Peace at Any Cost
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Franklin Roosevelt, newly elected to the White House, took an aggressive and lightning fast approach to his White House. Those men who agreed with his non-interventionist foreign policy were kept on, those who contradicted the President were let go. As Secretary of State, Roosevelt appointed a right leaning Socialist Robert Lansing. Lansing was immediately tasked with ending the Franco-American war, and set about his task with diligence. Meanwhile Roosevelt turned to the other departments with fierce scorn on those who stood in his way. Under secretaries of the Treasury and the Interior all became replaced by Eagle Socialists, Roosevelt’s men. The only old socialist to see promotion in this new world was John E. Hoover, the former Under-Secretary of the Interior was promoted to Attorney General, and immediately established a new plan to counteract what he saw as the “Communist and Red Insurgence”, those men in the Socialist party and the Unions who leaned too far to the left. Roosevelt was happy to allow for Hoover’s witch hunt, given that many of his targets were interventionists as well.
Roosevelt’s second big move was to create a new department, the Secretary of Defense, so named because, as Roosevelt put it, this cabinet member was responsible for the defense of the American shores. As his first Secretary, Roosevelt appointed Raymond Spruance, one of the Admirals of the Japanese-American Naval War, and a staunch isolationist. Spruance’s policies, which called for a gradual removal of American forces from abroad and the building of an “American Wall” in the Atlantic, played perfectly into what President Roosevelt had in mind. FDR never relied heavily on the advice of his cabinet, and broke tradition in his approach to the day-to-day matters of the Presidency. Sometimes seen as devious and paranoid, FDR went out of his way to cut out some of his politically expedient appointees. Instead, the President and his close friends and advisors made the day to day policy decisions.
Raymond Spruance, Secretary of Defense.
And so it was that within weeks of taking office, Roosevelt’s administration reached a status-quo ante-bellum peace with the French. Lansing bypassed the French ministry and instead called on the Germans to put pressure on the French to end the war. The French, effectively at the mercy of the Germans and Austrians, caved in. Germany meanwhile was more than happy to make inroads with a pro-German administration. As an extension of the treaty, the Roosevelt administration officially ended the Anglo-American alliance, isolating the English at long last. Abandoned, the British finally came to terms with the Germans, and although the peace process would last three years, this moment marked the rather anti-climactic end to the Great War. If Roosevelt left no other legacy, he would at least have that one to his name. And with the war over, and treaties with Germany on the works, Roosevelt turned his eye to the domestic front with hopes of easy re-election. However, trouble was brewing.
Hiram Johnson’s mass take over of the energy sector, and Herbert Hoover’s pro-farmer policies had cost the government a lot of money. Now, FDR was left to foot the bill. Massive cuts in military spending made to confront the debt sent thousands of men into the civilian world unemployed. With these government cuts came cuts to the private sector as well. Industrial companies which had been growing fat on government contracts, halted production, and with production went jobs. The sale of American goods overseas slowed down dramatically as peace returned to Europe, causing the shipping and manufacturing industries to slow as well. Then came the real crisis. Thanks to a variety of reasons, the stock market had become wildly inflated. But with the rather sudden halt of American industry, the stock market bubble burst. The burst lead to a bust, and the bust lead to a crash. Within a month, the market was down 40%, the economy was collapsing. Roosevelt stared on in disbelief as the “Day of infamy” brought his country to a screeching halt. But Roosevelt was not going to lie back and take the depression without reaction, so instead he set about trying to instill confidence in the American economic system.
The “Day of Infamy”
But the President’s weekly radio addresses only flamed the fears of the average Americans. To most, Wall Street was an idea without corporeal existence. But when the President began to speak and talk about it, the distant lights of the Stock Market became all too real. Americans, fearful that their money would vanish next, rushed to the banks, and the banks collapsed. The collapse of the banks resulted in what became known as the Great Depression, as the American economic collapse was joined by similar faults in England, Germany and Austria (France’s economy having been destroyed thanks to the war). Roosevelt found the nation turned against him overnight. His slogan “Let us Have Peace” became a twisted joke. Peace, the pundits proclaimed, had been achieved at the cost of everything. And although Roosevelt appeared helpless at the onslaught, his cabinet was not silent. Both Hoover and Spruance immediately set about establishing policies which, after some time, would have a serious impact on the shape of America in the years to come.
Hoover, already an enemy to the far left, set about actively combating the more militant labor unions. Through skillful and underhanded manipulation, Hoover toppled the leadership of the AFL, and five other major unions. Pro-Communist leaders were arrested under dubious pretenses, and a few others were found murdered. Hoover’s underground war was lightning fast and effective, crushing whatever chance at organized revolution there could have been. Meanwhile Spruance, against the opinions of his Commander in Chief, went to Congress and called on more spending as opposed to less. Spruance felt that if the nation pushed ahead with the “American Wall” plan, the economy would only improve at the increase of industrial need and job creation. Roosevelt, irate at the betrayal, sacked Spruance and replaced him with Alfred Selway, a formerly disgraced socialist and as much a puppet as anything else. Spruance, thus rejected, took his ideas outside the party. First he went to the Republicans, who denied him without a second thought. In the end, Spruance turned to the Nationalists, who saw the idea as the perfect stepping stone to their own economic policy; growth through conflict.