Business Plot: Encyclopedia II - Business Plot - Background

Business Plot - Background

In 1932, during the height of the Great Depression, the Bonus Army, composed of thousands of World War I veterans, demonstrated in Washington, D.C. seeking immediate payment of a "bonus" granted by the Adjusted Service Certificate Law of 1924, which deferred payment until 1945. They were led by Walter W. Waters, a former Army sergeant, and encouraged by an appearance from retired Marine Corps Major General Smedley Butler. Butler had considerable influence over the veterans, being one of the most popular military figures of the time.

A few days after Smedley Butler's appearance the marchers were assaulted and defeated, and their camps destroyed, by federal cavalry troops under the command of General Douglas MacArthur.

After the inauguration of Franklin D. Roosevelt in 1933, some of the Bonus Army regrouped in Washington to restate its claims to the new president. Roosevelt also rejected the Bonus Army's claims.

Clayton Cramer, in a 1995 History Today article, reminded readers that the devastation of the Great Depression had caused many Americans to question the foundations of liberal democracy. Many liberals flirted with socialism and communism, and many conservatives viewed countries such as Mussolini's Italy and Hitler's Germany as examples of how fascism could return stability and prosperity to countries ravaged by the Depression. This helps explain why some American business leaders viewed fascism as a viable system to both preserve their interests and end the economic woes of the Depression.[3]

Adapted from the Wikipedia article "Background", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki