Grayson County, Texas, in Depression and War: 1929-1946/67531/metadc12178/m2/1/high... · Park,...

APPROVED: Randolph B. Campbell, Major Professor Richard B. McCaslin, Committee Member and

Chair of the Department of History J. Todd Moye, Committee Member Michael Monticino, Dean of the Robert B.

Toulouse School of Graduate Studies

GRAYSON COUNTY, TEXAS, IN DEPRESSION AND WAR: 1929‐1946

David Park, B.A.

Thesis Prepared for the Degree of

MASTER OF ARTS

UNIVERSITY OF NORTH TEXAS

August 2009

Park, David. Grayson County, Texas, in Depression and War: 1929‐1946. Master

of Arts (History), August 2009, 156 pp., 2 tables, bibliography, 54 titles.

The economic disaster known as the Great Depression struck Grayson County,

Texas, in 1929, and full economic recovery did not come until the close of World War II.

However, the people of Grayson benefited greatly between 1933 and 1946 from the

myriad spending programs of the New Deal, the building of the Denison Dam that

created Lake Texoma, and the establishment of Perrin Army Air Field. Utilizing statistical

data from the United States Census and the Texas Almanac, this thesis analyzes the role

of government spending‐federal, state, and local‐in the economic recovery in Grayson

County.

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TABLEOFCONTENTS

Page

CHAPTERI:THEGREATDEPRESSIONINGRAYSONCOUNTY,1929‐1933 1

CHAPTERII:SAMRAYBURN 28

CHAPTERIII:THEFIRSTNEWDEALINGRAYSONCOUNTY,1933‐1935 38

CHAPTERIV:THESECONDNEWDEALINGRAYSONCOUNTY,1935‐1939 60

CHAPTERV:THEDENISONDAMANDDEVELOPMENTINGRAYSONCOUNTY,1939‐1941 98

CHAPTERVI:WARYEARSINGRAYSONCOUNTY,1941‐1945 124

CHAPTERVII:EPILOGUEANDCONCLUSION 142

WORKSCITED 152

1

CHAPTERI

THEGREATDEPRESSIONINGRAYSONCOUNTY,1929‐1933

Therehavebeenmanycrisesinthehistoryofourcountry.Wehavehadwars;wehavehaddepressions;wehadawarbetweentheStateswhenthelightningofsectionalantagonismthreatenedtoshatterthismightyRepublic.Wehadthepanicof1873,of1893,and1914to1918theearthwasswallowedupinthegreatestreignofmadnessithadeverknown,whenidealswereshatteredandheartsweremadesick.Inmyopinion,themostserious,far‐reachinganddangerouscrisisthateverthreatenedthiscountryweretheyearsfrom1929untilMarch4,1933.Morepeoplehadlostthefaithoftheirchildhoodingovernmentsandinmenandhaddoneittosuchanextentthatwestooduponthevergeofdisaster.

‐SamRayburn

Texas,theUnitedStates,andindeednearlytheentireworld,experienced

massivechangesbetweentheyears1929and1946,beginningwithaninternational

financialcrisis,followedbyasecondworldwar.Duringthistime,theLoneStarState

encounteredunprecedentedgrowththattransformeditfromaprimarilyrural,

agriculturalstateintotheindustrialgiantitistoday.Whilemajorindustrialcenters,

suchasDallas,FortWorth,andHouston,wereobviouslyandunquestionablychanged

throughouttheseyears,theGreatDepressionandWorldWarIIalsohadamajorimpact

onmanyoftheState’sessentiallyagriculturalareassuchasGraysonCountyinNorth

Texas.Howexactly,didtheGreatDepressionaffectGraysonCounty?Howeffective

weretheNewDealprogramsindealingwiththeDepressioninthatNorthTexascounty?

2

HowdidGraysonacquiretheDenisonDamandPerrinArmyAirField,andwhatdidthey

meantothecounty’seconomy?WhatultimatelybroughtGraysonCountyoutofthe

DepressionandWhy?ThroughanexaminationofGraysonCountyduringtheformative

yearsfrom1929to1946,thesequestionswillbeanswered.

VerylittlehasbeenwrittenaboutGraysonCountyingeneral,especiallywith

regardtotheregionduringthetwentieth‐century.Mostoftheworksthatdoexistfall

intothecategoriesofeither“personalanecdotes”or“promotionalpamphlets”.The

purposeofthisthesisistoprovideanarrativeaccountandanindepthanalysisofthe

country’shistoryduringtheGreatDepressionandWorldWarII.1

LocatedinnorthcentralTexas,GraysonCountyissituatedbetweentheRed

Rivertothenorth,FanninCountytotheeast,Cooketothewest,andCollinandDenton

tothesouth.OrganizedfromFannin,GraysonwasfoundedonMarch17,1846,byan

actoftheTexaslegislature,andnamedfortheAttorneyGeneraloftheRepublicof

Texas,PeterW.Grayson.ThesamelegislationalsodesignatedthattheCountyseatbe

calledSherman(inhonorofGeneralSidneySherman,aherooftheBattleofSanJacinto

duringtheTexasRevolution),asawaytocompromisebetweensupportersofthepro‐

HoustonDemocratGraysonandtheanti‐HoustonWhigSherman.Withinfouryearsof

1Examplesofpersonalanecdotesare:GraysonCountyFrontierVillage,TheHistoryofGraysonCounty,Texas(Tulsa:HeritagePublishingCompany,1981);JerryBryanLincecumandRolandCarlislVaughan,TheLifeandTimesofGraysonCounty,Texas(Sherman:BigBarnPress,2006);DonEldredge,Reflections:SharingShermanandGraysonCounty’sPast,vol.I(Marceline:D‐BooksPub.,1994);and,DonEldredge,ReflectionII:GraysonCounty’sPast(Marceline:D‐BooksPub.,1996).Examplesofpromotionalpamphletsare:Ed.I.Anderson,HistoryandBusinessGuideofSherman,DenisonandGraysonCounty,Texas(‐‐‐‐,1948);JackMaguire,AShortHistoryofDenison,Texas,“TheGateCity”(Denison:F.W.MillerPrintCo.,1938);CharlesA.Spears,Yourtown:Past,Present,Future(Sherman:GraysonBank,1967);andNeilsonRogersandJoeC.Henderson,GraysonCounty,WheretheWestBegan(Sherman:A‐1PrintCo.,1998).

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itsfounding,Graysonhadapopulationof2,008,andreportedelevenpublicschools

(onlysixcountiesthroughoutTexascouldclaimmore)and35churches.Thecounty’s

farmersworked5,891improvedacres.2

Duringthe1850s,Graysonwasthemostimportantcountyoftheregionbecause

itmarkedamajordivisionpointontheroutetoCalifornia,especiallyin1858when

ShermanwasdesignatedawaystationstopoftheButterfieldOverlandRoutetoSan

Francisco.Thus,bythecensusof1860,thepopulationhadincreasedto8,184,the

numberofimprovedacresoffarmlandto40,775,andbusinessmenhadbegunto

operatemillsforflourandcornmeal.3

FollowingtheCivilWar,from1870to1880GraysonCountyexperiencedgrowth

unparalleledinitsentirehistoryduetothearrivalofseveralrailroadlines.Sherman

obtainedalinktotheHoustonandTexasCentralRailroadin1872,butitsresidentsdid

notprovidetheincentivetoappealtotheofficialsoftheMissouri,KansasandTexas

Railroad(Katy)forasimilarconnection.Instead,railroadexecutivescreatedthe

townsiteofDenison(namedafterGeorgeDenison,thevicepresidentoftheKaty),and

thecompanyenteredTexasfromtheNorthwhentheveryfirsttrainarrivedon

ChristmasDay,1872.Thisconnectionwasthefirsttoanationalrailsystemthat

extendedtotheNortheast,and,onceDenisonalsoobtainedstopsfromtheSt.Louis,2TheTexasAlmanacandStateIndustrialGuide(Dallas:A.H.Belo&Co.,1952),551‐552;RonTyler,DouglasE.Bornett,RoyR.Barkley,PenelopeC.Anderson,andMarkFOrdinits(eds.),TheNewHandbookofTexas(6vols.;Austin:TexasStateHistoricalAssociation,1996),III,298(GraysonCounty);V,1021(Sherman,Texas);DonnaJ.Kumler,“’TheyHaveGoneFromSherman’:TheCourthouseRiotof1930anditsImpactontheBlackProfessionalClass”(Ph.D.diss.,UniversityofNorthTexas,1995),16.3Tyler,Bornett,Barkley,Anderson,andOrdinitz(eds.),HandbookofTexas,III,298(GraysonCounty);V,1022(Sherman);Kumler,“TheyHaveGone”,16‐17.

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SanFranciscoandTexas,andtheKansas,OklahomaandGulfrailroads,itbecamethe

county’sprimaryrailtown.By1882,justtenyearsafterthefirstraillinearrivedinthe

county,therewereover100milesoftrackinGrayson.4

Withtheraillinescamenewindustries,includingtwocottonpresses,alarge

flourmillandaslaughterhouseinDenison,andfiveflourmillsandthelargestgrain

elevatornorthofDallasinSherman.By1880therewerethirty‐sevenmanufacturing

establishmentsinGraysonCounty,withflourandgristmillsaccountingfortwenty‐two

ofthebusinesses.Asaresultofthisexpansionoftherailroadsandmanufacturing,

between1870and1880thepopulationofGraysonCountyincreased254percentfrom

14,387to38,108,andthenumberoffarmsroseby460percent.Thevalueofrealestate

jumpedfrom$1,224,069to$4,352,986,andpersonalpropertyfrom$641,826to

$2,707,760.Withsuchgrowth,severalnewtownswerecreated,includingVanAlstyne,

Howe,Whitewright,Pottsboro,andTomBean.GraysonCountywasnowaleading

agricultural,marketingandmillingcenterofNorthTexas.5

GraysonCountyandbothShermanandDenisoncontinuedtoexpandduringthe

latenineteenthcentury,gainingadditionalraillines,manufacturingandmilling

industries.Inthefirsttwodecadesofthetwentiethcentury,twonewlineswere

extendedintoGraysonCounty,givingittenrailroadsandoutletsineverydirectionto

4Tyler,Bornett,Barkley,Anderson,andOrdinitz(eds.),HandbookofTexas,II,594(Denison,Texas);III,298(GraysonCounty);V,777(Missouri‐Kansas‐TexasRailroad);V,1022(Sherman,Texas);Kumler,“TheyHaveGone”,20.5Tyler,Bornett,Barkley,Anderson,andOrdinitz(eds.),HandbookofTexas,II,594(Denison,Texas);III,298(GraysonCounty);V,1022(Sherman,Texas);Kumler,“TheyHaveGone”,21.

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nearlyeverypartofthecountry.Thestate’sfirstelectricinterurbanrailwaywasalso

establishedduringthistime,linkingShermantoDenison,andeventually(after

becomingpartoftheTexasElectricRailwayCompany)makingDenisonthenorthern

terminusonalinethatranthroughDallastoWaco.6

Suchconnectionsmeantmoremanufacturingbusiness,andby1910Grayson

had“forty‐sevengins,fivecottonseedoilmills,twocottonfactories,foursawmills,

eightflouringmills,severalmachineshops,brickplants,icefactories,broomfactories,

etc.”Betweenthecensusestakenin1909,1914and1919,Grayson’smaincities

experiencedmajorgrowthintheirvalueofmanufacturedproducts.InDenison,which

washometoamajorKatyRailroadrepairandconstructionshop(thecity’sprimary

industry),thevalueincreasedby286.5percent,from$1,313,785,to$2,068,788,and

then$5,077,916by1919.Inthesameperiod,thevalueofmanufacturedproductsin

Shermanrose310.1percent,from$4,675,971to$7,027,747to$19,175,558,andby

1920,thecitymanufactured“morepercapitaindollarvolumethananyother

SouthwesterncityhersizeandfourtimesasmuchasanyotherSouthwesterncityof

25,000people.”Thus,by1919thecountyrankedsixthinthestateinvalueof

manufacturedproducts.7

6Tyler,Bornett,Barkley,Anderson,andOrdinitz(eds.),HandbookofTexas,V,1022(Sherman,Texas);TheTexasAlmanacandStateIndustrialGuide(Dallas:A.H.Belo&Co.,1925),284;TheTexasAlmanacandStateIndustrialGuide(Dallas:A.H.Belo&Co.,1926),237‐238;Kumler,“TheyHaveGone”,32.7UnitedStatesBureauoftheCensus,FourteenthCensusoftheUnitedStates,StateCompendium:Texas(Washington:GovernmentPrintingOffice,1925),226,245;TheTexasAlmanacandStateIndustrialGuide(Dallas:A.H.Belo&Co.,1910),197‐198(firstquote);TexasAlmanac(1925),284(secondquote),285;TexasAlmanac(1926),237‐238;Kumler,“TheyHaveGone”,32.GraysonrankedsixthinvalueofmanufacturedproductsbehindTarrant,Dallas,Harris,Bexar,andElPasocounties.

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Inspiteofsuchadvancesinmanufacturing,GraysonCountyremained

predominatelyagricultural.Althoughthenumberoffarmsdecreasedslightlyfrom

5,762in1900,to5,720in1910,and5,569in1920,thisdevelopmentwascommon

throughouttheSouthandWest,primarilyduetourbanization.Butthistrenddidnot

meanthatfarmingasabusinesswasdoingpoorly.Infact,quitetheoppositewastrue:

inthecensusesfrom1900to1920,thevalueofallfarmpropertyinGraysonCounty

increasedfrom$16,691,607to$27,941,505in1910,to$64,617,801in1920,decennial

gainsof67.4and131.3percent.8

Attributabletotheexpansionoftheraillines,growthinmanufacturing,and

strongagriculturalproduction,from1890to1920,thepopulationtrendsofGrayson

CountyemulatedthoseofTexas,withasteadyriseinthetotalnumberofinhabitants

andalsocitizensresidinginurbanareas.From53,211residentsin1890,thenumberof

personsinGraysonCountyrosesteadilyinthenextthreedecadesto74,165by1920,an

increaseofalmost40percent.MostofthisgrowthoccurredinthecitiesofShermanand

Denison,and,accordingly,thepercentageofpeoplelivinginurbanareasincreasedfrom

34.6percentin1900to43.3percentin1920.9

8BureauofCensus,FourteenthCensus,StateCompendium:Texas,116;Kumler,“TheyHaveGone”,31.Allfarmpropertyincludesland,buildings,implementsandmachinery,andlivestock.9BureauofCensus,FourteenthCensus,StateCompendium:Texas,34,53;UnitedStatesBureauoftheCensus,FifteenthCensusoftheUnitedStates:1930;Population,VolumeI:NumberandDistributionofInhabitants(Washington:U.S.GovernmentOffice,1931),1059;UnitedStatesBureauoftheCensus,SixteenthCensusoftheUnitedStates:1940;Population,VolumeI:NumberofInhabitants(Washington:U.S.GovernmentPrintingOffice,1942),1042.“Urban”referstocitieswithpopulationsof2,500ormore,whichincludesonlythecitiesofDenisonandShermaninGraysonCounty.Bothplacesexperiencedcontinuousgrowthduringthisperiod,withDenison’spopulationrisingfrom10,958in1890to17,065in1920,andSherman’sfrom7,335in1890to15,031in1920.

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Throughoutthe1920s,theUnitedStatesandTexasexperiencedthe“prosperity

decade,”aperiodofeconomicexpansionincommercialandbusinessconstruction,and

newindustrialmanufacturing.Althoughbusinessmenandpoliticianstalkedofa“New

Era”fortheeconomyinwhichpovertywasbeingeliminated,therewereunderlying

weaknessesoftheperiod,namelythefinancialhardshipsofthefarmers,andthe

overconcentrationofwealthintoosmallagroupofindividuals.WhileTexas’s

experienceduringtheprosperitydecadewassimilartothatoftheUnitedStateswith

somedifferencesinthedetails,forGraysonCountytheweaknessesofthedecadewere

realizedandcompoundedbyacontractionofbusinessandmanufacturing,andtheonly

decennialpopulationdecreaseinthecounty’shistory.10

Acomparisonofmanufacturesaccordingtocensusrecordsillustratesthe

markeddifferenceoftheprosperitydecadebetweenTexasandGraysonCounty.From

1919to1929,themanufacturingindustryinTexasshowedimpressivegains,withthe

numberofbusinessestablishmentsrisingby45.8percent(from3,566to5,198),the

numberofwageworkersby51.6percent(from88,707to134,498),wagesby46.1

percent($103,945,662to$151,827,257),andthevalueofmanufacturedproductsby

72.1percent($842,438,135to$1,450,246,431).Incontrast,GraysonCountyshowed

lossesinalmostallcategoriesofmanufacturing:thenumberofestablishments

decreasedby40.1percent(from137to81),andwageearnersby10.5percent(from

2,461to1,750);wageswerereducedby20.7percent($3,118,399to$2,471,844;costof10RandolphB.Campbell,GonetoTexas:AHistoryoftheLoneStarState(NewYork:OxfordUniversityPress,2003),360.

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materialsfellby33.1percent($23,930,732to$16,010,300);andthevalueof

manufacturedproductsdeclinedby23.0percent($30,612,624to$23,555,945).11

Theonlycategoryofmanufacturingthatsawagaininthecensusfiguresfor

GraysonCountyduringthe1920swasthe“valueaddedbymanufacturing.”Because

thisisconsideredthemostaccuratemeasureofindustrialprofit,itisnoteworthythatit

istheonlyfacetofmanufacturinginGraysonCountythatexperiencedgrowth,from

$6,681,892in1919to$7,545,645in1929,anincreaseof12.9percent.Wagesfell

almosttwiceasfarasthenumberofwageearners,andthecostofmaterialsdecreased

30.2percentmorethandidthevalueofproducts,suggestingthatthemanufacturing

industriesinGraysonCounty,bycuttingexpenditures(wagesandcostofmaterials)ata

greaterratiothantheirmeansofproduction(wageearners),realizedlessdeclinein

valueofproductsthancostofmaterials,increasingtheiroveralladdedvalue.

Therefore,the12.9percentincreaseinvalueaddedwasaffordedtoproprietors,firm

members,salariedofficers,managersandothersthat(whencoupledwiththedecrease

11TheTexasAlmanacandStateIndustrialGuide(Dallas:A.H.Belo&Co.,1927),231;TheTexasAlmanacandStateIndustrialGuide(Dallas:A.H.Belo&Co.,1929),170;TheTexasAlmanacandStateIndustrial

Guide(Dallas:A.H.Belo&Co.,1936),286;BureauofCensus,FourteenthCensus,StateCompendium:Texas,223;UnitedStatesBureauoftheCensus,FifteenthCensusoftheUnitedStates,Manufactures:

1929;VolumeIII:ReportsbyStates(Washington:U.S.GovernmentPrintingOffice,1933),507,508.Alldifferencesindollaramountsarenotadjustedforinflation.HoweveraccordingtotheFederal

Governmentsinflationcalculator(athttp://data.bls.gov/cgi‐bin/cpicalc.pl),$100in1919hadthesamebuyingpoweras$98.84in1929,representingonlya1.2percentdifference.Figuresonlyfrom1919and

1929becausethebiennialcensusofmanufacturesforthedecadegivesnostatisticsbycounty.

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inwagesofmanualworkers)addedtothediscrepancybetweentheeconomicclassesin

Grayson,effectivelymakingtherichricherandthepoorpoorer.12

Aswiththeircounterpartsintherestofthecountry,GraysonCountyfarmersdid

notexperienceprosperityduringthe1920s.Duringthedecade,thenumberoffarmsin

thecountydecreasedfrom5,569to5,169,thepercentageoffarmsoperatedbytenants

increasedfrom60.8to65.6,andthevalueofallfarmpropertydeclinedfrom

$64,617,801to$33,671,684,alossof47.9percent.However,despitesuchlosses,the

percentofGraysonCountyusedforfarmlandincreasedduringthedecadefrom84.3to

89.3,andtheaverageacreageperfarmrosefrom91.3to104.2.Additionally,whilethe

numberoffarmsinthe100acresormorecategoriesallshowedmodestgains,nearlyall

ofthesmallerfarmgroupsshowedlosses.Thesefiguresdemonstrateacombinationof

thetwoweaknessesofthedecade:astheagriculturalindustryinGraysonCountyfaced

financialhardships,smallerfarmerswereforcedtoselltheirlandtomoreprosperous

ones,creatingalargerdiscrepancybetweentheaffluentandimpoverishedamongthe

farmpopulace.13

12BureauofCensus,FifteenthCensus:Manufactures,8(quote).“Valueaddedbymanufacturing”measuresthe“netadditiontothevalueofcommoditiesinexistence,”bysubtractingthecostofmaterialsfromthevalueoftheproducts.Costofmaterialsincludes“costofmaterials,containersforproducts,fuel,andpurchasedelectricenergyusedduringthecensusyear,”effectivelyallcostsexceptsalariesandwages.13BureauofCensus,FourteenthCensus,StateCompendium:Texas,116;UnitedStatesBureauoftheCensus,FifteenthCensusoftheUnitedStates:1930;Agriculture,VolumeII,Part2:TheSouthernStates(Washington:U.S.GovernmentPrintingOffice,1932),1369,1409,1431.ThecategoriesoffarmsizesbyacreageinGraysonCountyare:under3;3to9;10to19;20to49;50to99;100to174;175to259;260to499;500to999;1,000to4,999;and5,000andover.Allcategoriesof100acresormoreexperiencedgrowth(exceptthe5,000andover,inwhichtherewerenoneinthecounty),totaling240newfarms.Incontrast,ingroupswith99acresorless,thetotallosswas668farms,withthetwonumericallylargest

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Inpopulation,Texasgrewbymorethanonemillionpersonsbetween1920and

1930,thegreatestnumericalincreaseinthehistoryoftheStatetothatpoint.In

contrast,Graysonwasoneofthesixty‐ninecountiesinthestatethatlostpopulation

between1920and1930;havingrisento74,165in1920,thenumberofresidentsfellto

65,843in1930,148personslessthanthe1910figure.Therewereseveralfactorsthat

contributedtothepopulationdecreaseinGrayson,whichbothcaused,andresultedin,

awaninginthecounty’smanufacturingandagriculturalindustries.14

First,themassiveincreaseinthestate’spopulationoccurredprimarilyinurban

areasof2,500ormoreinhabitants,bringingtheproportionofTexansinsuchcitiesup

from32.4to41.0percent.AlthoughthepercentageofGraysoncitizensresidingin

urbanareasroseslightlyfrom43.3to44.9duringthedecade,thiswasnotduetoa

numericalincrease,buttothecitieslosingonly7.9percentoftheirpopulace,as

comparedtothe13.8percentdecreaseintheruralareas.However,thedeclinein

populationwasnotatalluniforminGrayson’stwourbancities,ShermanandDenison.

Havingexperiencedcontinuousdecennialgainsincitizenrybyatleast20percentsince

itsinception,growthinShermandidslowconsiderablyduringthe1920stojust4.5

percent,buttherewasstillnodecreaseinthecity’spopulation.Allofthe7.9percent

categories(20to49,and50to99acres)showingindividualdecreasesgreaterthanthecombinedincreasesofthe100acresormoresects.14Campbell,GonetoTexas,361;BureauofCensus,FifteenthCensus:Population,1055,1059;TheTexas

AlmanacandStateIndustrialGuide(Dallas:A.H.Belo&Co.,1931),133;TheTexasAlmanacandStateIndustrialGuide(Dallas:A.H.Belo&Co.,1949),91.Texas’spopulationgrowthbetween1920and1930

wasfrom4,663,228to5,824,715,anincreaseof1,161,487personsor24.9percent.

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urbanlossinGraysonCountywasfromthecityofDenison,duetoitsrelianceonthe

KatyRailroadforindustrialmanufacturingandemployment.Inthebeginningofthe

decade,theRailwayLaborBoardannouncedwagecutswhichresultedintheRailroad

Strikeof1922.Throughoutthenation400,000shopworkerswalkedoutoftheirjobsin

protest,which,forDenison,resultedintheTexasNationalGuardandTexasRangersto

becalledintorestoreorder.AsreportedintheDenisonHerald:

Thestrikewassobad.TheywerebringingstrikebreakersinfromCleveland,andplaceslikethat.Wewerehavingalotofpeoplehurt.Therewereburningandfiresandalotofdestruction.TheybroughtintheTexasRangers…Theyquietedthingsdownsome,buteverytimeanewloadofstrikebreakerscamein,whyallhellwouldbreakloose.

TheKatyRailroad,whichhadbeenthecity’slargestemployerforthepastfiftyyears,

movedmanyofitsoperationselsewhere,andfrom1920to1930,thepopulationof

Denisondecreasedfrom17,065to13,850.15

AsecondfactorcontributingtothedeclineinGraysonCounty’spopulationwas

thesamefactorthatstimulatedthegrowthinTexasasawhole:neweconomicmarkets

throughoutthestate.Excludingthelargercities,themajorityoftheLoneStarState’s

increaseincitizenryoccurredinthelowerRioGrandeValley,thecountieslocatedinthe

PanhandleandSouthPlains,andthecitiesandtownsalongtheborderfromElPasoto

Beaumont.Theseregionsprovidednew,morepromisingsourcesofincome,eitherin

betteragricultureortheenormousexpansionoftheoilindustryduringthe1920s.Asa

15BureauofCensus,FourteenthCensus,StateCompendium:Texas,71;BureauofCensus,FifteenthCensus:Population,1055,1057,1059;Tyler,Bornett,Barkley,Anderson,andOrdinitz(eds.),HandbookofTexas,V,1022(Sherman,Texas);D.B.HardemanandDonaldC.Bacon,Rayburn:ABiography(Austin:TexasMonthlyPress,1987),111‐112(quote).

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result,thepopulationdeclineGraysonexperiencedwassharedbyCollin,Fannin,Hunt

andRainscounties,allneighborsintheFourthCongressionalDistrictofNorthTexas.16

AlthoughforTexastheprosperitydecademeantmassiveexpansionofits

manufacturingindustry,accompaniedbysomeunderlyingweaknesses,inGrayson

Countythedisadvantageswererealizedwithoutmuch(ifany)oftheeconomicbenefits.

Despitethesesigns,by1929therewaslittleindicationfromGraysonCountyresidents

thattheysawanygreaterproblemsinthenearfuture,especiallyastheyfocusedonthe

countyseat,Sherman.Havingdonerelativelywellduringthedecade,in1928thecity

earnedthenickname“FifthIndustrialCityofTexas”andclaimedthatitproduced“four

timesasmuchasanycityitssizeintheSouthwest.”Also,becauseofitsreputed

proclivityforculturalactivity,highlyregardedpublicschools,andmanyadvanced

educationalinstitutions(suchasAustinCollegeandKidd‐KeyCollegeandConservatory),

Shermanheldtheadditionalmonikerof“theAthensofTexas.”Thus,onthebrinkofthe

worstfinancialcollapseinthehistoryoftheUnitedStates,optimismremainedin

GraysonCounty.17

IntheUnitedStatesasawhole,theprosperitydecadedidnotslowlyfadeaway,

butcamecrashingdownrapidlyafterOctober29,1929,orBlackTuesday,”whenthe

securitiesmarketsonWallStreetcollapsed.Whiletheeffectswerefeltimmediatelyin

manypartsoftheNortheast,thefullweightoftheeconomiccatastrophedidnothitin

16TexasAlmanac(1931),196;TheTexasAlmanacandStateIndustrialGuide(Dallas:A.H.BeloCo.,1936),

132;Campbell,GonetoTexas,361‐362.17Kumler,“TheyHaveGone,”37(thirdquote),38(firstandsecondquote).

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Texasuntilsometimein1931.WhentheGreatDepressiondidreachthestate,the

industrialprogressthathadcharacterizedthepreviousdecadewasbroughttoahalt,

manyurbanworkerslosttheirjobs,andfarmers’economicdifficultieswere

compoundedbyreductionsinalreadylowagriculturalprices.18

FromtheWhiteHouseandTexasStategovernment,allthewaydownto

GraysonCountyanditscities,leadersdealtwiththefinancialcrisisinfundamentallythe

sameway:blamingthecollapseonalackofconfidence;minimizingorcutting

governmentexpenditures;lookingtobusinessestorelieveconditions;andopposing

directrelieftoindividuals,forfearofcreatingadependent,lethargiccitizenry.Although

economicreliefwouldeventuallycomeintheformofNewDealprograms,Texasand

GraysonCounty’sexperiencefrom1930to1933illustratethenecessityofsuch

governmentintervention.19

ImmediatelyfollowingtheStockMarketCrashandinto1930,thereactionby

newspapers,politicians,andbusinessexecutivesthroughoutthenationappearstohave

beensomewherebetweenthe“whistling‐past‐the‐graveyard”optimismofleaders,and

theconsensualmassdelusionofthoseoutoftouchwiththerealitiesoftheeconomic

collapse.Atthenationallevel,membersofPresidentHoover’sfinance,commerceand

agriculturedepartmentsforesawcontinued“progressandprosperityfor1930,”with

SecretaryoftheTreasuryAndrewMellonassertinghecould“seenothinginthepresent

18Campbell,GoneToTexas,376,377;TheTexasAlmanacandStateIndustrialGuide(Dallas:A.H.BeloCo.,1943),47.19Campbell,GoneToTexas,381;TheTexasAlmanacandStateIndustrialGuide(Dallas:A.H.BeloCo.,1945),73.

14

situationthatiseithermenacingorwarrantspessimism.”Texas’sGovernorDanMoody

wasequallyconfident,declaringthestate“alreadyinthemidstofoneofthegreatest

developmentprogramsanystatehaseverexperienced,”andthatit“isboundtoenjoy

anuncommonyearofbuildingandexpansionineveryline.”Thestate’soutlook,he

assured,was“evenmoresanguinethanthemostenthusiasticbelieverinTexas’future

anticipated.”20

IntheShermanDemocrat,onWednesday,January1,1930,therewerenoless

thanfourteenarticleswrittenbycountyandcityofficialsandlocalbusinessleaders

espousingthestrengthofthebusinessandagriculturalsectorsinGrayson.Whilelocal

governmentofficialstriedtoprojectconfidenceandoptimismbyremindingreadersof

buildingserectedduringtheyearandplannedindustrialexpansionprojects,business

leadersusedtheopportunitytorecommend(somewhatshamelessly)howthearea

mightimprove.CarlL.Pool,headofamajorgarmentproducingcompanyinSherman,

guaranteedreaderstherewerebrightyearsahead,assumingtheysupportedlocal

business:

TheeyesofthefinanciersfromallpartsofAmericaarelookingtowardthesouthwestandtheyarereadytohelpuswhenweshowtheproperinterestourselves.Butbeforewecangraspthisopportunity,wearegoingtohavetodeveloptheveryhighesttypeofteamworkandgiveourownhomes,communities,merchantsandmanufacturesthesupportthatwillshowwearereadyinkind…wheneverymanandwomaninsistsanddemandsmerchandisemanufacturedinthesouthwest,qualityandpricebeingequal.Thereisonemorereasongreaterthanallofthiswhyyoushouldpatronizethehomemerchantandinsistonsouthwesternmademerchandise:indoingthisyouare

20ShermanDemocrat,January1,1930,14(firstquote);January2,1930,1(secondquote).

15

probablydeterminingwhetheryourboywillhaveachancetobecomeabusinessmanorafifteen‐dollarper‐weekclerk.21AnotherarticlereassuredGraysonCountyfarmersthattheoutlookin1930was

good,assumingtheydiversify.AMr.Creagerwasquoted:

Agriculturalprospectsforthenewyeararemostpromising…Ithasbeenmyobservationthatthefarmerwhodiversifieshiscropsandhasagoodorchardandgarden,sixormoregoodcows,withahundredormoregoodhens,twobroodsowsandsometurkeysandsheepisprosperousandalwayshasmoneywithwhichtomeethisobligations.

Althoughitisdoubtfulthatsuchanagriculturalportfoliowasfeasiblefortheaverage

farmer,thearticle’sauthorguaranteedreadersthatMr.Creagerwasqualified“tospeak

withassuranceonthesematters,”becauseofhisoccupationastheownerofafarm

loanbusiness.22

Throughmuchof1930thefinancialcrisisremainedlargelyignoredbyleadersin

Graysonanditscities,partlyduetoactualdevelopmentinthecounty.Additionalflour

andgrainmills,anewiceplant,andthepurchaseandplannedenlargementofan

overallandplaysuitsfactoryinDenison(thecity’slargestbusinessbesidestheKaty

Railroad)weresaidtoshowthevitalityandgrowthofthemanufacturingindustry.

Additionally,$150,000incountyhighwaybondsweresoldfortheconstructionof

concreteandgravelroads,drainagestructures,andstreetmaintenance,allofwhich

weretofurtherbolsterbusinessinthearea.Finally,theinfamousShermanriotof1930

alsoplayedapartindistractingcounty,andindeedstate,residentsfromthefinancial

21ShermanDemocrat,January1,1930,9.22ShermanDemocrat,January1,1930,9.

16

crisis.Thetrialofablackfarmlaboreraccusedofrapingawhitewomanresultedina

mobofangrywhitesburningdownGraysonCounty’scourthouse,andthenrioting

throughSherman’sblackdistrict,endingonlyaftertheGovernordeclaredmartiallawin

thecity.Whilethe“AthensofTexas,”transformedintothe“SpartaofTexas,”interest

intheGreatDepressionwasundoubtedlyovershadowedforatime.23

Theyear1931openedwithaGraysonCountyofficialstatingconfidentlythat

1930was“ayearinwhichtheworldeconomicsituationdiscouragedanygreat

developmentbutatthatthiscityandcountycancountitasoneofnetgains.”Citingthe

year’sconstructionprojects,progressontheroads,andthearrivalofcounty’sfirstoil

producersasevidenceofgrowth,theofficialindicatedthatthecountyfarmers’

problemsweretheonlyrealissue,andeventhatwasbeingresolvedthroughcrop

diversificationandmoredairyfarming.24

Afewdayslater,arepresentativefromthepresident’sunemployment

commissionmetwithagroupoflocalcitizensinSherman.Praisingthecityforits

handlingofunemploymentthroughitsmunicipalcharitytaxandauxiliaryemergency

reliefplans,theofficialsaid“youhavehandledthesituationinamorebusinesslikeway,

mettheburdenmorelikehumanbeings,thaninanycitythatIknowoffrommystudy.”

23Tyler,Bornett,Barkley,Anderson,andOrdinitz(eds.),HandbookofTexas,V,1022(Sherman,Texas);

Kumler,“TheyHaveGone”,154(quote);ShermanDemocrat,March31,1930,17;May4,1930,14;May15,1930,24;January2,1931,5.24TheTexasAlmanacandStateIndustrialGuide(Dallas:A.H.BeloCo.,1947),262;ShermanDemocrat,January2,1931,1.AlthoughGrayson’sfirstoilwellwasdrilledin1930,by1947atotalofonly84,372barrelshadbeenproduced,meaningthatthroughouttheGreatDepressionandWorldWarIIitdidnotmakeupamajorsourceofincomeforthearea.

