That war is a racket has been told us by many, but rarely by one of this stature. Though he died in 1940, the highly decorated General Butler (two Congressional Medals of Honor) deserves to be heralded for his timeless message, which rings true today more than ever. His riveting 1935 book War is a Racket merits inclusion as required reading for every high school student, and for every member of our armed forces today. Below is a ten-page summary of the best of this powerful exposé. For a concise, two-page version, click here.
Again they are choosing sides. France and Russia met and agreed to stand side by side. Italy and Austria hurried to make a similar agreement. Poland and Germany cast sheep's eyes at each other. All of them are looking ahead to war. Not the people – not those who fight and pay and die – only those who foment wars and remain safely at home to profit.
There are 40,000,000 men under arms in the world today, and our statesmen and diplomats have the temerity to say that war is not in the making. Hell's bells! Are these 40,000,000 men being trained to be dancers?
Undoubtedly Mussolini means exactly what he says. His well-trained army, his great fleet of planes, and even his navy are ready for war. His recent stand at the side of Hungary in the latter's dispute with Yugoslavia showed that. And the hurried mobilization of his troops on the Austrian border after the assassination of Dollfuss showed it too. There are others in Europe too whose sabre rattling presages war, sooner or later. Herr Hitler, with his rearming Germany and his constant demands for more and more arms, is an equal if not greater menace to peace.
Yes, all over, nations are camping in their arms. The mad dogs of Europe are on the loose. The trend is to poison us against the Japanese. What does the "open door" policy to China mean to us? Our trade with China is about $90,000,000 a year. Or the Philippine Islands? We have spent about $600,000,000 in the Philippines in thirty-five years and we (our bankers and industrialists and speculators) have private investments there of less than $200,000,000.
Of course, for this loss, there would be a compensating profit – fortunes would be made. Millions and billions of dollars would be piled up. By a few. Munitions makers. Bankers. Ship builders. Manufacturers. Meat packers. Speculators. They would fare well. Yes, they are getting ready for another war. Why shouldn't they? It pays high dividends.
Take our own case. Until 1898 we didn't own a bit of territory outside the mainland of North America. At that time our national debt was a little more than $1,000,000,000. Then we became "internationally minded." We forgot, or shunted aside, George Washington's warning about "entangling alliances." We went to war. We acquired outside territory. At the end of the World War period, as a direct result of our fiddling in international affairs, our national debt had jumped to over $25,000,000,000.
The World War cost the United States some $52,000,000,000. Figure it out. That means $400 [over $4,000 in today's dollars] to every American man, woman, and child. And we haven't paid the debt yet. We are paying it, our children will pay it, and our children's children probably still will be paying the cost of that war.
The normal profits of a business concern in the United States are 6, 8, 10, and sometimes 12%. But war-time profits – ah! that is another matter – 20, 60, 100, 300, and even 1,800% – the sky is the limit. All that traffic will bear. Uncle Sam has the money. Let's get it. Of course, it isn't put that crudely in war time. It is dressed into speeches about patriotism, love of country, and "we must all put our shoulders to the wheel," but the profits jump and leap and skyrocket – and are safely pocketed. Let's just take a few examples.
Take our friends the du Ponts, the powder people – didn't one of them testify before a Senate committee recently that their powder won the war? Or saved the world for democracy? How did they do in the war? Well, the average earnings of the du Ponts for the period 1910 to 1914 were $6,000,000 a year. It wasn't much, but the du Ponts managed to get along on it. Now let's look at their average yearly profit during the war years, 1914 to 1918. Fifty-eight million dollars a year profit we find! Nearly ten times that of normal times, and the profits of normal times were pretty good. An increase in profits of more than 950 per cent.
Take one of our little steel companies that patriotically shunted aside the making of rails and girders and bridges to manufacture war materials. Well, their 1910 – 1914 yearly earnings averaged $6,000,000. Then came the war. And, like loyal citizens, Bethlehem Steel promptly turned to munitions making. Did their profits jump – or did they let Uncle Sam in for a bargain? Well, their 1914 – 1918 average was $49,000,000 a year!
Or, let's take United States Steel. The normal earnings during the five-year period prior to the war were $105,000,000 a year. Not bad. Then along came the war and up went the profits. The average yearly profit for the period 1914 – 1918 was $240,000,000. Not bad. There you have some of the steel and powder earnings. Let's look at something else.
A little copper, perhaps. That always does well in war times. Anaconda, for instance. Average yearly earnings during the pre-war years 1910 – 1914 of $10,000,000. During the war years 1914 – 1918 profits leaped to $34,000,000 per year. Or Utah Copper. Average of $5,000,000 per year during the 1910 – 1914 period. Jumped to an average of $21,000,000 yearly profits for the war period.
Let's group these five, with three smaller companies. The total yearly average profits of the pre-war period 1910 – 1914 were $137,480,000. Then along came the war. The average yearly profits for this group skyrocketed to $408,300,000. A little increase in profits of approximately 200 per cent. Does war pay? It paid them.
But they aren't the only ones. There are still others. Let's take leather. For the three-year period before the war the total profits of Central Leather Company were $3,500,000. That was approximately $1,167,000 a year. Well, in 1916 Central Leather returned a profit of $15,000,000, a small increase of 1,100 per cent. That's all. The General Chemical Company averaged a profit for the three years before the war of a little over $800,000 a year. Came the war, and the profits jumped to $12,000,000 – a leap of 1,400 per cent.
International Nickel Company – and you can't have a war without nickel – showed an increase in profits from a mere average of $4,000,000 a year to $73,000,000 yearly. Not bad? An increase of more than 1,700 per cent. American Sugar Refining Company averaged $2,000,000 a year for the three years before the war. In 1916 a profit of $6,000,000 was recorded.
