Presidents and Labor Strikes

Hank Bitten, NJCSS Executive Director

Most decisions by American presidents and other world leaders do not have an immediate impact on the economy, especially regarding the macroeconomic issues of employment and inflation. For example, President Franklin Roosevelt’s bank holiday, President John Kennedy’s tariff on imported steel, and President Ronald Reagan’s Economic Recovery Tax Act had limited immediate effects on the economy, but their long-term effects were significant. The accomplishments or problems of a previous administration may impact on the administration that follows.

For example, President Biden faced criticism about the economy during his administration. The jobs created with the Bipartisan Infrastructure Law and the interest rate policy of the Federal Reserve Bank to lower inflation did not show results until years later. The drop in Real Disposable Income from the administration of President Trump is another example. Real Disposable Income is a measure of income that is adjusted for inflation. The drop between the administration of President Bident and Trump is the result of extended unemployment benefits, people working from home during the pandemic when businesses were closed, and stimulus checks from the government. The economic transition following the end of the pandemic had a significant impact on the economy.

PresidentGDP GrowthUnemployment  RateInflation RatePoverty RateReal  Disposable  Income
Johnson2.6%3.4%4.4%12.8%$17,181
Nixon2.0%5.5%10.9%12.0%$19,621
Ford2.8%7.5%5.2%11.9%$20,780
Carter4.6%7.4%11.8%13.0%$21,891
Reagan2.1%5.4%4.7%13.1%$27,080
H.W. Bush0.7%7.3%3.3%14.5%$27,990
Clinton0.3%4.2%3.7%11.3%$34,216
G.W. Bush-1.2%7.8%0.0%13.2%$37,814
Obama1.0%4.7%2.5%14.0%$42,914
Trump2.6%6.4%1.4%11.9%$48,286
Biden2.6%3.5%5.0%12.8%$46,682

This series provides a context of important decisions by America’s presidents that are connected to the expected economic decisions under the second administration of President Trump. The background information and questions provide an opportunity for small and large group discussions, structured debate, and additional investigation and research. They may be used for current events, as a substitute lesson activity or integrated into a lesson.

In the case study below, have your students investigate the economic problem, different perspectives on the proposed solution, the short- and long-term impact of the decision, and how the decision affects Americans in the 21st century.

The Economic Problem

One of the first labor strikes in the United States occurred in Paterson, New Jersey on July 3, 1835.  About 2,000 textile workers stopped working in about 20 textile mills demanding better hours. Workers, including women and children worked 13 hours a day six days a week and their wages were reduced as fines for infractions. The strike eventually led to a 12-hour day and a nine-hour day on Saturday.

In 1835 carpenters, masons, and stonecutters in Boston staged a seven-month strike in favor of a ten-hour day. The strikers demanded that employers reduce excessively long hours worked in the summer and spread them throughout the year. In Philadelphia, carpenters, bricklayers, plasterers, masons, leather dressers, and blacksmiths went on strike. In Lowell, MA, women also went on strike. The history of labor complaints and strikes date back to the colony of Jamestown. Although the common law in England provided protection for peaceful demonstrations, the courts in the colonies and states often fined workers because their organization as a group was viewed as a ‘restrain of free trade’ or a violation of the right of property for employers. In 1842, the Commonwealth of Massachusetts v. Hunt was a landmark decision that allowed peaceful demonstrations. “In March 1842, Chief Justice Lemuel Shaw ruled that labor combinations were legal provided that they were organized for a legal purpose and used legal means to achieve their goals.”

The economic problem was long hours, low wages, and oppressive working conditions. The market revolution led to the demand for consumer goods. The new inventions of the cotton gin, steamboats, locomotives, and factories. The nature of work was changing and this led to profound changes in society. Employers and entrepreneurs believed this was the idea behind the pursuit of happiness in the declaration of Independence and how a republic was governed. Laborers used the press to voice their concerns which led to the organization of trade unions in Philadelphia.

President Andrew Jackson’s decision to let the charter of the Second Bank of the United States to expire had an unexpected and profound impact on ordinary people. Working conditions continued to decline and President Jackson’s decision led to an increase in paper money and inflation. Higher prices led to unemployment and longer hours for those who were employed. Illness or injury and debt led to homelessness and poverty. According to a New York City physician, the laboring poor in the 1790s lived in “little decayed wooden huts” inhabited by several families, dismal abodes set on muddy alleys and permeated by the stench from “putrefying excrement.” Source

In 1840 the federal government introduced a ten-hour workday on public works projects. In 1847 New Hampshire became the first state to adopt a ten-hour day law. It was followed by Pennsylvania in 1848. Both states’ laws, however, included a clause that allowed workers to voluntarily agree to work more than a ten-hour day. Despite the limitations of these state laws, agitation for a ten-hour day did result in a reduction in the average number of hours worked, to approximately 11 by 1850.  On May 19, 1869, President Grant issue Proclamation 182 making an 8-hour day for all federal government employees. This expanded the decision of Congress made in 1868.

After the Civil War, manufacturing and economic growth increased dramatically. There were many strikes as farmers and laborers, both skilled and unskilled, formed associations and unions. Below are examples of larger strikes that are likely part of the high school curriculum.

During the first week of May,1886 workers in Chicago staged demonstrations and strikes demanding an eight-hour day. On May 4 a bomb exploded near Haymarket Square in Chicago.  Several police officers and protesters were wounded or killed by the blast, and 8 individuals were arrested and convicted. Source

A day to recognize the rights of workers was first proposed by Matthew Maguire from Paterson, NJ in 1882. The balance between the right to have peaceful demonstrations under the First Amendment was respected but the Haymarket Riot became violent, strikes were costly to the profits of employers, and violence and strikes were a threat to property. President Cleveland was the first president challenged by the threat of anarchy from socialists. After the Haymarket Riot, a few states, including New York and New Jersey, recognized a Labor Day holiday. This was the fourth federal holiday after Independence Day, Christmas Day, and New Year’s Day. Congress considered making Labor Day a federal holiday in May, but President Cleveland feared this would become a recognition of the violence of the Haymarket Riot.  President Cleveland was the first president to involve the federal government in resolving issues between labor and business interests or capital.  Source

Newspaper Accounts of the Haymarket Riot, 1886

  1. Under what conditions would you support workers on strike? (higher wages, better working conditions, unfair practices by an employer, benefits, job security, etc.)
  2. Are labor strikes a violation of the property rights of employers?
  3. Do workers have a right to disrupt the production of goods or services by a slowdown in the workplace, strict adherence to their contract agreement, coordinating a sick out, making public expressions or statements about their situation, etc.
  4. Do workers need to be paid in wages or can employers also pay them in other ways? (time off, goods produced, etc.)
  5. Should workers receive an annual salary increase based on their months or years of service, inflationary costs of living, or only if they produce more than in the past?
  6. How would you determine a fair wage?
  7. Do the students in your class (or a larger group) support the right to strike workers?

Open the three-day lesson on the 1835 strike in Paterson, NJ. (Update the CPI index from 2012 to the present)

In the months before the presidential election of 1892, President Harrison was faced with a violent strike at the Carnegie Steel Company in Homestead, PA near Pittsburg. The Knights of Labor and the Amalgamated Association of Iron Workers went on strike on June 30 when their contract expired. Workers in Carnegie’s companies in the area supported the striking workers.  Henry Clay, the manager of the Homestead plant, hired private Pinkerton guards to protect the plant and keep the striking workers away. President Harrison privately sent Whitelaw Reid to mediate the conflict.

The strikers threw rocks at the guards, the crowd size was estimated to be about 5,000, and gunshots were fired. At one point amid the chaos, shots were fired. The Pinkertons surrendered and the strikers continued with verbal abuse and assaulted them with rocks as they marched them to a local Opera Hall.

On July 12, Pennsylvania Governor Robert Pattison sent 8,500 National Guardsmen to end the strike. In less than 30 minutes the Carnegie mill was under martial law, the strikers were arrested. Sixteen of the strikers were arrested for conspiracy, murder, and inciting riots. The strike ended three months later in November with the workers agreeing to lower wages, the elimination of 500 jobs, and a 12-hour day. The labor unions lost, and their membership declined.

President Cleveland faced a nationwide railroad strike that began on May 11, 1894. The American Railway Union went on strike against the Pullman Company and the major railroads.  It became a turning point in U.S. labor law. The workers at Pullman protested the layoff of 2,000 workers and wage cuts that amounted to 25%-50% of their wages. The Pullman workers lived in a company town and paid rent to the Pullman Company, which was located near Chicago, Il. The rents were not reduced. The Pullman Company also had a surplus of $4 million at the time of the strike and consistently paid dividends to shareholders.