17

Theseprogramsallowedthecitytoprovidetentotwenty‐fivetransientswithaplaceto

stayandamealticketforonenightbeforesendingthemonthenextday.Fundswere

providedbytheemergencyrelieforganization,whichwasmadeupofpastorsworking

withcharityboardstokeepcostsdown.Thecommissionerassertedthathehadfound

“thatthedepressionisalwaysinthenexttown,”and“thingsarenotasbadastheyare

pictured,althoughofcoursethereissomesuffering,”particularlybytenantfarmersin

theeasternpartofthestate.However,“itisnotmoneythatmostofthesefolksneed,

butaidintheformoffood,”because“ifcashweregivenasreliefacertainclasswould

cometothebeliefthatthegovernmentowedthemaliving.”Heconcludedby

recommendingthatthecitycommissionencouragetheconstructionandremodelingof

homestocreatejobsandtakeadvantageofthelowpricesformaterials.25

Althoughtherepresentative’spraiseandoptimismwereapplaudedinSherman,

hiscommittee’sfindings,releasedsoonafter,werenot.Afteranexhaustivestudyof

unemploymentinTexas,anotherrepresentativefromtheunemploymentcommission

statedatameetinginDallas:

IamseriouslyconcernedaboutthefarmprobleminEastTexasandcertainpartsofWestTexas.Theremanyfarmers[sic]aresellingtheirstockandimplementsandmovingintotowntobetakencareof.ReportsfromtherepresentativesofthefarmlabordivisionoftheUnitedStatesdepartmentoflaborshowthatamostdeplorableconditionexistsamongthetenantfarmersinthesesections.

25ShermanDemocrat,January8,1931,1.

18

Amongthemanycountieslistedunder“thesesections”wastheeasternpartof

Grayson.Butthesefindingswerequicklydispelledbylocalcountyofficials,bankersand

businessmen:

Reportsfromthepresident’sspecialemploymentcommissionthatfarmersintheeasternsectionofthecountyareindireneedofaiddonotfindsupportinstatementsmadebyleadingbankersandbusinessmeninthatsection.Truethefinancialconditionofthefarmersisfarfromgood,butnoneofthemis[sic]starvingorsufferingfromthelackofnecessities…Perhapsthereareisolatedcaseswherebothlowpricesandmisfortunehavestruckfarmerstoplacetheminasituationwherethereisneedfornecessities.Butgenerallyspeakingthiscannotbetrue,asastatementfromtheregionaldirectoroftheunemploymentcommissionwouldindicate.Neitheristhegeneralstatementtruewithregardtoanyothersectionofthecounty…Reportsindicatethatalargeportionoftheshiftlessaretakingadvantageofthegeneralsituationtoimprovetheirownpositionwithouteffortbutattheexpenseofthereliefagencies…[inGraysonCounty]thefarmerswhoareinneedofcharityareinthedecidedminority,anddonotmakeupanyconsiderablegroup.

Thus,theself‐assurancethatcharacterizedtheprecedingtwoyearscontinued

into1931.26

Atalllevelsofgovernment,andacrosspartylines,therewasstillareluctanceto

admitsomethingwaswrongwiththeeconomy.Hooverrejectedgovernment

interventionintheeconomybecauserecoverywas“justaroundthecorner.”Texas

GovernorRossSterlingattributedthefinancialcrisistoalossofconfidencebythe

citizens.Speakingtoaconferenceonunemploymentin1931,hesaid“Ourpeopleseem

tohavelostfaith,thatqualityofheartandmindsoessentialtothesolutionofthose

graveproblemsthatsometimesappeartothreatentheperpetuityofourinstitutions.”

InGraysonCounty,Mr.Pool,whosefactoryinShermannowboastedthecity’slargest26ShermanDemocrat,January8,1931,1,8.

19

industrialpayroll,affirmedthathewas“notpessimisticaboutthepresentorfuture.”

ButtherewasatleastonepersonfromNorthTexasaudaciousenoughtopointoutthat

therewasindeedafinancialcrisis,anditwasaffectingTexans:CongressmanSam

RayburnofBonham,whorepresentedGraysonCountyaspartoftheFourth

CongressionalDistrict.AccordingtoRayburn:

Wehavecomeuponevildays.Withwoeandwantstalkingthelandasneverbefore,withexpressionsofhopefrozenuponsilentlips,witheyesdimmedandwearylookingforpromisedrelief,withstrugglingpeopleeverywhereintheRepubliclongingforthevoiceofleadership,wefindthecountryleaderlessandtheadministrationhelplessandhopeless.27

During1931,optimismthroughoutTexasbegantofadeintouncertaintyas

unemploymentratesrose,buildingpermitsdeclined,andpricesforagriculturalgoods

continueditsdownwardtrend.Since1929,influentialpersonsinGraysonhadclaimed

thattherewaseconomicstability,evengrowth,bybusinessesandfarmersinthe

county,byfocusingonindividualinstancesofdevelopmentfortheformer,andrelying

onnon‐representativesourcesforthelatter(namelybanksandbusinesses).As1932

unfolded,andfinancialreportsforthepreviousyearwerereleased,notonlywasthe

positiverhetoricnoticeablyabsent,buttheuncertaintybecameblatantgloomformany.

AlthoughlocalgovernmentofficialsandbusinessleadershadbeenthevoiceofGrayson

27LionelV.Patenaude,Texans,PoliticsandtheNewDeal(NewYork:GarlandPublishing,1983),3;Campbell,GonetoTexas,380(firstquote),381(secondquote);DallasMorningNews,August3,1931,6(thirdquote);Dulaney,Speak,MisterSpeaker,39(fourthquote).Sterlingwaselectedin1930andservedjustoneterm,from1931to1933.

20

Countytothispoint,averagecitizensbegantoexpresstheirgrievances,andall

pretensesthatNorthTexaswasnotaffectedbytheGreatDepressionvanished.28

By1932,thedeclineinbuildingpermitsinGrayson’stwomajorcitiescouldno

longerbeignored.InSherman,profitsfromconstructiondroppedfrom$760,861in

1928,to$379,263in1930,andthen$217,068by1931.Inbothofthenexttwo

consecutiveyears,thefigurewashalved,to$108,000andthen$52,284.Pricedeclines

onbuildingpermitsinDenisonwereequallystrikingduringtheseyears,startingat

$188,000and$183,000in1928and1930,respectively,thendroppingto$44,000in

1931,$33,000in1932,andfinally,$69,000in1933.Missingthepointthatcitizensdid

nothavethemoneytospendonconstructionprojects,theShermanDemocratranan

articlein1932stating,“LocalBuildingCostsThirdLessThanin1925…MaterialPrices

suchastoMakeBuildingMoreofInvestment.”Accordingtotheauthor,“prospective

buildersinShermanhavebeenmissingagoldenopportunitytheselastfewmonthsin

waitingtobuild.”Despitesuchmarketingefforts,thelackofbuildingprojectsofcourse

meantunemploymentformanycontractors,andmembersoftheDenisonCarpenters’

Unionwereforcedtoreducetheirdailywagescaleby$1adayin1931,andthento$.50

anhourby1933.29

Althoughitisdifficulttomeasuretheexactlossesbythefarmpopulationin

GraysonCountybetween1929and1933,thattheyexperiencedfinancialhardshipdue

28Patenaude,Texans,Politics,2.29TheTexasAlmanacandStateIndustrialGuide(Dallas:A.H.BeloCo.,1933),251;TexasAlmanac(1936),339;ShermanDemocrat,January3,1932,9;January10,1932,3(quote);DallasMorningNews,March9,1931,17;January29,1933,14.

21

topricedecreasesduringthisperiodiswithoutquestion.Throughoutthenation,farm

incomesdroppedfrom$6billionto$2billionduringthisperiod,andinTexas,theprice

ofcottonfellfromeighteencentsperpoundin1928tofivecentsin1932,andtheprice

ofcornandcattledeclinedbymorethan50percent.InGrayson,asnetprofitsfrom

poultrydecreasedbymorethantwo‐thirds,alocalfarmergaveafittingassessmentof

thescenario:

Astotheoutlookforanotheryear…theytellusprosperityisjustaroundthecorner,andforthepoultrymanthereisthisconsolation:layinghensandpulletsarescarcealloverthecountry,eggsareproducedinlessquantitynowandtheshortageonproductionwilldoubtlesscontinueforanotheryear.However,productionisonlyonesideoftheratio;consumption,duetoeconomicconditions,isalwaysbelowpar.Ifconsumptionwereuptonormal,priceswouldbeveryhigh.

Althoughtherewasdiversificationoffarmlanduse,andthenumberoflivestockand

poultryperfarmincreased,farmvaluestookadecideddownturninGrayson.Between

1930and1935,theoverallvalueoflandandbuildingsonfarmsinGraysondecreasedby

22percentandtheaveragevalueby27percent(seeTable2).30

30GeorgeB.Tindall&DavidE.Shi,America:ANarrativeHistory(SixthEdition,vol.2;NewYork:W.W.Norton&Company,Inc.,2004),1128;Campbell,GonetoTexas,377,378;Kumler,“TheyHaveGone”,32;UnitedStatesBureauoftheCensus,SixteenthCensusoftheUnitedStates:1940;Agriculture,VolumeII:ThirdSeriesStateReports;Part3:StatisticsforCounties(Washington:U.S.GovernmentPrintingOffice,1942),320,321,340,431;ShermanDemocrat,January11,1932,2(quote).TheclosestCensusofAgriculturefiguresfortheperiodunderexaminationweretakenin1930and1935.BecausetheAgriculturalAdjustmentAct(AAA)wasstartedin1933,theamountofaidtheprogramgavetothefarmersinthetwoyearsfollowingmakesanexactassessmentoflossesbetween1929and1933impossible.However,itcanbestartedwithconfidencethattheAAAdidbringrelieftothefarmersinGraysonCounty,meaningthatdecreasesinvalueforcensusfiguresfrom1930to1935areprimarilyduetolossesexperiencedbeforetheinceptionofthisprogram.ThedecreaseinoverallvalueforGraysonCountywasslightlylessthanthatofTexas,whichsawareductionby28percent($3,597,406,986to$2,573,704,972).

22

Aswasthecasewithagriculture,from1929to1933themanufacturingindustry

inTexasandGraysonexperiencedmassivelosses.Inthestateasawhole,thenumber

ofestablishmentsandproductionworkersdecreasedby30percent,whilewages,value

ofproductsandvalueaddedbymanufacturingfellby50percent.InGraysonCounty

duringthesameperiod,thenumberofestablishmentsdeclinedalmost40percent(from

81to50),thenumberofproductionworkersby21percent(from2,461to1,945),and

thevalueofproductsby38.7percent(from$23,555,945to$14,441,529).Retailsales

werealsoseverelycontracted,beingmorethanhalvedfrom$20,730,000in1929to

$9,373,000in1933.31

Collectively,thelossesexperiencedinallindustriesofGraysonweresummarized

bythecounty’sassessedvaluationfortaxesin1932.Althoughcountyfigureshad

declinedfrom$48,376,000in1922to$45,060,000in1932,thisdecrease,totaling

$3,317,000,meantonlyrelativelysmallannuallosses.Butbetween1931and1932,the

figurefellto$37,940,000or$7,420,000inoneyear.Theoptimismthathadturnedto

gloominGraysonCountycontinueditsdownwardspiralintoanxietyandfear.32

31TexasAlmanac(1933),220,324;TexasAlmanac(1936),286,338;UnitedStatesBureauofthe

Census,SixteenthCensusoftheUnitedStates:1940;Manufactures1939,VolumeIII:ReportsforStatesandOutlyingAreas(Washington:U.S.GovernmentPrintingOffice,1942,983.Figuresfor

“wages”and“valueaddedbymanufactures”notavailableinGraysonCounty.ExactfiguresofmanufacturinginTexasfrom1929to1933are:numberofestablishments,5,198to3,648(‐29.9);

productionearners,134,498to91,374(‐32.1);wages,$151,827,257to$73,426,730(‐51.6);valueofproducts,$1,450,246,431to$686,752,347(‐52.6);andvalueaddedbymanufactures,

$460,306,803to$237,307,349(‐48.4).32UnitedStatesBureauoftheCensus,FinancialStatisticsofStateandLocalGovernments:Wealth,PublicDebt,andTaxation,1932(Washington:U.S.GovernmentPrintingOffice,1933),1786;TexasAlmanac(1925),41;TexasAlmanac(1926),390;TexasAlmanac(1927),221;TheTexasAlmanacandState

23

Asfinancialfiguresforthepreviousyearwerereleased,citizensinGrayson

Countybegantotakeactionin1932,lookingforrelieffromtheDepressioninavariety

ofways.Sometooktoextrememethods,asshownbytheincreaseinalltypesofcrime

in1932,especially“swindlersandoperatorsofpettygraft.”Anotherexampleofradical

measureswasthefoundingofasocialistorganizationinGraysonatthebeginningofthe

year,whichclaimedeighteenmembersinthefirstfewdays.Believingmostpeople

mistakenintheirconceptionofsocialism,thegroup’sorganizerinvitedallcounty

residentstoattendmeetingsandchallengedanypersontoadebate,stating:

Thatthecapitalistsystemhasoutliveditsusefulness,thatitisnowinastateofcollapseandthatsocialismasdefinedinstandarddictionariesandassetforthintheparty’snationalandstateplatforms,isthelogicalnextstepifcivilizationistosurvive.33SomecitizensturnedtotheFederalGovernmentforhelp,suchasthe200ex‐

servicemeninGraysonCountywhosignedapetitioncallingontheHoover

Administrationforimmediatepaymentoftheir“bonusmoney,”ortheremainderofthe

compensationtheywereowedformilitaryservice.Butamuchmorecommonmethod

oflookingforfinancialreliefinTexaswastoturntostateandlocalgovernments.

Throughoutthestate,includingGraysonCounty,thisusuallydidnotmeanrequesting

workprojectsordirectassistance,sinceantigovernmentideascontinuedtodictatetheIndustrialGuide(Dallas:A.H.Belo&Co.,1928),132;TexasAlmanac(1929),199;TexasAlmanac(1931),208;TexasAlmanac(1933),230.AllfiguresfromtheTexasAlmanacwereobtainedfromreportsbytheStateComptroller.“AssessedValuation”includesallassetssubjecttothegeneralpropertytax,combiningrealproperty,improvementsandpersonalproperty.Exactfiguresforyears1922to1932,notincludedinthetext,areasfollows(inthousands):1924,$48,265;1925,$48,187;1926,$47,401;1927,$46,347;and1928,46,013.33ShermanDemocrat,January9,1933,2;January13,1932,1(firstquote);January5,1932,3;January8,1932,12(secondquote).

24

population’sattitude.Instead,theoppositewasdemanded:lessgovernmenttaxingand

spending.OneShermanresident,succinctlyrepresentingcountyideology,saidin1932:

AsadlyovertaxedcitizenshipwillacclaimThe[DallasMorning]Newsasthevaliantchampionoftheirrightstoefficientpublicserviceatreasonablecost.Itisimportantthateverybodyshallunderstandthattheagitationforlowertaxesisnotmerelyatemporaryspasm,norjustabattle,soontoend;butis“awartothefinish,”atpresentintheskirmishstage.Itmaytakeasiegeoftenyearstodislodgethefee‐grabbersandsalary‐boostersfromthecitadelsofpower…Everytaxpayershouldjointhelowertaxesarmyandenlistforthewar,ifitlasts“tillkingdomcome.”

Accordingly,inJanuaryof1932,arallyfortheStateTaxpayers’AssociationofTexaswas

heldinShermanforallcountyresidents,callingfortheelectionofstateLegislature

memberswhowould“makedrasticcutsintaxation,Stateandlocal.”BySeptember,a

morepermanentorganizationwasfounded,calledtheTaxpayers’BetterGovernment

LeagueofGraysonCounty.Countygovernmentofficialstookactionbyassuming

voluntarypaycutstwicewithinayear,andinJuneof1932,GraysonCounty’s

Commissioners’Courtloweredtaxesby10percenttosaveresidentsanestimated

$60,000annually.34

By1932,asunemploymentfigurescontinuedtorise,evenPresidentHoover

realizedgovernmentinterventionintheeconomywasnecessary.TheReconstruction

FinanceCorporation(RFC)wascreatedinfallofthatyear,mostlytolendtobusinesses,

butalsoloan$300milliontothestatesforrelief.InTexas,GovernorSterlingappliedfor

$2,458,000inemergencyunemploymentreliefforJanuaryandFebruaryof1933.Of

34Campbell,GonetoTexas,380;DallasMorningNews,January17,1932,5(secondquote);June14,1932,3;March11,1932,2(firstquote);September7,1932,3;ShermanDemocrat,January14,1932,1;January3,1933,1;January7,1932,2.

25

thesefunds,whichcouldonlybeexpendedforwagesandweregrantedtomatchrelief

bycountysponsors,Graysonappliedfor$9,000atthestartofthenewyear.Anarticle

intheShermanDemocratjustafewdayslaterillustratesthehopelessinadequacyofthe

programforthecounty:

Paymentofpledgeswithwhichtofinancemade‐workandotherformsofunemploymentrelief,particularlyimportantduringtheextremelycolddaysofthewinterperiod,hasnotbeensuchasisdemandedbythesituation.Theresponsesmadeinthewinterforpledgeswasgood,butpaymentshavebeenlagging.Itishopedthatotherswhohavenotgiventhusfar,butwhoareinpositiontohelp,willcomeinvoluntarilytomakeupthebreachmadebythosefindingitimpossibletofulfilltheirpledges.Federalunemploymentrelieftotheamountof$1,500eachforJanuaryandFebruarywillhelpconsiderably,butthefullbenefitoftheaidrequireslocalfundstomatch.Municipalfundsplusthosederivedfromthepledgeswillmatchthefederalfunds,providedthepledgemoneyispaidin.Consequently,theappealwasmadeSaturdayforpromptpaymentofpledges.35Throughoutthenationitwasabundantlyclearin1932thatcitizenswantedrelief

fromtheGreatDepression.Althoughviewpointsandmethodsinhandlingtheeconomic

crisisdifferedwildly,thedesireforchangewassharedandaptlyillustratedattheballot

boxateverylevelofgovernment.InGraysonCounty,localresidentsdisregardedthe

unofficialcountypolicyofgivingofficeholdersatleasttwotermsbyvotingoutCounty

JudgeNoble(whohadbeenelectedjusttwoyearsprior),tobereplacedbythenState

SenatorJakeJ.Loy.Atthestatelevel,one‐termTexasGovernorRossSterlingwas

replacedontheDemocraticticketbyMiriamA.(“Ma”)Ferguson,whosoundlydefeated

herRepublicanopponent,OrvilleBullington,intheNovembergeneralelectionwith62

35Campbell,GonetoTexas,381;Patenaude,Texans,Politics,5;ShermanDemocrat,January2,1933,10;January9,1933,1(quote).

26

percentofthevote.Butthemostcrucialelectionoftheyearwasatthenationallevel,

whereNewYorkGovernorFranklinD.RooseveltdefeatedincumbentHoover.This

victorywasasimportantinTexasasanywhereelseinthenationasRoosevelt’s

nominationtotheDemocraticticketwasdueinnosmallwaytotwoofthestate’s

Congressmen,JohnNanceGarnerofUvalde(whobecameVicePresident),andGrayson

County’sownSamRayburnofBonham.ThePresidentwouldrememberthedebthe

owedRayburnforthepoliticaldealingstheCongressmanundertookattheDemocratic

convention,andRayburn,inturn,neverforgothisconstituentsintheFourth

CongressionalDistrict.InTexasandGraysonCounty,thePresident’spromisedNew

Dealwasabouttobringsomemuchneededrelief.36

FromthebeginningoftheGreatDepressionuntilFranklinDelanoRoosevelt’s

inaugurationinMarch1933,theeconomicsystemthroughouttheUnitedStates

deteriorated.Despiteincontrovertibleevidenceandflagrantwarningsignsofthe

progressingcrisis,insomepartsofthenation,leaders,atboththestateandlocallevels,

refusedtoacknowledgetheproblem.Itisimpossibletosaydefinitivelywhatwas

responsiblefortheexaggeratedandprotractedoptimisminGraysonCountyand,tobe

sure,throughoutTexasfrom1929to1932.Aswithallquestionsregardingthecauseof

humanemotion,theanswerisundoubtedlyasdiverseasthepopulation.Onepossible

factoristhefrontierethosimbuedinmanyTexans,whichassumesthatpersonal

resilienceanddeterminationcansolveanyandallproblems.Also,manypoliticians,

36Campbell,GonetoTexas,381‐382;DallasMorningNews,July25,1932,1.

27

businessmenandeconomiststhroughoutthenationcomparedtheGreatDepressionto

theeconomiccalamityof1921‐1922,whichhadsimplyrunitscourseinacoupleof

years.Forthem,thenotionthatthemagnitudeofthefinancialcrisistheywerefacingin

the1930swasexorbitantlylargerwasbeyondcomprehension.Additionally,because

themajorityofTexanswereimpoverishedbeforetheGreatDepressionbegan,they

“weremoreadaptedtorelativepoverty”thantherestofthecountry,makingforan

easiertransitiontoearningless.And,becauseTexaswaslessindustrializedthanthe

EastandMid‐West,thewarningsignsoftheDepressionwerelessobviousinthemajor

cities.37

Whatevercausedthemassdisregardfortherealitiesoftheeconomicsituation

inTexasandGraysonCountyisoflessconsequencethanthatitdidhappen.Likea

multiplegunshotsvictimusingconfidencetoamelioratetheinjuries,from1929to1932

theeconomicwoundswereoverlookeduntilthelossofbloodbroughtdizzyingeffects

whichcouldnotbeignored.AsstatedbyRayburn:

Nobodycantalkthecountryintoadepression.ItwasproveninMr.Hoover’sday,whenheandMr.Mellonsaid–atatimewhenwewereintheworstslumpwehaveeverbeenin–thatprosperityisjustaroundthecorner,thatnobodycantalkusoutofadepressioneither.

Whileitcannotbesaidthatactionbythelocalgovernmentwouldhaveproduced

categoricallybetterresultsinGraysonCounty,itissafetoassertthatthelackofaction

didnotresultinapositiveoutcomeby1933.38

37Patenaude,Texans,Politics,1,2,3(quote),4.38Dulaney&Phillips,“Speak,MisterSpeaker,”60(quote).

28

CHAPTERII

SAMRAYBURN

Ibelievethatthegovernmentthatisclosesttothepeopleisthegovernmentthatmostnearlyreflectsthewillofthepeople,andIfurtherbelievethatthegovernmentthatwehave,beingtherepresentativeform,isthebestformyetdevisedbymen.Whenthepeoplehavetherighttorecallofnearlyeverypublicofficialeverytwoyears,thisgovernmentisindeedclosetothepeople,andtheofficialwhowouldtakethepeople’scommissionandnotdotheirwill,willsurelyberecalledattheexpirationofhisterm.Ifelectedtothisimportantstationitshallbemyconstantpurposeandmyonlyhopetoservethesepeoplefaithfullyandwelltotheendthatsuchlawsshallbepassedtodoequalandexactjusticetoall,withthatcardinalprincipleofequalrightstoallandspecialprivilegetononeeveruppermostinmymind.Withthefurtherthoughteverpresentthatpublicofficeisapublictrustandthatthemancommissionedbyapeopletodoacertainworkisinhonorboundtoreflectthewillandcarryoutfaithfullytheinstructionofthatpeople,IshallconsideratalltimesthatIamtheservantofthepeopleandnottheirmaster,thattheofficewithwhichtheyhonormeshallbemineonlyduringthetimewhenmyviewsandmyactsshallcomportwithwhattheythinktheirservant’sactsshouldbe.

‐SamRayburn

TheimportanceoftherolesplayedbyTexansinWashingtonduringtheNew

Dealeracannotbeoverstated.DelegatesfromtheLoneStarStateheldnine

chairmanships(meaningallofthemostimportantlegislationpassingthroughCongress

wentthroughoneoftheircommittees)andJohnNanceGarner,asVicePresident,used

hispersonalinfluencetoguidemanyNewDealprogramsthroughthelegislature.

29

Indeed,evenPresidentRooseveltassertedthatTexaswas“runningthegovernmentof

theUnitedStatesmorelargelythananyotherstate.”ForthecitizensofGrayson

County,theNewDealwaspersonifiedinthefigureofSamuelTaliaferroRayburn,

CongressmanfromtheirownFourthCongressionalDistrict.From1929to1946,

Rayburnwastherightman,attherightplace,attherighttimeforthecounty,ashis

power,prestigeandinfluenceinWashingtonmaterializedinNewDealprogramsand

workprojectsthatmeanttangiblerelieffromtheGreatDepression.BecauseRayburn

livednearlyallhislifeinthatdistrict,andservedallforty‐eightofhisyearsinthe

legislatureasarepresentative(henevercontendedforanotherpositionin

government),hislifeandpoliticalcareeraresointertwinedwiththeFourth

CongressionalDistrict’shistorythatitwouldbeimpossibletodescribeonewithoutthe

other.39

Rayburn’schildhoodandrearingwerefundamentalinshapinghischaracter,

whichdictatedhispersonalityandactions,bothinCongressandout,and,consequently,

resultedinhispoliticalsuccess.Bornin1882inRoaneCounty,Tennessee,hewasthe

eighthofelevenchildreninafamilythatproducedlittleontheirsixty‐acrefarmdueto

thesoilerosionfromgenerationsofcornandtobaccocrops.FollowingtheCivilWar,so

manypeoplefromhishomestate,KentuckyandMissouri,soldeverythingandmovedto

Texasthatpostmastersstartedmarkingundeliverablemail“G.T.T.”or“GonetoTexas.”

ReceivingwordfromrelativesintheLoneStarStatewhotoldofdeep,black,stickyrich

39Patenaude,Politics,Texas,34‐35,58(quote).

30

soilthatwouldgrowalmostanything,theRayburnsmadethemovein1887,settlingon

aforty‐acrefarminFanninCountytogrowcotton.Bonham,inthesamecountyand

partoftheFourthCongressionalDistrict,eventuallybecameSam’spermanent

residence.Althoughheneverforgotthedifficultiessmallfarmersexperiencedlivingin

theruralUnitedStatesinthelatenineteenthandearlytwentiethcentury,andhisfamily

waspoorbyallaccounts,Rayburntendedtorememberwhatthey“didhave,”rather

than“didnot”:

IresentthatpeoplesayIcamefromapoverty‐strickenfamily.That’snotso.Myfatherandmotherraisedelevenchildren.Wewereshortofmoney,butwehadacomfortablehome,plentytoeat.Myfathercouldn’tputusallthroughcollege,butmostofuswentanyway.40Thecongressman’sparentswereirrefutablythecornerstonesofhischaracter

development.Eventowardtheendofhislifehereferredtothemasthemost

remarkablepeoplehehadeverknown,notsimplybecauseoftheirrolesasparents,but

fortheirinnerstrength,characterandnobilityofpurposethat,hebelieved,madethem

exceptionalhumanbeings.Hismother,Marthaor“Mat,”“worethepants”inthe

Rayburnfamily.Astrictdisciplinarian,shekeptthechildreninlineandinstilledinthem

punctuality,obedience,andthriftofeverything,includingtime(aswasnecessaryforthe

homemakerandmotherofelevenchildrenonaforty‐acrecottonfarm).Aplain

speaker,shewasfrankandforthright,yetalwayscontent,purportedlyneveronce

40HardemanandBacon,Rayburn,2(quote),15‐17;Tyler,Bornett,Barkley,Anderson,andOrdinitz(eds.),HandbookofTexas,V,458(Rayburn,SamuelTaliaferro).

31

complainingtoSam’sfather,WilliamMarionRayburn(atleasttoanyone’s

knowledge).41

Will,incontrast,wasmuchquieterthanhiswifeandreferredtoas“EasyBoss”

bythechildrenbecause,ontherareoccasionswhenhedidtryandspankthem,he

wouldstopiftheystartedcrying(MatRayburn,incontrast,wasknownsimplytohit

harder).HewasthereasonforSam’sattractionandenduringfascinationwithpolitics,

sincehewas“theintensest[sic]Democratyoueversaw,”anda“goodcitizenwho

nevermissedanelection.”Anoutdoorsmanandanimalaficionado,Willwasbest

knownforthefourgreatlovesofhislife:thePrimitiveBaptistChurch,horses,hisfamily,

andtheDemocraticParty.Butdespitehispoliticalandreligiouspenchants,hedidnot

preachormoralizetoothers,ortryandpersuadehischildrenintopursuinganycertain

lineofwork.Hetoldthemitdidnotmatterwhattheydid,“butdosomethinganddoit

hard.”Hedid,however,insisttheydotheonethingheconsideredmostimportantin

life:tolivehonorably.Asachild,Sam’sfathercontinuouslyremindedhimthatsomeday

hewouldbeonhisown,andwhenthathappened,“allIhavetogiveyouischaracter.”42

Thus,SamRayburn’scharacterwasmadeof“unclutteredruralvalues,founded

onhonestyandcommonsense,hiscompassion,andhisdedicationtoservice.”That

Rayburnwasabsolutelyloyal,especiallytotheDemocraticParty,iswithoutquestion.

Hehimselfdescribeditbestwhenhesaid,“Ialwayssaywithoutprefixwithoutsuffix

[sic]andwithoutapologythatIamaDemocrat.”Buthisloyaltywentfurtherthanjust41Hardeman&Bacon,Rayburn,11,14,19‐20.42Hardeman&Bacon,Rayburn,11(firstandsecondquotes),12,19(thirdandfourthquotes),20.

32

hispartypolitics,asillustratedbyhisdedicationtoPresidentRooseveltduringtheNew

Deal,evenwhenmanyfromhisstate(includinghismentor,JohnNanceGarner)and

partybegantoturnawayfromtheadministration.Hisunfalteringhonestyandintegrity

becamelegendary,evenbeforehisdeath,andearnedhimthetrustofhispeersonboth

sidesoftheaisle.Hewasundeterredbytheprospectofaccumulatingpersonalwealth,

acceptingnomoneyfromlobbyists,goingononecongressionaljunketinforty‐eight

years(forwhichhepaidhisownway),andturningdowntravelexpensesforspeaking

tourshemade.Thiswasindeedararequalityforsomeonewhocontinuously

negotiatedinCongressforaslongashedid.Rayburn’scommonsensewasa

pragmatismthatallowedhimideologicalflexibility,representingboththenational

DemocraticPartyintheHouseofRepresentatives,andthemuchmoreconservative,

Southernvaluesofhisdistrict.Hewasconsidereda“middle‐of‐the‐roader,”whose

independenceofaction,fairnessandcandorearnedhimrespectfromhispeersin

Congress,eventhosewhodisagreedonpolicyissues.AlthoughRayburnlovedpower

(hehimselfsaidopenly,“Ilikepower,andIliketouseit”),hewieldeditresponsiblyand

compassionately.UnlikeGarner,hewasaversetoinsultinganyoneandlackedazestfor

destroyingenemiesthathismentorthoughtwouldhinderhispoliticalsuccess.“NowI

don’thateanybody,”hewouldsaythroughasmile,“butthereareafewshitasses[sic]

thatIloathe.”AllofthesetraitsthatmadeupRayburn’scharacterearnedhimthe

respectofhispeersandresultedinoneofthemostsuccessfulpoliticianstogracethe

HouseofRepresentatives.HisfatherwouldhavebeenproudwhenRayburnwroteto

33

hissisterin1922,“Iwouldratherlinkmynameindeliblywiththelivingpulsinghistoryof

mycountryandnotbeforgottenentirelyafterwhile[sic]thantohaveanythingelseon

Earth.”43

ItwouldbeimpossibletoarguethatRayburndidnotsucceedinhislifeambition

whenlookingathispoliticalcareer.FollowinghisfirstelectiontotheUnitedStates

HouseofRepresentativesin1912,heneverlosthispositioninCongressfromTexas’s

FourthDistrictforthenextforty‐eightyears,norwasheevenforcedintoarun‐offinhis

party’sprimary.HeservedaschairmanoftheInterstateandForeignCommerce

CommitteethroughmuchoftheNewDeal(1931‐1937),introducing,andplayingan

instrumentalroleinthepassageof,severalkeypiecesoflegislation.Heresignedthis

positionin1937andbecamemajorityleaderuntil1940whenhewaselectedSpeakerof

theUnitedStatesHouseofRepresentatives,apositionheheldineveryDemocratic‐

controlledCongressuntilhisdeathin1961(twiceaslongasanypredecessor).

WoodrowWilson,andeveryPresidentfromFranklinD.RoosevelttoJohnF.Kennedy

soughthiscounsel(includingRepublicanDwightD.Eisenhower),andhemanagedtwo

candidatesduringDemocraticpresidentialnominationcampaigns(JohnGarnerand

LyndonB.Johnson),bothofwhombecameVice‐Presidents,andonePresident.Insome

wayoranotherheparticipatedinthepassageofmostimportantpiecesoflegislation

43HardemanandBacon,Rayburn,3(firstandthirdquote),3‐4(fourthquote),104;Patenaude,Texans,Politics,54,55(secondquote);AnthonyChampagne,SamRayburn:ABio‐Bibliography(NewYork:GreenwoodPress,1988),1,2(fifthquoteintextandquoteinfootnote);Tyler,Bornett,Barkley,Anderson,andOrdinitz(eds.),HandbookofTexas,V,459.Asatestamenttohisdisregardforpersonalwealth,whenRayburndiedhisassetsincluded“thefamilyfarm,somepasturelandnearBonham,Texas,andabout$15,000insavings.”

34

duringhisalmostfifty‐yeartenure,andinhisfinaldecadewasrespectfullyreferredtoas

“Mr.Speaker,”or“Mr.Democrat,”bypeers,andaffectionatelycalled“Mr.Sam”by

millionsofpeoplewhoknew,orfelttheyknew,him.Todayheremains“arguablythe

mostunderratedpublicofficialintwentieth‐centuryAmericanpolitics,”becausehe

preferredtoworksurreptitiously,saying“damnthefellowwho’salwaysseeking

publicity.”AsnotedbyTexasCongressmanFrankIkardin1980,“therearemanythings

thatheshouldhaveagooddealofcreditfor,thoughtheyarenotattributedtohim.He

wasarareman.”44

ForthecitizensofGraysonCounty,thecharactertraitsandpoliticalsuccessesof

Mr.Samwereinvaluablebetween1933and1946forseveralreasons.First,although

ideologicallyflexible,throughouthistenureinCongressRayburnremained,in

philosophy,principleandpersonality,apopulist.Hededicatedmuchofhistimeand

efforttobetteringthelifeofrural,smallfarmersandtousingthegovernmentto

regulatetheeconomicinstitutionsthatburdenedthem(hehadadeep‐seatedmistrust

ofWallStreet).BecausethecitizensofGraysonCountywerepredominantlyrural

duringthisperiod,thismeantmuchneededaidforthepeopleofthedistrict.45

Second,hewascloselytiedtobothPresidentRooseveltandVicePresident

Garner.In1932,GarnerhadbeenSpeakeroftheHouse,makinghimoneofthe

44Champagne,SamRayburn,xiii‐xiv,63;HardemanandBacon,Rayburn,3,5(first,secondandthirdquote);Patenaude,Texans,Politics,54;Tyler,Bornett,Barkley,Anderson,andOrdinitz(eds.),HandbookofTexas,V,458.TheonlytwoperiodsinwhichRayburnwasnotSpeakeroftheHousefrom1940to1961waswhenRepublican’sheldamajorityin1947‐1949and1953‐1955.45Champagne,SamRayburn,1,2;Patenaude,Texans,Politics,54.

