Greg Fernandez Jr. | October 27th, 2019
“I think when people take money from you and give it to somebody else, that’s equivalent to stealing from you. I don’t want to take any of your money. I want you to invest it and create jobs…who gets all the benefits when you run a system…where you’re pretending to redistribute wealth? You serve the special interest and the powerful corporations. Then when you get into trouble who gets bailed out? They get bailed out, Wall Street, the banks get bailed out. Who gets stuck? It’s the tax payers.” – Ron Paul (2008)
On January 3rd, 1934, United States Congressman Samuel Dickstein introduced House Resolution 198. When passed on March 20th, 1934, the resolution authorized the Speaker of the House to create The Special Committee on Un-American Activities. (Read the full text – 1, 2, 3) The seven member committee was tasked with investigating Nazi propaganda activities inside the United States. Included in the investigation was testimony from Major General Smedley Darlington Butler. Major General Butler testified he was asked to lead a group of “Super Soldiers” in the removal of President Franklin Roosevelt. Instead of joining in the coup, General Butler devised a plan to expose the plot’s conspirators.
“I appeared before the congressional committee, the highest representation of the American people under subpoena, to tell what I knew of activities which I believed might lead to an attempt to set up a fascist dictatorship…I was deposed to lead an organization of 500,000 men, which would be able to take over the functions of government.” – Major General Smedley Butler
The request to lead Super Soldiers began when Major General Butler received a telephone call from a member of the American Legion named “Jack.” Jack called from Washington, D.C., according to Butler’s testimony, sometime around July 1st of 1933. Jack asked General Butler to meet with two of his fellow legionnaires, General Jerry MacGuire and William Doyle. Butler agreed and hours later, MacGuire and Doyle arrived at his home in Newton, Pennsylvania.
“They were absolute strangers,” Butler said of Doyle and MacGuire.
The two men wanted Butler to become “a candidate for national commander of the American Legion at its convention at Chicago to be held in October 1933.” MacGuire wanted Butler to give a speech at the Legion Convention “urging a resolution, the import being that the United States return to the Gold Standard.”
“I don’t know a damn thing about Gold,” Butler told MacGuire.
According to what Butler told the congressional committee, MacGuire’s plan was to “gather 200 or 300 men and pay their expenses to the Chicago Convention” and then “have these men recognize Butler and demand that he make a speech…on behalf of the gold standard, which he says had been handed to him.”
“They were very desirous,” Butler told the committee, “of unseating the royal family in control of the American Legion at the convention to be held in Chicago, and very anxious to have me take part in it.”
“They presented to me rather a confused picture,” Butler continued, “and I could not make up my mind exactly what they wanted me to do or what their objective was, but it had something to do with weakening the influence of the administration with the soldiers.”
Then in September of 1933, both Butler and MacGuire were in Newark, New Jersey, for the reunion of the Twenty-Ninth Infantry Division of the United States Army. The reunion lasted two days, between September 16th and 17th. On Sunday the 17th, MacGuire walked into Butler’s hotel room wanting to know if Butler had reconsidered the request to go to the Chicago convention.
“No,” Butler told MacGuire, “I am not going to Chicago.”
“Why not?” asked MacGuire.
“You people are bluffing. You have not got any money.” Butler, a former police officer in Philadelphia, was trying to learn more about the growing plot.
MacGuire tried to convince the major general he was not bluffing by throwing $18,000 dollars in thousand-dollar bills onto the bed. “What’s all this?” Butler asked.
“This is for you,” MacGuire responded, “for expenses. You will need some money to pay them.”
Butler knew if he tried to cash a thousand-dollar bill MacGuire would “have me by the neck.”
“Somebody is using you,” Butler then told MacGuire. “You are a wounded man. You are a bluejacket. You have got a silver-plate in your head. I looked you up. You were wounded. You are being used by somebody, and I want to know the fellows who are using you. I am not going to talk to you anymore. You are only an agent. I want some of the principals.”
“Well,” MacGuire responded, “I will send one of them over to see you.”
A week later, Robert Sterling Clark arrived at Butler’s house. Butler already knew of Mr. Clark, “He was never taken seriously by anybody but he had a lot of money.” Some people referred to Clark as the “Millionaire Lieutenant.”
Clark urged Butler to make the speech in Chicago, adding “That speech cost a lot of money.”
“There is something funny about that speech, Mr. Clark.” Butler was only interested in one thing, “and that is the maintenance of a democracy. That is the only thing. I took an oath to sustain the democracy, and that is what I am going to do and nothing else. I am not going to get these soldiers marching around and stirred up over the gold standard.”
“You are just working them,” Butler continued to tell Clark, “using them, just as they have been used right along, and I am going to be one of those to see that they do not use them anymore except to maintain a democracy.”
“You understand just how we are fixed,” Clark reasoned. “I have got 30 million dollars and I don’t want to lose it. I am willing to spend half of the 30 million to save the other half. If you go out and make this speech in Chicago, I am certain that they will adopt the resolution and that will be one step toward the return to gold, to have soldiers stand up for it.”Butler again turned them down.
Shortly after that meeting, in November of 1933, Butler coincidentally ran into MacGuire at a New York train station. MacGuire “seemed to know just where I was going,” Butler testified, “and he said he wanted to go with me, and he did.”