The Panic or recession of 1893 negatively affected many companies as production declined. The railroads depended on shipping farm products, which were reduced as a result of crop failures. This was the most serious economic recession in the world as investors in Europe purchased gold from U.S. banks, Americans took their savings out of banks, and companies that had speculated in the stock, bond, and commodity markets lost money/ The economic recovery after the recession ended would take several years.

On July 3, 1894, President Cleveland ordered 2,000 armed federal troops to Chicago to end the strike. The strike ended within a few weeks, union leaders were arrested and jailed on charges of conspiracy to obstruct interstate commerce. The justification of using federal troops to move the U.S. mail was based on the Sherman Anti-Trust Act of 1890. This was not the first time federal troops were used to end a strike. President Jackson used troops in 1834 to end the strike by workers building the Chesapeake and Ohio Canal and in 1877 President Hayes send troops to end the violence in Baltimore during the Great Railroad strike.

In May 1902 President Teddy Roosevelt was faced with a nationwide strike by coal miners. Many homes were heated by coal and a prolonged strike in the winter could be catastrophic, deadly, and cause riots. On October 3, 1902, with winter weather approaching, President Theodore Roosevelt called a precedent-shattering meeting to negotiate a settlement. The President did not have any legal authority to settle a labor dispute, although Presidents Jackson, Hayes and Cleveland used federal troops to end labor disputes.

President Roosevelt’s administration proposed the Anthracite Coal Commission to complete a fact-finding report and negotiate a settlement.  The strike ended on October 20, 1902, and the Commission recommended in March 1903 increasing miners’ pay by ten percent (one-half of their demand) and reducing the working day from ten to nine hours.

Samuel Gompers wrote: “Several times I have been asked what in my opinion was the most important single incident in the labor movement in the United States and I have invariably replied: the strike of the anthracite miners in Pennsylvania … from then on the miners became not merely human machines to produce coal but men and citizens…. The strike was evidence of the effectiveness of trade unions ….

The victory in the anthracite coalfields breathed new life into the American labor movement.55 It strengthened moderate labor leaders and progressive businessmen who championed negotiations as a way to labor peace. It enhanced the reputation of President Theodore Roosevelt. Sometimes overlooked, however, is the change the conflict made in the role of the Federal Government in important national strikes.” Source

The silk strike began in February 1913 when twenty-five thousand striking silk workers shut down the three hundred silk mills and dye houses in Paterson, New Jersey, for almost five months. There were several textile strikes that preceded the one in Paterson. The Paterson strike was related to an increased workload and the desire for an eight-hour day. The other strikes occurred because of wages. The Industrial Workers of the World (I.W.W.) were active in organizing the strike and produced the “Pageant of the Paterson Strike” in Madison Square Garden on June 7.  Pietro Botton opened his home to the labor leaders from New York City and on May 25, a rally of more than 20,000 people took place outside his home. These rallies continued on Sundays until the strike ended in July.

The strikers returned to work without any concessions, although the employers did not implement the plan to have one worker operating four looms instead of two.

  1. What is a yellow dog contract, scab, collective bargaining, closed shop, and right to work protections
  2. What are the differences between skilled and unskilled laborers?
  3. How is an Association different from a labor or trade union?
  4. Who has the advantage in a strike: labor employees or employers?
  5. How do strikes affect the economy and the lives of people who are not associated with the union?
  6. Why do you think the union and workers failed to achieve their goal in the Paterson Strike of 1913?
  1. Make a list of labor unions and associations in the United States.
  2. Use these sources to categorize the list of strikes by length of time, size of the unions, and frequency? List of Unions (Wikipedia)   200 Years of Labor History (NPS)

The Seattle General Strike of February 1919 was the first 20th-century solidarity strike in the United States to be proclaimed a “general strike.”  Seattle had 101 unions that were part of the American Federation of Labor (AFL). On the morning of February 6, 1919, over 25,000 union workers stopped working to support the 35,000 shipyard workers who were already on strike. Although wartime inflation created a need for higher wages, the goals of the striking workers were not clearly articulated. Mayor Ole threatened to declare martial law and two battalions (about 3,000) U.S. Army troops arrived. The union members had already implemented a plan to provide food deliveries, transport people to hospitals, and patrol the streets to prevent crime. Below is an image of a soup kitchen. Union members distributed 30,000 meals a day during the strike.

The strike lasted six days and was peaceful. There were minimal gains for the workers, but most returned to work. There were several outside agitators who were identified as “Reds” or communists who were arrested. The strike is generally viewed as unsuccessful.

Seattle General Strike Project

History of the General Strike (9-minute Video)

History of the General Strike (4-minute Video)

The Seattle General Strike (Roberta Gold) 

“An Account of What Happened in Seattle and Especially in the Seattle Labor Movement, During the General Strike, February 6 to 11, 1919” 

Slide show 

The Seattle General Strike 

The Boston Police went on strike on September 9, 1919. Police officers worked long hours, received low wages, and had inadequate working conditions. They worked thirteen-hour days and wanted an eight-hour day. They had to purchase their own uniforms which cost $200 (about two months’ salary), were required to sleep overnight in the police station several nights a month, and they had not received a salary increase in over ten years. They were paid about 25 cents an hour and earned about $1,400 a year.

The three cases below were landmark decisions in the labor movement. The Lochner decision ruled that employers could issue contracts without any restrictions such as an 8- or 10-hour day. The Adkins decision supported this and ruled it was illegal to have a minimum wage for workers. The Muller decision ruled that the hours of women could be less than those of men if their health was at risk.

The general right to make a contract in relation to one’s business is part of the liberty protected by the Fourteenth Amendment, and this includes the right to purchase and sell labor, except as controlled by the state in the legitimate exercise of its police power.

The regulation of the working hours of women falls within the police power of the state, and a statute directed exclusively to such regulation does not conflict with the Due Process or Equal Protection Clauses.

Legislation fixing hours or conditions of work may properly take into account the physical differences between men and women, but the doctrine that women of mature age require (or may be subjected to) restrictions on their liberty of contract that could not lawfully be imposed on men in similar circumstances must be rejected.

Frances Perkins was asked to serve as FDR’s Secretary of Labor. As Secretary, she would pursue: a 40-hour work week; a minimum wage; unemployment compensation; worker’s compensation; abolition of child labor; direct federal aid to the states for unemployment relief; Social Security; a revitalized federal employment service; and universal health insurance. She is the longest serving labor secretary and one of only two cabinet secretaries to serve the entire length of the Roosevelt Presidency.

The Wagner Act (1935) created the National Labor Relations Board to enforce employee rights rather than to mediate disputes. It gave employees the right, under Section 7, to form and join unions, and it obligated employers to bargain collectively with unions selected by a majority of the employees in an appropriate bargaining unit. 

The U.S. Supreme Court in NLRB v. Washington Aluminum in 1962 upheld the right of employees to go on strike whether they have a union or not. However, workers and unions still needed to be careful to avoid an unlawful strike.

A strike is likely protected by law if it is in response to “unfair labor practice strikers” or “economic hardship from low wages, excessive hours, or difficult working conditions.” 

A strike may be unlawful when it supports an unfair labor practice such as requiring an employer to stop doing business with another company. Workers cannot legally strike if their contract prohibits strikes, although workers can stop working if they are subject to dangerous or unhealthy conditions.

After World War II, there were several major strikes and unions were unpopular because of the strikes and fear of the expansion of communism after Churchills’ Iron Curtain speech. The Taft Hartley Act amended the Wagner Act (1935). It was proposed by Rep. Fred Hartley from New Jersey and Senator Robert Taft from Ohio.  The Taft-Hartley Act made major changes to the Wagner Act. It was vetoed by President Truman and required a vote by both houses of Congress to override his veto. The Act was amended to protect employees’ rights from unfair practices by unions by making the closed shop and wildcat strikes to be illegal and prohibiting unions from charging excessive fees for membership.

  1. What are the differences between a walkout, lockout, strike, and sit-down strike? Do the definitions or labels matter if work stops?
  2. Should certain employees be prevented from having a union to represent their interests?
  3. Should certain employees who serve the public be prevented by law from being able to strike when the public’s safety or interest is at risk? (teachers, bankers, police, sanitation, transportation workers, nurses, etc.)
  4. What is arbitration, fact-finding, and collective bargaining? What is the purpose of each?
  5. What is back pay?  Should striking workers be compensated for the days or weeks they did not work?
  1. Interview two or three people or groups of people regarding labor conditions they would like to have negotiated in their favor.
  2. Review the contract between teachers and the Board of Education in your district or another district. Discuss the protections in the contract that are not directly related to salary?

