Born in Albion, Nebraska, Matthews spent most of his adult life in Omaha. He graduated from Creighton University in Omaha in 1913, then practiced law in that city from that time onward. He was active in business pursuits, civic and religious affairs and Democratic Party politics. From 1933 through 1949, he served as a consultant to the Reconstruction Finance Corporation. Matthews resigned the Navy post in July 1951 to become Ambassador to Ireland, the home of his ancestors. He died on October 18, 1952, during a visit to Omaha.