the DuPonts lobbied State Department delegates to the Paris Peace Conference. They finally obtained assurance from one of the delegates that their business with Germany would be "winked at." That delegate was Wall Street lawyer Allen Dulles. In addition, the Wall Street lawyer who represented the DuPonts at the hearings was William Donovan, who went on to head the Office of Strategic Services (the OSS was the forerunner of the CIA) during WWII.<br><br>In spite of the DuPonts’ illegal dealings, no prosecutions were forthcoming as a result of the Nye committee either. The DuPont family interests represented the largest holdings in the military industrial complex. DuPont built and operated the plant for the Manhattan project. They built all the facilities for atomic bomb production including the facility at Oak Ridge Tennessee. DuPont technicians and engineers ran the show; and by the Sixties the DuPonts effectively had control of the whole atomic energy industry.26[/quote]<br><br><!--EZCODE AUTOLINK START--><a href="http://www.webcom.com/ctka/pr399-fdr.html">www.webcom.com/ctka/pr399-fdr.html</a><!--EZCODE AUTOLINK END--> <p></p><i></i>