In January 1966, there was a 13-day transit strike in New York City. The buses and trains were shut down. In 1968, the teachers and sanitation workers went on strike. Thousands of New York City teachers went on strike in 1968 when the local school board of Ocean Hill – Brownsville, fired nineteen teachers and administrators without notice. The newly created school district, in a heavily black neighborhood, was an experiment in community control over schools—those dismissed were almost all Jewish. The strike began in September and ended on November 17. There are many important issues relevant to this strike – civil rights, integrated schools, poor performing districts, and local control vs. a central Board of Education. The strike raised the issue if public sector employees (police, fire, teachers, and private sector employees should have the right to strike over unfair business practices.

On the morning of August 5, 1981, approximately 13,000 workers of the air traffic control facilities called a strike.  President Reagan spoke from the Rose Garden at the White House telling them to return to work within 48 hours or be fired. About 2,000 returned to work and the rest were fired. The government used people from the military and retired air traffic controllers to monitor the flights and hired new air traffic controllers. This one event had a proof und effect on the labor movement as workers feared losing their jobs if they went on strike.

The 232-day baseball strike of 1994-95 was the biggest one in professional sports. Although there have been many work stoppages in professional baseball dating back to 1912, the study of this strike is important because of the challenges it presented to labor negotiators. This problem has historical origins and dates back to the Sherman Antitrust Act of 1890. In 1922, the U.S. Supreme Court ruled that professional baseball was exempt from the anti-trust protection because it was not considered to meet the definition of trade or commerce. Federal Baseball Club of Baltimore, Inc. v. National League of Professional Baseball Clubs et al.  The case was appealed several times but not reversed. The only option for players was to strike. Source

The strike began on August 12, 1994, and the World Series was cancelled on September 14. One of the main issues was the salary cap that owners placed on the players. The cancellation of the World Series prompted some senators to propose legislation to end the anti-trust exemption given to baseball. This divided the Congress because the protection was favored by owners of smaller teams. President Clinton attempted to intervene but was not able to negotiate a settlement. As the 1995 baseball season was about to begin, baseball owners planned to hire non-union replacement players, a tactic used by the National Football League in 1987. On March 31, 1995, U.S. District Judge Sonia Sotomayor issued an injunction, and the baseball players returned to the field.

Chronological History of Labor Strikes in the United States (NPS

Herman P. Levine: A Brooklyn School Teacher in the Mexican Revolution

Apparently, a prison term was not enough punishment, for Levine was also fired from his job. The state commissioner of education deprived Levine of his license to teach, and the school board at a meeting on 11 July 1917 dismissed him from his teaching position at Public School 160.6 The state and the school board made it impossible for Levine to practice his profession in his native state, and no doubt this became another factor in driving him into exile.7

While in jail, Levine was duly notified that he would still have to appear for his mandatory physical examination. Standing on his principles, he wrote from jail to The Call, rather sententiously, “I shall…not raise any technicality, but offer myself as a sacrifice, if need be, to the greedy, exploiting and devastating system of capitalism.”8 As Levine’s statement makes clear, he was a conscientious objector to the war because he was a socialist opposed to capitalist wars.

In Minneapolis, Minnesota on 21 September 1919 the board of education dismissed D.J. Amoss from his teaching job at Central high school because of his alleged membership in the Industrial Workers of the World.

7 “Minneapolis Teacher,” The Call, 22 September 1917, p. 9.
8 “Levine Refuses Physical Test,”, The Call, 9 August 1917.

He asserted, “My life will affirm what my mind and heart dictate. I have refused to do their bidding by refusing. Such actions were not uncommon at the time.to register. I will refuse to do their bidding in the future.”9 Levine’s statements published in The Call, thus also served, as he surely realized, as anti-draft and anti-war propaganda. His own intransigence might serve an inspiration to other young men to resist.

Levine also wrote a letter from jail to a friend who then passed it on to be published in The Call:

Having been registered against his will in prison, when Levine finished his prison sentence, he was still subject to the draft, and, if he refused, to imprisonment. Evidently preferring his freedom, he must have left for Mexico immediately upon release in June 1918. Levine reached
Mexico City shortly thereafter, and adopted two aliases and identities: Mischa Poltiolevsky, claiming to be a Russian immigrant, and Martin Paley, an American schoolteacher. Levine’s experience in jail and prison must have hardened his radical convictions, for when he left and fled to
Mexico, he continued his political activity, though now as a leftist labour organiser rather than as an anti-war activist.

Levine’s decision to go to Mexico was not unique. Americans didn’t go to Canada because it was part of the British Empire which was already at war. Mexico credate no barriers to American war resisters who wanted to enter the country, and what began as a trickle became a steady stream, and
soon, some would claim, a flood. The New York Times reported in June of 1920—a year and a half after the end of the war—that an estimated 10,000 draft evaders still remained in Mexico.11 Senator Albert Bacon Fall told the Associated Press that an estimated thirty thousand Americans had crossed into Mexico to evade the draft law.12 American politicians and the press called them “slackers,” a derogatory term that the war resisters adopted as a badge of honor.

Many American war resisters went to Mexico City, but Levine went to Tampico in the state of Tamaulipas, a city that was then a center of the relatively new oil industry dominated by British and American companies. He eventually found work as a clerk there set about re-organizing the local
chapter of the Industrial Workers of the World, also known as the Wobblies.

Tampico, the principal port for the Mexican oil industry, had developed rapidly beginning with the outbreak of the war in Europe in 1914. With the expansion of industry there was also a rapid growth in the number of oil workers, stevedores and seamen. These workers, often led by Spanish anarchists or sometimes American Wobblies, formed unions which grew rapidly in size, strength, and militancy.

11 ‘Ask Mexico to Send Draft Dodgers Back,” The New York Times, 7 June 1920, p. 9.
12 Linn A.E. Gale, “They Were Willing,” Gale’s Magazine, March 1920, p. 1. 3

Labor unionism in Tampico had begun during the first years of the twentieth century when workers had established a variety of unions, such as the Moralizing Union of Carpenters (Unión Moralizadora
de Carpinteros). By 1915, the major anarcho-syndicalist labor federation, the House of the World Worker, had reached Tampico, and began organizing both trades and industrial workers. The practice of striking to improve wages and working conditions became widespread and frequent among workers in Tampico.13

The Industrial Workers of the World already had a foothold in Tampico before Levine arrived. While it remains unclear if the IWW had any specific strategic plan for Tampico, in general the IWW organized unions of workers in a particular industry with the goal of affiliating them eventually into a national and then a worldwide industrial union, the One Big Union, as they sometimes called it.14

13 Gruber, Adelson, Steven Lief 1982, “Historia Social de Ios Obreros Industriales de Tampico, 1906 1919,” (Doctoral dissertation, 1982, Colegio de México), pp. 424–70.
14 Cole, Peter, David Stuthers, and Kenyon Zimmer 2017, Wobblies of the World: A Global History of the IWW.

In the United States, the IWWs strategy led it to organize oil workers, copper miners, lumberjacks in the spruce forests, and agricultural workers in the wheat fields: all strategic wartime industries (spruce wood was used to build airplanes). Following capital and heavy industry over the border to the south, Wobblies found themselves working in Mexican mines and oil fields, as well as on
Mexican docks and on ships of various nations. There they would employ the same strategy of industrial unionism and direct action.

One group of the Industrial Workers of the World arrived in Tampico in force in 1916 when the C.A. Canfield arrived in port. The crew of the Canfield belonged to the IWWs Marine Transport Workers (IWW MTW), and many were Spanish speaking. They recruited Mexican seamen to their union, which probably also gained a foothold among the stevedores. Pedro Coria, a Mexican IWW organizer from Arizona arrived in Tampico in January 1917 and organized Local #100 of IWW-MTW.15 Workers in Tampico had many grievances, (London: Pluto Press, 2017), pp. 124 but one of their major complaints was that they were paid in varying worthless currencies, so they demanded pay in gold or silver. In 1917 there was a series of strikes that began over this issue, culminating in a
great general strike in the Tampico area involving petroleum workers and stevedores from both the House of the World Worker and the IWW.16 The US Embassy sent a note to the Mexican Secretary of Foreign Affairs in October of 1917 on ‘The Tampico Situation’, which gives an impression of the
US government’s concerns. The note reads:

On 8 January 1919, Excelsior, a Mexico City newspaper, repeated a story that had apparently originated in New York that there were “secret soviets” in Tampico, organized by the IWW.18

15 Norman Caulfield, “Wobblies and Mexican Workers in Mining and Petroleum, 1905-1924,”
International Review of Social History, April 1995, Vol. 40, No. pp. 51-751995), p. 57.
15 Cole et all, Wobblies, pp. 124–39. 16 Cole et all, Wobblies, pp. 124–39.
17 US Embassy to Mexican Secretary of Foreign Relations, unsigned, ‘Memorandum: The
Tampico Situation’, 13 October 1917, Expediente 18-1-146, SRE.
18 Paco Ignacio Taibo II, Los Bolshevikis: Historia narrativa de los orígenes del communism en Mexico: 1919

By the time Levine arrived in Tampico in 1919 or 1920, the IWW was an established organization among industrial workers with a legendary militancy. Levine joined in the work of the IWW as editor of the group’s newspaper. In 1920, US intelligence agents reported that Mischa Poltiolevsky—they apparently believed this was Levine’s real name—”is working in Tampico under the name of M. Paley. He is a very active agent/”19 They were correct.