35

country’smostprominentDemocrats.Thisledtohimbecomingacandidatefor

President,andRayburnwaschosentobehiscampaignmanager.AttheDemocratic

nationalconventionthatyearinChicago,GarnerandRooseveltwerepredictedtobe

theonlytwoviablecandidatesbymanypoliticalwriters.Whiletheexactpolitical

wranglingthatoccurredisstillspeculative,itiswellsupportedthatRayburn(effectively

havingtheSpeaker’s“powerofattorney”)waskeyinprovidingtheinformationthatled

GarnertoswitchhisvotesonthefourthballottogiveRooseveltthetwo‐thirdsmajority

heneededtoearntheDemocraticnomination.Rayburn’sdecisionhadhelpedmake

RooseveltpresidentoftheUnitedStates,andonewhoenteredtheWhiteHousewitha

heavydebttoTexans.46

Third,hewasextremelyinfluentialinCongress.BythetimeRooseveltentered

theWhiteHousein1933,RayburnhadbeenintheHouseofRepresentativesfortwenty

yearsandknew“aboutasmuchasanyman[inCongress]abouthowtomanipulatethe

legislativeprocess.”LikehismentorGarner(whohadtenmoreyearsseniority),

RayburnhadanenormousreservoirsoffriendsinCongress,andneithermanwasabove

callinginpoliticalfavors.47

Fourth,Rayburnwasanall‐outNewDealer,workinghardtoprotectthe

common‐man’sinterests.“SomepeoplesayIwasn’taNewDealer…They’rewrong”he

saidofhimself.“IwasahellofaNewDealer.Iwrotesixofitskeystoneacts–atleast

that’swhatJohnGarnercalled‘em[sic].”Noothermemberofthelegislaturecould46Champagne,SamRayburn,17‐18;Patenaude,Texans,Politics,8,9,11,15‐16,19,24,29.47Patenaude,Texans,Politics,56(quote).

36

claimtheenormityofaccomplishmentsasRayburnduringtheFirstNewDeal,as

highlightedbyRoosevelt’sassertionthathewas“themostvaluablemaninCongress.”48

Andfinally,Rayburnremained,throughouthisfifty‐yearcareer,uncannily

attentivetohisconstituents.Oneexampleofhisdedicationoccurredwhenoneofhis

staffmembersallowedafarmcouplefromhisdistrict,withnospecialconnectionsor

wealth,toleavehisofficeinWashingtonwithoutvisitingwithhim.Furiousathisaide,

Rayburnmadehimsearchthecityforthecouple,metwiththemwheretheywere

staying,tookthemtolunch,andthenhadtheSpeaker’slimousinedrivethembackto

theirhotel.Hethenexplainedtothestaffer:

ThesearethepeopleIrepresent.Thesearethepeoplethatpaymysalary.Thesearethemostimportantpeople,moreimportantthantheguywhoisouttherewiththeappointmentwantingsomething.Thesepeoplearenotwantingsomethingotherthangoodrepresentation.49

Thus,thecitizensofGraysonCountyhadinRayburnafriendwhowashimselfa

lifelongcitizenoftheirdistrictandunderstoodtheeconomichardshipstheywere

experiencing.Moreover,hewasapoliticalallyinCongresswhoseinfluenceextended

intobothchambersandtheWhiteHouse;aNewDealerwhosupportedthePresident’s

programstobringeconomicrelieftoindividualsthroughworkprograms;anda

48Patenaude,Texans,Politics,57(secondquote),61(firstquote).ThosesixpiecesoflegislationweretheSecuritiesExchangeAct,TruthinSecuritiesAct,EmergencyRailroadTransportationAct,FederalCommunicationsAct,RuralElectrificationActandthePublicUtilityHoldingCompanyAct,all(excepttheRuralElectrificationAct)cornerstonesofRoosevelt’sobjectiveofreformingthefinancialandcommoditymarkets.49Champagne,SamRayburn,36.

37

Representativewhoneverforgotabouthisconstituents,bringingtangibleresultsthat

helpedendtheGreatDepressionforthem.

38

CHAPTERIII

THEFIRSTNEWDEALINGRAYSONCOUNTY,1933‐1935FranklinRoosevelthadaprogramandhehadfaithandconfidenceintheAmericanpeople.Theywouldstoptheirworkandlistentohisfiresidechatsandtheyhadgreatconfidencethathewastryingtodosomethingforthem.Ofcourse,thatfirsthundreddayswasunparalleledinAmericanhistory.

‐SamRayburn

WhenRooseveltwasinauguratedonMarch4,1933,thecountryhadreachedits

lowestpointfromtheravagesoftheGreatDepression:5,000bankswereshutdown,

100,000businesseshaddeclaredbankruptcy,14millionindividualswereunemployed,

andthelifesavingsofmillionsofAmericanshaddisappearedduetospeculationspreeof

the1920s.ThePresidenthadsaid,“Ipledgeyou,Ipledgemyself,toanewdealforthe

Americanpeople,”whenheacceptedthenominationfortheDemocratsatthenational

convention,and,asthecountryhadshownatthepollsatalllevelsofgovernment,they

wereindeedreadyachange.ThepurposeofRoosevelt’sNewDealwastobringreliefto

individuals,recoverytotheeconomy,andreformtothefinancialsystemtoprevent

anotherGreatDepression.Overall,achievingthese“threeRs”meantpermanently

increasingtheroleofthefederalgovernmenttothatofaregulatorofbusinessesand

39

theeconomy,andawelfarestateinwhichthebasicwellbeingofallindividualsis

protected.50

DuringtheFirstNewDeal,from1933to1935,GraysonCountybenefitedfrom

nearlyeveryprogrampassedbyCongress,throughlocalofficialsactivelyseeking

governmentaid,andthepatronageofSamRayburn.Althoughthecitizensofthe

countyreceivedrelieffromavarietyofsources,Grayson,likeTexasandtheUnited

Statesasawhole,didnotexperienceanythingneareconomicrecovery.

OnMarch9,1933,PresidentRooseveltcalledanemergencysessionofCongress,

inauguratingtheFirstNewDealandthe“HundredDays”whichlasteduntilJune16.

Duringthisperiod,anunprecedentedamountoflegislationwaspassed,whichbrought

staggeringchangesthroughoutthecountryandimmediateresultsforthecitizensof

GraysonCounty.51

ThePresident’sfirstorderofbusinesswastodealwiththebankingcrisisby

declaringafour‐daynationalbankholiday,duringwhichtimetheEmergencyBanking

ReliefActwaspassed.Thisactallowedthegovernmenttoinspectallbanksandprovide

financialassistanceforthosethatweresalvageable.ThatRooseveltdecidedtotake

suchactionwasfortunateforTexassinceGovernorMiriamA.Fergusonhadorderedall

banksclosedonMarch2,probablyoversteppingstateconstitutionalboundaries.To

maintainorderinGrayson,100membersoftheAmericanLegion(allex‐servicemen),

50HardemanandBacon,Rayburn,147;AlfredSteinberg,SamRayburn(NewYork:HawthornBooks,1975),108(firstquote);Campbell,GonetoTexas,382(secondquote).51Steinberg,SamRayburn,108.

40

volunteeredtheirservicesandweresworninasspecialpolicetopatrolthemajortowns

nightanddayforrobbersandhijackers.ThedaybeforebanksreopenedonMonday,

March13,PresidentRooseveltgavethefirstofhisfamous“firesidechats”totellthe

nationthatitwasmoreprudentto“keepyourmoneyinareopenedbankthanunder

themattress.”Suchaguaranteeseemedtohaveworkedasthestateandnational

banksinShermanopenedthenextday,withonepersondepositing$1,240ingoldcoins,

which“boreevidenceofhavingbeenoutofcirculationforsometime.”Althoughat

leastonelocalbankwasliquidated,theprogramprovedsuccessfuloverallinGrayson

County,andthePresident’sactioninclosingthebankswasapplauded.Atameeting

withmanyoftheaffluentcitizensofthecounty,abankingleaderacclaimedthatthere

was“nothingequaltothenerveandthegallaswhenPresidentRooseveltpulleddown

thecurtainsonourbanks.Itwasmarvelous.NotsincePresidentLincolnsignedthe

proclamationfreeingtheslaveshassuchathingoccurred.”52

Followingthebankingcrisis,relieffortheunemployedwasoneoftheforemost

concernsoftheadministration.Therefore,inMay1933,CongresspassedtheFederal

EmergencyReliefAct,whichcreatedtheFederalEmergencyReliefAdministration

(FERA).Thisprogramgaveassistancetotheunemployedbyfunneling$500millionfrom

thenationalgovernmenttostateandlocalagenciesonwhatwassupposedtobea

matchingbasisofonefederaldollarforeverythreefromthestate.Accordingly,a

52DavidM.Kennedy,FreedomFromFear:TheAmericanPeopleinDepressionandWar,1929‐1945(NewYork:OxfordUniversityPress,1999),135,136(firstquote);Campbell,GonetoTexas,382;DallasMorningNews,March4,1933,5;March15,1933,5(secondquote);March26,1933,12(thirdquote);November21,1933,3.

41

constitutionalamendmentwassubmittedbytheTexasstatelegislature,andpassedby

votersinAugust1933,issuing$20millioninbondsandcreatingtheTexasRehabilitation

andReliefCommission.UnlikeHoover’sRFC,whichwasstillgivingloans,theFERAgave

outrightemergencyreliefgrants,makingitastateandlocalprogramratherthana

federalone(althoughtherewereFederalregulationsthathadtobecompliedwithin

ordertoreceivethefunding,ingeneral,thestatesandlocalitieswereallowed

autonomy).AlsounliketheRFC,themoneygiventotheReliefCommissionwaspassed

tocountyboards,whichthendistributedittoindividualsindirectcashpayments,called

the“dole.”InordertogetontheFERA’sdole,citizenshadtoprovetheirnecessityby

submitting“tothehumiliationofa‘means’test.”53

TocomplywiththerequirementsoftheFERA,GraysonCountysetupalocal

welfareboardinAugust1933andimmediatelybegantakingapplications.County

personnelworkedwithsuchhastethatbytheendofthemonthmorethan$20,000in

federalemergencyreliefaidhadbeenreceivedanddistributed.ByJanuary1934,that

figurejumpedtoalmost$30,000permonth,andthenationalgovernmenthadspentall

but$175millionoftheoriginal$500million.Asmorefederalmoneywasallocatedto

theprogram,thenumberofpersonsreceivingaidincreased,andfromJuly1934toJune

53Campbell,GonetoTexas,383;WilliamE.Leuchtenburg,FranklinD.RooseveltandtheNewDeal:1932–1940(NewYork:Harper&RowPublishers,1963),120,123(quote);FinalStatisticalReportoftheFederalEmergencyReliefAdministration,PreparedunderthedirectionofTheodoreE.Whiting(Washington:U.S.GovernmentPrintingOffice,1942),iii,5‐6;TexasAlmanac(1945),5,73;Kennedy,FreedomFromFear,144,170.The$20millionbondpassedbytheTexasstatelegislaturemarkedthefirsttimesincetheadoptionoftheConstitutionof1876thatthestate’sdebtwasincreased.

42

1935,therewasamonthlyaverageof12,269personsonemergencyreliefinGrayson

County,rankingittenthhighestinthestate.54

Bythebeginningof1935,GraysonCountyresidentswerestillreceiving$30,000

indirectreliefeverymonth,theNationalGovernmenthadspentover$2billiononthe

FERA,andnewpersonswerebeingaddedtothepayrolldaily.Notsurprisingly,

Rooseveltfelttheprogramwasnothelpingindividualsachievefinancialindependence,

orbringingeconomicrecovery,andindeed,hewasright.FromthecreationoftheFERA

inMay1933untilthebeginningofitsdismantlinginDecember1935,theprogram

allocated$3,068billioninfederalfundstothestates,encompassingthebulkofthetotal

reliefgiventoallunemployedpersonsintheU.Sduringthisperiod.Ofthis,Texas

received$101,049,987,ofwhich$1,096,642wassiphonedtoGrayson(anaverageof

$34,270.08permonthforthe32‐monthperiod).Consideringthatforatleastan

eleven‐monthperiod12,269personsinthecountywerereceivingemergencyaidfrom

theFERA(whichequatestoapproximately$2.79perpersonforthemonth),itisnot

surprisingthattheprogramfailedtosupplyadequatereliefthroughoutthecountry.55

AlthoughRooseveltandhisadministrationrecognizedthenecessityfor

emergencyreliefpaymentsintimesofcrisis,thePresidentbelievedthedolewas“a

54FinalReportofFERA,iii,247‐248;DallasMorningNews,August16,1933,2;ShermanDemocrat,January5,1934,1;January9,1934,1.TheninecountiesaveragingmorepersonsreceivingaidinTexasduringthisperiodwere(inalphabeticalorder,notnumerical)Bexar(SanAntonio),Dallas,ElPaso,Harris(Houston),Jefferson(Beaumont),Lamar,McLennan,Tarrant(FortWorth),Travis(Austin).55FinalReportofFERA,iii,287,288;Leuchtenburg,FranklinD.Roosevelt,123‐124;DallasMorningNews,January11,1935,11.AlthoughtheFERAwasnottheonlyemergencyreliefagencyinGraysonCounty(meaningindividualswerereceivingaidfromothersources),thefiguresgivendosuccinctlydemonstratethattheamountofmoneybeingputintocirculationwasbarelyenoughtoprovidefinancialsupport,letalonestimulatetheeconomyinanymeaningfulway.

43

narcotic,asubtledestroyerofthehumanspirit,”andthereforepreferredthatrecipients

workfortheirmoney.Tothisend,severalworkprogramsweretriedwithvarying

degreesofsuccess,allofwhichdirectlyaffectedthecitizensofGraysonCounty.56

Towardtheendof1933,aswinterapproached,itwasevidentthatthestate‐

sponsoredFERAcouldnotprovideenoughrelieftoallindividualswithoutwork.

Therefore,theCivilWorksAdministration(CWA)wascreatedinNovember,asthefirst

programinwhichthefederalgovernmentputindividualsdirectlyonitspayrollenmass,

givingminimum‐wagesforworkrelief.Althoughboth“workrelief”and“publicwork”

providepaidworkforindividualsratherthanplacingthemonthedole,thelatterwas

meanttocreatepermanentstructuresoflastingvalue,whiletheformerinvolves“made

work”thatdoesnotalwayshavelong‐termbenefits,makingithighlysusceptibleto

criticism.UnderthedirectionofHarryHopkins,headoftheFERAandakeyfigurein

Roosevelt’sadministration,theCWAwasthrowntogetherwithouttimeforcareful

considerationasmorethanfourmillionpersonsweremobilizedforjobshastilyinvented

inthirtydays.57

AstheCWAdeveloped,atorrentofjobsfloodedintoeverypartofGrayson

County.Mostoftheworkinvolvedtypicalpublicworksprojects,suchasrepairing

publicschools,thecityhospitalinShermanandDenison’scityhall;extendingsewers

andlayingwatermainsinSherman,Denisonandafewothertowns;improvingroadsin

56Leuchtenburg,FranklinD.Roosevelt,124(quote);Campbell,GonetoTexas,383.57Kennedy,FreedomFromFear,175‐177;Campbell,GonetoTexas,384;Leuchtenburg,FranklinD.Roosevelt,121.

44

almosteverytownthroughoutthecounty,usingstonesbroughtfromawhiterock

quarryintheareawheresome140menworked;and,thehiringoftwentyteachers

undertheCWAeducationalworkreliefproject,ineverythingfromsewingand

kindergartenclassestotutoringilliterateblackadults.Therewere,ofcourse,somejobs

thatprobablyseemedlessconventionalandusefultooutsideobservers.Forexample,a

crewofforty‐fivemencuttimberonalocalfarmforfirewood,whileanotherforty

workedoncreekdrainagetopreventmosquitoes.Also,auniversityprojectemployed

twenty‐fourpersonstosurveyandorganizeavailablecountyrecordsforahistorical

program.Whilethepurposeofsuchmade‐workassignmentswastokeepindividual’s

workethicaliveratherthanthembeingonthedole,tocriticsitwasjustanother

exampleofNewDealwaste.58

FromNovember1933toMarch1934,some2,000Graysoncitizensreceived

workfromtheCWAeachmonth,asthiswasthequotasetforthecounty.Bymid‐

JanuarytheCWAhadaweeklypayrollofbetween$20,000and$25,000,andfromthe

program’sinceptiontoJanuary14thecountyreceived$126,848,resultinginamajor

boostfortheeconomyandmorale,asnotedbyaShermanDemocratjournalist:

Placingofthissumintocirculationhasbeenofimmensebenefit.Thefigureisquotedhereinordertogiveanestimateofthecostofprojectswhichbringindoublebarreleddividends:theprojectsthemselvesareofsomeconsiderablevalue,particularlytheroadandstreetworkandotherpermanentandsemi‐permanentimprovementsandtheentireamountofthepayrollisputintocirculationimmediatelyinpurchaseofnecessitiesbypeoplethemostofwhom[sic]havebeengettingalongthebesttheycouldforseveralmonths.

58Campbell,GonetoTexas,384;ShermanDemocrat,January7,1934,1;January11,1934,3;January15,1934,7.

45

TheGovernorSaturdaysenttothepresidentamessageurgingcontinuanceofthecivilworksafterFeb.15,citingthebenefitsandneeds.Onedoesnothavetogofartofindthebenefitsinthiscounty,andthesituationhereisnodifferentthanelsewhere.Certainly,theneedforsuchworkhasnotpassedasyetbyanymeans.59Despitesuchbackingbythecountyandgovernor(whichwasundoubtedlydue

tothe$14millioninpayrollandexpensesthestatereceivedmonthly),theCWAdidnot

enjoyalonglife.Evidencethatthefinancialrequirementsoftheprogramwouldnot

permititscontinuanceforanyextendedperiodoftimecametothecitizensofGrayson

fromtheCWAstatedirectorinJanuary.Askingifcountyofficialscouldbegintocurtail

reliefemploymentbycuttingthequotaofallowableworkers,theofficialstatedthatthe

approachingagriculturalseasonshouldcreatejobsforsomeofthemencurrently

employedbytheCWA.Countyrepresentativesrespondedthatfarmerswouldnot

absorbanysignificantnumberofworkers,butitwasunderstoodthatretrenchmentby

stateheadquartersmightbeneededregardlessoflocalconditions.Andindeed,

retrenchmentwasinevitableduetooppositionfromRoosevelthimself.Troubledbythe

CWA’smassiveexpenditures,thePresidenttoldhisadvisorstheprogramwould

“becomeahabitwiththecountry”andthat“wemustnottakethepositionthatweare

goingtohavepermanentdepressioninthiscountry.”Accordingly,Hopkinsbegan

disbandingtheCWAonFebruary15,andhadfiredsomefourmillionpersonsbythe

beginningofApril.InGrayson,thecounty’sMayallotmentfromtheStateRelief

59ShermanDemocrat,January9,1934,3;January14,1934,6;January15,1934,4(quote).

46

Commissionwasjustone‐thirdofApril,andtheJuneallocationhalfofMay’s,amounting

to$1apersononthereliefroll.60

Duringitsshortexistence,theCWAhiredmorethan239,000Texans,and

constructedorimprovedmorethan500,000milesofhighway,40,000schools,and

1,000airportsthroughoutthenation.Furthermore,becauseofthemassive

expenditures,theprogramwasmuchmorecapableofbringingthedesiredreliefand

recoveryRooseveltdesired,sinceworkersundertheCWAaveraged$15.04aweek

comparedtothe$6.50aweekfromtheFERA.Althoughtheprogramdidnotlast,the

conceptbehindit(massivegovernmentspendingtocreateworkfortheunemployed)

andthesuccessitdidbringwouldberememberedandutilizedagain.61

AnotherworkreliefprogramwasthePublicWorksAdministration(PWA),

createdonJune16,1933.Thisagencywasallocated$3.3billionforlargebuilding

projects,suchasschools,highways,bridgesandotherpermanentstructures,andwas

headedbySecretaryoftheInteriorHaroldIckes.Insteadofkeepingworkersonthe

government’spayroll,Ickesusedprivatecontractorsforconstructionprojectstohelp

stimulatetheeconomy.62

ThePWAwassohighlyanticipatedthatonthedayitwascreateda

representativeoftheTexasReliefCommissionmetwithlocalofficialsandbusiness

60Leuchtenburg,FranklinD.Roosevelt,122(quote),123;ShermanDemocrat,Jan14,1934,9;January15,1934,4;DallasMorningNews,June4,1935,12.61Leuchtenburg,FranklinD.Roosevelt,121,123;Kennedy,FreedomFromFear,176‐177;Campbell,GonetoTexas,384.62Kennedy,FreedomFromFear,151‐152;Campbell,GonetoTexas,383.

47

leadersfromeveryGraysonCountytowntoexplainhowtoapplyforpublic‐works

projects.Withineightdaysalmosteverycommunitywasseekingsomesortof

constructionwork,withthecityofDenisonaloneapplyingfor$65,000worthof

improvementsandthemayorsayingmoreprojectsunderconsiderationwouldsoonbe

submitted.Suchgrandioseschemes,aswellasmostoftheotherapplicationsfrom

Graysontowns,wereneverrealized.63

DuringtheFirstNewDeal,veryfewPWAprojectswerecompletedinGrayson.

Somegradinganddrainageworkonroadswasdoneunderanationalrecoveryfundfor

highways,anda$30,000highschoolinthecityofTomBeanwasbuilt.Also,andmost

notably,theGraysonCountycourthouseandjailinShermanwererebuilt,withRayburn

playingakeyroleinobtainingfundsfortheproject.TheCongressmanevencontacted

GraysonCountyJudgeJakeJ.Loypersonallytotellhimwhentheapplicationswere

approvedforthestructureandthereleaseoffederalfunds.64

AlthoughtheseprojectsdidbringsomeworkrelieftoGraysonCounty,it

amountedtofarlessthanrequestedduetotheprogram’sfundamentalflaw:headof

theagencyandSecretaryoftheInteriorHaroldIckes.Ickes,fearingmoneywouldbe

stolenorwasted,wassoslowandcarefulwithallotmentsforbuildingprojectsthatthe

programdidlittletostimulatetheeconomyandmuchtoexasperatecitizensthroughout

theLoneStarState.Indeed,byOctober1934,theappointedStatePWAengineerhad

63DallasMorningNews,June17,1933,8;June25,1933,8;July2,1933,11.ThePWAwasestablishedasthesecondpart(TitleII)oftheNationalIndustrialRecoveryAct,whichisdiscussedbelow.64DallasMorningNews,August4,1934,7;December4,1934,12;December15,1934,2;May5,1935,2;May9,1935,3;May18,1936,3.

48

resigned,criticizingthe“redtapeinthePWAheadquartersatWashingtonwhich,he

said,washoldingupmanyprojectsinTexasandelsewherethatshouldbegiving

employmenttothousandsofjoblessworkers.”InGraysonCounty,suchfrustrationwas

alsofelt,asindicatedbythefollowingarticlefromJuneofthesameyear:

Tiringofdelaysandmilesof[g]overnmentredtape,theShermanschoolboard,byunanimousvoteFridaynight,withdrewitsapplicationforaPWAgranttobeusedinconstructingadditionstotheBryantandCrockettSchoolsandattheendofalengthysessionvotedtobuildthetwoadditionsundergeneralcontract.ThePWAgrant,whichwouldhavebroughttheschoolboardanestimated$6,532.50,hasbeenapprovedbutthereapparentlywasanunendingamountofredtapetobewadedthroughbeforeactualconstructionworkonthebuildingscouldgetunderway.

WhilethePWAdidprovidesomeworkrelief,itwastoolittleandtooslowtochangethe

financialsituationofGraysonCountycitizensortheeconomyasawholeinanysortof

permanentway.65

OftheNewDealprogramsaimedatworkrelief,theCivilianConservationCorps

(CCC)wastheoneaboutwhichPresidentRooseveltwasmostconcerned.Accordingto

Rayburn:

WeweredownattheWhiteHouseonemorningandPresidentRooseveltsaid,‘Nowyoufolkshavegotwhatyouwant.IwantaCivilianConservationCorps.’AndoutofthatgrewCCCwhichwasveryhelpfulinmanywaystotheyouthofthecountry–tookthemoffthestreetsandgavethemausefullife.66TheCCC,establishedinMarch1933,tookunmarriedmenbetweentheagesof

eighteenandtwenty‐fivewhosefamilieswereonrelief,andgavethemjobs.Although

65Leuchtenburg,FranklinD.Roosevelt,70;DallasMorningNews,October3,1934,1(firstquote);June10,1934,3(secondquote).66DulaneyandPhillips,“Speak,MisterSpeaker”,51‐52(quote);Leuchtenburg,FranklinD.Roosevelt,52.

49

mostoftheworktheyperformedwassoilconservationandreforestationprojects,they

alsobuiltroadsandbridges,taughtfarmershowtocontrolsoilerosion,andevenacted

asfiremen.TheboyslivedincampsdirectedbytheU.S.Armyorforestersandhadto

sendtheirfamilies$25ofthe$30theywerepaideachmonthfromtheWarDepartment

financeoffices.Theprogramwashighlysuccessfulasitenlistedmorethan2.5million

youngmenthroughoutthenationduringitsexistence(from1933to1942)andgreatly

contributedtothenationalparksystem.67

JustoneyearaftertheCCCwasinitiated,129,925youngmenfromTexaswere

enlistedand,accordingtoWarDepartmentfigures,hadsent$2,799,170hometotheir

families.TheprogramwasalsoactiveinGraysonCountyandbenefiteditscitizensin

severalways.FirstandforemostwastheindividualrelieftheCCCbrought.Becauseit

onlytookboysfromfamiliesonreliefrolls,thatseveralhundredboyswereenrolledin

theprogramfromGraysonCountyduringthe1930smeantanadditional$25fortheir

familiesandonelessdependenttoprovideforduringtheirenlistment.68

Also,largelybecauseofSamRayburn’sinfluenceinWashington,GraysonCounty

wasallocatedafewCCCcampsofitsown,whichprovedveryusefultolocalresidents.

InNovember1933,localcontractorswerehiredtobuilda$10,500campatthecounty’s

stateparksite,andtheworkperformedbytheCCCenlisteestherehelpedcompleteLoy

StatePark.InDecemberofthefollowingyear,Graysonofficialsmailedpaperstothe

67Kennedy,FreedomFromFear,144,145;Leuchtenburg,FranklinD.Roosevelt,52,174;Campbell,GonetoTexas,383‐384;DallasMorningNews,April24,1934,11.68DallasMorningNews,April24,1934,11;January1,1935,15;June25,1935,2;March29,1936,8;October4,1936,10;ShermanDemocrat,January9,1934,1.

50

erosionengineeratTexasA&Mcertifyingthattherewasmorethan30,000acresinthe

countydesignatedfortheconservationprogram.BythefollowingJune,211CCC

enrolleeswerefinishingtheworkonthesoilerosioncampinsoutheastShermanand

preparingtobegintheerosioncampaigninGrayson.Thisprogramprovedespecially

beneficialtolocalfarmerssincetheirlandswere“cottonedout”fromone‐crop

agricultureandotherpoorfarmingpractices.Throughouttheremainderofthedecade,

CCCworkersfromthecampperformedgeneralterracingandstrip‐croppingtoconserve

soilonprivatelyownedfarmsinGraysonCounty.69

TheRooseveltAdministrationalsobroughtrelieftothefarmers,whichwas

especiallyimportanttothecitizensofGraysonsincetheeconomyinthecountywas

basedprimarilyonagriculture.TheAgriculturalAdjustmentAct(AAA),passedonMay

12,1933,paidfarmerstolimittheirproductionvoluntarilythroughacreagelimitations

andquotasinordertoraisethepricesofcrops,livestockanddairyproducts.The

moneythefarmersreceivedcamefromataxplacedontheprocessorsofthesecrops,

suchascottonginnersandflourmills.70

ThefirststeptowardinauguratingthecottonreductionprogramoftheAAAin

GraysonCountywastakenonJune21,1933,whenthefederalgovernment’sassigned

countyagent,BennyF.Gray,heldameetingandelectedmenfromthemajortownsto

69AnthonyChampagne,CongressmanSamRayburn(NewJersey:RutgersUniversityPress,1984)3,56;DallasMorningnews,November24,1933,14;December8,1934,5;June21,1935,16;June25,1935,2;April24,1936,13;September13,1936,1.70Champagne,CongressmanSamRayburn,3;TindallandShi,America,1123,1128;Kennedy,FreedomFromFear,142;Campbell,GonetoTexas,384.

51

takecareofcontactingfarmersandseeingthroughtheimplementationofthesigned

contracts.AccordingtoMr.Gray:

Inthereductionprogram,farmersfilledoutcontractswhichtheysubmittedtotheirlocalorcountycommittees,whichsentthemtofederallyassignedstateofficials.ThesewerethencheckedandapprovedinWashingtonbynationalofficialsbeforebeingofficiallyacceptedbyUnitedStatesSecretaryofAgricultureHenryA.Wallace.Ifaccepted,anapprovalslipwasreturnedtothecountyagentwhoreturnedittothelocalcommitteewhichoversawthedestructionofthecottonandmadesureitwasthesameamountofferedinthecontract.OncetheagentreportedbacktoWashingtonthatthecrophadbeendestroyed,acheckwasmailedtothefarmer.

Itwasestimatedthat$650,000worthofreliefwouldbedistributedtocottonfarmersin

Graysonalone.71

Bymid‐July,3,015contractshadbeenreceivedbyMr.Grayandonly154farms

inthecounty(or3percent)wereunaffectedbytheAAA.Atotalof97,458acreswere

limitedinthecontractswith37,106ofthosebeingplowedunder.Thisamountedto“a

minimumof$384,662.63”accordingtoMr.Gray,whocalledtheprogram“an

unqualifiedsuccess.”Whenthelastpaymentsfromthe1933reductionprogramcame

inDecember,GraysonCountycottonfarmershadreceivedmorethan$640,000forthe

year.Inthefirstyearoftheprogram,theAAAhadputfarmersinabettercondition

thantheyhadbeenforsometime,and,accordingtoGraysonmerchants,manyhad

liquidatedaccountsthathadbeenstandingforseveralyears.72

71DallasMorningNews,June22,1933,9(quote);June26,1933,2;July17,1933,4.72Campbell,GonetoTexas,384;DallasMorningNews,July17,1933,4;October20,1933,11;December20,1933,7.BecausethespringcropshadalreadybeenplantedwhentheAAAwaspassed,farmers

throughoutTexashadtoplowupsomefourmillionacresofcotton,amountingtoalmost$43million.

52

AlthoughthefarmersofGraysonCountyenjoyedsubstantiallybetterreturnsfor

theircommoditiesforafewyears,theAAAhaditsenemies,notablytheprocessorswho

werebothtaxedandreceivinglessagriculturalgoodsduetolandreductions.In

Grayson,cottonginningsfellby59percentintheyearendingDecember1933,from

49,857balesto20,846.Thefollowingyear,fromJanuarytoOctoberonly7,795bales

wereginned,comparedwith17,078duringthesameperiodforthepreviousseason.It

issmallwonderthatin1935asuitattackingtheAAAasunconstitutionalwasfiledinthe

FederalDistrictCourtinShermanbyaGraysonCountyginnerandtheTexasCotton

Ginner’sAssociation.OnJanuary6,1936,inUnitedStatesv.Butler(notrelatedtothe

casefiledinGrayson),theSupremeCourtdeclaredtheAAA’staxonfoodprocessors

unconstitutional,byavoteofsixtothree.Thus,theAAAcametoanend,duetoa

justifiablyangryclassofbusinessmenbeingburdenedwiththeresponsibilityof

providingforallthefarmersintheUnitedStates.73

Toencouragerecoveryinmanufacturing,theRooseveltAdministrationtriedthe

NationalRecoveryAdministration(NRA),createdundertheNationalIndustrialRecovery

ActinJune1933.Theprogramhadtwopurposes,thefirstbeingtheeliminationof

competitionbetweencompanieswithinanindustrybythedraftingofcodestoset

pricesandwages.Thesecondobjectivewastocreatejobsandraisewagesbycreating

fairlaborstandards,whichwouldresultinmoremoneyforconsumers.Thecodeswere

draftedbycommitteescomposedofrepresentativesfromthegovernment,labor,and73Leuchtenburg,FranklinD.Roosevelt,170;Kennedy,FreedomFromFear,329;DallasMorningNews,December28,1934,3;May31,1935,1;October12,1935,7.

53

business,andenforcementofthemwasnotbasedongovernmentcoercion,butrather

throughthecallofpatriotismandfearofsocialdisapproval.74

Fromthebeginning,theNRAprovedwildlypopularinGraysonCounty.Withina

weekoftheprogramsinauguration,Graysongrocers,manufacturers,retailmerchants,

barbers,cleanersanddryers,bakers,printers,automobiledealers,andrestaurant,

lumberyard,andservicestationmenhadmetanddraftedcodes,asdidtheheadsof

fifteendepartmentsatthecountycourthouse.Alocalgarmentfactoryhiredonan

additionalsixtyworkers,increasingtheannualpayrollby$75,000,andaflourmillanda

candyfactoryinShermanhiredatotaloftwenty‐threemenwiththeformerestimating

a$100,000payrollaugmentationperyear.AmonthafterthestartoftheNRA,thecity

ofShermanheldaparadeforchildrenwhoseparentswerecooperatingintheNRA,and

itwasannouncedthatinthirtydaystheprogram’scodeshadcreated260jobsforthe

unemployed,totalinganadditional$4,970inwagesforthecity.75

Atthebeginningof1934,supportfortheNRAappearedhighasitwas

announcedthatanestimated“4,000,000workershavebeenrestoredtogainful

employment,”and“basicwageshadbeenraisedandmaximumhoursreducedin

industriesemployingbetweeneighteenandtwentymillionpeople.”EveninSherman,

businessesseemeddedicatedtotheprogramasamajormotorlinecompanyboasted

25percentincreasesinemploymentandwages,and30percentincostofoperations.

74Campbell,GonetoTexas,386‐387;Leuchtenburg,FranklinD.Roosevelt,64‐66.75DallasMorningNews,August1,1933,12;August2,1933,12;August5,1933,2;August9,1933,12;August10,1933,3;August17,1933,7;September2,1933,8;September10,1933,11.

54

However,thefundamentalflawsoftheNRAwerebeginningtoshowandthecritics

werebeginningtospeak.Foronething,becausetheprogramwasnotcompulsory,it

onlyworkedsolongastherewas“aspiritofnationalcrisis.”Assoonastheeconomy

showedsignsofrecovering,businessownersbecameannoyedwiththevoluntarycodes

thatrestrictedtheirdailyactivitiesand,inmanycases,inabilitytoexploitlabor.Also,

theinterestsofbusinessesandcorporationswerebeingputoverthoseofthegeneral

publicsincethecodessubduedcompetitionandraisedpricesbycuttingback

production,creatinghostilityfromconsumersaswell.Consequently,whenthe

SupremeCourtstruckdowntheNRAasunconstitutionalinMay1935,theprogramhad

amassedsuchadiversegroupofcriticsthatveryfewcared,especiallygiventhat

economicrecoverywasstillnoticeablyabsent.76

WhiletheFederalGovernmentwastestingdifferentprogramstobringreliefand

recoverytothenation,GraysonCountyofficialscontinuedtoapproachtheproblemin

thesamewaytheyhadbefore:throughretrenchment,consolidationandmaintaininga

balancedbudget.Althoughthetaxratewasraisedin1933from$.80to$.85per$100

valuation,theadditionalrevenuewasdedicatedtothecounty’ssinkingfundtosupport

bondedindebtednessandnottostartnewreliefmeasures.Thefollowingyear,the

CountyCommissioners’Courtannouncedthatit,

stoodpatonthecountytaxrate,agreeingtocutexpensestotheboneratherthanaddtothepresentrateof[$.85].Insettingthatrate,however,consensuswasthatitwasgoingtoproveastrenuousyearasvaluationsdroppednearly

76Leuchtenburg,FranklinD.Roosevelt,69(secondquote),70;ShermanDemocrat,January1,1934,1(firstquote);January15,1934,5.

