Events
The Business Plot (1933–1934)
Documented · said Handling What these labels mean →Retired Marine Maj. Gen. Smedley Butler (two Medals of Honor; later *War Is a Racket*, 1935) testified in Nov 1934 to the McCormack–Dickstein special committee (the first House un-American activities committee). He said bond salesman Gerald C. MacGuire, working with financier Robert Sterling Clark, tried to recruit him to lead a veterans' army (500,000 men) to pressure or displace FDR, with backing tied to Wall Street and interests later visible in the American Liberty League. The committee's final report said the plot 'was discussed, was planned, and might have been placed in execution when and if the financial backers deemed it expedient'. Nobody was prosecuted, prominent names were deleted from the published testimony, and much of the press mocked it (a NYT editorial called it a 'gigantic hoax').
Ties
| To | Role | Years | Verdict | Source |
|---|---|---|---|---|
| Suppression pattern | case: testimony excerpts naming financiers deleted from the published record; no subpoenas of principals; no prosecutions | 1934–1935 | Documented · occurred Handling | en.wikipedia.org |
| Watergate (1972-1974) | pattern: a plan to use state power/force against constitutional order; different outcome | 1934/1972 | Concept | |
| Leak prosecutions compared | contrast: the accused financiers faced nothing | 1934 | Concept | |
| Brown Brothers Harriman-DuPont backers, via Gen. Smedley Butler, planned a 1933 military coup against FDR ('Business Plot') | split from (Sheehan's BBH/DuPont-attribution framing) | 1934 | Structural |
Tied from
| From | Role | Years | Verdict | Source |
|---|---|---|---|---|
| Brown Brothers Harriman-DuPont backers, via Gen. Smedley Butler, planned a 1933 military coup against FDR ('Business Plot') | split into (the McCormack-Dickstein hearings themselves; already covered there as Documented/said) | 1934 | Structural |
Links
- Video: America's Untold Stories, Smedley Butler and the Business Plot (2022)
- Wikipedia: Business Plot (user-supplied; checked 2026-09-27)
- Internet Archive: Public statement of the Special Committee on Un-American Activities (1935)
- Libertarianism.org: Smedley Butler and the Business Plot, pt. II
Documented
| Item | Record | Tag |
|---|---|---|
| Butler's testimony (20 Nov 1934) naming MacGuire; MacGuire's bank/brokerage ties (Grayson Murphy) | Committee record | testimony |
| Final report: the attempts 'were discussed, were planned, and might have been placed in execution' | Committee report (Feb 1935) | committee finding |
| Paul French (reporter) corroborated MacGuire's approach | Committee testimony | corroboration |
| Excerpts naming Murphy, J.P. Morgan, du Pont, Remington and others deleted from the published testimony | The preliminary report (24 Nov 1934) refused to call John W. Davis and others, dismissing names as 'mere hearsay'; John L. Spivak published the redacted portions in New Masses (29 Jan 1935) | names deleted as 'hearsay' |
| Timeline: first meeting 1 Jul 1933 (MacGuire + Legion commander Bill Doyle); last 22 Aug 1934; the committee took evidence 20 Nov; French broke the story 21 Nov (Philadelphia Record, NY Post); NYT 'gigantic hoax' 22 Nov; final report 15 Feb 1935 | Wikipedia (checked 2026-09-27) | timeline |
| Stated pretext: the president's failing health | Butler testimony | pretext claim |
| MacGuire died 25 Mar 1935 (age 36, pneumonia); his doctor said the accusations had weakened him | Contemporary reports | MacGuire death |
| No prosecutions; principals not subpoenaed | Record | not pursued |
| Press dismissal ('gigantic hoax', NYT editorial; Time mockery) | Contemporary press | ridicule |
Alleged / disputed
| Item | Source | Tag |
|---|---|---|
| A coordinated coup backed by the Morgan and du Pont interests (American Liberty League circle) | Butler; Spivak; Archer. Schlesinger (1958): most dismissed it as a 'cocktail putsch' (La Guardia), but MacGuire 'did have some' such conversations. Wikipedia summary: most historians agree 'some sort of subversive plan was contemplated and discussed', while doubting it was near execution. The Liberty League link is from later authors, not the Wikipedia core | scope and backers |
How it was handled
| Method | What happened | Tag |
|---|---|---|
| REDACT | Named financiers cut from the public record | redaction |
| NON-PURSUIT | No subpoenas of principals, no charges | non-pursuit |
| RIDICULE | Major press framed it as a hoax | ridicule |