Levine had become one of the most dynamic leaders of the Tampico IWW organizing among stevedores and oil industry workers. The former socialist Levine had undergone a conversion experience: he had given up his membership in the Socialist Party and had joined the IWW. During the period between 1917 and 1919, he rethought his political ideals, rejecting his belief in socialism and espousing instead revolutionary syndicalism. In a letter to the Industrial Workers of the World headquarters in Chicago, he explained his personal situation and his political views:
I have never learned a trade, nor am I a manual worker, and this I regret, for I recognize that the workers on the job must prepare themselves to run industry, and the workers on the job must determine radical tactics during the struggle to attain their aim, because they alone are surrounded by that environment from which real radical measures surge. I am opposed to political action. An
industrial administration must be prepared for industrially. Political action wastes energy that could be used in the class struggle—on the job. I intend to learn a trade as soon as possible, so that my views may arise in the proper environment. Until then, I shall suggest nothing— but shall affirm that radicals on the job, in the factory, on the farm, in the mine—theirs is the final voice.

1925 (Mexico: Joaquin Mortiz, 1986), p. 32.
19 Memo of 26 May 1920 from the military attaché of the American Embassy to the Director
of Military Intelligence, G.S., Washington, D.C. on the subject of Bolshivist [sic] propaganda,
Record Group 165, Box 2290, USMID, USNA.

Levine concluded his letter, “I was a member of the Socialist party, Local Kings [County], N.Y., but sent in my resignation last May [1919].” In a hand-written postscript he added, “As soon as I become a worker on the job, I intend to join the IWW. But for the present as an office worker, I cannot do so.”20

Why did Levine leave the Socialist Party? Perhaps because so many prominent figures in the party had supported the war and even gone to work for the Wilson administration. Or maybe Levine had fallen under the influence of American or Mexican Wobblies who had convinced him of their
revolutionary syndicalist principles and strategy. Or perhaps his own experience as a slacker had simply driven him to the left, and, at the time, the far left was the IWW.

20 Letter (unsigned) by Levine to Whitehead, November (date scratched out), 1919, Record Group 165, Box 2290, USMID, USNA. 21 A number of copies of El Obrero Industrial can be found in Record Group 165, USMID, US

In any case, though he did not have an industrial job—or perhaps precisely because he did not have such a job—Levine, using the name M. Paley, became the editor of the Tampico IWW newspaper, El Obrero Industrial (The Industrial Worker). The newspaper was just one or two tabloid size sheets of paper folded into four or at most eight pages, written in Spanish it was aimed at the Tampico oil workers and stevedores. Its articles advocated direct action and industrial unionism and called for the use of the general strike to create a workers’ government.21 Levine’s newspaper and his
organizing activities became a serious concern to the US Military Intelligence Division (USMID). The USMID officer in Laredo, Texas wrote to his superiors in July 1920:


The [US] Government is receiving copies of “The Industrial Worker” [El Obrero Industrial] paper being printed in Tampico, which in its editorials is spreading the doctrine of Lenine and Trotzky. The paper says the strikers will not cease until they have accomplished their purpose. Reports also state that at their meetings the strikers have red flags and that the cry ‘Vive la Russia’ [sic] can be heard. The oil companies told the laborers that the pay will not be increased one cent, as they claim
they are paying the best salary in the country.22

National Archives. The newspaper reported on local activities in Tampico, but its main political ideas were identical to those of the IWW of the United States: direct action, industrial unionism the general strike.


At the time many IWWs were supporters of the Russian Revolution and the Soviet government, and some were attracted to the Bolsheviks, who were in the process of organizing the Communist International. As editor of El Obrero Industrial Levine, like other Wobblies, followed the Russian
Revolution with sympathy and offered it his support from afar. Later he would join in the foundation of the Mexican Communist Party (PCM).

The writer B. Traven, whose real name was Ret Marut and who was a German revolutionary refugee of the post-war conflicts in that country, lived in Tampico in the early 1920s. Traven spent some time
with members of the Industrial Workers of the World and left a picture of the American radicals in his novels Die Baumwollpflucker (The Cottonpicker) and Der Wobbly (The Wobbly). In his fictional account of a strike Traven gives us some idea of Levine’s Tampico:

in this country [they] do not suffer from a clumsy, bureaucratic apparatus. The union secretaries do not regard themselves as civil servants. They are all young and roaring revolutionaries. The trade unions here have only been founded during the last ten years, and they have started in the most modern direction. They absorbed the experience of the Russian Revolution, and they embody the
explosive power of a young radical force and the elasticity of an organization which is still searching
for its form and changes it tactics daily.
23

22 Report from Intelligence Officer, Laredo, Texas, to department Intelligence Officer, Fort
Sam Houston, Texas, 23 July 1920, Record Groups 165, in Box 2291, USMID, USNA.
23 Heidi Zogbaum, B. Traven: A Vision of Mexico (Wilmington, DE: SR Books,

Traven’s stories and novels caught the spirit of Tampico’s Wobblies and other radical unionists.
The employers took the matter of what they saw as the foreign-inspired labor unions in Tampico quite seriously.

R.D. Hutchinson, of the British ‘El Águila’ Oil Company told the Bulletin of the National
Chambers of Industry that the Tampico general strike of 1920 represented a “giant step toward the dictatorship of the proletariat,”

He went on: Mexican workers have unionized with the goal of imposing themselves on capital in Tampico and they have done it at the insistence of two different kinds of agitators: some foreigners, who, preaching Bolshevik ideas, have done a profound job, a deep job among the proletarians of the oil zones; and the others, Mexican politicians, who pursuing, if not identical goals, disrupt the peace by attacking the established interests at this crucial moment.24

As both Traven’s novel and this company manager’s remarks suggest, Levine, Coria and other slackers together with the Mexican workers had constructed a powerful, radical industrial union movement in Tampico that threatened the existing order.

Scholarly Resources Inc., 1992), p. 14, citing B. Traven, , Die Baumwollpflucker. (Hamburg. 1962),
p. 72. Wobbly movement.

The British government was also alarmed at the growth of the IWW in Tampico and other cities. The British Ambassador, H.A.C. Cummins reported to Lord Curzon at the Foreign Office in London in April of 1921, “The I.W.W. organization obtained some influence here during the war, an influence which has not lessened, and it is known that the confederated labor unions [CROM] are being directed by these dangerous extremists, and that they are laying plans with a view to establishing a Soviet administration in Mexico.”25 As Cummins’s communication indicates, in Tampico both
the IWW and the more moderate state sponsored CROM unions carried out militant campaigns against the employers.

While both foreign employers and foreign consuls sometimes exaggerated the threat from the IWW, their exaggerations were based on the very real, and quite formidable Wobbly Movement.
24 “Las Últimas Huelgas Según Seis Industriales Prominentes,” Boletín de la Confederación de Cámaras

There are always fights between people in business and politics and the 1910s and 20s were a period of particularly ferocious struggles everywhere. U.S. President Woodrow Wilson fought the Socialist Party and the IWW, severely weakening the former and virtually destroying the latter. The Republicans fought the Democrats and defeated them leading to the reactionary and corrupt President Warren G. Harding. In Russia, Joseph Stalin fought and defeated Leon Trotsky. In America Socialists fought Communists and the AFL fought the IWW. So it is not surprising that here was also a fight in the Mexican IWW.

In Mexico, it became a personal fight between slackers Herman Levine and Linn A.E. Gale over the question of who represented the real IWW in Mexico. Gale was a small-town journalist, a former low level, local politician from New York, facing criminal prosecution for his debts and also fearing he might be drafted fled to Mexico with his wife Magdalena, a secretary who worked to support him. He published Gale’s Magazine which combined socialism and spiritual and promoted himself as the leading American leftwing intellectual and activist in Mexico, mailing his magazine to influential American radicals.

Industriales, (August 1920) , pp. 10 25 Bourne n.d., p. 307.


While Levine worked in Tampico organizing petroleum workers into the IWW, Gale, with the political backing of Mexican President Venustiano Carranza’s Minister of the Interior, Manuel Aguirre Berlanga published article s supporting Carranza’s notoriously corrupt and avaricious government, claiming it was progressive or even potentially socialism. At the same time, Gale claimed to be the leader of the Mexican IWW, and though he didn’t do much organizing, he gave out
IWW membership cards and photographs of the American Socialist Party leader Eugene V. Debs.