55

$1,000,000andthecountyhastheaddedexpenseoftheGraysonCountyPark.The[$.85]rateis[$.08]lowerthanin1930,thoughtherehasbeena$12,000,000dropinvaluationssincethattime.

Aspromised,expenseswerecutwhereverpossible.TheShermanSchoolBoard

managedtoloweritsbudgetfrom$151,710to$142,430forthe1933‐34schoolyearby

firingseventeachers,and,beginningonJanuary1,1935,thecombinedofficesof

Grayson’staxcollectorandassessorpaidapproximatelythesameasthemaximumfor

justoneoftheofficesthepreviousyear.77

DuringtheFirstNewDeal,asthecitizensofGraysonCountyreceivedurgently

neededrelieffromseveraldifferentgovernmentprograms,someeconomicgrowth

appeared.Retailsalesshowedanincreaseinthecountyfrom$9,373,000in1933to

$12,788,000in1935,andbuildingpermitsinShermanincreasedduringthesamethree

consecutiveyearsfrom$52,284to$112,117to$364,517.Bythebeginningof1934,as

unemploymentinDenisondecreased,policeandrailroadagentsreportedseeingfewer

transients,andtherewasadeclineinmajorcrimesinShermanfortheyear.Awriterfor

theShermanDemocratwasundoubtedlycorrectwhenhesaid,“therewerehappier

heartstowelcometheNewYearwhen1934arrivedthanoneyearago.”78

However,whiletheFirstNewDealdidgiveaidtoindividuals,thefundamental

weaknessoftherecoveryeffortlayinthededicationofgovernmentofficialsatalllevels

77DallasMorningNews,September1,1933,12;September1,1933,12;August10,1933,8;August19,1934,9(quote);ShermanDemocrat,January15,1934,4.78TexasAlmanac(1936),338,339;TheTexasAlmanacandStateIndustrialGuide:SupplementaryEditionof1937(Dallas:A.H.Belo&Co.,1937),32,36;ShermanDemocrat,January1,1934,8(quote);January5,1934,10.

56

toeconomicconservatism:reducingorlimitingexpenditurestokeepdeficitsdown.

Withoutadependableoruniformsystemtoincreaseconsumerspendingandbusiness

investments,onlyenoughreliefwasprovidedtokeeppeoplefromstarvingasthe

economyshowedslowrecovery.79

Atthenationallevel,bothRooseveltandRayburn‘sdedicationtoeconomic

conservatismisevidentinthefirstactsenttoCongressbythePresident(followingthe

BankingBill),whichwasa“CoolidgelikeEconomyBill,whichwouldcutgovernment

salariesby$100million,veterans’benefitsandthemilitarybudgetby$300millionand

variousfederalspendingprogramsby$200million.”Thebill,introducedintheHouse

ontheseconddayoftheemergencysessionofCongress,March10,wasdefeatedby

fourteenvotes.TheDemocraticSpeakerandFloorLeaderturnedtoRayburnforhelp

becauseofhispopularityandinfluencewiththemembersoftheHouse.Hetooktothe

floorandtoldtheHousethatitwastheirdutytosupportRoosevelt’semergency

measure,saying“myprogram,yourprogram,isnothere.Buttheprogramoftheman

towhomthepeopleoftheUnitedStatesareandmustbelookingtodayisbefore

Congress.Andwhatarewegoingtodowithit?”Thebillpassedonitssecondtry,266

to139.80

LuckilyforthecitizensofGraysonCountyandtherestofthenation,both

RooseveltandRayburnpossessedapragmatismthatsupersededanyideology,allowing

themflexibilityintheirresponsetothenoveleconomiccircumstancebeforethem.79Leuchtenburg,FranklinD.Roosevelt,70.80Steinberg,SamRayburn,104‐105,108(firstandsecondquote).

57

Therefore,whentheinadequaciesofthegovernmentconsolidationandbalanced

budgetapproachesbecameevident,bothmensupportedfederalinterventionto

providerelieftounemployedindividuals,largelythroughtheFERA,CWA,PWAandCCC.

Nevertheless,alloftheseprogramshadtheirflaws.

TheFERAprovidedbarelyenoughmoneytoindividualstogivethemrelief,but

notnearlyenoughtoaidintherecoveryeffort.Whileeachperson’ssharewasscant,

thetotalbillforthenationalgovernmentwassubstantialenoughthatRooseveltdidnot

supporttheprogramforverylong,especiallysincemostofthemoneywasdistributed

onthedole.Oftheworkreliefmeasurestried,theCWAwasprobablymosteffectiveas

itrequiredanddistributedhugesumsfromthefederalgovernment.Indeed,duringthe

program’sbrieftenureinthewinterof1933‐34,GraysonCountyreceivedasubstantial

amountofworkandfunds,leadingonecitizentoassert

There’slotsofChristmasspiritmanifestedinDenisonthisyear…ThereisagreatdealmoreChristmasshoppingthanlastyear.DenisonpeoplearealmostunanimousinsupportingPresidentRoosevelt.Theybelievehe’sdoingeverythinghecantorelievethesituationandthathehasmadeprogress.TheC.W.A.hastakenmanyDenisonpeopleoffthereliefrolls.

Unfortunately,thecostofcontinuingtheprogramwastoomuchforRoosevelt,andit

onlylastedaboutfourmonths.ThePWAwasnotallocatedenoughmoneyandits

director,SecretaryIckes,wastoocarefulandslowfortheprogramtobringeconomic

recovery.AneditorfromTheEconomistwasnotfaroffwhenhestatedoftheprogram,

Itsnetresulthasbeentorestoretheaverageexpenditureonpublicconstructiontoabout60percent.[sic]ofitspre‐depressionlevel.Inthesecircumstances,itwouldbeidletolookfortheeffectswhichhavebeentheoreticallypredicatedfor

58

apolicyofincreasingpublicworksexpendituresintimesofdepression.TheplaintruthisthatintheUnitedStatespublicworkshavenotbeenincreased;theyhavemerelybeenpreventedfromfadingaltogetheraway.

Andfinally,whiletheCCCwasanunequivocalsuccessasareliefmeasure,theamount

ofmoneyitputintocirculationmadeiteffectiveonlyasasupplementtotheeconomic

recoveryeffort.81

Theideologythathinderedprogresstowardeconomicrecoveryinthenational

governmentwasevenmorerigidlyespousedbythegoverningofficialsinTexasand

GraysonCounty.AlthoughGovernorFergusontriedtoadoptastatesalesorincome

tax,thelegislaturewouldonlycutappropriations.InGrayson,officialswereso

dedicatedtotheideaofabalancedbudgetthatthetotaldebtofthecountyincreased

from$3,204,434in1932to$3,205,437in1935,adifferenceof$1,003.Thus,the

federalgovernmentwasbeingsappedofitsmoneyonreliefeffortsbyastateand

countywhoseowncontributionswerepaltryatbest.Ofthe$101,049,987Texas

receivedfromtheFERAbetweenMay1933andDecember1935,$74,590,240came

fromthefederalgovernment,$17,796,008wasfromtheState,and$8,663,739from

localfunds.GraysonCounty’s$1,096,642shareoftheFERAalsocamemostlyfromthe

NationalGovernment($783,249),withtheStateandcountycontributingsignificantly

less($168,646and$144,747,respectively).82

81DallasMorningNews,December20,1933,10(firstquote);Leuchtenburg,FranklinD.Roosevelt,70(secondquote).82Campbell,GonetoTexas,387;FinalReportofFERA,iii,287,288.

59

ByMarch1935Texashadsome282,808personsonworkrelief,withGrayson

Countycontributing4,705.TheworkprogramsandtheNRAhadallfailedtobring

recoverytotheeconomy,orsubstantiallyincreasedinvestmentorconsumerspending.

TheFERAwastobeginitsliquidationwithintheyearandattacksontheconstitutionality

oftheAAAhadalreadybegun,meaningtherewouldbelessreliefmoneyincirculation

soon.BecausetheofficialsinGraysonCountyandTexaswereideologicallyincapableof

generatingtherevenuetoalterthecourseoftheeconomy,theimpetusforchange

restedonthefederalgovernmentandtheleadershipofRoosevelt.Forthemillionsof

peoplethroughoutthenationwhowereunemployedoronworkrelief,thecrucial

questionwas,wouldthePresidentchoosetodomore,orless?

60

CHAPTERIV

THESECONDNEWDEALINGRAYSONCOUNTY,1935‐1939

PresidentRoosevelthasaprogramandhehasthecourageandabilitytocarryitout.AfterthedarkestperiodinAmericanhistoryheappeared.Underhisleadershipandstatesmanship,thesunshineisbreakingthroughtheclouds,themistsareclearingawayand,underGod,wewillagainliveinalandwherethereisfairplay,honestyindealings,whereprosperityandpeacewillcometoremainamongallourpeople.

‐SamRayburn

DuringthesweepingNewDealprogramsof1933,Rooseveltreceivedverylittle

publiccriticismthroughoutthenationasitturnedtoitsleaderforameliorationfromthe

GreatDepression.But,ascongressionalactionslowedin1934,conservativeandliberal

detractorsbegandenouncingthePresident’shandlingoftheeconomiccrisis.83

Ontheright,theAmericanLibertyLeaguewascreatedin1934,composedof

conservativebusinessandpoliticalleaders,withnorthernindustrialistsmakingupthe

majority,especiallyexecutivesfromGeneralMotorsandDuPont.Thisgroupargued

thattheNewDealwasviolatingpersonalandpropertyrights,makingtheNational

GovernmentandExecutivetoopowerfulandexpensive,andcreatingaworkingclass

whofeltentitledtowelfare.Practicallyspeakingthough,theleague’sprimaryconcern

83Campbell,GonetoTexas,388.

61

wasthattheheretoforeunchallengedauthorityofbusinesswasbeingencroachedupon

bylaborunionsandthefederalgovernment.84

Thecriticismfromtheoppositeendofthespectrumwasfromliberalswho

claimednotenoughwasbeingdonetohelptheunemployed,poor,andelderly.This

factionwasfarmorethreateningthantheconservativesforRooseveltbecausethe

socialpanaceasofferedbyitsleadersdrewmanymoresupportersfromthemillionsof

AmericansstilldestitutefromtheGreatDepression.Indeed,theradicalviewsofFather

CharlesE.Coughlin(theRomanCatholic“radiopriest”),Dr.FrancisE.Townsend(who

calledfor$200permonthforeverypersonover65),andLouisianaGovernorHueyP.

LongposedaseriousthreattoRooseveltby1935,especiallythelatterwhoclaimedas

manyas7.5millionsupportersthroughhis“ShareOurWealth”program.Long’sappeal

particularlyconcernedRoosevelt,whodescribedhimtoanaideas“oneofthetwomost

dangerousmeninthecountry”85

Also,in1934violentstrikeseruptedthroughthenation,frommajorcitieslike

Milwaukee,PhiladelphiaandNewYork,tofarmersinCaliforniaandNewJersey.Most

84Kennedy,FreedomFromFear,214;Campbell,GonetoTexas,388;Leuchtenburg,FranklinD.Roosevelt,92,177.85Kennedy,FreedomFromFear,219,224‐225,227‐228,238‐240,275;Campbell,GonetoTexas,388;Leuchtenburg,FranklinD.Roosevelt,96(quoteintext),99(quoteinfootnote).Long’s“ShareOurWealth”programentailedconfiscatingallpersonalfortunesaboveacertainamounttoredistributetoeveryfamilyasa$5,000cashgrant,everyworkeras$2,500annually,theelderlyaspensions,veteransasbonuspay,andallqualifiedstudentstoguaranteeacollegeeducation.Whenitwaspointedoutthatthefiguresofhisplandidnotaddup,herespondedtoarallyoffarmersinDesMoines,“MaybesomebodysaysIdon’tunderstandit.Well,youdon’thaveto.Justshutyourdamnedeyesandbelieveit.That’sall.”WhenRooseveltwasaskedbyhisaideiftheothermostdangerousmaninthecountrywasFatherCoughlin,thePresidentresponded,“Oh,no,theotherisDouglasMacarthur.”SuchanassertionwouldprobablybesupportedbyRoosevelt’spredecessorTrumansomeyearslater.

62

ofthesewereledbyavowedcommunists,andincludedthelargestsinglestrikeinU.S.

historybythetextileworkers,whichbeganonLaborDay.Thesixteen‐daystrikeclosed

theindustryinsometwentystatesandwasaccompaniedbyviolenceasstategovernors

andbusinessmenbroughtintheirownforcestorestoreorder.Findingitself

outmanned,theunionlost,for“afewhundredfunerals”asstatedinonetextilejournal,

“willhaveaquietinginfluence.”Byandlarge,theactionsofantiunionconservative

industrialistsdroveworkerstobecomeandsupportradicalleftists,creatingclass

animositywithRooseveltstuckinthemiddle.86

DuringthemidtermcongressionalelectionsinNovember1934,inavirtually

unprecedentedvictoryforthepoliticalpartyinpower,theDemocratsincreasedtheir

numbersinbothhousesofCongress,withtheRepublicanshavingthelowest

percentageofseatsintheHouseintheirhistory,andtheDemocratsclaimingthe

greatestmarginintheSenate(gainingninetototalsixty‐nineseats)fromeitherpartyin

thehistoryofthatbody.Thisvictoryforleft‐leaningliberalsandRoosevelthelpedlead

thePresidenttodecidetodomoreinthenameofreliefandrecovery,saying“I’m

fightingCommunism,HueyLongism,Coughlinism,Townsendism”inorderto“saveour

system,thecapitalistsystem,”fromsuch“crackpotideas.”ThusbegantheSecondNew

Deal,whichmeantmoregovernmentinterventioninthelivesofeverydayAmericans,

andatransformationofthefaceofGraysonCounty.87

86Leuchtenburg,FranklinD.Roosevelt,111‐112,113(quote),114.87TindallandShi,America,1142,1146(quote);Campbell,GonetoTexas,388;Leuchtenburg,FranklinD.Roosevelt,116.

63

Tobringworkrelieftotheunemployed,onApril8,1935theEmergencyRelief

AppropriationActwaspassed,whichcreatedtheWorksProgressAdministration(WPA)

andprovided$4.8billionfornewfederaljobprograms,markingthesinglelargest

appropriationinthehistoryoftheU.S.oranyothernationtothatpoint.Roosevelt

madeHarryL.HopkinsWPAdirector,andfromitsinception,itdistributedfarmoreto

thepopulationinfederalworkprogramsandpaymentstorecipientsofpublicassistance

thananyotherNewDealprogram.From1936to1940itdispersedannuallybetween40

and60percentofallfederalaid,withthenexthighestgovernmentexpenditurecoming

fromeithertheGeneralRelieffundorold‐ageassistanceprogram,andneitherofthem

accountedformorethan20percent.88

Hopkin’sinstructionsfromthePresidentweretoprovidejobsasquicklyas

possible,withworkersreceivingmoremoneythaniftheywereonthedole,butless

thanregularwages(thisamountedtoabout$50amonth,twicewhatthedolepaid)so

theprogramwouldnot“encouragetherejectionofopportunitiesforprivate

employment.”AlthoughsomeoftheworkdonebytheWPAwasforenduringstructure

(suchasbuildings,hard‐surfaceroads,bridges,airportsandschools),becauseofthe

rapiditywithwhichHopkinshadtoemployseveralmillionpeople,andthefactthathis

88Kennedy,FreedomFromFear,252‐257,349;Leuchtenburg,FranklinD.Roosevelt,125;WilliamD.Pederson,PresidentialProfiles:TheFDRYears(NewYork:FactsonFile,Inc.,2006),281;TheodoreE.WhitingandT.J.Woofter,Jr.,SummaryofReliefandFederalWorkProgramStatistics,1933‐1940(Washington:UnitedStatesGovernmentPrintingOffice,1941),26‐27.Theprogramslistedare:WorksProjectsAdministration;NationalYouthAdministration;CivilianConservationCorps;PublicWorksAdministration;CivilWorksProgram;OtherFederalagencyprojects–emergencyfunds;Specialtypesofpublicassistance(old‐age,dependentchildren,blind);Generalrelief;FederalEmergencyReliefAdministrationspecialprograms(transient,emergencyeducation,collegestudentaid,ruralrehabilitation);andFarmSecurityAdministration.

64

programcouldnotcompetewithprivateindustry,manyofthenewjobsweremake‐

workoflittlelastingvalue.89

InordertoensurethattheWPAwasoperatedasefficientlyaspossible,Hopkins

separatedthecountryinto307workreliefdistricts,with20locatedinTexas.One

administratorwaschosenfromeverystate(H.P.DroughtofSanAntonioforTexas)to

reportdirectlytoHopkins,withadirectorfromeachdistrictreportingtothestate

official.Thedistrictdirectorinturnhiredcommissionersfromwithintheirterritoryto

serveonalocalWPAboard,whichwasresponsibleforinvestigatingapplicationsfor

projects,certifyingthebasisofneedoftheclaimant,proposingjobstothedirector,and

theplanningandprosecutionofthework.Dallaswaschosenastheheadquartersfor

DistrictNo.4ofTexas,whichencompassedtwelvecounties,includingGrayson,meaning

bothweremanagedanddirectedbythesamedistrictdirectorandthelocal

commissioner’sboard.WhileinWashington,Rayburnwasnotifiedbyaconstituentthat

allDistrictNo.4’slocalWPAboard’scommissionerswerehiredfromDallasoverseveral

applicantsfromhisownFourthCongressionalDistrict.HeimmediatelycalledtheWPA

directorfortheregion:

‘Youdon’tknowme,butIamSamRayburnandyouhavegotallmydistrictinyourorganizationdownthere.Iwouldliketohavealistofthepeopleyouhaveworkinginthatoffice.’Theadministratorreplied,‘Why,Mr.Rayburn,Ican’tgiveyouthatinformation.’TheconversationcontinuedbrieflybeforeRayburnsaid,‘Iwanttotellyousomething.Iwantthatlistbywireonmydeskbythreeo’clockthisafternoon.Nowifitisnotthere…don’tyoubotheraboutgoingtoworkMondaymorningbecauseyoudon’tworkthereanymore.’HethencalledHarryHopkins,atopRooseveltaidewhorantheWPA,andsaid,‘Harry,Ihavejust

89TindallandShi,America,1126;Leuchtenburg,FranklinD.Roosevelt,124(quote),125.

65

talkedtosomedamnfellow…withtheWPA…Hehasallmydistrict,buthehasnothiredanyofmypeople.IcussedhimoutandItoldhimthatifIdidnotgetalistofpeoplethathehadbythreeo’clockthisafternoon,hewasfired.NowareyougoingtobackmeuporamIgoingtoRoosevelt?’

HopkinsbackedRayburn,andhegothislistbythree.90

WiththehelpofSamRayburn,GraysonCountyreceiveditsshareofWPA

projects,bringingnotonlyjobs,butalsopermanentimprovementstothearea.This

wasespeciallyimportantgiventhemagnitudeoftheprogramanditsimmediate

objectiveoftransferringsome3.5millionemployablepeoplefromgeneralrelieftowork

reliefjobs.WhentheprogramofficiallystartedinJuly,TexasPWAadministrator

Droughtestimatedthattherewere147,387employablepersons(including26,863

women)inthestateonthedoletobeputintogainfulemployment,withGrayson’s

DistrictNo.4claiming16,533menand3,663women.91

MuchliketheCWA,theWPAwashighlyanticipatedandbroughtworkat

breakneckspeed.OnMonday,July8,1935,theGraysonCountyCommissioners’Court

announcedthatataspecialsessionovertheweekendthatbodyhadadoptedamaster

lateralplantoblacktop103.1milesinthecounty.Thisfigurehadincreasedto172.95

milesbytheendofAugustina“rushordersoughtbytheWPAtomeetarequestfrom

Washingtonofficialsthatprojectsbeprovidedtoemployallavailableunemployedmen

90WhitingandWoofter,SummaryofReliefandFederalWorkProgramStatistics,11,12;Champagne,CongressmanSamRayburn,44(quote);DallasMorningNews,May25,1935,1,2.DistrictNo.4includedthecountiesofGrayson,Fannin,Lamar,Collin,Hunt,Delta,Hopkins,Dallas,Rockwall,Kaufman,VanZandtandRains.91WhitingandWoofter,SummaryofReliefandFederalWorkProgramStatistics,12;DallasMorningNews,May25,1935,1;August,8,1935,1.

66

foroneyear.”Therequesttofindworkprojectswasnotdifficultforcountyofficialsto

meetasjustoneweeklateritwasannouncedthat,withtheapprovalofanadditional

$4millionworthofwork,DistrictNo.4directorGus.W.Thomassonhadapproved$23

millionworthofWPAconstructionprojectstogotoStatedirectorDrought.Ofthe$4

million,GraysonCountyhadsubmittedthesecondlargestitem(behindDallas)fora

roadimprovementprogramcallingfortheexpenditureof$1million.Thesameday

districtdirectorThomassonwassendingtentativeprojectplanstoSanAntonioforstate

approval,DroughtsenttoWashington238projectshehadapprovedinTexas,askingfor

$2,039,690infederalfunds.Ofthis,twelvewereforprojectsinGraysonCounty,

primarilyonroadworkamountingto223.19man‐yearsworthoflaborandafederal

expenditureof$121,406.21.92

Despitesuchlargeprospects,whiletheFederalGovernmentwasspending,

GraysonCountyofficialswerescramblingforasmuchmoneyforconstructionas

possible.AlthoughregulationsweresetbytheWPAlimitingcountyprojectamounts

(whichinGraysonwassetat$600perman‐year),byAugust1935,severalattemptshad

beenmadebyJudgeJakeJ.LoyandtheCommissioners’Courttohavethesum

increased.Withtheireffortscontinuouslythwarted,theywaiteduntilCongress

adjournedtoseekhelpfromareliablesource,asindicatedbyanarticleintheDallas

MorningNewstitled“SeekLargerAllotmentforGraysonProjects:”

CongressmanSamRayburnThursdaypledgedhissupporttoGraysonCountyinanefforttosecureanenlargementoftheWPAper‐man‐yearallotmentto

92DallasMorningNews,July9,1935,3;August29,1935,9(quote);September6,1935,1,10,14.

67

provideforblack‐toppingonmajorcountylateralroads,JudgeJakeJ.LoytoldtheCommissioner’sCourtFridayevening.JudgeLoyandH.M.Scot,countyengineer,wenttoBonhamThursdaynighttoconferwithMr.Rayburn…Mr.RayburntoldtheGraysonCountyrepresentativesthathewasgoingtoSanAntoniothisweekendandwouldconferpersonallywithH.P.Drought,StateWPAadministrator,inregardtohavingtheGraysonCountyallotmentincreased,JudgeLoysaid.93Thesumwasincreased,andbylateOctober,197menfromGraysonCountyhad

startedworkona$107,000streetimprovementprojectinShermantorununtilJuly1of

thefollowingyear,andanother16menwereimprovingtheTiogaHighschooland

athleticfield.Tothatpoint,atotalof$1,565,038worthofWPAprojectshadbeen

approvedforGraysonsincetheprogramstartedsomethreemonthsprior.Beforethe

yearended,severalmorecontractsweregrantedpresidentialapproval,raising

Grayson’sWPAtotalallotmentsubstantially.Notsurprisingly,theWPA,liketheCWA

duringitsshorttenure,receivedhighpraisefromcountyofficials:

GraysonCountyisexceedinglyluckyinhavingsuchavastlateralroadprojectapprovedatWashingtonthroughtheWPA.Suchaprojectwillundoubtedlybeofbenefitforgenerationstocome.OurCommissioners’CourtatShermanisinlineforcongratulationsandthanksforsubmittingsuchprojects.TheProjectcallsforatotalof220milesofall‐weatherroad.Someoftheroadswillbeblacktopped,whileotherswillbeoflessermaterial.Inanyevent,GraysonCountywillhaveoneofthemostmodernandefficientroadsystemsofanycountyinTexas.Graysondeservesitsgoodfortune,oritsprospectivegoodfortune.Itisaheavilypopulatedcounty,withtwofinelittlecitiesandadozenprosperoustowns.Itsfarminglandsarerich,itspasturesgreen,itscitizenslawabidinginthemain.TheroadsWashingtonishelpingtobuild,andotherdurableimprovementssimilarlyfinanced,willbeonhandandinusealongtimeafterthenewdeal

93Champagne,CongressmanSamRayburn,28;DallasMorningNews,August,10,1935,12;September15,1935,13(quote).Akeycharacteristicof“theRayburnstyle”ofbeingaRepresentativewasthatwhenhewasathishomeinBonhamhishousewasalwaysopentoconstituents,atraitthatkepthimasbusyonvacationaswhenhewasatworkinWashington.

68

administrationretires.Thatadministrationwillleavemonumentswhich,iflessdurablethanthePyramids,willbemoreuseful.94TheWPAbroughtimmediaterelieftothenation,asamonthlyaverageofnearly

2.7millionpersonshadjobsonworkprojectsbyDecemberof1935,includingthemore

than10,000formerdoleclientsinDistrictNo.4.Astheprogramcontinuedtoexpand,

thetotalpersonsemployedbytheWPAreached3millioninFebruary1936,with1,600

menandwomenonfederalprojectsinGraysonCountyalone.However,asthe

economybegantoimprove,Rooseveltagainbegantoreducespending,andinthenext

yearandahalf,thenumberofpersonsemployedbytheWPAdeclinedby50percent

untilautumnof1937whensome1.5millionpersonsretainedworkintheprogram,the

lowestinthe1936‐1940period.Onlythreemonthsaftertheprogramhadreachedits

pinnacleinFebruary1936,astate‐widereductionof10percentofallWPAemployees

sentthenumberoffamiliesinGraysonapplyingtothecountywelfareboard

skyrocketing,withnewapplicantsdailyand1,000familiesreceivingthedolebyMay1.

BytheendofJuly,ofthe2,119GraysonCountycitizenscertifiedtoworkbytheDallas

WPAoffice,only839wereemployed.WhiletheWPAhiredsome1,600personsin

GraysonCountyaloneinFebruary1936,twoyearslateritwasreportedthattherewere

1,800workersemployedbytheprograminGraysonandFanninCountiescombined.95

94DallasMorningNews,October22,1935,11;November,1,1935,1;November2,1935,11;November4,1935,4(quote).ProjectsapprovedinGraysonCountyaftertheOctobertotalof$1,565,038include,butarenotlimitedto:constructionofa90,000‐gallonwaterreservoiratWhitewrightfor$3,080;streetimprovementinWhitewrightfor$23,721;streetpavinginDenison,$50,685;andstreetpavingandimprovementsinVanAlstyne,$55,235.95WhitingandWoofter,SummaryofReliefandFederalWorkProgramStatistics,12;DallasMorningNews,November20,1935,2;May4,1936,5;July31,1936,14;February16,1938,12.

69

ThePWAcontinuedtooperatealongsidetheWPAduringtheSecondNewDeal,

buttheprogram’sshortcomingswereevenmoreevident.Itwouldbeunfairtoplace

theinadequaciesoftheprogramsquarelyonInteriorSecretaryHaroldIckes,forthe

PWAwasfinancedlargelybyappropriationsfromotheragencies,whichmeantthrough

theWPAallotmentafter1935.ThiswasespeciallyproblematicforIckessinceheand

Hopkinshadgottenintoa“no‐holds‐barredfight”forcontrolofthenearly$5billion

Congresshadapportioned.Hopkinshadwonoutbecausehisapproachoftransferring

asmanypeopleaspossibletoworkrelieffromthedolehadgreaterappealtoRoosevelt

thanIckes’plantorevivetheeconomythroughmajor,well‐thought‐outpublicworks

projects.Thus,thePWAfacedseriouslimitations,whichwereexemplifiedinGrayson

County.96

OnJuly26,1935,anarticletitled“ShermanHopeforPWAFundsisBrightened,”

statedthatcityofficialsofShermanweretoldbytheStatedirectorofpublicworks

JulianMontgomery,that,“ifthepeopleofShermanwanttheprojectsbadlyenoughto

votebondsforthemIcanseenoreasonwhytheyshouldnotbegivenaPWAgrantto

completethetask.”Thiswasinregardstothreemajorprojectsthecityhadappliedfor

whichwereapprovedbythestateandinWashingtonatthenationaloffice:a$90,000

waterreservoir($50,000loanand$45,000grant);a$45,000swimmingpool($25,000

loanand$20,000grant);anda$100,000auditorium($55,000loanand$45,000grant).

Shermanofficialsweretoldthatoncethecityheldavoteforbondstocovertheloans,96WhitingandWoofter,SummaryofReliefandFederalWorkProgramStatistics,14;Leuchtenburg,FranklinD.Roosevelt,125(quote).

70

thePWAofficeinWashingtonwouldgrantapproval.Suchbrighthopesweredashedby

theendofAugust,asaDallasMorningNewsarticleexplained:

Thirty‐ninePWAprojectapplicationsfromTexas,approvedbyPWAAdministratorHaroldL.IckesandlaterrejectedbyWorksProgressAdministratorHarryL.Hopkins,havebeenreturnedtotheapplicantsbyIckesformodificationofprojectplanstomeettheobjectionsraisedbyWPA[sic]…InrejectingtheTexasapplications,thereasongiveninmostcaseswasthattheunitofcostpermanyearwastoohigh.Insufficientnumbersonreliefrollsfromwhichlabormightberecruitedwasanotherreasonoftencited,especiallyintherejectionofprojectsfiledbysmallruralcommunities.

IncludedinthelistofrejectedprojectsweretheShermanprojects.97

Undeterred,theCityCommissionersheldabondelectioninDecemberand

Shermanresidentsvoted3to1insupportofthemunicipalimprovementplans,which

calledforatotalof$125,000intaxbondstobematchedby$121,250infederalgrants.

Wantingtoensuretheproject’ssuccess,fivecityofficialsvisitedRayburnathishomein

Bonhamjustafewdayslater,anditwasreportedthathesaidtheprojects“areonthe

preferredlistinthepublicworksadministrationofficeatWashington.”Despitesuch

assurances,whenthenextPWAallotmentsweremadeinJuly1936for352projects

throughoutthecountry,IckesannouncedthatTexas’s425worksprojectswere

completelyomittedbecausethestatehadinsufficientskilledrelieflabor.Sherman

officials“anxiouslyawaitingallocationofPWAfundsforwaterworksandcivic

auditoriumprojectsexpressedastonishment”atthefindingsinceofthe2,119Grayson

Countyresidentsonreliefrollscertifiedasavailableforwork,only839wereemployed.

97DallasMorningNews,July26,1935,6(firstquote);August24,1935,6;August31,1935,6(secondquote).

71

Finally,inApril1937auditoriumproject“wasassuredwhenwordwasreceivedfrom

CongressmanSamRayburnthatthepublicworksadministrationandthePresident”had

“approvedagrantfortheproject.”WhenthefundingwasreleasedinOctober,the

federalallotmenthadtoberaisedby$12,292tocompensatefortheincreaseinbuilding

costssincetheprojectwasoriginallyapprovedinDecember1935.Thefederalgrantfor

thecity’swaterworksandswimmingpoolprojectswereapprovedinAugustofthatyear

andfundswerereleasedinJanuary1938.98

AlthoughtherewereotherPWAprojectsthroughoutGraysonCountythatwere

carriedoutwithconsiderablylessheadacheforlocalgovernmentofficials,theprogram

wasstillbesetwithredtape.Thisisunderstandablewhentheamountoffundsitwas

allocatedistakenintoconsideration.AlthoughthePWAaccountedfor10.1percentof

allfederalaiddispersedin1935,thefiguredecreasedannuallyto8.45percentin1936,

6.65percentin1937,andtoalowofjust3.65percentin1938.Indeed,unfortunately

forIckes,localgovernments,andskilledcontractors,Rooseveltwasunconvincedofthe

benefitsoftheindirectbenefitsindividualsreceivedfromlarge‐scalepublicworks

projects.99

Overall,theWPAandPWAdidbringrelieftotheunemployedthroughoutthe

countrywhilekeepingtheworkethicalive.Thefarlargerofthetwoprograms,the

98DallasMorningNews,December15,1935,15;December27,1935,13;December28,1935,6;December31,1935,9(quote);July29,1936,4;July30,1936,9;July31,1936,14;DallasMorningNews,April12,1937,4(quote);August25,1937,12;September1,1937,3;October26,1937,3;January11,1938,7.99WhitingandWoofter,SummaryofReliefandFederalWorkProgramStatistics,26‐27;Leuchtenburg,FranklinD.Roosevelt,133.

72

WPA,gavejobstosome3millionunemployedpersons,totalingabout9millionclients

from1935to1943,600,000ofwhomwereTexans.However,despitehisdecisionto

“domore”tohelptheunemployedandstealthethunderfromtheradicalsontheleft,

Rooseveltretainedhisbeliefthat“theFederalGovernmentmustandshallquitthis

businessofrelief.”Ofthenearly$5billionallottedtotheWPA,Hopkinsendedupwith

only$1.4billionbecausethePresidentsplitthetotalamongseveraldifferent

governmentagencies,thusnegatinganychanceofgivingjobstoallablebodied

persons.Theapproximatelythreemillionunemployedpersonsreceivingworkfromthe

WPAatanyonetimeamountedtoapaltrysumcomparedtothetenmillionjobless,

especiallyconsideringtheprogramaccountedforthelions‐shareofgovernment

expendituresinfederalaid.100

AnotherproblemwiththeWPAwasthat,whileitgaveworkersnearlydouble

whattheyhadreceivedonthedole,inorderfortheprogramtopaysuchhighwages

Roosevelthadtotakesometwomillionpeopleoffoftherelieftheyhadreceivedunder

theFERA.These“unemployables”wereturnedbacktostateandlocalgovernment

charitiesthatwereoftenunabletohandle,andsometimesevenapathetic,totheir

plight.Becausethismeantthatthosepeoplewhocouldnotwork,suchasdependent

100Kennedy,FreedomFromFear,253‐254,349;Campbell,GonetoTexas,388;Leuchtenburg,FranklinD.Roosevelt,124(quote),130.AnexampleofthewidebreakupoffundsfromtheEmergencyReliefAppropriationsActtootheragencieswastheDepartmentofAgriculture,whichreceived$800million.