Butler told MacGuire, “I believe that sooner or later we are going to have a showdown, because I have had so many invitations to head societies and to join societies, all of them with a camouflaged patriotic intent. They are rackets, all of them.” Butler believed MacGuire had “some reason for getting at these soldiers other than to maintain a democracy.” He also believed MacGuire was using Clark to fund the plans “by frightening” Clark about the possibility of losing $30 million dollars. MacGuire then met with Butler at the Bellevue-Stratford Hotel in Philadelphia. MacGuire had recently returned from Europe and was eager to share the findings of his trip.
According to Butler’s testimony, MacGuire “went abroad to study the part that the veterans play in the various governments over there…he had been in France, where he found just exactly the organization that we ought to have in this country and called it an organization of super-soldiers…this French super organization was composed of about 500,000 men, and that each one of them was the leader of 10 others, and that that was the kind of an organization that we should have in the United States.”
MacGuire tried to assure Butler, “We want to support the President.”
“The President doesn’t need the support of that kind of an organization,” Butler responded.
“We have the President with us now,” MacGuire continued. “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 has either got to get more money out of us or he has got to change the method of financing the government and we are going to see to it that he isn’t going to change that method.”
Butler then asked if “the idea of this great group of soldiers was to frighten President Roosevelt.”
“No, no, no,” MacGuire responded, “not to frighten him. This is to sustain him when others assault him.” MacGuire then asked if Butler would be interested in heading this “super organization.”
“I am greatly interested in it,” Butler replied, “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.”
“We have got the newspapers,” MacGuire assured Butler. “We will start a campaign that the President’s health is failing. Everybody can tell that by looking at him, and the dumb American people will fall for it in a second.”
On September 13th, 1934, Paul French, reporter for the Philadelphia Record and the New York Evening Post, met with Jerry MacGuire on the twelfth floor of 52 Broadway, at the offices of Grayson M.P. Murphy & Company in New York City. Paul French stated MacGuire told him, “We need a fascist government in this country to save the Nation from the Communists who want to tear it down and wreck all that we have built in America. The only men who have patriotism to do it are the soldiers and Smedley Butler is the ideal leader. He could organize one million men over night.”
“We might go along with Roosevelt,” MacGuire continued, “and then do with him what Mussolini did with the King of Italy.” MacGuire was counting on half of the American Legion and Veterans of Foreign Wars members to follow Butler’s lead.
When MacGuire appeared before the House committee he denied Butler’s allegations. Repeatedly, MacGuire simply answered questions with, “It is too far back” or “I don’t recall.”
Still, according to the committee’s records, there was no doubt about the money flowing through Jerry MacGuire’s hands, “From the foregoing it can readily be seen that in addition to the $30,000 which Clark gave MacGuire for the Sound Money Committee that he produced approximately $75,000 more, which MacGuire reluctantly admitted on being confronted with the evidence…this still stands unexplained…as the evidence stands, it calls for an explanation that the committee has been unable to obtain from Mr. MacGuire.”
The Final Report
The final report of the House Committee On Un-American Activities was released on November 26th, 1934:
- “In the last few weeks of the committee’s official life it received evidence showing that certain persons had made an attempt to establish a fascist organization in this country. No evidence was presented and this committee had none to show a connection between this effort and any fascist activity of any European country. There is no question that these attempts were discussed, were planned, and might have been placed in execution when and if the financial backers deemed it expedient. This committee received evidence from Maj. Gen Smedley D. Butler (retired), twice decorated by the Congress of the United States. He testified before the committee as to conversations with one Gerald C. MacGuire in which the latter is alleged to have suggested the formation of a fascist army under the leadership of General Butler. MacGuire denied these allegations under oath, but your committee was able to verify all the pertinent statements made by 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 principal, Robert Sterling Clark, of New York City, while MacGuire was abroad studying the various forms of veterans organizations of Fascist character.”
The Military Industrial Complex
In 1935, General Butler told Common Sense magazine his story of spending “thirty-three years and four months in active military service and during that period I spent most of my time as a high class thug for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914.” The Military Industrial Complex was moving ahead with their global domination schemes.
“I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902–1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested.” – Major General Smedley Butler
John D. Rockefeller was the founder, chairman and senior shareholder of Standard Oil, created in 1870. “Looking back on it,” Butler continued, “I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents.”
In a letter written to President Franklin Roosevelt in 1936, U.S. Ambassador to Germany William Dodd expressed his concern about a shadow force that threatened the existence of the United Stated. In the letter, Dodd told the President, “A clique of U.S. industrialists is hell-bent to bring a fascist state to supplant our democratic government and is working closely with the fascist regime in Germany and Italy. I have had plenty of opportunity in my post in Berlin to witness how close some of our American ruling families are to the Nazi regime.”
“A prominent executive of one of the largest corporations,” Ambassador Dodd continued, “told me point blank that he would be ready to take definite action to bring fascism into America if President Roosevelt continued his progressive policies. Certain American industrialists had a great deal to do with bringing fascist regimes into being in both Germany and Italy. They extended aid to help Fascism occupy the seat of power, and they are helping to keep it there. Propagandists for fascist groups try to dismiss the fascist scare. We should be aware of the symptoms. When industrialists ignore laws designed for social and economic progress they will seek recourse to a fascist state when the institutions of our government compel them to comply with the provisions.”