The situation was complicated by the fact that Gale also claimed to be the head of the Communist Party of Mexico (PCdeM), made up of the same clique that formed his IWW, while Levine sympathized with the rival Mexican Communist Party (PCM) that had been established by American slacker Charles Francis Phillips, Indian Manabendra Nath Roy, and Russian Bolshevik (Communist) Mikhail Borodin. All of this was taking place at a brief moment when revolutionary syndicalists around the world were briefly attracted to the Communist movement, just as they were in Mexico.
We know Levine’s opinion of Gale and his IWW group from a long letter (eight single-spaced pages) in which Levine wrote to “Fellow Worker Whitehead,” that is, Thomas Whitehead, the secretary-treasurer of the IWW in the United States. Whether or not a copy ever reached Whitehead is unclear, because the letter was intercepted by USMID. Levine portrayed Gale as the
antithesis of a genuine labor organizer. The letter gives us a great deal of insight into
Levine’s political principles and his notion of the proper role as an American revolutionary and labor organizer in Mexico and it is worth reviewing in some detail.26

26 The following several citations come from this letter. Letter (unsigned) to Whitehead from Levine, date November (date scratched out) 1919. Box 2290, Record Group 165, US National Archives.

Levine wrote, ‘He [Gale] is a businessman seeking political preferment and social position’, while Gale’s Magazine is ‘not a radical nor socialist organ’. He went on:

27 Letter (unsigned) to Whitehead from Levine, date November (scratched out) 1919. Box 2290,
Record Group 165, US National Archives. The following several citations come from this letter.

Levine pointed out to Whitehead that it was Berlanga who had quashed the teachers’ strike of 1919.


In general, Levine was critical of Gale’s notion that the Mexican government was a radical government moving toward socialism. What had the peasants and workers gained? asked Levine. “The worker’s reward? The right to have the military forces used against him when he goes on strike, printing presses seized, union halls closed.” Levine gave the examples of the suppression of the Mexico City teachers strike in May and of the Tampico oil workers strike in November of 1919.
“What is the essence of the Mexican Government?” asked Levine rhetorically. “It is an incipient capitalist state.” Carranza, Levine argued, had ‘tried to establish industry on a firm capitalist basis’, inviting the Chambers of Commerce of Dallas, Chicago and other US cities to come to Mexico to help:

Carranza invited them to invest capital in Mexico, but denied them any special privilege. He wants
Mexico to develop on a capitalist basis, without intervention of foreign capitalist governments. “Mexico for the Mexican Capitalists, for the Mexican Government” is his slogan.

Most modern historians would agree with Levine’s assessment of the Carranza regime. Levine argued that Gale’s call for support of Mexico against foreign intervention missed the point that the Mexican government actually supported foreign economic investment and protected foreign investors.

Tampico oil is in the hands of foreign exploiters. But when workers go on strike, the union halls are
closed down, printing presses seized despite specific constitutional provisions to the contrary, right of assembly denied—by whom? Not by foreigners, but by the military officials of that very government which we are asked to defend. Levine lumped Gale together with
Gompers as foreigners meddling in Mexican workers’ affairs:

Mexican radical policy will be determined by Mexicans. The Mexican working class is fighting its
fight where it ought to be fought—on the job. It [the Mexican working class] is not revolutionary—but it becomes aroused over the right to organize—as is proved by the Orizaba [textile] strike now before the public eye. Mexican Labor is too conservative, its leaders and organizations being bound up with the American Federation of Labor. But there are radical elements, and it is to them that we must look for action.

Interestingly, while he and other American slackers participated in the Mexican labor movement, Levine clearly believed that Mexican workers should ultimately determine its policies. Levine concluded his critique by arguing that:

American radicals should fight against American Capitalism; Mexican Comrades should fight their
own exploiters. The class struggle— cannot—will not— be sidetracked.


The letter ended: “cooperation with [Gale] by the IWW is dangerous to the Wobbly movement.” Levine clearly believed that genuine labor organizers would work not with Mexico’s capitalist government, but with the “radical elements” among the industrial workers in the organization of the class struggle. Levine, as this letter makes clear, held Gale in utter contempt.28

28 Letter (unsigned) to Whitehead from Levine, date November (date scratched out) 1919. Box
2290, Record Group 165, US National Archives.

The battle between the American slackers for control of the Mexican Industrial Workers of the World was fought both in Mexico and in the pages of the IWW magazine and newspapers in the United
States. Both slacker groups in Mexico wanted the endorsement of the Chicago headquarters of the IWW, and each wrote long articles arguing its point of view and attacking the opposition. The imprimatur of the Chicago office of the IWW was just as important for the slacker unionists as the
endorsement of the Moscow headquarters of the Communist International was for the slacker Communists.

As usual, Linn Gale struck the first blow with an article titled ‘The War Against Gompersism in Mexico’ published in November 1919 in The One Big Union Monthly, the magazine of the IWW
executive committee in the United States. He recounted the first national congress of the Mexican Socialist Party and attacked M.N. Roy for voting to admit Gompers. He also attempted to discredit.

The Indian revolutionary M.N. Roy. Gale wrote that the ‘Hindu’ (M.N. Roy) is “said by some to be a
spy for the American government. As to the truth of this I do not know.” He claimed that during the congress Roy had been “working hand-in-hand with [Luis N.] Morones,” the corrupt leader of the CROM. Gale explained that “Roy voted in favor of seating Morones, casting the deciding vote!!!” Consequently, Gale explained, he and others had withdrawn from the Socialist Party and formed Communist Party of Mexico, a tiny group headed by Gale, which was “in favor of Industrial Unionism.”

The following several citations come from this letter.

The editor of The One Big Union Monthly observed that,

“Not knowing the condition in Mexico, we publish the above with some mental reservation, insofar as we believe that the I.W.W. men of Mexico may take a different view of cooperation with the new Communist party.”29 In the same issue there appeared an excerpt from Gale’s Communist Party of Mexico manifesto, obviously sent to the paper by Gale, endorsing the IWW, denouncing the AFL,
calling for the use of strikes, boycotts and sabotage, and looking forward to the eventual establishment of the “Dictatorship of the Proletariat.” The manifesto also called for a “Constant and intelligent co-operation between the Communist Party and the industrial unions of Mexico and the Communist Parties and industrial unions of other countries.”.30

29 Linn A.E. Gale, “The War Against Gompersism in Mexico’, The One
Big Union Monthly, November 1919, pp. 23–5.
30 “I.W.W. in Mexico,” The One Big Union Monthly, November 1919, p. 50.

The other slacker faction was not long in responding in the American Wobbly press. Irwin Granich [Mike Gold] wrote a long article, “Sowing Seeds of One Big Union in Mexico,” in which he described political, economic, and social conditions, and rebutted Gale’s attack. Granich gave his
own report on the first national congress of the Mexican Socialist Party, and his own interpretation of events. First, he argued that the Socialist Party congress really functioned as a kind of IWW convention. As he put it:

The Socialist party, dominated by I.W.W. elements, had called the congress because there was no union able to call it. It was called for the purpose of bringing to the workers the message of One Big Union and to help them create a national body based on industrial lines.

The Mexican Socialist Party congress, said Granich, succeeded in doing so despite the sabotage of Luis Morones and Linn Gale. He described Gale as “an American adventurer and labor provocateur
who has a shady past and has just organized a so-called Communist party of six or seven members for some sinister ends.” Gale “is really a nonentity, dangerous only because he is trying to bleed the movement for money, and because he is of the type that will ultimately sell out and turn spy—if he
has not already achieved this profitable end, as the Soviet Bureau in New York believes.
” Granich asserted that despite Morones and Gale, the congress had been a success and the delegates had launched two new magazines, El Soviet in Mexico City and El Obrero Industrial in Veracruz.31

31 Irwin Granich, Irwin [pseud. of Michael Gold], “Sowing the Seeds of One Big Union in Mexico,” The One Big Union Monthly January 1920 , pp. 36–7.

In the March 1920 issue of The One Big Union Monthly, the editor felt obliged to explain why he was continuing to print letters from the rival slacker factions in Mexico, and his explanation bears citation because it shows the American IWW’s interest in establishing continental industrial
unionism. “First,” wrote the editor,” it is just as important for us to be familiar with conditions down in Mexico as it is for us to know conditions in Canada. The question of direct cooperation between the One Big Union of Canada, of United States and of Mexico is bound to come up in the near
future, and for that reason it is necessary that we should be somewhat conversant with men and condition[s] in Mexico as well as in Canada.”


