People's History of the United States_ 1492 to Present, A - Zinn, Howard [229]
Communists again played a leading part in the great textile strike that spread through the Carolinas and Tennessee in the spring of 1929. The mill owners had moved to the South to escape unions, to find more subservient workers among the poor whites. But these workers rebelled against the long hours, the low pay. They particularly resented the “stretch-out”—an intensification of work. For instance, a weaver who had operated twenty-four looms and got $18.91 a week would be raised to $23, but he would be “stretched out” to a hundred looms and had to work at a punishing pace.
The first of the textile strikes was in Tennessee, where five hundred women in one mill walked out in protest against wages of $9 to $10 a week. Then at Gastonia, North Carolina, workers joined a new union, the National Textile Workers Union, led by Communists, which admitted both blacks and whites to membership. When some of them were fired, half of the two thousand workers went out on strike. An atmosphere of anti-Communism and racism built up and violence began. Textile strikes began to spread across South Carolina.
One by one the various strikes were settled, with some gains, but not at Gastonia. There, with the textile workers living in a tent colony, and refusing to renounce the Communists in their leadership, the strike went on. But strikebreakers were brought in and the mills kept operating. Desperation grew; there were violent clashes with the police. One dark night, the chief of police was killed in a gun battle and sixteen strikers and sympathizers were indicted for murder, including Fred Beal, a Communist party organizer. Ultimately seven were tried and given sentences of from five to twenty years. They were released on bail, and left the state; the Communists escaped to Soviet Russia. Through all the defeats, the beatings, the murders, however, it was the beginning of textile mill unionism in the South.
The stock market crash of 1929, which marked the beginning of the Great Depression of the United States, came directly from wild speculation which collapsed and brought the whole economy down with it. But, as John Galbraith says in his study of that event (The Great Crash), behind that speculation was the fact that “the economy was fundamentally unsound.” He points to very unhealthy corporate and banking structures, an unsound foreign trade, much economic misinformation, and the “bad distribution of income” (the highest 5 percent of the population received about one-third of all personal income).
A socialist critic would go further and say that the capitalist system was by its nature unsound: a system driven by the one overriding motive of corporate profit and therefore unstable, unpredictable, and blind to human needs. The result of all that: permanent depression for many of its people, and periodic crises for almost everybody. Capitalism, despite its attempts at self-reform, its organization for better control, was still in 1929 a sick and undependable system.
After the crash, the economy was stunned, barely moving. Over five thousand banks closed and huge numbers of businesses, unable to get money, closed too. Those that continued laid off employees and cut the wages of those who remained, again and again. Industrial production fell by 50 percent, and by 1933 perhaps 15 million (no one knew exactly)—one-fourth or one-third of the labor force—were out of work. The Ford Motor Company, which in the spring of 1929 had employed 128,000 workers, was down to 37,000 by August of 1931. By the end of 1930, almost half the 280,000 textile mill workers in New England were out of work. Former President Calvin Coolidge commented with his customary wisdom: “When more and more people are thrown out of work, unemployment results.” He spoke again in early 1931, “This country is not in good condition.”
Clearly, those responsible for organizing the economy did not know what had happened, were baffled by it, refused to recognize it, and found reasons other than the failure of the system. Herbert Hoover had said, not long before the crash: “We in America