73

childrenandtheold,disabledandsick,wereoftenlefttofendforthemselves,theSocial

SecurityActwaspassedonAugust15,1935.101

TheSocialSecurityAct,whichRooseveltcalledthe“cornerstone”and“supreme

achievement”oftheNewDeal,createdtheSocialSecurityBoardtoadministerthe

threepartsoftheprogram.Thefirstandmostimportantwastheold‐ageinsurance,a

federalprograminwhichretiredpersonssixty‐fiveyearsorolderreceivedmonthly

pensions,paidforbytaxesonworker’swagesandemployer’spayrollwithindividual

compensationvaryingbasedontheperson’sincome.Rooseveltemphasizedhis

intentionthattheprogramwasnottoensureaneasyretirement,butwasmeantasa

supplementarysourceofincomesotheelderlywouldnotbeatthemercyofthe

“hazardsandvicissitudesoflife.”Thus,whenpaymentsfirstbegan,theiraverage

throughoutthenationwasjust$22permonth,afairlysmallamountevenduringthe

Depression.102

TheothertwopartsoftheSocialSecurityActrequiredstategovernmentsto

expandupontheirsocial‐welfareservices.Onegavefederalgrants‐in‐aidonamatching

basistostatesfor“unemployables,”orthosepersonsnotabletowork,including

personsoversixty‐fivewhowerenotincludedintheold‐ageinsuranceprogram(farm

laborers,domesticworkersandtheself‐employedwerenotcovered),dependent

children,andtheblind.Theotherwasforamandatoryunemploymentinsuranceplan,

101Leuchtenburg,FranklinD.Roosevelt,124,130,132.102Leuchtenburg,FranklinD.Roosevelt,132‐133;TindallandShi,America,1147(firstandsecondquotes);Campbell,GonetoTexas,389;WhitingandWoofter,SummaryofReliefandFederalWorkProgramStatistics,1.

74

jointlycoveredbyacombinednational‐stateplanandfinancedthroughataxon

employer’spayroll.103

FederalfinancingoftheSocialSecurityActbeganduringthefiscalyear1936as

grantstotheFERAwerebeingdiscontinuedinordertoliquidatetheprogram.Although

thecitizensofTexaswerequicktopassaconstitutionalamendmentapprovingoldage

insurance,thestate’slegislaturemovedslowlyonallpartsoftheprogram.Indeed,

GovernorJamesV.Allredwasrequiredtoassembletwospecialsessionsofthe

legislaturetoputtheoldagepensionplanintoeffect,anditwasnotuntillate1936that

therequisitelawswerepassedfortheunemploymentinsuranceprogram.Still,when

theprogramdidgointoeffectinTexas,itprovedhighlybeneficialtothecitizensof

GraysonCountyandtheentirestatebyforcinglocalactioninincreasingindividual

relief.104

MorereliefmeasureswereindeednecessaryasGraysonCountyhad

approximately1,000familiesreceivingreliefasofMay1,1936,withthenumber

applyingtothecountywelfareboardincreasingdaily.TheMayallotmentfor

unemployablesinGrayson(totaling563families)fromtheTexasreliefcommissionwas

103Leuchtenburg,FranklinD.Roosevelt,130‐132;Campbell,GonetoTexas,389;Kennedy,FreedomFromFear,258‐270,272.104WhitingandWoofter,SummaryofReliefandFederalWorkProgramStatistics,8;Campbell,GonetoTexas,389.

75

only$4,180,or$7.42perfamily,downfromthe$11.41perfamilythecountyreceived

inApril.105

AlthoughaprojecthadstartedinFebruarytosetupWPAcommissariesin

Sherman,WhitesboroandDenisontodispensecannedfoodandflourtounemployable

families,theprogramwasalsosponsoredbytheTexasReliefCommission,andso

receivedinadequatefunding.Bymid‐Julyitwasevidentthesystemneededamajor

overhaulas“agedclientsarecomingasfarastwentymilestogetrationsfromSherman.

Someofthesearehitch‐hikingandarebeingforcedtowalkbackwithaheavyloadof

provisions.”Toamelioratethisproblemanewtruckingsystemwasproposed,inwhich

theWhitesboroandDenisoncommissarieswouldbeclosed,acountywarehousewould

beestablishedinSherman,andasystemoftruckswoulddistributefoodandclothingto

needyclients.AlthoughtheplanwasapprovedandaWPAcommoditytruckassured,by

mid‐Augustdelayedfinancescontinuedtoforestalltheprogram’sinaugurationand

countyofficialsweretoldnothingwouldbeavailableuntilafterSeptember1.

Furthermore,thesupervisoroftheShermancommoditywarehouses,JohnMoore,and

fourotherworkersagreedtoworkwithoutpayfortheremainderofthemonthjustso

thecommissariescouldremainopen.Inafortunateturnofevents,theGraysonCounty

Commissioners’Courtmanagedtorisetothepresentemergencywithinafewdaysand

furnishedtwotruckswhichallowedthehouse‐to‐housedeliverysystem.Bythe

followingweek,Mr.Mooreandhisfourworkershaddistributedtothenecessaryclients105DallasMorningNews,May4,1936,5.InApril1936GraysonCountyreceivedfromtheTexasreliefcommission$6,617.39inrelieffor580unemployables.

76

theprogram’sfirstroundoffood,albeitwithoutpaystill.Consequently,whenthefirst

meetingofGraysonCountyofficialsregardingtheSocialSecurityActwasheldinAugust

1936,itwasindeedwelcomed.106

By1938anaverageof1,902old‐agepersonsinGraysonCountyreceivedold‐age

pensioncheckstotaling$306,731fortheyear.Althoughthisamountedtojust$13.44

permonthperperson,farlessthanTownsend’sproposal,thiswasstillsufficientto

bringsomerelieffromtheDepression.Alsothatsameyear,GraysonCountyreceived

approximately$7,000forhospitalandmedicalattentionof66crippledchildren.This

wasoutofthe$300,000fundTexashadforsuchapurpose,whichwassplitbetween

appropriationsfromthestatelegislatureandthefederalgovernment.Last,inthefirst

threeyearsofitsexistencetheTexasUnemploymentCompensationCommission

collectedmorethan$41millioninjoblessinsurancefundsfromtaxesonpayrollsof

employers.Thus,in1938whenthecommissionpaidoutnearly$9millioninweekly

subsistencechecksto205,000personsoutofworkandqualifiedfortheprogram,a

cushionof$32millionremained.Therewere,however,some305,000claimsfiledfor

unemployment,meaningaround100,000personsdidnotreceiveaid,mostofthem

beingunprotectedunderthelaw,suchasagriculturalworkersanddomestichelp.Still,

despiteanyshortcomingsoftheCommission,“thefederalgovernment’sratingofTexas

asNo.1amongallstatesinefficiencyistestimonythemassivebookkeepingmachine

hasbeenrunningcomparativelysmoothly.”ThishonorwasaccordedtheCommission106DallasMorningNews,February2,1935,8;July18,1936,3(quote);August6,1936,3;August14,1936,3;August16,1936,8;August22,1936,4.

77

partlybecauseithadcreatedtheTexasEmploymentService,abranchofthe

administrationconcernedsolelywithhelpingtheunemployedfindwork.Costing

around$125,000amonthforoperatingwithaforceof760throughoutthestate,

ShermanandDenisonbothhadofficeswhichstaffedfiveandthreepersons,

respectively.Initsfirstyear,theShermanofficealonefoundworkfor2,481Grayson

Countycitizens,notincludingthemorethan3,000placementsintemporaryagricultural

worksuchaspickingcotton.107

Despitethesesuccessesandtheprogram’sdeparturefromthestatusquo,the

SocialSecurityActwasinnowayrevolutionaryandhadseveralseriousproblems.First,

itwasfundedconservativelythroughtheearningsofcurrentworkersratherthanfrom

generaltaxreturns.Thismadeittheworld’sonlywelfaresysteminwhichthefederal

governmentwasnotdirectlyresponsibleforthewellbeingoftheelderly,which,as

demonstratedinthecaseofGraysonCounty,meanttheyreceivedbarelyenoughto

survive.Also,theSocialSecurityActactuallyhinderedRoosevelt’sdesiretobring

economicrecoverysinceitstaxonwagestookcurrencyoutofcirculationtoputintothe

program’strustfund,decreasingthepurchasingpowerofconsumersandshrinkingthe

moneysupply.Andfinally,some9.5millionpersonsintheworkforcewereexcluded

fromtheSocialSecurityprogram,notablyfarmlaborersanddomesticservants,

occupationswhichweredisproportionatelyheldbyblacksandwomen.Still,eveninthe

faceofsuchshortcomings,whentheconditionoftheelderly,theunemployed,andthe

107ShermanDemocrat,January1,1938,2(quote);January1,1939,6;January8,1939,5.

78

unemployableinGraysonCountyarecomparedbeforeandafterthepassageofthe

SocialSecurityAct,suchweaknessesseemtolerable.108

Withregardtoagriculture,theSecondNewDealbroughtagreatervarietyof

reliefmeasures(withvaryingdegreesofsuccess)tomorediversegroupsthanhad

receivedaidinRoosevelt’sfirstfewyears.Ofcourse,oneoftheprimaryconcernswas

theongoingstrugglewithoverproduction.

TheAAAhadbeensobeneficialtolandlordsinGraysonthat,followingthe

destructionoftheprogrambytheSupremeCourt,farmersfromalloverthecounty

organizedforamassmeetingtoexpressoppositiontotherulingandcalledforan

immediatesubstitute.TheRooseveltadministrationrespondedbyreplacingitwiththe

SoilConservationandDomesticAllotmentAct,whichaimedatcropreductionthrough

conservation.Theprogrampaidfarmersfromfederalgovernmentfundsnottouseland

forsoil‐depletingstaplecropsandinsteadsowplantsandgrassesthatwouldenrichthe

soil,suchascloverandsoybeans.Thiswaspartoftheconservationmovement

permeatingthecountryduetotheduststormsthatturnedanareaoflandfromTexas

totheDakotasintoa“DustBowl”from1932to1936.Whenthesedirtcloudsmanaged

tomaketheirwayallthewaytoWashingtonin1935,turningtheskyacopperhue,

CongresscreatedtheSoilConservationServiceasapermanententityunderthe

AgriculturalDepartment,toteachfarmerspropertillingmethods.Rayburnwasalsoa

majorproponentoftheconservationmovementand,followingtheServicespassage,

108Kennedy,FreedomFromFear,262‐270;Leuchtenburg,FranklinD.Roosevelt,132‐133.

79

foughteasternerstryingtolimitfederalspendingontheprogramformorethantwo

decades,claiming,

Ifoursoilisnotfertileenough,ifthe30millionpeoplewholiveuponthefarmsofthecountrytodaydonothavedirtonwhichtheycanraiseacropandapricetosellitattogivethemabuyingpower,yourcitypeoplewillbewalkingthestreets,becauseyourfactorieswillbeclosed.109BylateApril,Grayson’sagriculturalAgentB.F.Gray(whohadheadedtheAAA)

wascallingonfarmerstosignupforthenewSoilConservationprogram,andwithina

fewmonthshereportedapproximately3,500worksheetsweresubmitted,representing

morethan80percentofalleligiblefarmersinthecounty.Soonafterthefirstchecks

arrived,buttheamountfarmersreceivedwasfarlessthantheyhadundertheAAA.

Eventhefollowingyearwhenthenumberoffarmersparticipatingintheprogram

increasedto3,600,theyreceivedabout$400,000fromthefederalgovernment,

comparedtothemorethan$640,000receivedbysome3,100farmersundertheAAAin

1933.110

Overall,theSoilConservationandDomesticAllotmentActwasunsuccessfulin

limitingproductionbecausewhilefarmersweretakingtheirsoil‐depletedlandsoutof

use,theywereexploitingtheirfertileacresmuchmoreintensely.Asaresult,Congress

passedtheSecondAgriculturalAdjustmentActinFebruary,1938,whichfunctionedin

essentiallythesamewayasthefirst,exceptinsteadofpaymentscomingfrom

109Leuchtenburg,FranklinD.Roosevelt,172,173;DallasMorningNews,February4,1936,4;Hardeman&Bacon,Rayburn,316(quote).110DallasMorningNews,April25,1936,8;June16,1936,12;June24,1936,11;July14,1936,9;August24,1937,9.

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processingtaxestheycamefromthefederalgovernment’sgeneralfunds.Atthefirst

opportunity,almost5,000worksheetsweresubmittedbyGraysonfarmersin

compliancewiththeprogram,which,accordingtoCountyAgentGray,meant

unanimousparticipationofallcountyfarmers.Initsfirstyear,thesecondAAApaidto

farmersinGraysonCountyalonenearly$1,000,000inmuchneededaid.111

Despitetherevitalizationofthecropreductionprogram,surplusescontinuedto

suchanextentthattheSecretaryofAgriculturecommentedinlate1938thatifthecrop

yieldwasasgoodin1939“wewouldbesunk.”Indeed,betweenAugust1938and

December1939,theUnitedStateswasforcedtoexport128,200,000bushelsofwheat,

oftenatalossof$.50perbushel.Thus,thecropreductionprogramthatthefederal

governmenthadstartedin1933wasinessenceareliefmeasureforfarmers,butnota

meansofbringingrecoverytotheagriculturalindustry.112

AlthoughtheAAAhelpedmanylandowningplanters,itwasactuallydetrimental

totenantfarmersandsharecroppers.Underthefederalacreagereductionprogram,

landlordsweresupposedtoallowtenantsandcropperstoremainontheirpropertyand

sharethebenefitpayments.Instead,theywereusuallyevictedandtheirshareof

federalaidpocketed,sincelocalAAAcommitteeswerecontrolledbytheproprietors.

ThishadbeenaprobleminGraysonCountyasfarbackas1934whenanAAAlaw

administratorsaidhe“hasbeenfindingthatinsomeinstanceslandlordsarecharging

111Campbell,GonetoTexas,391;DallasMorningNews,May18,1938,13;January16,1939,11;ShermanDemocrat,January2,1939,2.112Leuchtenburg,FranklinD.Roosevelt,255(quote).

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tenantsrentonGovernment‐leasedlandwiththeobviousintentionofsellingfeedstuffs

productiononthatland.”113

DespitethefactthatthisquandarywasacknowledgedbyevenPresident

Roosevelt,verylittlewasdoneatfirst,forfearofendangeringtheentirefarmprogram

byagitatingthesocialclassesintheSouth.Butwhenagroupofsharecroppers,tenant

farmersandlaborersorganizedinArkansasinJuly1934underasocialistleader,it

becamedifficulttocontinuetoignoretheproblem.TheSouthernTenantFarmers’

Unionwasabizarreassortmentofbothblacksandwhites,withsomeofthelattergroup

includingformerKlansmen.Unwillingtositidly,landlordsintheareaorganizedand

precipitatedareignofterroronunionorganizersandmembers,includingflogging,

jailingandmurder.Thelackofsympathytheyfeltforthebrowbeatenfarmerswas

exemplifiedbyonefarmerwhosaid,“wehavehadaprettyserioussituationherewhat

withthemistering[sic]oftheniggersandstirringthemuptothinktheGovernmentwas

goingtogivethemfortyacres.”114

Consequently,theResettlementAdministration(RA)wascreatedinApril,1935

todealwithruralpovertybyresettlinglow‐incomefarmersonbetterlandwithproper

toolsandsupervision,providingloansformachineryandlivestock,andgivingadviceand

supervision.Unfortunately,theprogramdidnotreceiveadequatefundingandofthe

500,000familiesthattheprogram’sdirectorhopedtoberesettled,only4,441were

113Leuchtenburg,FranklinD.Roosevelt,137;Kennedy,FreedomFromFear,207‐213,256;DallasMorningNews,July8,1934,3(quote).114Leuchtenburg,FranklinD.Roosevelt,138(quote).

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actuallyhelped.Itwasnotuntil1937withthepassageoftheBankhead‐JonesFarm

TenantActthatimpoverishedfarmers,tenants,sharecroppersandmigrantsreceived

anysignificantamountofaid.Thisact,whichcreatedtheFarmSecurityAdministration

(FSA)toreplacetheRA,providedlow‐interest,long‐termloanstofarmersindangerof

losingtheirland,andtenantstopurchasefarmsoftheirown.Muchlikework‐relief

overthedole,theseprogramsallowedfarmfamiliestoovercomethelimitationsoftheir

economicstatusthroughtheirownhardworkandeffort.115

AlthoughthemeagernessoftheResettlementAdministrationwasevidentinthe

program’sactivitiesinGraysonCounty,theFarmSecurityAdministrationprovided

substantialaidtolow‐incomefarmers.Immediatelyfollowingitsinception,landfor148

farmswaspurchasedinSouthOklahomaandNorthTexastotaling14,337acresfor

$822,465.Thisfiguredidnotincludethe$242,000inloansfortheconstructionof

homesand$11,000forrepairsonhousesalreadyontheland.Allpersonsplacedon

theselandsweretenantfarmerswhohadconsistentlypaidrentforthepreviousthree

yearsintheircounty,averaging5.7percentinterestabovetaxesandinsurance.Under

theFSA,thesefarmerswererequiredtopayonly4.3percentoftheprincipaland

interestonaforty‐yearpaybasis.Thefirstworkcompletedintheenterprisewasthe

115Leuchtenburg,FranklinD.Roosevelt,141;Kennedy,FreedomFromFear,252,379,783;WhitingandWoofter,SummaryofReliefandFederalWorkProgramStatistics,7,8.

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constructionoffivehousesinGrayson,whichboastedthesecondhighestofthefifteen

Texascountiesinvolvedinacrespurchased(2,300)andpurchaseprice($96,383).116

By1938,theFSAhad354ruralrehabilitationclientsinGraysonCountywhose

averagenetworthhadincreasedfrom$478to$645sincetheprogrambegan.Bythe

followingyear,thisfigureincreasedto$732andtheruralsupervisorforthecounty

claimedthatthecommunitystatusoftheclientshelpedhad“improved100percent”as

“somearemembersofschoolboards,officersinchurches,etc.”Also,asatestamentto

thefactthat“theFSAwasscrupulouslyfairinitstreatmentofNegroes,”ofthe354

familieshelpedby1938,17(or4.8percent),wereblack,arespectablefigurewhen

consideringthatAfricanAmericansmadeuponly2.9percentofallfarmersin

Grayson.117

Overall,fromApril1935toDecember1940,theRAandFSAprovidedloansto

approximately866,000farmersthroughoutthenation,withtheprogramsbeing

essentiallyself‐liquidating.InGrayson,from1935to1947,2,289rehabilitationloans

weremade,totaling$800,080,ofwhich95percent,or$759,925,wasrepaid.Still,

despitetheimpressiveaccomplishmentsoftheFSA,theprogramwasnevercapableof

dealingwiththeenormityofthetenancyproblem.Thepeopleithelpedweregenerally

uninformedandvoteless,whileitsdetractors(largelandownersandfarmcorporations

116DallasMorningNews,June7,1936,6;July11,1936,9(quoteinfootnote);March4,1937,4;February10,1937,8.ExamplesoftheinadequaciesoftheRAareevidentinloansitmadetoGraysonCountyfarmers,suchasoneforthreebullstodistributetobesharedbythreedifferentcommunities,and$6,000incheckstosome250farmersinthecountytopurchase“feed,seedandsubsistence.”117BureauofCensus,SixteenthCensus:Agriculture,Vol.I,340;Leuchtenburg,FranklinD.Roosevelt,141(secondquote);ShermanDemocrat,January9,1938,3(firstquote);January10,1939,8.

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whowantedcheaplabor)wererepresentedbycongressmenwhokepttheprograms

appropriationsgenerallylow.Consequently,notenoughaidwaseveravailabletogive

mostlow‐incomefarmersanewstartasownersorevenkeepthemontheirlands.118

AnothermeasurepassedforthefarmersduringtheSecondNewDealwasthe

RuralElectrificationAdministration(REA)inMay,1935.Becauseprivateelectric

companieswouldnotextendpowerlinestomanyscarcelypopulatedregions,theREA

grantedlow‐interest,long‐termloanstoruralresidentswhoorganizedandbuilt

distributionsystemsinagivenarea.Thisactwasofmajorimportancetothecitizensof

GraysonCounty,notjustbecausemanyofthemlivedonfarms,butalsobecauseitwas

authoredbytheirownrepresentativeSamRayburn.119

Rayburn,inarguingforthebill,wasfondofsaying“Iwantmypeopleoutofthe

dark,”astatementechoedintheactionsofhisconstituents.Allotmentsfromthe

programwerereadilyforthcomingtothecitizensoftheFourthCongressionalDistrict,

whoborrowedfrequentlyandinmassivesums,wellover$100,000perloan.An

unqualifiedsuccessoftheNewDeal,theREAhadprovided9,032farmsinRayburn’s

districtwithelectricityby1944.AlthoughonlyoneintenhouseholdsinAmerica,and

2.3percentoffarmsinTexas,hadelectricityin1935,by1950theratiowasreversed

throughouttheU.S,andby1965only2percentoffarmsinTexaswerewithoutpower.

118WhitingandWoofter,SummaryofReliefandFederalWorkProgramStatistics,8;EdI.Anderson,HistoryandBusinessGuideofSherman,DenisonandGraysonCounty,Texas(‐‐‐‐,1948)[nopagenumbers];Leuchtenburg,FranklinD.Roosevelt,141.119Leuchtenburg,FranklinD.Roosevelt,157,158;Campbell,GonetoTexas,389;Champagne,CongressmanSamRayburn,48.

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Rayburnwasundoubtedlysincerewhenhesaidthat“ofallthebillsIhavehelpedon,I

thinkIamtheproudestofbeingtheauthoroftheRuralElectrificationActasithas

broughtsomuchgoodtofarmhomesthroughoutourland.”120

AlthoughthestateandlocalgovernmentsofTexasandGraysonassumedmore

responsibilityingivingrelieftotheircitizensduringtheSecondNewDeal,mostofthis

wasadirectconsequenceofactionstakenbythefederalgovernment.Forexample,the

SocialSecurityActhadrequiredTexastoincreaseitsexpenditureonsocial‐welfare

servicesfortheunemployedandunemployablebyoperatingonafederal‐state

matchingbasis.Also,theWPAandPWAprovidedtherevenuewhichmotivated

GraysonCountyofficialstoengageinmanyconstructionprojects,providinguseful

infrastructure,suchasroads,schoolsandmunicipalbuildings,whileprovidingpaidwork

thecitizens.

WhileRooseveltcontinuouslystruggledwiththemountingfederaldeficit,

massivespendingandtaxationproblems,andfactionsfrombothendsofthepolitical

spectrumdemandingeithermoreorlessaction,thegovernmentsinTexasandGrayson

Countycontinuedtobefiscallyconservative.Texas’sGovernorJamesV.Allredranfor

reelectionin1936onhisrecordofsupportfor,andassociationwith,theRoosevelt

administration,includingincreasingthestate’seleemosynaryactivitiesandinstitutions.

120Leuchtenburg,FranklinD.Roosevelt,157,158;DulaneyandPhillips,“Speak,MisterSpeaker”,59(secondquote);Champagne,CongressmanSamRayburn,48(firstquote),113,114;Campbell,GonetoTexas,389;DallasMorningNews,August29,1937,5;January14,1938,4;October4,1938,3.Alwaystheastutepolitician,RayburnwassuretosendletterstoallthemembersoftheREAinhisdistrictduringelectiontimetoletthemknowthatheauthoredthebillandhadworkedtogetitpassedontheirbehalf.

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Ofcourse,apoliticianrunningforofficeinTexaswouldberemissnottodiscusstax

reductionsalso.FollowingaspeechmakingcampaigntoseveralprominentTexas

counties,AllredsaidtogatheringinAustin:

Youareaccustomedtohearingcandidatespromisetoreduceyourtaxes,butseldomhaveyouhadtheopportunityIamofferingyounowtohearonesay,‘Ihavedoneit.’Advaloremtaxeshavebeenreducedundermyadministrationfromtheconstitutionallimitof[$.77]onthe$100valuationto[$.62].Asaresult,realestatetaxpayersweresavedatotalof$4,707,400ontheir1935bill.Isubmitthatthisperformancebeatsallthepromisesintheworld.

AllreddidwintheprimarywithoutarunoffandthentrouncedhisRepublicanopponent,

carrying93percentofthevote.Ironically,hetriedtoraisetaxesduringhissecondterm

tohelppayfortheincreasedservicesTexaswasproviding,buthewasunsuccessfulin

convincingthestatelegislaturetocomply.121

InGraysonCounty,governmentofficialsfollowedthesameideologyoflimited

governmentexpenditures,lowtaxes,andabalancedbudgetthattheyhadthroughout

theFirstNewDeal.WhenthecountytaxratewasdecreasedbyGrayson’s

CommissionersCourtin1940to$.58onthe$100valuation,itwas$.02lowerthanthe

previousyear,$.22lowerthanthe1938figure,and$.27lowerthanithadbeenfor

everyyearfrom1933to1938.122

ThecityofSherman,thecountyseat,claimed“thelowesttaxrateandthe

lowestrenditionsit[had]hadfortenyears”in1936,whichitcontinuedtoboast

121Campbell,GonetoTexas,390;DallasMorningNews,July17,1936,2(quote).122DallasMorningNews,September18,1938,6;September12,1940,15.

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throughouttheNewDeal.By1938anarticleintheDallasMorningNewsgavehigh

praisetothecityinanarticletitled“ItCanBeDone”:

Theincreaseintaxesisanunpleasantphenomenonthathasimpresseditselfonthetaxpayerineveryunitbywhichheisassessed.AstherecordsshowthatthebulkofdirectAmericantaxationisinlocalgovernmentsupport,itisafamiliarfactthatthecostofthemunicipalservicehasincreasedoutofallproportiontothegrowthofpopulation.Sherman,Texas,offersevidencethatitisanexceptiontotherule.Indedicatingitsnewcommunitycentertheotherday,theShermanDemocratnotedthecityhaspushedthroughthegreatestimprovementprograminitshistoryunderthecurrentadministration…Inspiteofthefactthatdirectvotehasaddedtwentycentstopayfornewmunicipalservices,thetaxratehasbeenloweredandfor1938isreportedasactuallylowerthanitwasin1915.Shermanisacouncil‐managercity,oneofthefirst,ifnotactuallythefirstinTexastoadoptthatformofgovernment.EconomyandefficiencyseemtohaveworkedhandinhandinShermantoofferbetterserviceatlowercost.Itisworthknowingthatitcanbedone.

UndoubtedlytothesatisfactionoftheauthorandcitizensofSherman,thetaxratewas

reducedevenfurtherthefollowingyearanadditional$.02,bydecreasingthefunds

allocatedfortheinterestandprincipalonthecity’sbondedindebtedness.123

WhilethetaxratewasbeingreducedthroughoutGrayson,thetaxvalueofthe

countydidnotshowsuchanimprovementtooffsetsuchcutbacks.Grayson’sassessed

valuation,whichplummetedby$12millionfrom1930to1934,onlyincreasedbyless

than$2millionby1940.SuchadiscrepancycreatedlegalproblemsforGrayson’scityof

Collinsvillein1939,whenaNewYorker,whoheld$30,000ofthecity’swaterworks

123DallasMorningNews,July29,1936,9(firstquote);April22,1938,2(secondquote);August9,1939,3.

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bondshehadpurchasedin1928,filedasuitinfederalcourtagainstthecity’smayorand

council.Accordingtothereport,

Theplaintiff’spetitionallegesfundstopayoffhisbondsareinadequatebecauseofthelegallimitationofthetaxrateto$1.50per$100assessedvaluation,becauseofthedeclineoftheassessedvaluationfrom$301,608in1928tothepresent$123,275,andbecauseoffailuretocollecttaxes,with$7,000intaxesnowdelinquent.124InordertofundNewDealprogramswhilekeepingthetaxratedown,county

andcityofficialsinGraysonhadtoissuewarrantsandaddtotheirbonded

indebtedness,allwhiletryingtobalancethebudget.However,becauseRoosevelthad

decidedto“domore”andtheFourthCongressionalDistrictwasblessedwithapowerful

representative,morefederalaidtrickleddowntothecounty.Asaresult,Grayson’s

totaldebtactuallydecreasedbetween1935and1940,from$3,205,437to$2,997,665,a

differenceof$207,772.Amazingly,thiswasmorethanthe$150,000intimewarrants

thecountyissuedfrom1935to1939tofunditsshareofthecostforallWPAwork.125

Despitethecountydebtactuallydecreasing,Graysonofficialswerestillso

dedicatedtobalancingthebudgetthat,inasadlyironictwist,theyturnedtothesame

placeindividualslookedtofindrelief:thenationalgovernment.Roosevelt,inaneffort

toincreaseemployment,hadmadeiteasiertoreceivefederalfundsforworkrelief

undertheWPAthanthestipulationsrequiredunderthePWA.Ratherthanstatesand

124TexasAlmanacSupplement(1937),43;TheTexasAlmanacandStateIndustrialGuide(Dallas:A.H.Belo&Co.,1941),348;DallasMorningNews,August19,1934,9;April13,1939,9(quote).125TexasAlmanac(1936),298;TexasAlmanac(1941),360;DallasMorningNews,August,22,1936,4;October26,1938,14.AlthoughtheinterestandsinkingfundinGraysonincreasedfrom$148,857in1935to$236,107in1940,thisdifferenceof$87,250meansthecountystillowedlessoverallbythelatterdate.

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localgovernmentrepayingthefederalgovernment70percentofexpendituresat4

percentinterestundertheoldsystem,theWPAonlyrequired55percentberepaidat3

percentinterest.Still,eventhoughthe55percenthadfurtherdecreasedby1938,this

wasstillaprobleminGrayson:

ArequestthatGraysonCountyreceiveminorconcessionsfromtheWorksProgressAdministration,toenableittocarryonitsworksprogramduringthewinterwassentTuesdaytoGusW.Thomasson,Dallasadministrativefieldofficer…TownsofGraysonCounty,CountyJudgeJakeJ.Loysaid,arehandicappedbylackoffunds,andtheburdenhasfallenonthecounty.Becauseoftheincreasingdrainoncountyresourcesinprovidingthe30percentsponsor’sshare,thegeneralfundbalanceonJan.1willbe$30,000lessthanitwaslastyear,hesaid.126Bythetimethisrequestwassent,JudgeLoyhadactuallybuiltupenoughofa

reputationforhimselfthroughoutTexasthathewaselectedpresidentoftheState

CountyJudgesandCommissioners’Association.Duringthesamemonthhesenthis

requesttotheWPAfieldofficer,theAssociation“votedresolutionsaskingformore

federalappropriationsforpublicimprovements,sterilizationofhopelesslyinsane,

feeble‐minded,habitualandsexcriminalsandadequateappropriationsfortheState

HealthDepartment.”Twomonthslater,JudgeLoywaspursuingmuchmoregrandiose

schemestogivecountytaxpayersrelief,byrequiringthestatetopayfordistrictcourt

reporters(whom,hesaid,“renderednoservicetothecounty”),and“forthestateto

takeovertheunfairbondedhighwaydebt.”Heevencameupwithaplantopayall

countyanddistrictroaddebtthrougha$.01stategasolinetax.“InGraysonCountywe

collecta[$.38]taxforroadpurposes”,hesaid.“Thebillwouldcutthatrate$.31,doing126DallasMorningNews,May25,1935,1;October26,1938,14(quote).

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awaywithabout40percentofourwholetaxbillwithoutanyadditionaltaxlevybythe

state.”Tobesure,thereexistedaninconsistencyinGraysonbetweencontinuously

shrinkingtaxesonalowassessedcountyvaluation,increasedpublicworkprojects,and

adesiretobalancethebudget.127

DuringtheNewDeal,individualsthroughoutthenationreceivedrelieffromthe

GreatDepressionfromavarietyofsources,suchasthedoleundertheFERA,work

projectsandmade‐workviatheCWA,PWAandWPA,andtheSocialSecurityAct,which

gaveabasicstandardoflivingtotheaged,infirmedandunemployed.Farmers,who

hadstruggledthroughouttheProsperityDecade,werealsoinabetterconditionin

manyways,duetocroplimitingprograms,suchastheAAAandSoilConservationand

DomesticAllotmentAct,andtheREA.

Indeed,by1939,thereweremanysignsthattheeconomyinGraysonCounty

hadimprovedduringtheNewDeal.Inthesixyearsbeginningin1933,manufacturingin

thecountyincreasedasthenumberofestablishmentsroseby26percent,numberof

wageworkersby9.9percent,andvalueofproductsby58.2percent(seetable1).

Similarly,retailandwholesalesalesshowedimpressivegainswiththeformerincreasing

by91.8percentduringthesameperiod,andthelatterby78.4from1935to1939.Also,

inthecityofSherman,buildingpermitsincreasedfairlyconsistentlyfrom$52,284in

1933,to$364,517in1935,$379,573in1937and$413,600in1938.Finally,many

farmersinGraysonCountycouldalsoboastincreasedprosperityasthevalueof127DallasMorningNews,October9,1938,2(firstquote);December18,1938,7(secondquote);January6,1939,1,8(thirdquote).

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implementsandmachineryrose22.8percentduringthedecade,andtheaveragevalue

oflandandbuildingsperfarmwasaugmented20.2percentfrom1935to1940(see

table2).128

Still,theseincreaseswerenotnearlyenoughtoindicatefulleconomicrecovery.

ThroughoutTexastherewerefewermanufacturingestablishmentsandlesswage

workersearninglessmoneyin1939thanin1929.ThisfactwasexemplifiedinGrayson

anditstwomajorcitieswheremostoftheincreasesinmanufacturingfiguresfor1933

to1939werestillbelowboththe1929and1919levels(seetable1).Infact,inthe

countyasawhole,theonlymanufacturingcategorywhichshowedanincreasefrom

1929to1939was“costofmaterials,”mostlikelybecausemanyoftheseestablishments

inGraysonreliedonagriculturalgoods,whichwereworthmoreduetothecrop

reductionprogramsofthenationalgovernment.129

EventhoughpricesforagriculturalgoodsincreasedduringtheNewDeal,

farmersinTexaswerestillinapooreconomicconditionbythedecade’send.Inthe

stateasawhole,from1930to1940thevalueoffarmsdecreasedfrom$3.6billionto

$2.6billion,cottonacreagewasreducedfrom16.8millionto8millionandlivestock

valuewascutby$100million.Theseproblemswereexperiencedmoreseverelyby

128BureauofCensus,FifteenthCensus:Manufactures,508;BureauofCensus,SixteenthCensus:Manufactures,983;TexasAlmanac(1936),338,339;TexasAlmanacSupplement(1937),35,36;Texas

Almanac(1941),283,299,450;ShermanDemocrat,January5,1938,5.RetailsalesinGraysonCountytotaled$9,373,000in1933,$12,788,000in935,and$17,982,000in1939.Wholesalesaleswere

$6,459,000in1935and$11,526,000in1939.Althoughbuildingpermitsdidslightlydecreasefromtheprecedingyearin1936($225,392)and1939($335,670),thesefiguresarestillmarkedlybetterthanfor

thepre‐NewDealyearsoftheDepression.129Campbell,GonetoTexas,378.

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tenantfarmersandsharecroppersanddisproportionatelybyblacksandMexicansthan

whites.Whilecropreductionprogramshelpedtoraiseprices,theyalsoencouraged

landownerstoevictlow‐incomefarmersfromtheirland,thusexacerbatingthe

unemploymentproblem.SuchshortcomingsoftheNewDeal’sattempttosupportthe

agriculturalindustryareseamlesslyexemplifiedinGraysonCounty.130

Duringthefirsthalfofthedecade,ascityjobsbecamescarce,thenumberof

farmsinGraysonincreasedby6.3percent(andnumberoftenantfarmersby1.2

percent),bringingtheaverageacreageoffarmsdownby4.1percent.Then,as

governmentaidbroughtworkreliefprojectsandmorestabilitytolandowningfarmers

between1935and1940,thenumberoffarmsdecreasedby21.8percent(28.9percent

fortenantfarmers),whiletheaverageacreageincreasedby26.1percent(seetable2).