“Second,” wrote the OBU editor, “we want our members to know the state of affairs down in Mexico City when they get down there, so they do not act blindly.” Finally, said the editor, the IWW rejected
political parties, whether Socialist or Communist. “We enjoy to see the politicians destroy one another before an audience of wage workers,” because “it fills the workers with disgust for the political game and makes them turn to industrial organization.” So he let the debate in the pages of his magazine continue.32 The editor asked that future articles respond to a number of specific questions, namely a history and survey of the Mexican labor movement, a discussion of the experiments in the Yucatan, a discussion of the roles of Emiliano Zapata and Pancho Villa, and a
survey of Mexican industry with statistics.

32 John A. Jutt, “The Mexican Administration of the I.W.W,”

José Refugio Rodríguez, Secretary of Gale’s IWW organization, took up the offer and wrote an article on “The Working Class Movement in Mexico” which avoided the recriminations of the earlier articles and described general conditions of Mexican labor. Rodriguez’s article characterized the
various leaders and tendencies in the Mexican Revolution. He rejected support for Álvaro Obregón, who was “seeking the support of the American and Mexican financial interests,” and also repudiated
Carranza who was “at best only a Liberal.” Rodríguez also characterized Villa and Zapata. He wrote (wrongly and falsely) that the former “is no more and no less than a despicable murderer who once served in the American Army and there learned completely the science of killing his fellow human beings.” He expressed admiration for Zapata as an “honest man,” but noted that “the tales published in foreign periodicals about the wonders of ‘Zapataland’ make us laugh and also make us shed bitter tears”:

His “Zapataland” only existed over a few hectares of land in the days of its greatest success. It was very crude, undeveloped, unorganized, and could not therefore, last long. In the great land over which Lenin is the guiding figure and where Industrial democracy has come to remain forever, there is much of science, order, skill, wisdom and shrewdness, to match that of the capitalist empires without. But there was none of this in “Zapataland”—only honest intentions, high ideals, bad
organizations, big blunders and inevitable failure.33

Gale’s Magazine, February 1920, p. 44.

What is striking in Rodríguez’s essay is the nearly complete rejection of all of the Mexican revolutionary factions, including the plebeian movements of Zapata and Villa, and his absolute confidence in Lenin and the Russian model. Gale and his comrades, it seemed, having rejected the Mexican revolution entirely, intended to implant the models of the Chicago-based IWW and the
Moscow-centered Communist International.

Whatever appeared in the papers in Chicago, the fight to control the Mexican IWW would be settled in Mexico and Mexican workers would play a central role. Levine had found two allies in his struggle against Gale. Both Charles King and Pedro Coria had been active; in the Industrial Workers of the World in the United States, as well as in Mexico. A USMID report, probably written by José Allen, who was simultaneously head of the Mexican Communist Party and a US spy, described
Levine’s new supporters. The description of King was brief:

King claims to be an American Communist. He has been in Mexico approximately eighteen months. He is five feet eight inches tall; weight about one hundred and sixty pounds; dark hair; dark eyes; swarthy complexion. He is very sarcastic and cynical. He appears to be very well educated; he speaks Spanish and English equally well. Trade unknown.

33 José Refugio Rodríguez, “The Working Class Movement in Mexico,” The One Big Union Monthly, 1920 II, no. 6, 26-27.

The spy’s account of Coria went into more detail, painting a picture of a sophisticated political activist. “Corea [sic] is a Mexican of the railroad man type; age about forty; about five feet eight inches tall; weight about one hundred and eighty pounds; thick, black hair; black eyes; slightly florid complexion,”, wrote Allen.

34 ‘Who’s Who Material – Mexican Radical Elements’, 15 October 1920. RG 165, Box 2290.

Coria told his own story in an autobiography written in the 1960s. Raised in a military orphanage, Coria eventually became a foundry worker and after working in several Mexican cities travelled to the United States. While living in Chicago, Coria learned to speak English fluently and also became acquainted with the American labor movement. He apparently attended an early convention of the Industrial Workers of the World and became a Wobbly. As a Wobbly organizer in various parts of the
West, Coria had participated in numerous organizing campaigns, strikes, and protest demonstrations.

At various times he was beaten, jailed, and had his life was threatened. As a working-class pacifist in the United States, he opposed both the violence of the revolution in Mexico and United States involvement in World War I. When the Wilson administration suppressed the IWW, Coria fled to Tampico, no doubt because he knew there was an active IWW group there.35

35 Coria, Pedro, “Adventures of an Indian Mestizo,” Industrial Worker (Chicago), January, February,
March, April, and May, 1971. Thanks to Robert J. Halstead for calling this series to my attention and providing a photocopy.

As soon as he arrived in Tampico, Coria made contact with the IWW and joined other Wobblies in organizing Petroleum Workers Industrial Union 230 and Marine Transport Workers union 510. He quickly became one of the most prominent IWW leaders in Tampico and was sent by the local IWW as delegate to the important labor convention in Saltillo, Coahuila held on 1 May 1918, the meeting that produced the Regional Confederation of Mexican Workers (CROM). It must have
been not long after returning from Saltillo that Coria met Herman P. Levine.

Coria’s experience made him a highly valuable IWW organizer. His knowledge of English and Spanish, his familiarity with the labor union and political movements in both countries, and his
courage and dedication made him particularly useful in the attempt to organize the IWW in Mexico. So, it was natural that in Tampico, Coria became one of the closest allies of Levine.

Levine—now backed up by Coria and King—proposed at the 17 October 1920 IWW meetings in Mexico City, which involved both factions, that the IWW’s US rule excluding non-wage-workers be
enforced. The observation of that rule would have meant the expulsion from membership in the Mexican IWW of Gale, the newspaper publisher and his followers: Cervantes López, the printer; Hipólito Flores, the policeman, and other non-worker members of Gale’s committee. Gale responded
evasively that the IWW had to organize soldiers and sailors, and should not, for example, exclude a woman fired from her factory who became a fruit vendor.36

36 Gale 1920, p. 6; ‘Memorandum to the A.C. of S. for Military Intelligence’, 15 October 1920, in
Box 2290, Record Group 165, USMID, USNA, an account of these differences within the IWW, probably written by José Allen, says that Pedro Coria was disputing the leadership of the union with Gale and Charles King. This is probably the same struggle. See also Taibo II 1986, p. 101.

There was another important element in this debate, in addition to the question of a member’s social class. Levine and Coria also proposed to take the Mexican IWW into an alliance with the anarchists, anarcho syndicalists, and the other Mexican Communist Party (not the one run by Gale) in order to form a united front among all the labor radicals in Mexico. It was this issue that accounted for the presence at the Mexico City meeting of Jacinto Huitrón, a leader of the anarcho-syndicalist labor
movement, and Manuel D. Ramírez, a labor activist and the future head of the Mexican Communist Party. It was this group which would later establish the important though short-lived labor organization the Communist Federation of the Mexican Proletariat.37

37 ‘Memorandum to the A.C. of S. for Military Intelligence: Notes on Radical Activities’, 15
October 1920, USMID, Record Group 165, Box 2290, USMID, USNA.

The debate over the rules was postponed, but Gale refused to call another meeting, so the other faction, Levine, Coria and King, now joined by Gale’s former allies Rodríguez, Pacheco and Ortega, called their own meeting of the executive board, revised the rules to exclude non-workers, and elected their own executive committee. Gale was out. Levine had won.

The Gale-Levine faction fight ended in the pages of the IWWs magazine in the United States at the end of 1920. In December, an article apparently written by Herman Levine, announced the victory of
the “wage workers” over the “petit bourgeois” faction led by Linn Gale. “The wage workers faction, the most numerous and the strongest, with the general secretary treasurer and the majority of the G.E.B. [General Executive Board] with them, are continuing in charge of the organization, and hope for better progress now that they have rid themselves of the political and petit bourgeois element,”, stated the author. The IWW, now firmly in proletarian hands, the author reported, was organizing oil workers in Tampico, metal mine workers in Guanajuato, and industrial workers in Mexico City.38

38 Herman Levine, Herman ‘The Mexican I.W.W.’, The One Big Union Monthly, December 1920, p. 57.

After Levine, Coria, and King took charge of the IWW, it immediately entered into a united front with the other factions of the revolutionary labor movement. The anarcho-syndicalists, the IWW, the Mexican Communist Party, and some independent unions formed first the “Revolutionary Bloc,” in August 1920, which subsequently became the Communist Federation of the Mexican Proletariat (FCPM). The FCPM was meant to be an alternative to the CROM. It stood for revolutionary labor
unionism, the fight for workers’ control, the overthrow of capitalism, and, passing through a brief dictatorship of the proletariat, for Social Revolution. While most of its members were anarchists or anarcho-syndicalists, the FCPM sympathized with the Soviet Union. Later the FCPM would become the anarchist General Confederation of Workers or CGT.

