June – July 1937: A Country Interrupted
Tokyo radio blared triumphant news of the latest Japanese victories on the Chinese mainland as their victorious armies continued to advance. Japanese columns moving south across the Yangtze seized Shanghai and continued on to link up with bridgeheads out of Xiamen, practically encircling the foreign enclaves at Macao and Hong Kong. In Spain, the Republicans suffered a crippling blow as Basque separatists used the opportunity to go their own way, staging the brief and bloody fighting in Euskadi high in the Pyrenees. Recognized by neither Spain, it was quickly snuffed out by Nationalists delighted to break the back of Republican power in the north. Madrid was once again under siege, and Republican forces huddled in the southeast.
June saw increasing signs of bitter legislative battles in Congress, even as news of China refused to go away. Landon’s CCC and WPA repeal bills continued to limp forward and rumors were already floating down through Capitol Hill that rural electrification and unemployment insurance were next on the Republican list of targets. All of this, however, was briefly shunted aside by news of the fall of Shanghai and its aftermath. Japanese forces overran the International Settlement and many Americans escaped the city to tell their story of chaos and horror, adding to the growing clamor in the United States. In the height of irony, transports docking in Manila were offloading the first Shanghai refugees even as transports loaded with the troops of General Douglas MacArthur’s Philippine Division were setting off for San Francisco. MacArthur would be sacked within the month, his protests against the deployment earning him a reprimand and transfer from the Army Chief of Staff, General Winship. He would be replaced by the relatively mild engineer, General Somervell.
In late June, China again came to the forefront when Japanese forces, advancing up the Yangtze River valley, bombed the U.S. gunboat
Panay, which lay at anchor and was clearly marked and visible from the air. Another protest by the Landon Administration brought about a Japanese apology and promise of punishment for those responsible, but the Democrats were fast becoming emboldened in their attacks on Republican policy.
”They are losing the Pacific!” was a new and steadily popular Democratic slogan that was being heard at this time.
To the surprise of President and the Republicans, the newly resurgent Democrats, joined by some in the President’s own party who were having doubts over his China policy, put forth a proposed bill to exchange Chinese silver dollars for American gold, giving greater credit access to China and allowing them to purchase more critical supplies. It was a passive solution, yet it was at least doing something. Surely even the Republicans could not object to this. But they did. Congress in late June and early July was the scene of some of the more formidable debates on U.S. isolationism. Senator Pitman, for whom the Act was named, had some of the more notable words.
”It is not that we are well to do! Rather that we are to do well! And do well for those in the world who uphold the principles upon which this country was founded.” By narrow margins, the Pitman Act squeaked by both houses of Congress in early July. President Landon was forced to issue his first veto of his administration. It was clearly a Pyrrhic victory, and the Democrats smelled blood.
The outcry that followed was muted only by the fortuitous actions of that other foreign policy arena, Mexico. President Cardenas, having judged Secretary Taft, and through him the United States, and having found both wanting, saw no obstacles to his continued programs of consolidating power in the leftist unions and his government through nationalization and expropriation. On July 11th, three days after Landon’s veto of the Pitman Act, President Cardenas announced the nationalization of Mexico’s railways.
Even those who discounted the importance of the Mexican issue were shocked at the bold move, particularly as Cardenas followed up the nationalization with the seizure of all rolling stock, stations, support facilities, and any and all property found within. A rate hike was also announced to coincide with a wage increase being granted to Mexican workers. Such an increase would fall heavily upon those who used the railways the most – large companies, especially foreign ones. And in Mexico, this meant oil companies. There was a meeting in New Orleans less than a week after Cardenas’ announcement and within another week, Mr. Dolman had arrived in Washington, D.C. for consultations with President Landon. It was clear that certain steps would be appreciated. Meanwhile, in Mexico, the railway seizures began. In most cases, they were peaceful and without incident, but in some instances the owners of said property were reluctant to simply hand over their goods.
President Landon ordered Secretary Taft to draft a letter of protest to the Mexican government, but Taft took his time in doing so, a move Cardenas had anticipated and which only encouraged the boldness of his actions. In his other move, however, Landon acted with an assertiveness that surprised many of his peers. He met with Chief of Staff Summerall and it was announced that the Army would be holding training maneuvers in the Southwest during the summer and autumn,
”a move which in no way is related to the incidents in Mexico and which was planned for some time beforehand,” the administration hastened to reassure its critics.
As part of these maneuvers, the 2nd Division was brought down to New Orleans. Commanded by General Moore (who had been deemed more reliable than his predecessor General Bradley), the unit would practice wargames in central and southern Louisiana. Cavalry units were moved into the desert to practice endurance marches, scouting missions, and other drills. Meanwhile, General Somervell’s Philippine Division was disembarking in Los Angeles. Four-fifths of the Army were now concentrated on the southern border of the United States.
This was not as formidable as it sounded, however, and both Presidents Landon and Cardenas knew this. The United States army, numbering five divisions, was outnumbered by the Mexican army’s six. Most of the Army Air Corps was undergoing maintenance overhaul or upgrading as part of General Bowley’s return to traditional army aviation. The strategic bomber arm had been disbanded due to budget cuts. One half of the tactical bomber force was also gone. And Cardenas believed the assurances he was getting from Secretary Taft and President Landon that this was just an exercise. If it was supposed to intimidate Mexico, it was poorly executed.
As July closed, it was clear that in order to comply with Mr. Dolman’s “requests”, some provisions for the Army were going to have to be made.