The 1930s was a turbulent period in American history, marked by economic hardship and political unrest. Amid this instability emerged the shocking revelation of the “Business Plot,” a scheme that allegedly involved powerful business leaders conspiring to overthrow President Franklin D. Roosevelt. While the full extent of the plot remains debated, its exposure underscored deep divisions in American society during the Great Depression.

The Political Climate of the 1930s

Following the stock market crash of 1929, the United States faced severe economic turmoil. Unemployment rates soared, banks collapsed, and social unrest spread. President Roosevelt’s New Deal aimed to restore stability through sweeping economic reforms and government intervention. However, these measures faced strong opposition from influential industrialists and conservative elites, who viewed Roosevelt’s policies as a threat to capitalism and their financial interests.

Uncovering the Plot

The Business Plot came to public attention in 1934 when retired Marine Corps Major General Smedley Butler testified before the U.S. House of Representatives Special Committee on Un-American Activities. Butler claimed that a group of prominent businessmen approached him with a plan to lead a military coup against Roosevelt. The conspirators allegedly intended to create a new government modeled after European fascist regimes, which they believed could stabilize the economy and curb Roosevelt’s social reforms.

Key Figures Allegedly Involved

While the alleged plotters denied involvement, Butler identified several powerful figures linked to major corporations and financial institutions. Among them were leaders associated with the American Liberty League, an organization formed to oppose Roosevelt’s New Deal. Notable businessmen, including executives from J.P. Morgan, General Motors, and DuPont, were implicated in Butler’s testimony, although concrete evidence tying them directly to the plot was never fully confirmed.

General Smedley Butler’s Role

Smedley Butler, a decorated war hero and outspoken critic of corporate influence in politics, claimed that the plotters sought his involvement because of his military experience and popularity among veterans. Butler stated that the conspirators intended to use the American Legion, a prominent veterans’ organization, to rally public support for the coup. Instead of participating, Butler exposed the scheme, delivering detailed accounts to Congress and the media.

Congressional Investigation and Aftermath

The congressional investigation into the Business Plot resulted in a mixed outcome. While the committee’s report confirmed Butler’s testimony and acknowledged credible evidence of a conspiracy, no prosecutions followed. The plotters’ wealth and influence may have shielded them from legal consequences, and the Roosevelt administration chose not to escalate tensions further.

Despite the lack of criminal charges, the exposure of the Business Plot significantly impacted public opinion. Roosevelt’s critics faced increased scrutiny, and the incident underscored concerns about corporate overreach and threats to democracy.

Legacy of the Business Plot

The Business Plot remains a controversial episode in American history. While some historians view it as a credible threat that underscores the fragility of democratic institutions during economic crises, others believe it was exaggerated or politically motivated.

Nevertheless, the plot highlighted broader tensions between economic elites and government intervention during the New Deal era. It also reinforced the role of vigilant individuals, like Smedley Butler, in safeguarding democratic values.

References

• Archer, Jules – The Plot to Seize the White House
• Schlesinger, Arthur M – The Age of Roosevelt: The Coming of the New Deal
• Denton, Sally – The Plots Against the President: FDR, a Nation in Crisis, and the Rise of the American Right
• U.S. House of Representatives Special Committee on Un-American Activities – Investigation of Nazi Propaganda Activities and Investigation of Certain Other Propaganda Activities