In addition to Levine’s wing of the IWW, the Mexican Communist Party (PCM) (that is the party founded by Roy and Phillips) also joined the new federation. Within a few months the PCM Communists were involved in the leadership of a genuine working-class upheaval in Mexico City,
Veracruz, Orizaba and Tampico. Two of the PCM’s new young leaders, Manuel Díaz Ramírez and José C. Valadés were elected secretaries of the executive board of the FCPM.39 The Communist Federation and its activists such as Levine, Valadés and Díaz Ramírez were far more serious about
organizing than Gale had been. For example,

39 Taibo II 1986, Los Bolshevikis, p. 103.

Díaz Ramírez, who was himself from Veracruz, contacted Aurelio Medrano and other leaders of the Orizaba textile workers’ anarcho-communist group, the group with which Gale had been corresponding. Díaz not only wrote them and sent the Communist magazine Vida Nueva and the
Boletín Comunista, but he also went to Orizaba gave a public lecture on “Unionism and Communism.” He met privately with local activists and attempted to win the group over to the Communist Federation of the Mexican Proletariat, and to the Mexican Communist Party.40 Díaz urged the local anarcho-communists and CROM activists to join the Communist Federation and later its successor the General Confederation of Workers (CGT). The Orizaba group decided to stay in the CROM, though they remained in its left wing.41 Nevertheless, Díaz and the Communists demonstrated a new commitment to building the IWW and the Communist Party among workers.

40 García Díaz, Bernardo 1990, Textiles del Valle de Orizaba (1880–1925). (Xalapa, Veracruz: Universidad Veracruzana, Centro de Investigaciones Historicas, 199), pp. 240–1.
41 Ibid., pp. 270–1.

Levine’s organizing in Tampico and his fight with Gale had strengthened the IWW in Mexico. He also helped to build the young and fragile Mexican Communist Party. The political winds, however, had shifted. While President Venustiano Carranza had welcomed the American slackers, the new president, Álvaro Obregon, wanted to be rid of them, ordering their arrest and expulsion.

Levine was captured and deported on 25 May 1921.42 He either revealed his citizenship or it was discovered, for the Washington Post carried the news of Levine’s detention to the public in a story
date-lined Laredo, Texas, 27 May 1921: Herman M. [sic] Levine, of New York City, who fled to Mexico in 1918 and is alleged to have engaged in radical activities there, was deported Wednesday from Monterrey, where he was arrested last week. He was immediately taken in charge by military authorities here and is being held at Fort McIntosh.43

42 Letter from Matthew C. Smith, Col., General Staff, Chief, Negative Branch to W.L. Hurley, Office of the Under-Secretary, Department of State, 28 May 1921; Memorandum for file dated 27 May 1921 regarding phone call from Mr. Hoover to USMID. Both in Box 2292, Record
Group 165, USMED, USNA.
43 “Mexico Deports Radicals; Herman M. Levine, of New York Returned to the United States,” Washington Post, 27 May 1921. Clipping in Box 2291, Record Group 165, USMID, USNA

.
44 Memorandum for file, undated by citing General Intelligence Bulletin No. 53 for 4 June
1921, Box 2292, Record Group 165, USMID,USNA.

The US government’s General Intelligence Bulletin No. 53 for 5 June 1921 reported that Levine’s “case will be presented to the Grand Jury for indictment as a slacker.”44

After this point, Levine disappears from the records, but what an experience Levine had had since the day four years before when he decided to resist the draft. The war and the draft forced him to give up his profession, and his country and led him to become a political exile in Mexico. While
Levine remained a radical, the war also caused him to abandon his political party, the Socialists, and led him to adopt the revolutionary syndicalist ideology of the Industrial Workers of the World.

As a Wobbly in Mexico, Levine edited the union’s newspaper in Tampico where he also became one of the union’s leading spirits. Of all the American slackers, Levine was perhaps the only one who really threw himself shoulder-to-shoulder into the organization of ordinary Mexican workers in an attempt to bring about a new industrial and economic order. For a brief period, Levine and his IWW ‘fellow workers’ had led thousands of Tampico’s oil port workers in a mass movement involving strikes that paralyzed shipping, challenged the employers, and troubled two states. Levine had cooperated with the founders of the Mexican Communist Party and Levine himself appears to have become a member. Like other radicals in Mexico at the time, Levine signed his letters “Salud y Revolución Social,” that is, “Health and Social Revolution,” and he added in English with that characteristic Wobbly American accent, “May it come damn quick.” Unfortunately for Levine, it did not come.

Whatever happened to Levine? We do not know, but a cross-reference in the card index of the US Military Intelligence Division files mentions a Herman Levine who was active in June 1932 in the
executive councils of various veterans’ organizations and was a bonus marcher, one of the largest American working-class protests of the era. Could that have been the Brooklyn school teacher Levine who led oil workers in Tampico during the years of the World War and the Mexican Revolution?
We cannot be sure that this is the same man, but it might well have been.

Era 5 – Engaging High School Students in Global Civic Education Lessons in U.S. History

New Jersey Council for the Social Studies

www.njcss.org

The relationship between the individual and the state is present in every country, society, and civilization. Relevant questions about individual liberty, civic engagement, government authority, equality and justice, and protection are important for every demographic group in the population.  In your teaching of World History, consider the examples and questions provided below that should be familiar to students in the history of the United States with application to the experiences of others around the world.

These civic activities are designed to present civics in a global context as civic education happens in every country.  The design is flexible regarding using one of the activities, allowing students to explore multiple activities in groups, and as a lesson for a substitute teacher. The lessons are free, although a donation to the New Jersey Council for the Social Studies is greatly appreciated. www.njcss.org

The development of the industrial United States is a transformational period in our history. The United States became more industrial, urban, and diverse during the last quarter of the 19th century. The use of fossil fuels for energy led to mechanized farming, railroads changed the way people traveled and transported raw materials and goods, the demand for labor saw one of the largest migrations in world history to America, and laissez-faire economics provided opportunities for wealth while increasing the divide between the poor and rich. During this period local governments were challenged to meet the needs of large populations in urban areas regarding their health, safety, and education.  

The Patrons of Husbandry, or the Grange, was founded in 1867 to advance methods of agriculture, as well as to promote the social and economic needs of farmers in the United States. The financial crisis of 1873, along with falling crop prices, increases in railroad fees to ship crops, and Congress’s reduction of paper money in favor of gold and silver devastated farmers’ livelihoods and caused a surge in Grange membership in the mid-1870s. Both at the state and national level, Grangers gave their support to reform-minded groups such as the Greenback Party, the Populist Party, and, eventually, the Progressives.

The social turmoil that the Western farmers were in was mainly a result of the complete dependence on outside markets for the selling of their produce. This meant that they had to rely on corporately owned railroads and grain elevators for the transport of their crops. To make matters worse, “elevators, often themselves owned by railroads, charged high prices for their services, weighed and graded grain without supervision, and used their influence with the railroads to ensure that cars were not available to farmers who sought to evade elevator service.” In 1871, Illinois created a new constitution allowing the state to set maximum freight rates but the railroads simply refused to follow the mandates of the state government.

The Grangers became political by encouraging friends to elect only those officials with the same views. Furthermore, while Republicans and Democrats had already been bought out by corporations looking to curry favor in the government, Grangers vowed to create their own independent party devoted to upholding the rights of the general populace.

On Independence Day, 1873 (known as the Farmer’s Fourth of July), the Grangers read their Farmer’s Declaration of Independence, which cited all of their grievances and in which they vowed to free themselves from the tyranny of monopoly.  The Supreme Court decision in Munn v. Illinois stated that businesses of a public nature could, in accordance with the federal constitution, be subject to state regulation. Following this ruling, several pieces of legislation, collectively known as the Granger Laws, were passed. Unfortunately, many of these laws were repealed.

Though the organization did not last, it demonstrated the effects that monopolies have on society. It subjugated these individuals to its whims, and then forced them to take action against it. 

The Yellow Vests Protest in France

Donning the now-famous fluorescent waistcoats that are mandatory in French cars, the  Yellow Vests staged 52 consecutive weeks of protests against economic hardship, mounting inequality and a discredited political establishment. They manned roundabouts across the country night and day, took to the streets on every Saturday since November 17, and at their peak in December even stormed the Arc de Triomphe in central Paris, amid scenes of chaos not witnessed since May ’68. The movement had an indelible mark on France, forcing the government into billions of euros of tax breaks.