Accordingly,inthelatterhalfofthedecade,thenumberoffarmsinGraysonCountyin

the220acresormorecategoriesincreased,whileallcategoriesbelowdecreased,

suggestingwealthyfarmersweregettingwealthierwhilepoorfarmerswereforcedto

selltheirpropertytolookforworkelsewhere.131

Furthermore,whenagriculturalcensusfiguresforwhitesandnon‐whitesin

GraysonCountyarecompared,thedifficultiesminorityfarmersexperiencedduringthe

NewDealareapparent.From1930to1940:thenumberoffarmsownedbywhites

decreased15.2percent,whilethoseownedbynon‐whitesfell50.6percent;thetotal

landinfarmsinGraysonincreasedforwhites1.2percent,butdecreased46.9percent130Campbell,GonetoTexas,378,386.131BureauofCensus,SixteenthCensus:Agriculture,Vol.I,,409.

93

fornon‐whites;andwhilefarmvaluesdecreasedforbothwhitesandnon‐whites,the

formerlost26.2percentandthelatter62.2percent(seetable2).

Thus,whileNewDealmeasuresaimedathelpingtheagriculturalindustrydid

giveaidtolandowners,theyweretothedetrimentoftenants,sharecroppersandlow‐

incomefarmers.EventhoughtheRooseveltadministrationattemptedtoavoidsuch

problemsbycreatingtheRAandtheFSA,thesesprogramsamountedtoreliefand

rehabilitationforjustasmallpercentageoflow‐incomefarmers,whileafargreater

proportionwereforcedofftheirlands.

ProbablyevenmorediscouragingfortheRooseveltadministrationthanthe

agriculturalindustry’slackofrecoverywasthehighlevelsofunemploymentthroughout

thecountry.In1939,tenyearsaftertheGreatDepressionbeganintheUnitedStates,

morethanninemillionpeople,or17percentoftheworkforce,werestillwithoutjobs.

InTexas,305,000personsfiledforunemploymentin1937,ofwhichonly205,000were

approved(mostoftherejectedwerelistedas“unprotectedunderthelaw,”namely

“agricultureworkersanddomestichelp”)andby1940,morethan300,000Texaswere

stillwithoutjobsintheprivatesphere.132

InGrayson,thesituationwasnotmuchbetter.In1938atotalof32,467persons

filledoutclaimsforunemploymentcompensationintheTexasstateemployment

serviceofficesinShermanandDenison,with28,244oftheserepresentingcontinuingor

repeatfilers.Also,betweenthetwocities,6,029newpersonsregisteredwiththejob‐132Leuchtenburg,FranklinD.Roosevelt,263;Campbell,GonetoTexas,378;Kennedy,FreedomFromFear,163‐167;ShermanDemocrat,January1,1938,2(quote).

94

placementdepartmentthatyear.Although4,632individualsweregivenworkbetween

thetwocities,inSherman,where2,481ofthesejobswereplaced,“243wereinpublic

work,372wereregularjobsandtheotherswereforperiodsof30daysorless,”

meaning1,866ofthosegivenemploymentwereagainwithoutworkinamonth.By

1940,ofthe26,793personsinthelaborforceinGraysonCounty,7.8percent(2,082

persons)wereonpublicemergencyworkand11.6(3,100persons)wereseeking

employment.133

Astheeconomyimprovedforsomepeopleandfederalgovernment

expendituresonworkreliefandotherwelfaremeasurescontinuedtomount,public

supportfortheNewDealwaned.In1938,oneGraysonCountyresidentsuccinctly

articulatedthefeelingsofmillionsofAmericans(presumablywithjobs):

MillionsofAmericansareunemployed.Millionsofacresoffertilelandareidle.Millionsof“WhatThisCountryNeeds”ideasarepouringintotheearsofourGovernmentservants.Whoistooffertherealsolution?Noneotherthantheindividual,withthedeservedassistanceofhisorherGovernment.ButwehaveinourmidstaclassofindividualswhorefusetoputforththerequiredefforttoshootthewolfattheirdoorevenwhenourGovernmenthashandedthemaloadedgun.Thereiswell‐foundedbeliefthatwearefastbecomingadependentraceofweaklingswho,atourpresentrateofshunningtheunpleasantartoftoil,willdestroyourselveswithourowndevisedmoroseidleness.TheotherdayIsawabigovergrownbuskyfathersitswinginghisfeetwhilehissmalldaughterswungaheavyax,cuttingfirewood.“Afinespecimenofhumanity,”Ithought.Thenanotherpictureleapedintomymind.IsawmyselfandmillionsofAmericanfathersunloadingtheheavyburdensoftodayontothefrailshouldersofourownchildrenintheformof

133UnitedStatesBureauoftheCensus,SixteenthCensusoftheUnitedStates:1940;Population,VolumeII:CharacteristicsofthePopulation;Part6:Pennsylvania‐Texas(Washington:U.S.GovernmentPrintingOffice,1943),869;ShermanDemocrat,January8,1939,5(quote).

95

addedtaxationandindebtedness,whichtheymustfacetomorrowalongwiththeirownproblemsbecausewerefusetoadmitourinabilitytocopewithourown‐madedepressingsituation,andtoproveourimpatientunwillingnesswetaketheeasywayoutbydumpingtheloadwherefuturegenerationswillbeforcedtoclimboverit.Nonationcansurviveasatruedemocracy,notevenours,unlesseachindividualisgiventheopportunityandcontributeshisshareoflaborwiththebuildingcrew,andonlythedisabledshouldbeallowedtheprivilegeoflivingfromthefruitsofanother’slabor.Anylegislationorlawthattakesfromthefrugalandgivestothesluggardmerelybecausetheonehasandtheotherhasnotisequivalenttoremovingmortarfromaroundthefoundationbrickwhich,asaunit,supportsthebuilding.134DuringtheNewDeal,federalgovernmentfundsforreliefandrecoveryin

Graysonwereactivelysoughtandreceived,throughsolicitationbycountyofficialsand

thepatronageofRayburn.Suchaidnotonlyimprovedthequalityoflifeforlocal

citizens,butalsobroughtlongtermbenefitstothecounty.Indeed,thefaceofGrayson

wasindeliblyalteredthroughmajorconstructionprojectsundertheCWA,PWAand

WPA,suchasroads,schools,municipalbuildingsandotherusefulinfrastructure.Still,

suchchangeswerepurelycorporealastheadherencetoarigidideologyoflowtaxes,

limitedgovernmentandabalancedbudget(creedswhichhadprovenunsuccessfulfor

HooverandGraysonfrom1929to1933)remainedthestatusquo.

ButthisideologywasnotisolatedtojustonesmallcountyinNorthTexas,nor

theLoneStarState.Itwasanideasharedbymanypeoplethroughoutthecountry,

acrosspartylines,byregularcitizens,businessmen,politicians,allthewaytotheWhite

House.Rayburn,whowasanall‐outNewDealsupporter,saidin1932

134DallasMorningNews,February21,1938,2(quote).

96

EveryvotethatIamabletocasthereIamendeavoringtocutgovernmentexpenses.Iamwillingtoreducemyownsalaryalongwithreductionofothersinorderthatwewillnothavetoputmoretaxesonanalreadyoverburdenedpeople.Governmentiscostingentirelytoomuchandmustbereducedandnowwhenweareoutofmoneyisthetimetodoit.

EvenRooseveltremaineddedicatedtosuchprinciples,whichhandicappedhisabilityto

spendenoughtobringfullrecoverytotheeconomy.Consequently,asawhole,the

NewDealwasareliefmeasurethatallowedtheUnitedStatestosurvivetheGreat

DepressionwithoutradicalslikeHueyLong,FatherCoughlin,orsocialistunionleaders

amassingenoughofafollowingtopermanentlyalterthefundamentalcharacterofthe

county.135

ThatRooseveltandRayburnevensupportedtheenlargementofthefederal

governmentandtheuseofitsgeneralfundstoguaranteeaminimalstandardoflivingin

theUnitedStates(inwhichtheelderly,unemployedandunemployablewerenotleftto

themercyofcircumstance)iscommendableenoughtoovershadowtheirinabilityto

forsaketheirentrenchedeconomicphilosophy.Indeed,theircapacitytoriseabovethe

limitationsoftheirideologytoacknowledgetheeconomiccrisisthathadencroached

uponthelivesofmillionsofAmericansisatestamenttonotonlytheirpragmatismand

intellectualmalleability,butalsotheircompassion.Rayburn,inarguingforRoosevelt’s

SocialSecurityAct,hadsaid

Compassion,humantendernessfortheelderly–arenotthesequalitiescommendedbyourchurchandspiritualleaders?Theyarenotnew.Thenewnessliesmerelyinputtingthemtoworkinsteadofpratingaboutthem.

135Leuchtenburg,FranklinD.Roosevelt,265;Campbell,GonetoTexas,360;DulaneyandPhillips,“Speak,MisterSpeaker”,41.

97

Thus,theNewDealmadetheUnitedStatesintoacountrywherecollectivesocial

responsibilitywasnotamatterofinfrequentdonationsandchoice,butapermanent

fixtureofthestatetoensurethebasicwelfareofindividuals,andthestabilityofthe

nation’sfundamentalvalues.Nevertheless,itwouldtakefarmoregovernment

interventionintotheeconomytobringfullrecoveryofthefinancialsystemandlong‐

termrelieftothemillionsofAmericansacrossthecountrystillsufferingfromtheGreat

Depression.136

136Leuchtenburg,FranklinD.Roosevelt,265;DulaneyandPhillips,“Speak,MisterSpeaker”,58(quote).

98

CHAPTERV

THEDENISONDAMANDDEVELOPMENTINGRAYSONCOUNTY,1939‐1941

TheDenisonDamisanexampleofourconcernforhumanlifeandproperty.Itwillstopthedestructionofourpropertybyfloods.Itwillimprovethehealthofoursectionbytheeliminationofmalaria.Itwillmakelifehappierbyprovidingthepowertolightourhomescheaperandbyprovidingelectricitytofeedtheenginesofthegreatindustrialplants,whicharetocomeintobeingthroughouttheSouthwest.Thisisamultiplepurposedamforfloodcontrol,generationofpower,preventionoferosion,andstoppingcesspoolsinfectedwithmalaria.Thedamwillcontrolthefloodsthatotherwisewouldinundate596,000acresofclearedlandsand531,000acresofwoodedlands,withanestimatedsavingsfromdestructionofcrops,buildingsandlivestockof$1,755,800perannum.TherewillbenomoreoverflowofTexasandOklahomalandsbelowthedam.

‐SamRayburnTheyear1939markedawatershedinmanyrespects.ForEuropeans,allhell

brokelooseastheentirecontinentwasthrustintowarbyfascism,incarnatedinthe

ominousfiguresofGermany’sReichsführerAdolphHitlerandIlDuceofItaly,Benito

Mussolini.InMarch,HitlerbroketheMunichpledgeandperformedhis“lastgoodturn”

forthepeopleofCzechoslovakiabytakingtheentirecountry,thusextinguishingany

remaininghopethattheFührerwaswithoutlargerterritorialaspirationsbeyond

Germany’sborders.Shortlyafter,partofLithuaniawasalsotakenbytheNazis,Albania

felltoMussolini,andinSpain,theSpanishRepublicfelltothefascistbackeddictator

99

GeneralFranciscoFranco.OnSeptember3,twodaysafterGermanyinvadedBritainand

France’sallyPoland,England’sPrimeMinister,NevilleChamberlain,announcedoverthe

radio,“IhavetotellyounowthatthiscountryisatwarwithGermany.”WorldWarII

hadbeguninEurope.137

IntheUnitedStates,theisolationistcreedthatdominatedthementalityofmost

Americanswaschallenged,notsomuchbyexternalthreatsasbytheleaderwithinthe

country.ViewingthefascistmenaceasathreattoU.S.independence,Rooseveltcalled

onCongressinJanuary1939formeasures“shortofwar,butstrongerandmore

effectivethanmerewords.”138

Whilethechaosthatthreatenedtheworldoverwasofimportancetothe

citizensofGraysonCounty,theywere,tobesure,preoccupiedwithamomentousevent

oftheirownin1939:constructionoftheDenisonDam.Althoughcomparatively

inconsequentialtoWorldWarII,thisamountedtothesinglelargestgovernmentproject

intheentireFourthCongressionalDistrictduringRayburn’snearlyfiftyyearsin

Congress.TheDenisonDammarkedanepochinGraysonCountyasitgenerated

electricalpower,controlledthefloodingoftheRedRiver,andprovidedirrigationfor

citizensinthearea.Itwaspurportedlythe“secondlargestearthendamintheworld

andthefifthinsizeofanytype,”andcreatedLakeTexoma,thetenthlargestman‐made

137Kennedy,FreedomFromFear,426‐428,432,494;Leuchtenburg,FranklinD.Roosevelt,287(firstquote)293(secondquote).138Leuchtenburg,FranklinD.Roosevelt,286.

100

lakeintheUnitedStates.Coveringover89,000acres,LakeTexomaprovideda

permanentsourceofincomeinGraysonasarecreationalandtouristattraction.139

Asimportantastheselong‐termbenefitsoftheDenisonDamwerethe

immediateresultsoftheconstructionprocesshadagreatimpactforGraysonCounty

residents.Theentireprojectwasallocated$54millionbythefederalgovernment,and

skilledandunskilledlaborwasintentionallydrawnfromthesurroundingareawhenever

possible.ShermanandDenison,beingthecitiesclosesttotheconstructionsite,

especiallybenefitedastheywereforcedtoimproveandexpandpublicutilitiesand

roadsduetothelargeinfluxofworkersclamoringintotheareaforjobs.And,dueto

theenormityoftheproject,thecityofDenisonbecameadistrictofficefortheUnited

StatesArmyCorpsofEngineers,bringingthousandsofworkersintothecityatitspeak,

providingamuchlargerconsumerbaseforlocalbusinesses.Consequently,theDenison

DaminitiatedwhathadeludedtheNewDealforsixyears:economicrecoveryin

GraysonCounty.140

DiscussionsforimprovingtheRedRiverhadbeenunderwayforfortyyears

whenconstructionoftheDenisonDambeganin1939.Asearlyas1899,theDenison

BoardofTrade(whichwastobecometheDenisonChamberofCommerce)senta“Mr.

Carver”fromtheDallasMorningNewsasarepresentativetoWashingtontoseeif

139Champagne,CongressmanSamRayburn,25;Tyler,Bornett,Barkley,Anderson,andOrdinitz(eds.),HandbookofTexas,III,298,299(GraysonCounty);IV,31(LakeTexoma);TexasAlmanac(1947),470;DallasMorningNews,September20,1938,9(quote).140Champagne,CongressmanSamRayburn,7;Tyler,Bornett,Barkley,Anderson,andOrdinitz(eds.),HandbookofTexas,IV,31(LakeTexoma);DallasMorningNews,January1,1939,9;January30,1940,2.

101

supportcouldbeobtainedforaprojecttoclearandpossiblyimpoundtheRedRiverto

makeitnavigableforfreightmovementandwatertransportation.Unfortunately,the

planhitaroadblocknamedJosephWeldonBailey,RepresentativefromtheFifth

CongressionalDistrictofTexas,whosaidbeforetheHousethathe“wasnotinfavorof

cleaningoutBrushy,tobuildupBeaverDam.”WhenCarverwenttotryandpersuade

Baileytohelpattainapportionsfortheproject,oratleastnothindertheplan,hewas

told,

TherearethreemeninDenisonwhohavedonemegreatinjury.SolongastheylivethereIwillnotonlyopposeanythingthatmighthelpDenison,butwillseethatnothingthatwillhelpthetownbywayofcongressionalactionisdone,untiltherehavebeenthreefunerals,orthesemenhavemovedelsewhere.141FortunatelyforCarver,hehadthesupportofJohnMorrisSheppard,whowould

becomeaprominentSenatorfromTexas.Duetothethoroughpreliminaryworkdone

bysupportersoftheproject,Sheppard(whowasstillajudgeatthetime)wasableto

secureanorderfora276‐milesteamboatsurveyoftheRedRiverfromDenison,Texas,

toFulton,Arkansas,in1900.Althoughtheoveralldecisionofthereportwasthatitwas

impracticaltoaccomplishanythingatthattime,thisworkbecamethe“startingpointfor

everyengineerwhohasworkedontheRedRiverprojectsince.”142

WhileimpoundingtheRedRiverwasoutofthequestion,thepossibilityof

cleaningandclearingitofsnagsanddriftstomakeitatleastnavigablewasfeasible.But

141DallasMorningNews,January9,1940,4(firstandsecondquote);January10,1940,4.Ironically,JoeBaileyhadbeenaheroofRayburn.ItwaswhenRayburn,attheageoffifteen,sawhisRepresentativeliveandheardhimspeakthathedecidedhewasgoingtobeaCongressman.142Campbell,GonetoTexas,345;DallasMorningNews,January10,1940,4(quote).

102

whentherequestcamebeforetheRiversandHarborsBoardofEngineers,theywere

adamantthattherequested$100,000fortheprojectwasstillfartooexpensive.

FortunatelyfortheRedRiverproject,whenPresidentMcKinleydied,hissuccessor,

TheodoreRoosevelt,wasdedicatedtoconservationandasaresultsupportedmany

environmentalimprovementplans.Sheppard,whowasnowaRepresentative,worked

withCongressmanJ.E.RandellfromLouisianatogainthesupportofothernotablesin

thelegislature,suchasFedS.WilsonofNewYork(secretaryoftheChoctawTownsite

Commission)andSenatorMarkHannaofOhio.Theeffortwassuccessfulandwhen

CongressconvenedonthefirstMondayinDecember,1904,abillwithanappropriation

of$100,000tocleartheRedRiverwaspassed.143

Althoughitwasnotforgotten,nosignificantdevelopmentsweremadeonthe

RedRiverprojectforseveraldecades.Thenin1926,Rayburnintroducedabilltoadd

theRedRiveranditstributariesintoalargerfloodcontrolprogramoftheMissouriand

ArkansasriversbeingexaminedinCongress.Althoughthebillwasrejected,theaction

sparked,withfewexceptions,renewedinterestintheDenisonDamprojectthat

persisteduntiltheplanwasrealized.144

Thefollowingyear,inamoreconcertedeffort,Rayburn,threeother

representativeswithdistrictstouchingtheRedRiver,andSenatorSheppardappeared

beforetheHouseFloodControlCommitteetopetitionforfundstosponsorareservoir

system.BecausetheRedRiverisconsideredaprimarycontributingstreamtothe143DallasMorningNews,January12,1940,4;January16,1940,8;January17,1940,12.144DallasMorningNews,March30,1926,1,12.

103

Mississippi,theprogramwaspromotedashighlybeneficialtotheMississippiflood

situationaswellastheNorthTexasandSouthernOklahomaregions.Again,therequest

wasdeniedasaboardofArmyengineerspointedoutthatthereservoirsystem“has

beenrejecteduniformlyformanyyears,”andultimatelyconcludedthattheprojectwas

tooexpensiveandthesavingsthedamwouldprovidefromflooding“wouldnotjustify

[its]construction.”145

Presumably,theArmyengineersdidnotthoroughlyexaminetheactualmeritsof

theproposition,becausejustafewmonthslatertheHouseFloodControlCommittee

adoptedanamendmentapportioning$5,000,000forageneralsurveyofthetributaries

ofthelowerMississippitodeterminewhatsteps(ifany)couldbetakentocontroltheir

dischargetopreventflooding.Thebillcalledforanexaminationofpossibledamsites

toseeifthereservoirsystemtocontroltheArkansas,Canadian,Washita,andRedRiver

tributarieswouldbepractical,withtwolocationsunderconsiderationnearDenison.

Duringthefollowingtenmonths,onthreeseparateoccasions,theWarDepartment

sentArmyengineerstoDenisontosurveytheareaforapossibledamsitetobebuiltin

supportoftheMississippiRiverfloodcontrolproject.Itappearedtoresidentsin

GraysonCountyasthoughtheRedRiverprojectmightactuallybefulfilled.146

Tokeepthemomentumgoing,thefirstRedRivervalleyfloodcontrolconference

wascalledinDenisononOctober24,1929,toaccumulateinterestandsupportofthe

constructionofadamatBaer’sFerry,sixmilesnorthwestofthecity.Atthemeeting,145DallasMorningNews,November10,1927,16;December17,1927,1(firstquote),14(secondquote).146DallasMorningNews,April3,1928,10;February10,1929,3.

104

theRedRiverFloodControlandNavigationAssociationwasformallycreated,andthe

damprojectwasendorsedbylocalcitygovernments,chambersofcommerce,and

businessleadersfrommorethanfiftycitiesrepresentingfourstates.Fromthestartof

thegatheringatteninthemorning,enthusiasmamongsttheattendeeswashighas

theywereunitedintheircommitmenttopersuadethefederalgovernmentthatthe

projectwasbothfeasibleandnecessary.However,thateveningthemood“was

temperedintheprincipaladdressofthebanquetgivenbyCongressmanSamRayburn.”

Beingcharacteristicallypragmatic,Rayburndetailedtheproblemstheassociationfaced

andassuredthelistenersthattheprojectwouldonlymaterializewithcontinuousand

unanimoussupport:

ThepeopleoftheRedrivervalleycanconvincethefederalgovernmentthatwearecitizensandtaxpayersandhavehelpedsolveproblemsconfrontingotherareas.ForfloodcontrolontheMississippi,already$492,000,000hasbeenappropriatedandyetthefloodcontrolproblemhasnotbeenscratched.WehavenotreachedthepointafterthisexpenditurewhereitispossibletocontrolfloodsalongtheMississippi.WhatIwantistoenlisteverycitizenoftheRedrivervalleyinacrusadetoconvincethefederalgovernmentwiththefairnessandfeasibilityofthepropositionthatwemaybepaidbackjustalittleofwhatwehavespentinassistingwithproblemsconfrontingotherareas.147DespitetheStockMarketcrashjustfivedaysafterthegatheringandtheensuing

economicwarningsigns,severaloccurrencesin1930keptoptimismhighandmade

federalgovernmentsupportoftheRedRiverprojectseemallbutcertain.InFebruary

tenArmyengineers,equippedwithmotorboatsandcampinggear,arrivedinDenison147DallasMorningNews,October8,1929,7;October13,1929,10;October20,1929,3;October25,1929,1,10;ShermanDemocrat,October25,1929,9(quote).

105

andsetuplongtermheadquarterstoconductathoroughsurveyofthearea.ByJuly,

theheadofthesurveyteamwasquotedbytheHoustonPost‐Dispatchassayinghewas

“wellpleasedwiththeprogressofhisinvestigation,”and“holdingtothebeliefthatthe

RedandArkansasRiversareresponsibleformuchoftheflooddistressinthelower

Mississippi.”Also,inSeptemberthedirectorsoftheEastTexasChamberofCommerce,

whichencompassedseventy‐threecounties,passedaresolutionindorsingtheproject

afterbeingwooedbyrepresentativesoftheRedRiverAssociationinSherman.148

ByAugust,elevenmonthsafterthefirstRedRivervalleyfloodcontrol

conference,theenthusiasm,fervorandoptimismfortheprojecthadonlyescalated,

andwasexemplifiedatameetinginDenisonofmorethan400persons,representing

morecitiesandcountiesthanthepreviousyear.Graysonwasinundatedwithstreet

banners,bumper‐stickers,andplace‐cardsinbanksandstores,sprawledwiththewords

“DamRedRiver,Makeitaservantinsteadofamenace.”And,tomarktheoccasion,the

citynewspaper,TheDenisonHerald,hadaneight‐pagespecialeditionsectionwiththe

entirehistoryoftheRedRiverproject.AlthoughSenatorsTomConnallyandMorris

Sheppardwerenotinattendance,Rayburnreadamessagefromthemaffirmingtheir

commitmenttotheenterpriseandexpressed“confidencethattheCongresswillbe

inclinedtograntthemoneynecessaryfortheproject.”FollowingRayburn,

CongressmanHattonW.Sumnersassuredthosepresentthat“Rayburnhasthe

148DallasMorningNews,February23,1930,14;July27,1930,8(quote);September9,1930,1,3;September27,1930,12.

106

confidenceofallhiscongressionalcolleagues,whichisanabsolutenecessitywhensuch

aprojectastheRedRiverreservoirproposalispresented.”149

InordertocontinuepromotingtheRedRiverfloodcontrolproject,thecitizens

ofGraysonandothercountiesinTexasandOklahomaheldavotetoraise$15,000in

bondstosendrepresentativestoWashingtontocampaignforoneyear.Inpromoting

themeasure,oneShermanleaderremindedtheresidentsthatthecity’slackofeffort

hadcostthemtheKatyRailroadinthe1870s,amistakethatprovedexpensive.A

Denisonmandeclaredthat“conditionsatthepresentareasfavorableascouldpossibly

belookedfor,”andarguedthat“thePresidentiscommittedbothpersonallyandby

partyplatformtoinlandwaterwaydevelopment.”Consequently,thevotetoraisethe

moneywasunanimous.150

InearlyDecember,theSecretaryoftheRedRiverValleyImprovement

AssociationfromDenison,Rayburn,andaRepublicannationalcommitteemanall

appearedbeforethechiefoftheArmyengineersinsupportoffundingfortheRedRiver

floodcontrolprogram.Thiswasapreemptivemeasuresincethesurveybeing

conductedbytheArmyengineer’sstationedinDenisonwasnottobecompleteduntil

theendofthemonth.Oncefinished,itwastobesubmittedtodivisionheadquartersin

Vicksburg,Mississippi,wheretheheadofthedivisionofficewouldaddittohislarger

project,whichentailednavigation,floodcontrol,powerdevelopmentandirrigationof

149DallasMorningNews,September27,1930,1(firstquote),12(secondquote).150DallasMorningNews,November27,1930,1,2(firstquote);December4,1930,1,2(secondquote).

107

theentireRedRiversystem.Thisprincipalreportwasintendedtobesubmittedto

WashingtoninJuneof1931.151

UnfortunatelyforRayburn,GraysonCounty,andtheotherareasthatwould

havebenefitedfromthedamatDenison,therealitiesoftheGreatDepressiondidbring

toahaltallthemomentumtheprojecthadaccumulated.FromDecember1930until

January1932,theprojectremainedinlimboastheArmyengineersdeliberatedonits

feasibility.WhenthereportfortheproposedimprovementoftheRedRiverwas

releasedbydivisionengineerBrigadierGeneralT.H.Jackson,atVicksburg,onJanuary

10,1932,itwasunfavorable.Theoverallconclusionwasareiterationofthemany

rejectionstheprojecthadreceivedovertheyears:“theimprovementfornavigationis

noteconomicallyjustified.”AlthoughrepresentativesofTexasandOklahoma(including

Rayburn)appealedtheJacksonReport’sfindingstotheboardofArmyengineers,the

worsteconomiccrisisinthehistoryofthecountryovershadowedtheproject,making

theDenisonDamanegligibletopicinWashington.Thesubjectwasmutedfortherest

ofHoover’sterminoffice.152

WhenRooseveltenteredtheWhiteHouse,hismostimportantcontributionwas

“theinstillationofhopeandcourageinthepeople.”ForthecitizensofGraysonCounty,

therewasindeed“hope”and“courage”astheRedRiverfloodcontrolprojectwas

rejuvenatedwithrenewedvigor.Still,despitethechangeintheWhiteHouse,from

1933to1935theRedRiverprojectmovedinafairlysimilarpatternasbefore:asluggish151DallasMorningNews,December8,1930,7;December29,1930,4.152ShermanDemocrat,January11,1932,1(quote);DallasMorningNews,January15,1932,2.

108

pacewithintermittentebbsandflows.Amassmeetingpromotingtheprojectwasheld

inGraysonCountyinAugust1933withmorethan300representativesfromfourstates

attending.InOctoberofthatyear,theplanwasagainpresentedtoaCongressional

boardwhichpassedtheproposalontoWPAengineersinNovember.Theengineer’s

report,whichwasreadyinDecember,camebackrequestingadditionaldata,which

requiredadditionalsurveyingintoJanuary1934.Finally,whenthedatawasprovided,

WPAengineersdeterminedinFebruarythat“duetoinsufficientengineeringdata

available…[theRedRiverproject]hasbeenagainreferredbacktoWarDepartment

engineersforamoredetailedandreliablereport.”153

Theprojectdidachieveonemilestonein1934.InJune,acongressional

delegation,headedbyRayburn,metwithRoosevelttorequestthattheRedRiverbe

includedinanynationalwaterwayimprovementplanpassed.LeavingthePresident

withanengineeringbriefabouttheDenisonDamandacoverletterwithsignatures

fromtwentyCongressmen,Rayburnreportedoptimisticallyabouttheprospectsforthe

project.Andindeed,whenthegreaterMississippiControlPlanwaspassedbyCongress

inOctober,theRedRiverwasincludedasoneofitstributaries,improvingthepossibility

153Leuchtenburg,FranklinD.Roosevelt,42(firstquote);DallasMorningNews,August3,1933,4;October3,1933,3;October5,1933,1;November1,1933,1;December6,1933,13;January27,1934,1;February10,1934,10(secondquote);ShermanDemocrat,January4,1935,1.

109

oftheDenisonDamassupportingthelargerproject.Thisbroughtthe“projectnearer

totangibleformthanatanytimeinthepast.”154

ImmediatelyfollowingthepassageoftheEmergencyReliefAppropriationActin

1935,morethan100callerstotheWhiteHousewereturnedawayasitwasstated“it

wouldbeaphysicalimpossibilityforthePresidenttotalkwithadvocatesofindividual

projects.”Rayburn,however,wasaffordedtimewithRoosevelttodiscussinclusionof

theDenisonDamintheworksprogram,illustratingtohisconstituentshisimportancein

Washington.InanembarrassingturnofeventsfortheCongressman,atapress

conferencetwodayslater,thePresidentcited,

Thecaseofa$36,000,000damrecentlyproposedhimandrequestedasnotcomingwithinthescopeoftheprogram.Herecalleditwasforfloodcontrolandirrigation.Itwouldtakethreeyearstobuild,saidthePresident,anditviolatesallthecanonsofthework‐reliefobjectives.Hepointedoutitwouldtieuptwo‐thirdsofthemoneyinthefirstyearandthattheworktobefinishedwithinoneyearrequiredanoutlaygreaterthanappearedjustifiedbythenumberofunemployedpersonsintheareawherethedamwasproposed.

ThePresidentstatedthatsuchalargeendeavorinsucharuralareawasoneexampleof

“thegeneraltypewhichcouldnotqualifyunderanycircumstances.”Thathis

illustrationreferredtotheDenisonDamwasbeyonddoubt.155

Remarkably,Rayburn’sactivityapartfromtheDenisonDamoverthenextfew

monthsindirectlychangedthetidefortheRedRiverprojectinGraysonCounty.The

154DallasMorningNews,June20,19343(quoteinfootnote);October16,1934,7(quoteintext).AtthemeetingwiththePresident,“moreobjectiveobservers[thanRayburn]”describedRoosevelt’sreactionas“nothing…towarranttoomuchenthusiasm.”155DallasMorningNews,April24,1935,6(firstquote);April26,1935,3(secondquote);May3,1935,16(thirdquote).AlthoughtheDenisonDamendedupcosting$54million,itsoriginalestimatewas$36million,theexactfigurecitedbyRoosevelt.

110

PublicUtilityHoldingCompanyAct,describedbyRooseveltas“themostcontroversial

andhardestwon”billheeversigned,hadbeenatwo‐hundred‐daybattle,withRayburn

pittedfrontandcenteragainstthefinancialgiantsofWallStreet.Withitspassagein

Augustof1935,theCongressmanfromBonham,Texas,hadco‐authoredandledthe

fightoffivekeypiecesofNewDeallegislationthatgavethefederalgovernment

regulatorypoweroverbigbusiness.Inessence,Rayburnhadseentocompletionone‐

thirdofRoosevelt’s“threeRs”(reformofthefinancialsystem),andthePresidentwas

indebtedtotheRepresentativehedescribedas,“themostvaluablemanin

Congress.”156

UnfortunatelyforRayburn,explainingtoalargelyruralcountythecomplexities

oftheregulatorymeasureshehelpedpass,andconvincinghisconstituentsthe

measureswereintheirbestinterest,wasanimprobablefeat.Also,theutility

companiesthathadbeenmilkingconsumerswithinflatedpriceswereintentonseeing

hisdefeatinthe1936Congressionalelections,openlyfloutingtheirdeterminationto

fundhisopponent,JessMorris.EventhoughRayburnhadrunagainstanddefeatedhim

intheprevioustwoelections,Morrishaddonewellinbothandincreasedhisnumbers

considerablyinthesecond.Andthistimehehadhugefinancialbackers.157

AscriticsintheFourthCongressionalDistrictbegantotalkabouttheir

RepresentativewhohadbeeninCongresstwenty‐fouryearsandhadnotyetdelivered

156HardemanandBacon,Rayburn,167,197(firstquote);Patenaude,Texans,Politics,57(quote).TheotherfourpiecesoflegislationweretheEmergencyRailroadTransportationAct,Truth‐in‐SecuritiesAct,FederalCommunicationsActandSecuritiesExchangeAct.157HardemanandBacon,Rayburn,198,204.

111

onhispromiseddam,thepressureonRayburnmounted.AsearlyasMay1935his

brother,wholivedinthedistrict,wrotehim

IamjustwonderinghowyoufeelabouttheR.R.Dam?LotsofpeopleareaskingmeandIamatalosstotellthemotherthanitwasn’tinthePresident’sprogramasyet.Ifeelyoushouldputitoverifpossibleinsomeway.Itwillgiveyouroppositionlotsofbulltostrow[sic]ifyoudon’t.

TheDenisonDamhadbecomethecornerstoneofthe1936electionforRayburn.158

TurningtoRoosevelt,RayburnfinallygotapersonalpromisefromthePresident

inNovember1935thatthenextPWAbudgetwouldincludeanallotmentforthefunds

toconductadetailedsurveyfortheRedRiverdam,thefirststeptowardthe

constructionprocess.RayburnimmediatelyannouncedthenewtoleadersinSherman

andDenison,and,onNovember10,theDallasMorningNewsrananarticlewiththe

heading“WPAWillSurveyProposedDenisonDamonRedRiver;RayburnAssured

AllotmentWillBeMadeforImmediateInspection.”159

However,unknowntoRayburn,SecretaryoftheInteriorHaroldIckeswasfacing

aseriousproblem:Roosevelt,whowaspersonallyadministeringPWAallotments,had

beenmakingpromisestoalmostanyonewhomadearequestattheWhiteHouse.

Whenitcametimetoappropriatefundsfortheprojects,Ickeswastheoneresponsible

toinformcallersthattherewasnomoney.Consequently,onNovember21,humiliating

newsforRayburnspreadacrossNorthTexas:

PresidentRooseveltleftWashingtonWednesdaynightforWarmSprings,Ga.,withoutannouncinganallotmentoffundsforasurveyofDenisondamonRed

158HardemanandBacon,Rayburn,204,205‐206(quote).159HardemanandBacon,Rayburn,205;DallasMorningNews,November10,1935,2(quote).

112

River,whichRepresentativeSamRayburnnearlytwoweeksagosaidhadbeenpromisedhim…InquiryattheWhiteHouseWednesdaybroughtastatementfromamemberofthesecretariatthatnorecordcouldbefoundofanysuchallotmentwhichRayburnsaidhadbeenpromised.AttheArmyEngineers’officeitwasstatedthatcostestimateswerepreparedandsubmittedtotheWhiteHouseatthetimeRayburnwasinWashington,buttheofficerinchargeadmittedhehadheardnothingofitsinceRayburnleftWashington.HeaddedhisonlyinformationthatthePresidenthadapprovedthesurveycamefromRayburn.Recordsoftheworksprogressadministrationshownoapplicationhasbeenfiledforfundscoveringsuchasurvey…Exceptforasinglesentencestatementtothepressthatanallotmentwouldbeapprovedforimmediatesurveyofthedam,Rayburnwouldaddnothinginexplanationoftheassurancesreportedgivenhim.SincereturningtohishomeatBonham,Rayburnhasbeenequallyreticenttodiscusstheassurancesclaimed.