Here's how other patriotic industrialists and speculators chiseled their way into war profits.
The Senate committee probe of the munitions industry and its wartime profits, despite its sensational disclosures, hardly has scratched the surface. Even so, it has had some effect. The State Department has been studying "for some time" methods of keeping out of war. The War Department suddenly decides it has a wonderful plan to spring. The Administration names a committee – with the War and Navy Departments ably represented under the chairmanship of a Wall Street speculator – to limit profits in war time. To what extent isn't suggested. Hmmm. Possibly the profits of 300 and 600 and 1,600 per cent of those who turned blood into gold in the World War would be limited to some smaller figure.
Then, suddenly, we discharged them and told them to make another "about face"! This time they had to do their own readjustment, sans [without] mass psychology, sans officers' aid and advice and sans nation-wide propaganda. We didn't need them any more. So we scattered them about without any "three-minute" or "Liberty Loan" speeches or parades. Many, too many, of these fine young boys are eventually destroyed, mentally, because they could not make that final "about face" alone.
But don't forget – the soldier paid part of the dollars and cents bill too. Up to and including the Spanish-American War, we had a prize system, and soldiers and sailors fought for money. During the Civil War they were paid bonuses, in many instances, before they went into service. The government, or states, paid as high as $1,200 for an enlistment. In the Spanish-American War they gave prize money. When we captured any vessels, the soldiers all got their share – at least, they were supposed to. Then it was found that we could reduce the cost of wars by taking all the prize money and keeping it, but conscripting [drafting] the soldier anyway. Then soldiers couldn't bargain for their labor, Everyone else could bargain, but the soldier couldn't.
Napoleon once said, "All men are enamored of decorations…They positively hunger for them." So by developing the Napoleonic system – the medal business – the government learned it could get soldiers for less money, because the boys liked to be decorated. Until the Civil War there were no medals. Then the Congressional Medal of Honor was handed out. It made enlistments easier. After the Civil War no new medals were issued until the Spanish-American War.
In the World War, we used propaganda to make the boys accept conscription. They were made to feel ashamed if they didn't join the army. So vicious was this war propaganda that even God was brought into it. With few exceptions our clergymen joined in the clamor to kill, kill, kill. To kill the Germans. God is on our side…It is His will that the Germans be killed. And in Germany, the good pastors called upon the Germans to kill the allies…to please the same God. That was a part of the general propaganda, built up to make people war conscious and murder conscious.
Thus, having stuffed patriotism down their throats, it was decided to make them help pay for the war, too. So, we gave them the large salary of $30 a month. All they had to do for this munificent sum was to leave their dear ones behind, give up their jobs, lie in swampy trenches, eat canned willy (when they could get it) and kill and kill and kill…and be killed.
Then, the most crowning insolence of all – he was virtually blackjacked into paying for his own ammunition, clothing, and food by being made to buy Liberty Bonds. Most soldiers got no money at all on pay days. We made them buy Liberty Bonds at $100 and then we bought them back – when they came back from the war and couldn't find work – at $84 and $86. And the soldiers bought about $2,000,000,000 worth of these bonds!
Well, it's a racket, all right. A few profit – and the many pay. But there is a way to stop it. You can't end it by disarmament conferences. You can't eliminate it by peace parleys at Geneva. Well-meaning but impractical groups can't wipe it out by resolutions. It can be smashed effectively only by taking the profit out of war.
Let all these kings and tycoons and masters of business and all those workers in industry and all our senators and governors and majors pay half of their monthly $30 wage to their families and pay war risk insurance and buy Liberty Bonds. Why shouldn't they? They aren't running any risk of being killed or of having their bodies mangled or their minds shattered. They aren't sleeping in muddy trenches. They aren't hungry. The soldiers are! Give capital and industry and labor thirty days to think it over and you will find, by that time, there will be no war. That will smash the war racket – that and nothing else.
Then, incidentally, they announce maneuvers in the Pacific. For defense. Uh, huh. The Pacific is a great big ocean. We have a tremendous coastline on the Pacific. Will the maneuvers be off the coast, two or three hundred miles? Oh, no. The maneuvers will be two thousand, yes, perhaps even thirty-five hundred miles, off the coast. The Japanese, a proud people, of course will be pleased beyond expression to see the United States fleet so close to Nippon's shores. Even as pleased as would be the residents of California were they to dimly discern through the morning mist, the Japanese fleet playing at war games off Los Angeles.
I am not a fool as to believe that war is a thing of the past. I know the people do not want war, but there is no use in saying we cannot be pushed into another war. Looking back, Woodrow Wilson was re-elected president in 1916 on a platform that he had "kept us out of war" and on the implied promise that he would "keep us out of war." Yet, five months later he asked Congress to declare war on Germany.
The professional soldiers and sailors don't want to disarm. No admiral wants to be without a ship. No general wants to be without a command. Both mean men without jobs. They are not for disarmament. They cannot be for limitations of arms. And at all these conferences, lurking in the background but all-powerful, just the same, are the sinister agents of those who profit by war. They see to it that these conferences do not disarm or seriously limit armaments. The chief aim of any power at any of these conferences has not been to achieve disarmament to prevent war but rather to get more armament for itself and less for any potential foe.
Note: Imagine if we took General Butler's advice and in wartime forced corporations to join our soldiers in making sacrifices for their country. We could pass laws which guarantee that corporate profits decrease during war rather than increase. Do you think that wars would still drag on for years as in Vietnam and Iraq? Please help to make this a reality by sending this information to your friends and colleagues and contacting your government representatives.