Did Wall Street Bankers Really Plot to Overthrow FDR in 1933?
In short: A purported conspiracy alleged that wealthy financiers orchestrated a coup to depose President Roosevelt. Testimony suggested a plan involving a massive march on Washington, D.C. While most media dismissed it as a hoax, the details remain deeply contested.
The Business Plot, or Wall Street Putsch, centered on accusations that powerful businessmen conspired to establish a fascist organization led by retired Marine Corps Major General Smedley Butler. This narrative surfaced in 1934 when Butler testified before the House Special Committee on Un-American Activities. Although no charges were filed, the committee's final report suggested that such subversive plans were discussed and potentially executable if the financial backers deemed it opportune. Individuals connected to the alleged plot consistently denied any such conspiracy took place.
The context for these allegations involved deep economic turmoil and political upheaval. Prior to this, thousands of World War I veterans formed the 'Bonus Army' in Washington, D.C., starting on July 17, 1932, demanding payment under the World War Adjusted Compensation Act of 1924. Following the removal of the marchers by U.S. Army cavalry troops under General Douglas MacArthur, Butler shifted his public stance, initially supporting Democratic candidate Franklin D. Roosevelt in the 1932 election, before later denouncing capitalism and bankers, claiming to have served as a 'racketeer for Capitalism' for 33 years.
The economic anxieties surrounding Roosevelt's election were significant. His promise of government job creation unsettled some conservative businessmen, who feared socialism and excessive spending. Furthermore, concerns over the gold standard fueled alarm among financiers, who viewed a currency not backed by gold as inflationary and potentially leading to national bankruptcy. The committee hearings, which began on November 20, 1934, heard testimony from Butler, who claimed Wall Street broker Gerald C. MacGuire tried to recruit him to lead a coup, promising an army of 500,000 men. MacGuire was the only figure Butler identified who testified before the committee.
The narrative surrounding the plot was complex, with subsequent reporting revealing suppressed testimony. On January 29, 1935, John L. Spivak published an article in the Communist magazine New Masses, revealing testimony portions that had been excluded as hearsay, arguing the plot involved J. P. Morgan and other financiers coordinating with fascist groups. Historian Hans Schmidt noted that while Spivak's argument for considering the suppressed testimony was compelling, it also included exaggerated claims regarding Jewish financiers, which Schmidt attributed to guilt by association rather than evidence from the Butler-MacGuire discussions themselves.
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- Summary by Intellect · source: Business Plot
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