Furious,RayburnwiredIckes:“OppositionpapersaresayingthatthisisRoosevelt‐

RayburnballyhooandnothingwillbedoneanditisbecomingratherembarrassingStop

Iamwonderingifyoucannotgetauthorizationtomakethisallotmentatonce.”Ickes,

forhispart,couldonlyoffersympathyatthetime.160

Although$500,000forthesurveyoftheDenisonDamwasappropriatedas

promised,itwasnotdisperseduntilFebruary1936.WhileRayburnwaslaudedforhis

ardentsupportandhardworkinattainingthisinitialstep,theordealwasundoubtedly

embarrassingforhimsincehisstrategyforthecomingelectionwastorunasa

championoftheNewDealandaninfluentialallytoRoosevelt.Thus,duringthespring

160HardemanandBacon,Rayburn,205(secondquote);DallasMorningNews,November21,1935,12(firstquote).

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andsummerofthatyearhemissedseveralHousemeetingstocampaignthroughoutthe

FourthCongressionalDistrict.161

Hisfearsprovedwhollyunfoundedandhisre‐nominationwasguaranteedwhen,

afewweeksbeforethestateprimary,PresidentRooseveltended“awhistle‐stoptourof

theSouthwest”inDenisononJune13.Asacrowdofaround25,000peoplefrom

GraysonCountyandthesurroundingareascheeredwildly,Roosevelt,withRayburnat

hisside,said:

IamverygladtocomeinpersontoDenison.Althoughitismyfirstvisit,IfeelIknowDenisonverywell,formyverygoodfriend,SamRayburn,hasbeentalkingtomeabouttheproblemsofDenisonandthispartofthecountry.WearetakingstepstomakeasurveyoftheRedRiverBasinandIhopethatverysoonthegreatprojectofthedamandbasinwillbestarted.

AsthetrainfromwhichRooseveltgavehisspeechwaspreparingtopullaway,hetold

theaudience,“Mrs.Rooseveltandmyselfwillcarrywithusallourlivesthememoryof

thisdayinTexasandinDenison.”AfewweekslaterwhentheFourthCongressional

votesweretabulated,Rayburnwaseasilyre‐nominated,despitethehelpMorrishad

receivedfromtheutilitycompanies.Hesaidoftheelection:“Theutilitiescanmake

morenoiseandproducelessvotesthananyoutfitIknowof.”162

TheRedRiverprojectprogressedrelativelysmoothlyoverthenextfewyears,

andwitheveryallotmentoffederalfundsthecitizensofGraysonCountyreceived

161HardemanandBacon,Rayburn,204(quoteinfootnote),205;DallasMorningNews,February2,1936,1,8.RayburnwasknownforhisdedicatedattendancewhentheHouseofRepresentativeswasinsession,oftenstating,“WhenCongressisinsession,yourplaceishere,andwhenCongressisnotinsession,yourplaceisinyourdistrict.”162HardemanandBacon,Rayburn,206(firstandfourthquote);DallasMorningNews,June14,1936,1(thirdquote),7(secondquote).

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economicrelief.AboutthirtyArmyengineersarrivedinDenisoninFebruary1936to

begintheirsurvey,statingthattheyexpectedtheinvestigationtorequiretentotwelve

months.BecausetheundertakingwasaWPAratherthanPWAproject,the300men

theArmyengineershiredweredrawnfromworkrelieflaborrollswheneverpossible,

mostlyfromtheemploymentofficesinShermanandDenison.163

BythefirstofMarch1937,thesurveyoftheproposedRedRiverdamareawas

nearlycomplete,andthereportwassoonpassedontodistrictheadquartersat

Vicksburg,Mississippi.Fromthere,thedatawereanalyzedandsenttoArmyengineer

headquartersinWashington.OnJune12,1937,thechiefoftheArmyCorpsof

EngineersgaveofficialapprovalandrecommendationtoCongressfortheimmediate

constructionoftheRedRiverdaminDenison,stating:

AreservoiratDenison,Texas,onthelowerRedRiver,wouldremovethethreatofthecoincidenceofalargerfloodfromtheRedwithafloodintheMississippi,andwouldalsoaffordhighlydesirableprotectiontothefertilebottomlandsintheLowerRedRiverValley.Besidesitsfloodcontrolbenefits,ithasvaluablepotentialityforpowerpurposes.Thisreservoirhasacapacityof9,200,000‐acrefeet.Itsconstructioncostisestimatedat$35,000,000includingprovisionsforfuturepowerdevelopments,thecostoflandanddamagesbeingestimatedat$6,700,000.164

Inspiteofthisringingendorsement,theconstructionoftheDenisondamwas

stillfarfromassuredasitstillrequiredapprovalbytheArmyBoardofEngineersandthe

SecretaryofWarbeforeitcouldgotoCongress.TheBoardofEngineersmetto

considertheRedRiverprojectinearlyJanuary1938,withRayburnandtwolocal

163DallasMorningNews,February18,1936,13;March6,1936,9;April9,1936,5.164DallasMorningNews,March1,1937,4;June13,1937,2(quote).

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representativespresentingargumentsonitsbehalf.Followinganothertwo‐month

surveybysixty‐fiveArmyengineerstheboarddeemednecessary,theDenisonDam

receivedfinalapprovalfromSecretaryofWarHarryH.WoodringonMarch14,albeit

requiringamuchhigherexpenditure:

TotalestimatedcosttotheFederalGovernmentwasplacedat$54,000,000.Theearthendam,twoandninetenthsmilesinlengthand190feetinheight,wasestimatedtocost$45,481,000andcostofacquiringlandforthedamandreservoirwasestimatedat$8,000,000.Annualrevenuefromgenerationof75,000kilowattspowerwasestimatedat$1,250,000.165WhenthehearingfortheDenisonDamwentbeforeCongressonApril11,

sponsorsofthebillarguedthesamemajorpoints–irrigation,floodcontrol,

hydroelectricpower,andnavigation–thathadbeenassociatedwiththeprojectsince

itsbeginning.However,additionalemphasiswasplacedontheimmediateeconomic

benefitsoftheplan,whichwasestimatedtotakefourtosixyearstocompletewith

morethanhalfofthecostsgoingtolabor.And,sincethepeopleemployedwere

supposedtobetakendirectlyfromreliefrollswheneverpossible,theprojectwould

helptobringeconomicrecoverytoNorthTexasandSouthernOklahoma.Finally,on

June9,1938,afloodcontrolbill,authorizingtheconstructionofa$54,000,000damin

Denison,waspassedintheSenate.Theforty‐yearfightfortheRedRiverprojectwas

finallyover,andnowhereweretherewardsasgreatasinGraysonCounty.166

165DallasMorningNews,January5,1938,3;ShermanDemocrat,January7,1938,1;January12,1938,1;March15,1938,12(quote).166DallasMorningNews,March25,1938,11;April1,1938,3;April12,1938,12;June10,1938,10.

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TheDenisonDamprovedadvantageoustothecitizensofGraysoninseveral

differentwaysbetween1939and1941.Foronething,thesheermagnitudeofthe

projectbroughtawholenewconsumerbaseintothearea.ByNovember1,1938,more

than100personsfromtheArmyCorpsofEngineerswerestationedinDenisonunder

thedirectionofCapt.LuciusD.Clay,chiefengineer.And,becausetheprojectwas

reportedtobethe“world’slargestearthenrollfilldam,”theWarDepartment

announcedthecreationofanewdistrictengineerofficeinDenisonasofJanuary1,

1939.ThisupgrademadeDenisononeofthethreedistrictofficesintheentire

southwesterndivision,andputitinchargeofallthefloodcontrolactivityoftheRed

Riveranditstributaries.Althoughthisdidnotmeanamajorexpansionfrom1939to

1941,insubsequentyears,whenmilitarybaseswerespringingupalloverTexas,the

Denisonengineer’sofficegrewexponentially.167

Surprisingly,condemnationsofthepropertiesthatwouldbeinundatedalso

endedupbeingprofitableforGraysonCountyresidents.Rayburnsawtoitthathis

constituentsbenefittedfromtheDenisonDamineverywaypossible,andthustook

specialcarewithlandappraisals.Worriedthatlandownerswhowereforcedofftheir

propertywouldbeunhappy,RayburnmadesurecloseassociatesfromGraysonCounty

167DallasMorningNews,September15,1938,2;September20,1938,9(quoteinfootnote);January1,1939,9;ShermanDemocrat,January1,1939,1;January24,1940,4(quoteintext).AlthoughonesourcecalledtheDenisonDam“thesecondlargestearthendamintheworldandthefifthinsizeofanytype,”twoothersourcesreferredtoitasthelargestearthenrollfilldamintheworld[thearticlelistedandtheTexasAlmanac(1947),179].Whetheritwasreallythefirst,secondorevenalowerrank,itwas,withoutadoubt,amassiveundertaking.ThechiefengineerstationedinDenison,CaptainLuciusD.Clay,wouldgainrenownforhisadministrationofGermanyafterWorldWarII,andisconsideredthe“father”oftheBerlinAirlift.

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wereappointedkeypositionsintheprocess.Onelongtimepoliticalallywasmadean

appraisertoensureconstituentsgotthebestpricefortheirlandandtokeepthe

Congressmaninformedofdevelopingproblems.Anotherfriendwasappointedspecial

assistanttotheU.S.attorneyintheLandDivisionoftheAttorneyGeneral’sOffice.In

chargeoflandacquisitioninthearea,helatersaidofthejob:

SamRayburnwassolelyresponsibleformybeingappointedassistantUnitedStatesattorney.Iwasinhisdistrict,andtherewastalkthathewouldlosevotesifhetooklandawayfromthepeopleandItriedtotreatthemallright.HecarriedGraysonaswellashedidFanninCountyanddidn’tlostanyvotesinGraysonCountyforthatpurpose.

Thus,evenduringthecondemnationprocesslocalresidentswereprovidedjobs

andlandownersreceivedfairenoughpricesontheirpropertythatnomajor

problemsoccurredinGrayson.168

Ofcourse,constructionofthedamitselfprovidedjobsforcountyresidents.

EvenbeforeCongressreleasedfundsfortheprojectinJuly1939,between5,000and

6,000applicationsforworkweresubmitted.InOctoberofthatyear,theDenison

ChamberofCommerceannouncedthenumberofresidentsinthecitywas18,532,a

significantincreasefromthe1938populationestimateof16,800.Theboost,they

assured,wasduetothedam,whichwasdirectlyresponsiblefortheemploymentof

168Champagne,SamRayburn,24‐25(quote),106.AnotherreasonthelandpurchasesinGraysonCountybythegovernmentwereunproblematicwasbecausetherewasplentyofrelativelyinexpensivelandavailableinthearea.

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morethan650personsatthetime.Thisnumberwassuretogrow,asemployment

duringpeakconstructionwasestimatedtobearound4,000.169

ThedirectbenefitstheDenisonDambroughtwerealsoaugmentedbythe

accompanyingspendingandconstructionactivitiesofthelocalgovernment,which

providedevenmoreworktoGraysonresidents.Forexample,preparingforalarge

influxofpersons,thecityofDenisonheldanelectioninOctober1939toissue$275,000

inbonds(tobematchedbyaFederalgrantof$95,000fromtheWPA)tolauncha

massivecitybettermentproject.Inthemostone‐sidedvoteevercastinthecity,347

personsvotedinfavorversusonly28against.This$370,000projectincludedthe

extensionofsewers,increasedboilerandpumpcapacity,installingatreatingplantand

anincinerator,increasingpumpingfacilities,andaddinganotherlargewatermaintothe

city.ConstructionbeganinMarch1940,andwas“tobecarriedonthroughtheyearto

completion,withplanstoworknightanddayontheenlargement,”whichwas“a

necessitybecauseoftherapidgrowthofDenisonresultingfromconstructionofthe

damonRedRiver.”170

EvenmoreimportanttothecitizensofGrayson,sincethecountyremained

predominantlyrural,wastheconstructionofroads.Thetotalamountoffundsspentis

difficulttogaugefully,asnewprojectswerestartingconstantly,butjustafewexamples

demonstratetheextentofworkandmoneythatwasinvestedintothecountyonroads

169DallasMorningNews,May21,1939,8;October29,1939,7.170DallasMorningNews,February19,1939,7;October22,1939,5;October25,1939,5;February11,1940,9(quote);March11,1940,11.

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alone.In1938,fourseparateroadprojectswereapproved,totalingmorethan

$134,411infederalandlocalfundsandprovidingemploymentforsome417men.The

followingyearallotmentsmorethandoubledto$268,920onfourjobs,includinga

Shermanstreetimprovementprojectcosting$181,920andgivingworkto

approximately500peopleforsixmonths.Buteventhiswasovershadowedby

expendituresin1940,inwhichjustonepresidentiallyapprovedWPAprojectallocated

$499,985foracounty‐widehighwayimprovementprograminGrayson.171

ProbablythegreatestimmediatebenefitsoftheDenisonDamforthecitizensof

Graysonwerethedirectexpenditures,simplyduetotheirsize.WhenCongress

appropriatedthefirstfederalfundsfortheprojectonJuly1,1939,theDenisonofficeof

engineersreceived$5.6milliontocarryitthroughthefiscalyearuntilJuly1940.

Althoughthisfigureshrunkalittlethefollowingyearto$5.2million,itincreasedin1941

to$8.1million.Inthreeyearsthefederalgovernmentspentapproximately$18.9

millionontheDenisonDamalone,probablymorethanithadprovidedGraysonduring

theentireNewDeal.Itislittlewonderthatthecountybegantoshowmoresignsof

economicrecovery.172

AstheDenisonDambroughtmorepeopleandwealthintoGraysonCounty,

privateinvestorstookadvantageofthenewconsumermarketbyconstructinghouses171DallasMorningNews,February16,1938,12;March20,1938,10;May2,1939,3;May30,1939,14;November3,1940,7;December12,1940,10;ShermanDemocrat,January6,1939,1.In1940therewereatleasttwootherroadprojectstotaling$62,241andemploying129menforfivemonths.The$499,985highwayimprovementprograminGraysonwasjustoneoftenTexasWPAallotmentsinthesamebill.Theothernineprojectscollectivelytotaledjust$232,700,lessthanhalfofGrayson’sallocation.172DallasMorningNews,September15,1938,2;June22,1939,1;October29,1939,7;June3,1941,4;July9,1942,5.

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andbusinesses.InSeptember1938,acountyrealtorinvestedinatwomilestretchof

highwayconnectingShermanandDenisontofulfillhis“life’sdream”ofconsolidating

thecitieswithastretchofhomes.AnticipatingthattheRedRiverprojectwouldprovide

thepersonstopermittheendeavor,hehadsoldseverallotsbeforethesurveyingwas

evencompletedinDecember.In1940,withtheconstructionofseventynewresidences

andelevenbusinesses,buildingpermitsinShermanreached$435,234,themostthecity

hadseenforoveradecade.173

Inadditiontotheincreaseinbuildingpermits,therewereseveralother

indicatorsfrom1939to1941tosuggesttheeconomywasimprovinginGraysonCounty.

InShermanalone,bankdepositsincreasedbynearly$500,000during1939,andpost‐

officereceipts,at$92,649,werethehighesttheyhadbeeninanyyearsince1929.The

followingyear,therecordforreceiptsofthepastdecadewasoutdoneagain,although

onlyby$1,400.Alsoin1940,allfourutilityagenciesinSherman(telephone,light,water

andgas)showedappreciablegainsinconnections,indicatinganincreaseinbusinessand

population.Finally,asfederalfundspouredintoGraysonCounty,reliefrollsslowly

begantodeclineinthecities.Duringthefirstfullyearofconstruction,fromDecember

1939toDecember1940,thenumberofpersonscertifiedforWPAemploymentinthe

173TexasAlmanac(1941),299;DallasMorningNews,September25,1938,5(quote);ShermanDemocrat,January5,1941,6.

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countydropped8percent,from3,007to2,742.Whiletherewerestillpersons

unemployedinGraysonby1941,fullrecoveryoftheeconomywasfinallyinsight.174

ThoughthepainstakinglaborinattainingtheDenisonDamwasmonotonousand

oftenfrustrating,thebenefitsGraysonCountyandSamRayburnreceivedmadethe

effortworthwhile.ForRayburn,theyearsofenergyheinvestedinseeingtheproject

throughmadeGraysonenthusiasticallydedicatedtohimuntilhisdeathin1961.Such

loyaltywascertainlywarrantedashisinfluenceintheentireendeavorcannotbe

overstated,fromsponsoringthebillandpushingitthroughCongress,toseeingthathis

constituentsbenefittedfromnearlyeveryphaseofthework.Indeed,whetherthe

DenisonDamwouldhaveevercomeintoexistencewithoutRayburnisopentodebate.

InRoosevelt’sownwords,hisfirstreactionwasthata$36milliondamwas

disproportionateforaruralcountyand“couldnotqualifyunderanycircumstances.”

Thus,itishardtoimaginethatthefinal$54millionprojectwasnotadirectresultof

Rayburn’sinfluenceinWashington.175

Amongmanyofhisconstituents,thebreadthofhisroleintheacquisitionofthe

DenisonDamwasbeyondquestion.Oneresident,whilecampaigningforthe

Congressman,argued:

Whatdoyoumeanheain’t[sic]representingus?IfheappointedyouchairmanofacommitteeandhecameoverandsaidGraysonCountyneededsomething,don’tyouknowGraysonCountywouldgetit?How’dwegetthisdam?TheytalkabouthewasRoosevelt’sass‐kisser,butwhenRooseveltwaspassingoutallthis

174DallasMorningNews,January3,1940,8;ShermanDemocrat,January7,1940,5;January5,1941,6;January6,1941,4.175Champagne,CongressmanSamRayburn,7;DallasMorningNews,May3,1935,16(quote).

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moneyforsoilconservationandriversandharbors,how’dheget$48milliontobuildtheDenisonDamifhehadn’tbeenagoodfriendofFranklinD.Rooseveltandgonealongandhelpedhim?Nobody’sthebigbossupthere.Everybodyhelpseverybody.That’sthewayyougetalong.TheDallasNewshollered,“Rayburnsaysyougoalongtogetalong.”Youdamnedsuredo!176Also,beginningin1938,theDenisonBoosterClubandchamberofcommerce

sponsored“RayburnDay”tocelebratetheirRepresentativeforhisworkinsecuringthe

dam.Theoccasionincludedaparadewiththreebands(onefromDurant,Oklahoma)

andfifty‐fourfloats,adinnerfor350persons,andamassiverallyatthelocalfootball

field.Thefollowingyeartheeventgrewexponentiallywithmorethan10,000people

fromfourstatesdescendingonthecity,includingelevenRepresentativesandSenator

TomConnally.AlthoughRooseveltwasaskedtosendagreetingfortheoccasion,a

fallingoutwithGarnerhadbroughtthePresidenttoquestionRayburn’s

trustworthiness,andsononewasgiven.Still,inhisspeechtothecrowd,Rayburn’s

loyaltyremainedsteadfast:

Thisisnotimeforpoliticsorpoliticaldiscussion,butatimeforjubilation.Butthesedreamsandhopesofourpeopleallthesefortyyearsareapproachingmaterializationandifithadnotbeenforourgreatleader,PresidentRoosevelt,andhisprogramtoconservetheGod‐givenwatersandlands,weallmightstillbedreaming.Thisisadreamcometrue.Therearethosewhoappeartodislikeeverythingthisadministrationhasdone.Regardlessofthis,youcanputitdowninyourbook,thatwhenthehistoryofthiseraiswrittenbyimpartialhistoriansPresidentRooseveltwillbelistedwiththatgroupofimmortalswhichinclude,Washington,JeffersonandJackson.177

176Champagne,CongressmanSamRayburn,79(quote).177Champagne,SamRayburn,26;DallasMorningNews,June24,1938,11;June29,1938,15;July10,1938,15;August22,1939,3;August23,1939,1&12(quote).

123

ItwasthisunwaveringdedicationandstalwartintegritythatearnedRayburn

respectandinfluencethroughoutWashington,whichultimatelyresultedintheDenison

Dam.ForGraysonresidents,thisprojectprovedagodsend,beginningwiththefirst

appropriationandstartofconstructionin1939.Thebenefitswereimmediately

apparentastheveiloftheeconomiccrisis,whichhadstartedadecadeearlier,beganto

liftandrecoverywasfinallyperceivable.

Bymid‐1941only$18.5ofthetotal$54millionhadbeendispersedforthe

DenisonDam,meaninginthenextfewyearscountyresidentscouldexpectatleast

$35.5millionmoreinFederalfunds.Therefore,asnearlytheentireworlddescended

intochaos,thecitizensofGraysonCountyhadamplereasontobeconfidentand

optimisticaboutthefuture.ItisquestionableiftheyrealizedthattheUnitedStates

entranceintoWorldWarIIwouldprovethedeathblowthatendedtheGreat

Depression.Regardless,theprosperityexperiencedinGraysonCountybetween1939

and1941wasabouttobeincreasedbysignificantlymorefederalexpenditures,

deliveredbySamRayburn.

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CHAPTERVI

WARYEARSINGRAYSONCOUNTY,1941‐1945

Whenyouconsiderthemagnitudeofthetaskwithwhichwewereconfronted,therapiditywithwhichwehadtochangefrompeacetowar;thehastewithwhichwehadtoprepareinstrumentsofwarforourselvesandourAllies;themarvelisnotthattherehasbeensomemistakenuseofpower,orthattherehasbeensomewasteandextravagance;themarvelisthatwehaveaccomplishedsuchmiracles.

‐SamRayburn

WorldWarIIwasanepochaleventfortheentireworld,andittransformedthe

UnitedStatesandTexas.Duringthewar,thegrowthofmanufacturingbroughtmassive

changestothestate,notjustasaneconomicboost,butalsobyencouragingthe

movementofpeopleintocitiesforjobs.Consequently,in1950themajorityofthe

citizenry(60percent)livedincitieswithpopulationsof2,500,makingTexasa

predominantlyurbanstateforthefirsttimeinitshistory.However,thispopulationshift

wasnotjustonthepartofpeoplewholivedinTexas,butalsoaresultofnewarrivals.

Thetotalnumberofinhabitantsgrewbymorethan1.2millionthroughoutthe1940s.

Thisincreasewaslargelyduetothenumberofmilitaryestablishmentsbuiltinthestate

duringWorldWarII.From1941to1945,theLoneStarStateheldthedistinctionof

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beingthelargestmilitarytraininggroundintheworld,withfifteenmajorArmybases

andfortyArmyairfields.178

GraysonCountysharedintheeconomicbenefitstiedtothewareffortfrom

1941to1945,andallsignsoftheGreatDepressiondisappeared.Whilethiswaslargely

duetocontinuedfundsfortheDenisonDamandtheDenisonArmyCorpsofEngineers,

thecounty’sacquisitionofanArmyairbasealsoaddedasubstantialboosttothearea.

DiscussionsforanewArmyAirCorps(AAC)primaryflighttrainingschoolinthe

DallasareabeganinMay1940.ByJune,thesecretaryoftheDenisonChamberof

Commercehadplacedabidfortheproject,andinOctober,threeairmenflewinto

GraysontomeetwithcountyrepresentativesandsurveyanareabetweenShermanand

Denison,nearthetownofPottsboro.ThefollowingMarch,CountyJudgeJake.JLoy

flewtoWashingtontopromotetheplan,andsoonaftersentareporttotheAirCorps

withadetaileddescriptionoftheareaandpledginglocalfinancialsupport.ByMay

1941,anAirCorpsofficerboardfromSanAntoniohadsurveyedtheareaagainandsent

areporttotheChiefoftheAirCorpsinWashington,recommendingGraysonforthe

locationofabasicflyingschool.179

TherewereseveralfactorsthatcontributedtothedecisionoftheAirCorps

officerstosuggestGraysonCountyasthesiteforanairfield.Firstandforemostwere

thephysicalandgeographicalfeaturesthatmadetheLoneStarStatetrulyespecially

178Campbell,GonetoTexas,396,401,404‐405;Tyler,Bornett,Barkley,Anderson,andOrdinitz(eds.),HandbookofTexas,I,320(Aviation).179Wurth,Greg,ed.,PerrinAirForceBase(Paducah,2004),6;DallasMorningNews,May31,1940,1;June1,1940,6;October19,1940,13.

126

attractivetoairoperations.Becauseofthevastamountofavailableland,year‐round

flyingweatherandlevelterrain,from1941to1945thereweremoremilitaryair

installationsandairmeninTexasthananywhereelseinthenation.Thus,throughout

thewarsomefortyairbasesinthestatedeployedmorethan200,000troops,greatly

contributingtotheAlliedcauseinattainingairsupremacyoverGermany.180

ThecommitmentsGraysonCountyofficialsmadetotheAACwereanother

crucialfactorinsecuringanairbaseinthearea.Onewastheoffertoprovidelandfor

theairfieldandleaseittothenationalgovernmentforonedollarayear,toberenewed

annuallyfortwenty‐fiveyears.Asaresult,inMay1941,avotebyGraysonresidentsfor

thepurchaseof1,160acresusinga$60,000bondwonoverwhelmingapproval,1699for

and189against.Countyofficialsalsocommittedtoconstructionwork,includingthe

removalofobstructionsfromtheareaaroundtheairfield,supplyingelectric,gasand

telephoneutilities,furnishingarailroadrightofwaytothebase,diggingwaterwells,

andbuildinghighwaystotheairfield.181

Aswouldbeexpected,theinfluenceofSamRayburnalsocontributedtoAir

CorpsofficialsallocatinganairfieldtoGraysonCounty.Infact,itwasjustoneofthe

manymilitaryinstallationsthatbenefittedtheFourthCongressionalDistrictduring

180Shaw,FrederickJ.,ed.,LocatingAirForceBaseSites:History’sLegacy(Washington:AirForceHistoryandMuseumsProgram,2004),12;Campbell,GonetoTexas,401;Tyler,Bornett,Barkley,Anderson,andOrdinitz(eds.),HandbookofTexas,I,320.181Wurth,PerrinAirForceBase,6;DallasMorningNews,May24,1941,10;June14,1941,9.

127

WorldWarII.RayburnisalsocreditedwithhelpingattainairbasesinBonham,

Greenville,andTerrellaswellasPOWcampsinKaufmanandnearFarmersville.182

Inconjunctionwiththesegeographical,economicandpoliticalreasons,the

temperamentinGraysonmadeitasgoodofacountytolocateanairbaseasanyin

Texas.AsearlyasAugust1940,theAmericanLegioninDenisonandtheSherman

MerchantsAssociationsenttelegramstotheirCongressmeninsupportofaconscription

billandothermilitarypreparednessmeasures.Thelatter’spetitionstated:

Believingdelayisdangerous,weurgeimmediateactiononconscriptionbillandotherphasesofpreparednessprogram.Webelieveitbettertobepreparedforwarthantohavewarthrustonunpreparedpeopleandconsidermachineswithoutmentobeasdangerousasmenwithoutmachines.Ourpeoplefavorconscriptionasmostdemocraticwaytomanmachines.183InAprilofthefollowingyear,morethan500residentsofGraysonCountysigned

apetitionforthePresidentandCongressdemandingimmediateunitedactioninthe

war.AssertingthatthenationaldefenseoftheUnitedStatesdependedonBritain’s

existence,oneShermanattorneystatedthat“nomanhasarighttopursueanyother

coursethantomakethepropersacrificesfornationalsafety.”184

Graysonresidentsevensuppliedtheirowndefenseunit.WhentheTexas

legislatureformallycreatedtheTexasDefenseGuardonFebruary10,1941,the40th

BattalionTexasDefenseGuardwasformedinGraysonCounty.Thepurposeofthe

group,whichwasthelargestforceofitskindintheUnitedStates,wasforvolunteersto

182Champagne,SamRayburn,25.183ShermanDemocrat,18August1940,p.15(quote);DallasMorningNews,August18,1940,8.184ShermanDemocrat,30April1941,p.16(quote).

128

defendtheircommunitiesandtheStateofTexasshouldtheoccasionarise.Although

someequipmentwassuppliedbythenationalandstategovernment,most

contributionscamefromcounties,cities,civicgroups,andprivatedonations.ByAugust

1941,Grayson’sDefenseGuardhad350memberswhodrilledregularlyandpatrolled

thecounty.185

Duetoallofthesefactors,GraysonCountywasanideallocationforthesiteofa

primaryairtrainingschool.Thus,onJune10,1941,theTexasstatelegislaturepasseda

billproviding$300,000thefirstyearand$200,000thesecondyearforconstructionof

anaviationandengineeringschoolnearPottsboro.Sixdayslater,plansfortheairfield

weredrawnattheOfficeoftheChiefoftheAirCorpsinWashingtonDC,andfederal

fundsamountingto$3,966,833weresetasideforitsconstruction.Finally,onJuly1,

1941,theleasebetweennationalgovernmentandGraysonofficialswasformallysigned,

guaranteeingthecountyamilitarybaseforthedurationofthewar,withallofthe

accompanyingeconomicbenefits.186

TheDensondistrictArmyCorpsofEngineersannouncedbidsforconstructionof

theGraysonBasicFlyingSchoolinlateJune,requiringthebuildingof130facilitiesand

threehangars.Thethreecompaniesawardedtheprojectsubmittedproposalstotaling

morethan$5million,andjustfourdaysaftertheleasewassignedbetweenthefederal

governmentandGrayson,constructionbegan.Naturally,thismeantjobs,andmore

than2,000carpenterswerehiredinthenextfewmonthstoworkintwoseven‐hour185TexasAlmanac(1943),211;DallasMorningNews,August31,1941,12.186Wurth,PerrinAirForceBase,6;DallasMorningNews,June11,1941,6.

129

daylightshifts.Duringconstructionofthebase,theShermanandDenisonCarpenters

Union’sannouncedthatitsmemberswereearning$81aweek,upfromthe$48they

hadpreviouslymade.ForthecitizensofGraysonthiswasimportantbecauseboth

unionsagreedtoemploypersonswithinthecountywheneverpossible.187

WhenthefirstmilitaryofficerandfiveenlistedmenarrivedinAugust1941,they

foundamessofhalf‐erectedstructuresandanairfieldknee‐deepinmud.Becausethe

barrackswerenotyetfinished,themenhadtostayathotelsinShermanandDenison

andcommutebymeansofunpaved,oftenmuddyroads.Whileitwasbeingbuilt,every

soldierstationedatthefieldparticipatedinthedevelopmentofthebasebydrivingto

andfromtherailroadstationtopickupsupplies.InNovember,thebasebegantofill

outwiththearrivalofitsofficialcommander,twenty‐fouradditionalofficers,andthe

firstcivilianemployees,bringingtotalpersonneltoover200.ByearlyDecember,nearly

sixmonthsafterconstructionstarted,theGraysonBasicFlyingSchoolwasoperational

withofficer’squarters,fourteenbarracks,asewagedisposalplant,amesshallandeven

thedisbursementofthefirstpayrollchecks.Basestrengthstoodat90officers,545

enlistedmenandmorethan20planes.188

FollowingtheattackonPearlHarbor,theairbaseatGraysonbecamethefirst

BasicFlyingSchoolactivatedbytheArmyAirForces(AAF).Thefirstclassofninety‐one

cadetsarrivedonDecember16andformalflighttrainingstartedonthetwenty‐second.

187Wurth,PerrinAirForceBase,6;DallasMorningNews,June28,1941,3;June29,1941,5,12;July2,1941,4;July7,1941,2;July15,1941,9.188Wurth,PerrinAirForceBase,6;DallasMorningNews,October17,1941,3;November15,1941,5;November30,1941,10;December4,1941,11.

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Bythistimetheairfield’spopulationwasmorethan2,500andthereweremorethan

135finishedstructures,includingthreecontroltowers,twohangarsand870acres

(three‐fourthsoftheproperty)ofrunway.Whenthesecadetsbecamethefirst

graduatingclassonFebruary23,1942,aceremonywasheldofficiallyhandingthebase

overtotheUnitedStatesAAFanddedicatingitasPerrinArmyAirField,afterthelate

LieutenantColonelElmerPerrin,anativeTexanwhodiedonabombertestflightinJune

of1941.TheColonel’swidowandtwosonsattendedtheeventasguestsofhonor.189

DuringWorldWarII,roughly2,500airmenweretrainedanddeployedannually

fromthe32ndFlyingTrainingWingatPerrinAAF.Atitspeak,inDecember1942,there

were4,280enlistedmen,morethan300officers,andapproximately550maintenance

personnelatthefield,farexceedingoriginalobjectives.ForGraysonCountythismeant

anewconsumermarketprovidingamajorsourceofrevenueforlocalbusinesses.Also,

becausePerrinrequiredmanycivilianemployeestooperate,thebaseprovidedan

abundanceofjobsforthecitizensinthearea.190

AsconstructionofmilitaryestablishmentssurgedthroughoutTexas,thenational

governmentconsideredputtingconstructionoftheDenisonDamonholduntilafterthe

war.FortunatelyforthecitizensofGraysonCounty,duetothelackofpowerinthe

Southwestforwarindustries,theprojectcontinuedasplanned.Thus,directfederal

189Wurth,PerrinAirForceBase,6;DallasMorningNews,December9,1941,18;December16,1941,2;December20,1941,10;January23,1942,5;February21,1942,5;February24,1942,9.OnJune20,1941,theWarDepartmentgavetheArmyAirCorpsmoreautonomybecreatingtheArmyAirForces(AAF).190Wurth,PerrinAirForceBase,6.

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appropriationsfortheDenisonDamcontinuedtoaddasubstantialsourceofrevenuein

GraysonCounty,withallotmentsof$10,950,000in1942and$10,000,000thefollowing

year.191

Asfederalgovernmentexpendituresonconstructionprojectsgrewevenhigher,

theDenisonDistrictArmyEngineersofficealsogrewexponentially.Bylate1941the

officewassupervisingnineprojects,includingtheDenisonDam,PerrinAAF,anaircraft

assemblyplantatFortWorthanditsaccompanyingairport,andanaviationmechanics

schoolatWichitaFalls.And,followingacongressionalrulingthatwentintoeffecton

December16,1941,theengineersatDenisonassumedcontrolofallArmyconstruction

projectsintheSouthwest.Asthisregionwas“thehubofthenation’swarconstruction

program,”theDenisonofficemushroomed.In1942,theArmyengineersinDenisonhad

astaffofapproximately1,200persons,requiringtheleasingoffivebuildingsinthecity.

ThatJune,theirmonthlypayrollfor4,802employeesintheNorthTexasandSouthern

Oklahomaregionpeakedat$418,954,andtheSouthwesternDivisionoversaw25

percentofallWarDepartmentconstructionprojects,totaling$5,000,000perday.On

September1,1942,exactlyfouryearsaftertheDistrictArmyEngineersfirstarrivedin

Denison,theofficethatstartedwithfivepersonsworkingonjustoneproject(the

DenisonDam)claimedmorethan5,000employees.192

191DallasMorningNews,July2,1944,1;July9,1942,5;March24,1943,7.192DallasMorningNews,August29,1941,16;December14,1941,17;July19,1942,9;July22,1942,8(quote);September6,1942,10.