“The picture that emerged was that of a movement made up largely of workers and former workers in a situation of financial insecurity, with relatively few unemployed,” said Gonthier. Yellow Vests were present across France, but strongest in small towns and rural areas. They came from all walks of life, but liberal professions were underrepresented, while small business owners and employees, craftspeople and care workers formed the bulk of the movement. About two thirds of respondents earned less than the average wage, and a slightly higher percentage registered as having a “deficit of cultural resources and social links”. This in turn “conditioned the way they defined themselves, and helped distance them from traditional social movements”, Gonthier added.

Another defining feature was the high proportion of women, who made up roughly half the Yellow Vests, whereas social movements traditionally tend to be male-dominated. Gonthier said this reflected the significant mobilization of women in care work, “most notably hospital workers from a public health sector that is plunging deeper into crisis”. They included a high number of single mothers who couldn’t go out and protest, or were scared away by the police’s heavy-handed response, but who supported the movement online.

  1. Are monopolies harmful to a growing economy or are they a necessary ‘evil’?
  2. Is it inevitable that an oppressed people will revolt and attempt to destroy that which has kept them down?
  3. How can governments best address poverty and inequality?
  4. If a significant minority feels oppressed, do they have a right to overthrow their government by protest or violence if they cannot get satisfaction through the process of elections?
  5. Do you support the Grangers, Yellow Vests, both or neither?

The Granger Revolution

The Grange Movement

A Brief Essay on the Grange Movement

Who are France’s Yellow Vest Protestors and What do they Want?

The Yellow Vest Movement Explained

Activity #2: Munn-Wabash Railroad in Illinois and the Trans-Siberian Railroad in Russia

Route of the Wabash Railroad in the Midwest

The Wabash Railroad Company went bankrupt and was sold. The new Toledo and Wabash Railroad Company was chartered October 7, 1858. The Wabash and Western Railroad was chartered on September 27 and acquired the Indiana portion on October 5. On December 15, the two companies merged as the Toledo and Wabash Railway, which merged with the Great Western Railway of Illinois. The right of continuous transportation from one end of the country to the other is essential in modern times to that freedom of commerce. The Commerce Clause in the U.S. Constitution gives Congress the power to regulate commerce among the States and with foreign nations. If Illinois or any other state within whose were permitted to impose regulations concerning the price, compensation, or taxation, or any other restrictive regulation it would be harmful to commerce between states.

The Trans-Siberian Road in Russia

Trans-Siberian Railroad Crossing a large river in Siberia

The construction of the longest railway in the world  was launched in April 1891 and was completed in 1894. Three years later the section between Vladivostok to Khabarovsk with a length of 772km was opened in November 1897. The Central Siberian Railway from the River Ob to Irkutsk with a length of 1839km was built in 1899. The construction involved more than 100,000 workers, including prisoners, and the work was carried out by hand using shovels, axes, crowbars, saws. Despite the many challenges of the taiga, mountains, wide rivers, deep lakes, and floods, the tracks were built with amazing speed – around 740km per year.

  1. Does the protection of technology for the efficiency of commerce justify federal regulations over state regulations?
  2. If a corporation is losing money, do they have a right or obligation to raise rates to become profitable?
  3. Do authoritarian governments have an advantage or disadvantage in the construction of large infrastructure projects?

Consolidation of Railroads in Four States

The Supreme Court Strikes Down Railroad Regulation

Interstate Commerce Act (1887)

Construction of the Trans-Siberian Railroad

History of the Trans-Siberian Road

No crisis of the Cleveland presidencies exceeded the magnitude of the financial panic that gripped the nation at the start of his second term in 1893, and which presaged a depression that still lingered when he left office in March 1897.

The Constitution granted Congress the power “to coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures.” (Article 1, Section 8) Article I, Section 8, and Clause 2 The Congress shall have power to borrow money on the credit of the United States. In the 14th Amendment, Section 4, it states that “the validity of the public debt of the United States, authorized by law … shall not be questioned.”

In the century preceding 1893, Congress experimented with two central banks, a national banking system, laws regulating so-called “wildcat banks,” paper money issues, legalized suspension of specie payments, and fixed ratios of gold and silver. Gold and silver rose to prominence as the predominant monies of the civilized world because of their scarcity and value. Under the direction of Alexander Hamilton, the federal government adopted an official policy of bimetallism and a fixed ratio of 15 to 1 in 1792.

In 1875, the newly-formed National Greenback Party called for currency inflation through the issuance of paper money tied, at best, only minimally to the stock of specie. The proposal attracted widespread support in the West and South where many farmers and debtors joined associations to lobby for inflation, knowing that a reduction in the value of the currency unit would alleviate the burden of their debts.

When President Cleveland assumed office on March 4, 1893, the Treasury’s gold reserve stood at the historic low of $100,982,410 — slightly above the $100 million minimum required for protecting the supply of greenbacks. The Panic of 1893 began when the gold reserves fell below $100,000,000. Stocks fell and factories closed with many going bankrupt. Unemployment rose to 9.6%, nearly three times the rate for 1892. By 1894, the unemployment rate was almost 17%. The Sherman Silver Purchase Act was repealed in support of gold as a stable currency.

Cleveland’s position on sound money was not supported by his Democratic Party. The Gold Standard Act of 1900 resulted in a stable gold standard and economic growth. Cleveland’s position on sound money worked.

Hyperinflation in Germany

Under the Treaty of Versailles Germany was forced to make a reparations payment in gold-backed Marks. On June 24, 1922, Walter Rathenau, the foreign minister was assassinated. The French sent their army into the Ruhr to enforce their demands for reparations and the Germans were powerless to resist. More than inflation, the Germans feared unemployment. A cheaper Mark, they reasoned, would make German goods cheap and easy to export, and they needed the export earnings to buy raw materials abroad. Inflation kept everyone working.

The price increases began to be dizzying. Menus in cafes could not be revised quickly enough. For example, a student at Freiburg University ordered a cup of coffee at a café for 5,000 Marks. He had two cups but when the bill came, it was for 14,000 Marks. When the 1,000-billion Mark note came out, few bothered to collect the change when they spent it. By November 1923, with one dollar equal to one trillion Marks, the breakdown was complete. The currency had lost meaning and value.

Although the currency was worthless, Germany was still a rich country — with mines, farms, factories, forests. The backing for the new Rentenmark was the value of the land for mortgages and bonds for the factories. Since the factories and land couldn’t be turned into cash or used abroad the value of one Rentenmark was equal to one billion of the former Marks. People lost their savings and homes.

Questions:

  1. Is a sound currency policy, where the dollar is backed by gold or some other form of credit, always the best policy for governments to follow?

    2. Does the financial debt of a country matter if its economy is growing?  Does it matter in times of war or the recovery from a natural disaster?

    3. In a financial crisis, a depression, does everyone suffer equally or are some more affected than others?

    4. Which problem should the government address first? High Unemployment of 8% or rising inflation of 5%? Why?

    5. Is foreign investment in a country’s economy necessary to maintain a balance of payments?

    6. Based on the U.S. Constitution, is the debt of our government limited or unlimited?

    The Panic of 1893 and the Election of 1896

    Price Stability and the Fed

    The Weimar Republic

    The German Hyperinflation, 1923

    Hyperinflation in Germany

    Historians often call the period between 1870 and the early 1900s the Gilded Age. This was an era of rapid industrialization, laissez-faire capitalism, and no income tax. Captains of industry like John D. Rockefeller and Andrew Carnegie made fortunes. They also preached “survival of the fittest” in business.

    By the late 1800s, however, monopolies, not competing companies, increasingly controlled the production and prices of goods in many American industries.

    Workers’ wages and working conditions were unregulated. Millions of men, women, and children worked long hours for low pay in dangerous factories and mines. There were few work-safety regulations, no worker compensation laws, no company pensions, and no government social security.

    Starting in the 1880s, worker strikes and protests increased and became more violent. Social reformers demanded a tax on large incomes and the breakup of monopolies. They looked to state and federal governments to regulate capitalism. They sought legislation on working conditions, wages, and child labor.

    Railroad builders accepted grants of land and public subsidies in the 19th century. Industries facing strong competition from abroad have appealed for higher tariffs. American agriculture benefited with land grants and government support. State governments helped finance canals, railroads, and roads.

    It is difficult to separate government intervention, regulation, and laissez-faire in American history. It is likely even more difficult to find the proper balance between government and free enterprise. Perhaps the most serious violations occurred during this era in America’s history with land grants to railroads, regulating the rates railroads could charge, mandating time zones, and allowing paper currency.

    1. Why is limited government and laissez-faire economics popular in the United States over time and today?
    2. Should the federal government regulate education and schools or should this be left to the local and state governments?
    3. Does laissez-faire economics bridge or widen the income gap between the social classes?
    4. Who benefits the most from increasing government regulation?

    Laissez-faire Economics in Practice

    Social Darwinism and Laissez-faire Capitalism in America

    Defending the Free Market from Laissez-faire?