132

Whileconstructionprojectsandproductionofnearlyallcommoditiesreached

recordlevelsthroughouttheUnitedStates,millionsofAmericanslefttheworkforceto

jointhemilitary.Together,thesefactorscreatedanentirelynovelnationalpredicament

thatreachedcriticallevelsbylate1942.Theshortageofjobsthathadcharacterizedthe

GreatDepressionnowbecameashortageoflabor,and,inGraysonCounty,theproblem

manifesteditselfinseveraldifferentsectors.

InSeptember1942,recruitingofficersfromPerrinAAFbegananall‐outdriveto

findexperiencedtechniciansandmechanics.Withonlyhalfofthenecessarypersonnel

inthesefieldsworkingatthebase,arecruitingcaravan(includingthethirty‐sixpiece

AAFband)wassentouttoelevendifferentcitiesthroughoutNorthTexasandSouthern

Oklahomatofindpeople.Thedrivewashelpedbytherelaxingofproficiency‐

requirementsto“mechanicalaptitude,ratherthanfinishedmechanicalskill.”193

Asthelaborshortagecontinued,theofficersatPerrinbeganactivelyrecruiting

amongalessconventionalgroup.InNovember1943,inobservanceofAirWAC

(Women’sArmyCorps)WeekinTexas,aparadewasheldinDallasbyanAAFteamfrom

Perrintoenlist“womenwholovetobearoundairplanes.”Whenthecampaignproved

disappointing,baserecruiterstriedothermethodstoenticefemalecandidates.

Appealingtowomen’svanity,afrontpagearticleintheDallasMorningNews(showing

twopicturesofaPerrinFieldAirWACinbothserviceandelegantoutfits)assured

readers,“WhenyouseeWACsintheirmilitaryuniforms,don’tgettheideatheycan’tbe

193DallasMorningNews,August28,1942,13;September2,1942,3(quote).

133

glamorouscomeevening.”Also,policieswerechangedsothatWACswerepromised

assignmentattheairfieldoftheirchoiceintheDallasarea.Finally,whenthese

approachesfailed,thecommandingofficeratPerrintriedgoodold‐fashionguilt.When

theWar‐ManpowerCommissionannouncedthepossibilityofthedraftingof300,000

menduringJanuary1943(asignificantlyhighernumberthanexpected),thecolonel,

“deploredthefactthatmanyfatherswillundoubtedlybecalledintoservicebecause

womenwhocouldhaveservedintheirsteadhavenotrespondedtoappealsfortheir

enlistment.”194

TheDenisonDistrictArmyEngineersalsoexperienceddifficultiesduetothe

laborshortageinGraysonCounty.InDecember1942,theofficewasforcedtorequest

300prisonersfromtheStateofOklahomafortheclearingoflandintheareatobe

inundatedbywatersfromtheDenisonDam.Unfortunately,theprisonersinOklahoma

werebeingutilizedonjobsintheirownstate,andsobyFebruarytheengineerswere

stillinimmediateneedofatleast225workers.Desperateforpeopleandwitha

shortageofcivilianandevenconvictlabor,theDenisonengineerscameupwithan

innovativesolution.InMay1943,in“thefirstsuchprojectofitskindinthenation,”

Germanprisonersofwar(POWs)wereputtoworkclearingthelandinthereservoir

areaoftheDenisonDam.CapturedinNorthAfrica(theyhadbeenmembersofHitler’s

AfrikaKorps),thesePOWsprovedsousefulthatinJuly,theDenisondistrictengineers

supervisedtheexpansionoftwonearbyGermaninternmentcampstodoubletheirsize.194DallasMorningNews,October23,1943,7(firstquote);October27,1943,6;November15,1943,1(secondquote);December3,1943,12(thirdquote);February19,1944,1.

134

And,inFebruary1944,aPOWcampwasestablishedintheDenisondamarea,with

sometwodozenbuildingshousingapproximately250Germans.195

Asmightbeexpected,withwarindustriescommandeeringmostofthelabor

supplymanyfarmerssufferedduringthewaryearsforlackofworkers.OnGrayson

farms,thelaborshortagewassoacutebySeptemberof1942thattheCounty

CommissionersCourtadoptedameasuretoaskallWPAprojectsbesuspended,

excludingthosecontributingtothewareffortandthehotlunchprograminschools.

Thefollowingmonth,areportstatedthat200dairyfarmsinthecountywereforcedto

selltheircowstomeatmarketsdueto“anacutefarmlaborshortage,poorfeedcrops

fortwoseasons,[and]lackofrubbertires.”Morethantwoyearslatertheproblemhad

stillnotabated.AccordingtoGraysonCounty’sFarmAgent:

In1944[hisoffice]wasabletoplaceatthehighestday423hands.Ofthese,not10werereallyabletodoadayswork.Theyconsistedofsmallnegrochildren,afewmiddleaged[sic]womenandalotofoldnegroeswhowereunabletodoafulldayslabor.Farmershadtopaythesehandsafullmanwagewhichmadetheirlaboraboutdouble.

Whenaskedifthe1945prospectswereanybetter,hereplied“conditionsaremuch

worse.”TheonlyadvicehecouldoffertoGraysonCountyfarmerswas“nottoplanta

cropthatwouldnecessitatetoomuchhiredlabor.”196

195DallasMorningNews,December30,1942,2;February15,1943,3;May31,1943,5(quote);July28,1943,7;March12,1944,12;ShermanDemocrat,February10,1946,10(quoteinfootnote).ThePOWcampatthedamsitewasfinallyclosedinFebruary1946whenthelastseventy‐fiveGermansweredistributedtootherprisoninstallations,“ultimatelytoreturntotheruinsoftheirnativelandwhichtheyleftintheblazeofmilitaryglory.”196DallasMorningNews,September29,1942,2;October14,1942,1(firstquote);ShermanDemocrat,January21,1945,7(secondquote).

135

AlthoughthelaborshortagewasaseriousprobleminGraysonCountyduring

WorldWarII,itsimplication‐thattheeconomyhadfinallyrecovered–was

undoubtedlypleasingtomostofthecitizenry.Therewereofcoursemanyother

indicatorsthattheDepressionwasover,especiallyinthebusinesssector.TheKaty

RailroadinDenisonexperiencedconsiderablymorebusinessfrom1941to1945thanit

hadinoveradecade.InJuly1941,beforetheUnitedStatesevenenteredthewar,the

monthlyrevenuefromthecompany’sNorthTexasdistrictreached$1,460,000,its

highestmarkintenyears.Consequently,fortyfurloughedmenhadtoberecalled,and

thecompanyincreasedthepayfor125supervisorsbetween$15and$30permonth.

Oneyearlater,thepayrollattheKatyinDenisontotaled$582,147,anall‐timehighin

thecompany’shistory.197

AnothersignthatbusinessconditionsinGraysonwereimprovingwasthe

generalincreaseinconstructionprojects.BuildingpermitsinShermanfolloweda

predictablepatternthroughoutthewar,withaninitialpeakin1941and1942,followed

byasharpdecreaseasmaterialsbecamescarce.Indeed,inJuly1942theDenisonArmy

engineersissuedanappealtothepublictostopall“nonmilitarybuildingtopermitthe

Armytomeetitsconstructionschedules.”Then,asWorldWarIIdrewtoacloseand

governmentprojectsabated,buildingpermitsinShermanspikedtoanalltimehighof

$500,900in1945.Thisincreaseinconstructionmeantaneedformoreutility

197DallasMorningNews,July18,1941,7;July19,1941,3;July25,1941,7;August15,1941,4;July12,1942,5.

136

connections,andelectric,gas,waterandtelephonemeterssawagradualbut

consistentincreasethroughoutthewar.198

Postofficereceiptsalsodemonstratetheimprovedbusinessconditionsin

Grayson.AlthoughthebooststartedwithconstructionoftheDenisonDam,dramatic

gainsdidnotoccuruntiltheyearPerrinwasbuilt.In1939,receiptstotaled$93,503,a

gainofnearly$4,000overthepreviousyear.Thisfigureincreasedbyabout$1,200and

then$4,000inthenexttwoconsecutiveyears,beforespikingupby$19,000in1942,

totaling$117,660.By1945postalreceiptsnearlydoubledthe1941figureat$177,165,

theunparalleledcountyrecord.199

UnfortunatelyformanysmallbusinessesinGraysonCounty,thewaryearswere

notsoprosperous.Whenthenationalgovernmentbeganlimitingtheavailabilityof

consumeritems,fromsugarandcoffeetogasandtires,smallconveniencestoreswere

forcedtoclosetheirdoorspermanently.Thedetrimentoftherationingsystemtosuch

establishmentsisdemonstratedbyaletterfromawomaninHowe,oneofGrayson

County’ssmallertowns:

Small‐townstoresshouldbesavedbecause:“Warrestrictionshavemadesmallbusinessconcerns,thestoresinruraltowns,moreimportantthanatanytimeinourhistory….HereinTexasthecrossroadsstoreisalinkthatstilltiesustothe

198TheShermanDemocrat,October7,1941,10;January3,19416;January4,1942,6;January6,1946,1;DallasMorningNews,July22,1942,8(quote).BuildingpermitsinShermanwere:1941=$378,192;1942=$341,262;1943=$131,836;1944=135,747;1945=$500,900.Forreasonsunknown,watermetersinShermanweretheonlycategorythatslightlydeclinedin1943and1944beforereachinganalltimehighin1945.199TheShermanDemocrat,January7,1940,5;January5,1941,6;December22,1941,10;January7,1944,5;January7,1945,6;January1,1947,1.Figuresforpostofficereceiptsareasfollows:1939=$93,503;1940=$97,423;1941=$98,601;1942=$117,660;1943=$136,187;1944=$162,356;1945=$177,165.

137

agrarianfoundationuponwhichourgreatnessisbuilt….Ourfarmerswillbeurgedtoanall‐outproductionoffoodcropsin1943…near‐at‐handstoresatwhichtheycanobtainurgentlyneededmerchandisewillbecomevitallyessentialtothewareffort.”HereinHowe,wehaveseenonebusinessafteranotherclose;weseeemptyshelvesinthestoreswhichmanagetoremainopen.Howlongtheycancontinuetoremainopendepends.Thereisonebrightsidetothepicture–thepeople.Thereisnotonewordofcomplaint.Rationing,whererationingisnecessary,isbeingacceptedgladly.Substitutesarebeingusedwhereversubstitutesarepossible.Peoplearefood‐saving‐conscious.Butwiththegigantictaskforthefarmersloomingaheadintheall‐outproductionoffoodcrops,theurgentneedthatthesecountrystoresbeassuredtheiropportunitytoobtainessentialmerchandiseandtransportittotheirplacesofbusinessisvitaltothewareffort.

Thewoman’sassertionisindeedsupportedbytheevidence.Whiletherewasageneral

increaseinnearlyeverybusinessmeasurefrom1939to1948,thenumberofretail

stores(thecategoryinwhichsmall‐townconveniencestoresfall)inGraysonCounty

decreasedfrom1,018to817.Thus,some201localbusinesseswerecasualtiesofWorld

WarII.200

Thewaryearsalsowereamixedblessingforthecityandcountygovernmentsin

Grayson.Astheareaexperiencedincreasedprosperity,therewasnaturallyanincrease

inrevenues.TheCountyclerk’sofficefollowedthecommontrendofareaswithmilitary

bases,showingasignificantincreaseinrevenueduringtheearlyyearsofthewar(from

$19,872in1941to$23,388in1942),thengraduallydecreasingto$19,271in1944asa

majorityofthemilitarypersonnelwentoverseas.Uponthesoldiersreturnin1945,the

200Campbell,GonetoTexas,403;TheTexasAlmanacandStateIndustrialGuide(Dallas:A.H.Belo&Co.,1952),292,295;TexasAlmanac(1941),287;DallasMorningNews,December16,1942,2(quote).RetailsalesinGraysonCountyincreasedfrom$17,982,000in1939to$55,738,000in1948.

138

numberspikedbackuptoanall‐timehighof$30,670,withsomeitemsrisingasmuchas

50percent.201

InSherman,inspiteofareductioninthetaxratefrom$2.35onthe$100in

1941,to$2.25in1942,citycollectionscontinuouslyincreasedinthefiveyearwar

period.In1942,atotalof$277,105wascollected,increasingbynearly$6,000the

followingyear,$15,000in1943,andover$20,000in1945toarecordhighof

$323,851.202

However,withfederalgovernmentfundsgoingtomilitarypurposes,thedirect

financialaidGrayson’slocalgovernmentsreceivedduringtheNewDealcametoahalt.

Withcountytaxesin1941atthelowestrate($.55onthe$100valuation)since1927,

thedebtincreasedfromapproximately$3.1millionin1940tomorethan$4.7millionby

1943.Notwantingtoraisetaxes,countyJudgeLoyannouncedinSeptember1942that

thebudgetforthefollowingyearwasloweredby$43,668,withtheeliminationoffour

salariedpositionsanda20percentreductionintheroadandbridgefund.By1945the

countydebtwasstillcloseto$4.3million.203

OnJune6,1944,underthecommandofGeneralDwightD.Eisenhowerfrom

Denison,AlliedforcesinEuropelaunchedthelargestmilitaryinvasiontheworldhad

201TheShermanDemocrat,January6,1946,1.202TheShermanDemocrat,January9,1942,7;January7,1945,6;January6,1946,1.203TexasAlmanac(1941),360;TexasAlmanac(1945),335;TexasAlmanac(1947),365;TexasAlmanac(1949),400;DallasMorningNews,September5,1941,9;September19,1942,4.

139

everseenatNormandyBeach.Thisclimacticbattleprovedtobethemilitaryturning

pointofWorldWarII,andthebeginningoftheendforHitler’sThousand‐YearReich.204

Lessthanamonthlater,thousandsofmilesaway,theresidentsofGrayson

Countyexperiencedadefiningmomentoftheirown.OnJuly1,1944,fiveyearstothe

dayafterthefirstfederalappropriationswereallottedfortheproject,theDenisonDam

wasdedicatedatahugerally.Some4,000peopleattendedtheevent,includingthe

Army’sChiefofEngineers,fivecongressmenandRayburn,whogavetheprincipal

address.Atthetimeofthededication,Grayson’sRepresentative(whowasnow

SpeakeroftheHouse)wasconfrontingoneofthefiercestracesinhiscongressional

career,andsotheoccasionbecameapoliticalrally.Nearlyeveryspeechpaidtributeto

Rayburn,withoneCongressmanstating

Thepeopleofthefourthdistrictareveryfortunate.TheymadeawiseselectionoverthirtyyearsagoofonewhowasabletoproperlyrepresenttheminCongress.HenotonlybroughthonortohisowndistrictbuthehasbroughtsomethingthathasanenormousvalueindollarstothisdistrictandtheSouthwest.TheentireSouthwestwillparticipateinthesedividendsandwillthankthepeopleofhisdistrictforkeepinghiminoffice.Thesavingsinoneyearinelectricpowercostsbecauseofthisdam’spresencewillamountto$300,000–moremoneythantheUnitedStatesGovernmenthaspaidtoSpeakerRayburninhismorethanthirtyyearsinCongress.Letushopethatourgoodfriendwillkeepinmindthatthisnationisdependingonhimmorethaneverbeforeinthepostwarperiod.205ThededicationoftheDenisonDamwasaturningpointforthecitizensof

Grayson,notjustforthebenefitstheprojectprovidedthem,butalsobecauseitmarked

204Kennedy,FreedomFromFear,698‐699,708‐709.205DallasMorningNews,July2,1944,1,10(quote).

140

thebeginningoftheendofanera.Since1939,massivenationalgovernment

expendituresfortheDenisonDam,PerrinAAF,andtheDenisonArmyCorpsof

Engineersprovidedasignificantboosttothecounty’seconomy.Thededicationofthe

RedRiverprojectwasthefirstindicatoroftheforthcomingtrendinGraysonof

decreasedfederalactivityandfunds.

AfterD‐Day,withvictoryinsightforAlliedleaders,theaviationobjectiveofthe

UnitedStatesAAFchangedin1944from“rapidexpansion”to“maintainingtheforces,”

usheringinastateofmilitarystrengthdrawdownandadeactivationofseveralbases.

Aswouldbeexpected,thereweresofewWarDepartmentconstructionprojectsthat

theDenisonDistrictArmyCorpsofEngineersofficewasofficiallyclosedonApril1,1945.

Then,inOctoberofthatyear,the32ndFlyingTrainingWingatPerrinwasdeactivated,

drasticallyreducingthenumberofpersonsatthefieldtolessthan2,000byDecember.

Twomonthslater,allbasicpilottrainingatthebasewasdiscontinued,replacedbya

schooltokeepflightinstructorsproficient.Activityattheairfieldtrailedoffuntil

November30,1946,whenPerrinwasdeactivatedandturnedintoastoragefacilityfor

theAAFssurplusplanes,becomingoneofthethirty‐sixArmystationsclosedthat

year.206

DuringWorldWarII,federalgovernmentexpendituresonwarmobilizationand

productionreachedunprecedentedheightsonmilitaryinfrastructure,personnel,and

206Wurth,PerrinAirForceBase,6;Shaw,LocatingAFBSites,40,53;DallasMorningNews,March28,1945,11;February13,1946,7;ShermanDemocrat,January6,1946,1;January24,1946,1;January27,1946,8;January1,1947,6.

141

supplies.Coupledwiththemillionsofservicemensentoverseas,thescarcityofjobs

fromtheGreatDepressionturnedintoasurplus.The“economicrecovery”objectiveof

theNewDealwasexceededbytheendofthewarastheUnitedStatesemergedasthe

preeminenteconomicworldpower.207

TheconfidenceandoptimismthatwassharedbymanyAmericanswasnotonly

justifiable,butalmostinherentinnearlyeverytypeofgrowthstatistic.InGrayson

County,from1941to1945,postalreceipts,utilitymetersinstallations,taxcollections

andbuildingspermitsshowedconsecutivegains,albeitwithsomeunderstandable

exceptions.Evenmoreencouragingwerethebankstatements:outoftwenty‐three

townsinNorthTexasandSouthernOklahoma,thebanksinShermanandDenisonled

everyyearintotaldeposits,showingconsistentincreases.InShermanalonedeposits

nearlytripledduringthewaryearsfrom$7,471,290to$22,290,274.By1945,nearlyall

tracesoftheworsteconomiccrisisinthehistoryofthecountryhadvanishedinGrayson

County.AreporterfromtheShermanDemocratperfectlyexpressedthepeople’s

restoredoptimism:

Figurestalkandtheysaythat1945wasarecord‐breakingyearforSherman.Itwasthebiggest12monthsinallthings,inalltime.Everyrecordineverytypeofgrowthstatisticswasshatteredandsometimesshatteredagainintheyearjustended.Frombankdepositstomarriagelicenses,fromwatermeterstopostalreceipts,the12monthswasacontinuouschalkingupofall‐timenewgains.Therewasnoletupwhenwarended.Thefiguresshowthatevennow,sixmonthslater,theyearclosedoutonastiffascendingnote,andeverybarometerofthecity’sdevelopmentwasstillpyramidingthefigures.208

207Kennedy,FreedomFromFear,363,782‐793.208ShermanDemocrat,January1,1947,1;January5,1947,3;January6,1946,1(quote).

142

CHAPTERVII

EPILOGUEANDCONCLUSION

WearecriticizedbysomeinWashingtonforthemillionswearespending,butIseetheresultsofthatspendingineveryvillage.Iseebetterroads,morelights,betterschools,alldedicatedtotheserviceofmankind.

‐SamRayburn

AfterWorldWarIItheUnitedStatesdemilitarized,closinghundredsofbases

anddischargingmillionsoftroopsfromthearmedservices.InTexas,thismeantthe

deactivationofthirty‐sixArmycampsandairfieldsin1946,includingPerrinAAF.In

GraysonCounty,theeffectsofthemilitarydrawdown,completionoftheDenisonDam,

andclosingoftheDenisonDistrictArmyEngineersofficewererealizedimmediately,

especiallyinthetwomaincities.

ForthefirsttimesinceconstructionstartedontheDenisonDamin1939,both

postofficereceiptsandbankdepositsdeclinedin1946.However,thedecreaseswere

notenoughtoassumeapermanentdownwardtrendorevenanythingabnormal,given

thedepartureofsomanypersonsfromthearea.Althoughpostofficereceiptsfellby

almost$22,000to$150,926,thiswasstillthethirdhighestfigureinthecounty’shistory.

And,whiletotaldepositsforthetenbanksinGraysonCountydeclinedfromaround

$51,501,000in1945to$48,694,000in1946,allreductionswerefromthefourbanksin

143

ShermanandDenison.Becausethesecitiesbenefittedthemostfromfederal

expendituresandactivity,itisonlynaturalthattheywerethemostaffectedwhenthe

nationalgovernmenteconomizedafterWorldWarII.209

TheprimaryconcernofGraysoncitizensin1946wasthelackofmaintenance

andconstructionontheexistinginfrastructureinthecounty.Thiswasespeciallytruein

regardstohousing,whichwasaprobleminnearlyeverytownandcityinwhicha

militaryinstallationwaslocated.AsreportedbytheShermanDemocrat,inearly

January1946:

Theresimplyarenohouses,noapartments,norooms.Thecityisatadeadendinpopulationgrowthbutstilltheycome,andhow.Justascriticalasresidentialhousingisthelackofbusinesstolocations.Ontopofitsworsthousingshortage,thecityfacesthepost‐warerawithaheavyslateoflong‐laggingmunicipalneedsandablankplanfortakingupthefive‐yearslack.Newinvestorsinbusiness,service,andprofessionalfieldscametotowninconsiderablenumbersduringtheyear,withprobablydoublethatnumberwantingtobutfindingnoplacetohangtheircommercialhats.

AlthoughtheclosingofPerrinsomewhatrelivedthehousingshortage,

constructionprojectswerestillanecessity.Thus,in1946Graysoncitizenstook

advantageoftheavailabilityofmaterialsandconstructed223newresidences,

bringingtotalbuildingpermitsinShermanto$1,405,153,upfrom$500,900the

previousyear.210

209ShermanDemocrat,January7,1940,5;January5,1941,6;December22,1941,10;January7,1944,5;January7,1945,6;January1,1947,1;January5,1947,3.Figuresforpostofficereceiptsareasfollows:1939=$93,503;1940=$97,423;1941=$98,601;1942=$117,660;1943=$136,187;1944=$162,356;1945=$177,165.210ShermanDemocrat,January6,1946,1(quote);January1,1947,1,8.

144

Whilethelackofnewconstructionprojectsandmaintenancewaslargelythe

resultofthescarcityofmaterials,theconsolidationandretrenchmentofGrayson’slocal

governmentsalsoplayedapart.Tryingtokeeptaxeslowandpayingoffthedebtatthe

sametimemeantcuttingthebudget,especiallyoninfrastructureupkeepand

expansion.Consequently,by1946thecityofShermanwasfacingseriousproblemswith

thesewagedisposalplant,streetmaintenance,extensions,andopenings,andwater

andsewerlineextensions.Accordingtothecitymanager,“Thetimehascomewhen

muchofthisworkcannolongerbedelayediftheoriginalinvestmentinstreet

improvementistobesaved.”Asaresult,a$360,000inbondwasvotedthatJune,and

thetaxratewasincreasedfrom$2.36to$2.70.Likewise,thecountytaxrate,whichhad

beenaslowas$.55onthe$100valuationin1941,wasupto$.95by1948.211

Despitetheseminorproblemsatthecloseofthewar,theyearsfrom1939to

1945sototallyalteredtheeconomicsituationinGraysonCountythatresidentshad

littletocomplainaboutandmuchtobehopefulfor.Manypersonsintheagricultural

sectorfaredwellinthehalf‐decadebeginning1940,asthetotalnumberoffarmsshrunk

byonly.21percentandtheproportionoftenancyfellbyalmost24percent(seeTable

2).Furthermore,intermsofvalue,farmaveragesinGraysonincreasedbymorethan33

percent,andimplementsandmachineryby55percent.TheREAalsoproveditsworth

211TexasAlmanac(1949),395;ShermanDemocrat,February3,1946,5(quote);January1,1947,4.ThenewmayorofSherman,JewelHardy,wasanArmyengineerthatspentthreeyearsduringWorldWarIIbuildingroadsinIran.

145

asthenumberoffarmswithelectricitymorethandoubled,from1,062in1940to2,232

in1945.212

Whilefarmersweredoingmarkedlybetter,businessinterestsinGraysonsaw

evengreatergainsafter1939.Inmanufacturing,althoughthenumberof

establishmentsandwageearnersincreaseswerenotremarkable,wagespaidandvalue

addedwereincreasingby259and347percent,respectivelyfrom1939to1947.

Similarly,despitethedecreaseintotalnumberofestablishments(asmentionedin

chapter6),retailtradeflourishedinGraysonCountywiththeaggregatepayroll

increasingby207percentandsalesby210percent.Andfinally,wholesaletrade

showedaninterestingpatternduringthisperiod,withthe282.5percentincreasein

salesactuallysurpassedbythepayroll,whichwasamplifiedby400percent.While

thesestatisticsdemonstratethattheeconomyatGraysonCountyhadindeed

recovered,thetelltalesignthatthedepressionwasovercomesfromthe

unemploymentrecords.In1940therewere2,082personsonpublicemergencyrelief

workinGraysonCountyand3,100personsseekingemployment.ByJanuary1,1947,

theShermanofficeofunemploymentservices(oneoftwointhecounty)hadatotalof

just633namesonfilewith159ofthesepersonsplacedonjobs.Thus,theGreat

DepressionwasoverinGrayson,awelcomedcasualtyofWorldWarII.213

212UnitedStatesBureauoftheCensus,UnitedStatesCensusofAgriculture:1945,VolumeI:StatisticsforCounties;Part26:Texas(Washington:UnitedStatesGovernmentPrintingOffice,1946),85.213BureauofCensus,SixteenthCensus:Population,Vol.II,869;TexasAlmanac(1941),283,287;TexasAlmanac(1952),292,294,308,309;ShermanDemocrat,January6,1947,3.Figuresforretailtradefrom1939to1948are:sales=$17,982,000to$55,738,000;payroll=$1,500,000to$4,612,000.Figuresfor

146

From1929to1946,theebbsandflowsofGraysonCounty’seconomicstate

weresocloselycorrelatedtofederalgovernmentexpendituresastoleavelittledoubtto

thesourceofsuchchanges.DuringthefirstfewyearsoftheDepression,Hooverrelied

almostentirelyonstateandlocalgovernmentsandcharitableorganizationstogive

relieftotheunemployedpersonsthroughoutthecountry.Butthiseconomicideology

wasbynomeanslimitedtothenationalgovernment.Aslateas1935,onlyoneoutof

thirty‐sevenstategovernorssaidtheywouldbewilling“tohavethestatesresume

responsibilityforrelief.”InGraysonCounty,althoughofficialsdidprovidesomerelief,

theireffortswerealsotemperedbyadedicationtoanideologyoflowtaxes,alimited

deficitandaninactivegovernment.Thus,whenFranklinD.Rooseveltenteredofficein

1933,theburdenofprovidingrelieffortheunemployedlayalmostentirelyonthe

shouldersofthefederalgovernment.214

ThegoodfortuneofGraysonCountycitizensfrom1933to1946istruly

noteworthy,astherecouldnothavebeenanywaytopredictthemagnitudeof

influencetheirrepresentativeinCongresswouldwieldduringthistime.Beginningwith

hisinvolvementinsecuringRoosevelt’scandidacyin1932,SamRayburn’spowerinboth

CongressandWhiteHousemadehimaninvaluableassettoGrayson.Myriadsexamples

existtovalidatetheextentofhisinfluence,whichresultedinfederalfundsfortangible

structures,jobsandindividualreliefinhisdistrict.Butitisnotjustthiscoercive

wholesaletradefrom1939to1948are:employees=459to776;payroll=$411,000to$2,055,000;andsales=$11,526,000to$44,082,000.Likeretail,thetotalnumberofwholesaleestablishmentsactuallydecreasedby32percent,from122to82.214Leuchtenburg,FranklinD.Roosevelt,333,334(quote).

147

strengthandresultantpecuniarybenefitsthatmadeRayburnsonotableduringthis

period.Hispersonalcharacter(whichwasofcourseinterconnectedwithhisinfluence)

gavehimapragmatismthatsupersededideology,allowinghimtoassesspracticallythe

circumstancesofthetimeandactaccordingly.Indeed,althoughhewaspredisposedto

asimilarbeliefsystemasGraysonofficials,RayburnwasresponsibleforseveralkeyNew

Dealmeasures,makinghimavitalelementinthecreationofthewelfarestatein

America.

DuringtheNewDealthenationalgovernmentspentlargesumstobringrelief,

recoveryandreformtothefinancialsystemoftheUnitedStates.InTexasalone,from

1933to1938,officialsactivelysoughtandreceived$1,457,320,759infederalaid,some

ofwhichtrickleddowntoGraysonCounty.Whilethesefundsundoubtedlyprovided

relief,theywerefarshortofbringingrecoverytotheeconomy.Thus,despitethe

nationaldebtreaching$40billionby1939,theNewDealonlycarriedthecitizensof

GraysonCountythrough,butnotoutof,theGreatDepression.215

Itwasnotuntil1939thatfulleconomicrecoverybecameadistinctpossibilityin

Grayson,partlyduetotheimpendingworldwar,butalsobecauseofRayburn’s

influence.Amasterofcongressionalpork‐barrel,hewasfundamentalinattainingthe

DenisonDamforthecounty,aprojectthathadprovedelusivefornearlyfortyyears.

Whilethedamwasimportantforitsprospectsasasourceoffloodcontrol,irrigation

andpower,the$54millionstructuremeantthelocatingofaDistrictengineersofficein

215Patenaude,Texans,Politcs,165;Perrett,DaysofSadness,401.

148

theareaandmoreconstructionprojectsinthecountytoaccommodateaninfluxof

people.Asaresult,federalexpendituresinGraysonreachedanall‐timehigh,providing

moreindividualreliefandanopeningtofulleconomicrecovery.

WithcompletemilitarizationinpreparationforWorldWarII,theUnitedStates

finallyemergedfromtheGreatDepression.Whilethiswaspartlyduetomillionsof

Americansbeingtakenoutoftheworkforceandputintothemilitary,theprimary

impetuscamefromthemassivefederalexpendituresthatmadetheNewDealsums

lookpaltry.Indeed,the$40billiondebtin1939rosetomorethan$260billionsixyears

later,stimulatingtheeconomyaboveandbeyondallexpectations,andpushingthe

UnitedStatestoitspositionastheworld’sunrivaledeconomicandmilitarypower.As

notedbyoneobserver:“intheThirties,niggardlyvoluntaryspendingfailedtoproduce

prosperity.IntheForties,extravagantinvoluntaryspendinghadproduced

prosperity.”216

InTexas,duetoitsuniquegeographicalfeatures,armybasesandairfieldssprung

upthroughoutthestatealmostovernight,includingPerrinArmyAirFieldinGrayson

County.Whilethe$5millionstationprovidedjobsandaround2,500newconsumers

fortheareaannually,increasedactivityandexpendituresattheDenisonArmyCorpsof

EngineersandDenisonDamcompoundedtheprocessofeconomicrecovery.By1945,

theGreatDepressionwasafadingmemoryinGraysonCounty.

216DaysofSadness,401(quote).

149

TABLEI:MANUFACTURINGINGRAYSONCOUNTY,DENISONANDSHERMAN(part1of2)GraysonCounty217 No.Establishments WageEarners Wages($) CostofMaterials($) ValueofProducts($)ValueAdded($)1919 137 2,750 3,118,399 23,930,732 30,612,624 6,681,8921929 81(‐40.9%) 2,461(‐10.5%) 2,471,844(‐20%) 16,010,300(‐33.5%) 23,555,945(‐23.1%) 7,545,645(+12.9%)1933 50(‐38.3%) 1,945(‐21%) 14,441,529(‐38.7%)1939 63(+26%) 2,137(+9.9%) 1,399,725(‐43.4%) 17,675,298(+10.4%) 22,851,573(+58.2%) 5,176,275(‐31.4%)1947 66(+4.8%) 2,593(+21.3%) 5,029,000(+259.3%) 23,182,000(+347.9)

217BureauofCensus,FourteenthCensus,StateCompendium:Texas,223;BureauofCensus,FifteenthCensus:Manufactures,508;BureauofCensus,SixteenthCensus:Manufactures,983;TexasAlmanac(1936),286;TexasAlmanac(1949),303;TexasAlmanac,(1952),249,259.Figuresforallcategoriesfortheyears1933and1947wereunavailable.

150

TABLEI:MANUFACTURINGINGRAYSONCOUNTY,DENISONANDSHERMAN(part2of2)Denison218 1919 1929 1939NumberofEstablishments: 42 22 22WageEarners: 1,084 576 419Wages(indollars): 1,580,000 551,277 299,842CostofMaterials(indollars): 3,027,000 2,491,075 5,225,478ValueofProducts(indollars): 5,077,916 3,793,019 6,121,662ValueAdded(indollars): 2,051,079 1,301,944 896,184Sherman219 1919 1929 1939NumberofEstablishments: 53 43 28WageEarners: 871 721 802Wages(indollars): 699,000 839,185 617,806CostofMaterials(indollars): 16,072,000 9,507,307 10,401,006ValueofProducts(indollars): 19,175,558 12,965,794 13,486,798ValueAdded(indollars): 3,103,442 3,458,487 3,085,792

218BureauofCensus,FourteenthCensus,StateCompendium:Texas,1925,226,234,245,256;BureauofCensus,FifteenthCensus,Manufactures,304;BureauofCensus,SixteenthCensusManufactures,985.219Ibid.

151

TABLEII:AGRICULTURECENSUSINGRAYSONCOUNTY220 1930 1935 1940 1945NumberofFarms: 5,169 5,493(+6.3%) 4,296(‐21.8%) 4,287(‐.21%)AverageSizeofFarm(acres): 104.2 99.9(‐4.1%) 126.0(+26.1%) 114.7(‐9%)ValueofFarms(landandbuildings;indollars): 29,767,038 23,126,619(‐22.3%) 21,743,449(‐6.0) AverageValueoflandandbuildingsperfarm: 5,759 4,210(‐26.9%) 5,061(+20.2%) 6,746(+33.3%) (indollars)Valueofimplementsandmachinery: 1,384,527 1,699,846 2,635,005(+55%)

(figuresfor1930and1940only;indollars)

AgriculturalCensusFiguresbyColorofOperator221 1930 1935 1940Numberoffarms:

White: 4,918 5,299(+7.7%) 4,172(‐21.3%) Non‐White: 251 194(‐22.7%) 124(‐36.1%)

Landinfarms(acres)White: 526,756 541,757(+2.8%) 535,224(‐1.2%) Non‐White: 11,797 7,257(‐38.5) 6,269(‐13.6)

ValueofFarms(landandbuildings;indollars)White: 29,142,738 22,827,459(‐21.7%) 21,507,303(‐5.8%) Non‐White: 624,300 299,160(‐52.1%) 236,146(‐21.1%)

AgriculturalCensusFiguresforTenantFarmers222

1930 1935 1940 1945Numberoffarms: 3,392 3,433(1.2) 2,442(‐28.9) Proportionoftenancy(inpercentages): 65.6 62.5(‐4.7) 56.8(‐9.1) 43.3(‐23.8%)

220BureauofCensus,SixteenthCensus:Agriculture,Vol.I,340;BureauofCensus,CensusofAgriculture:1945,36.221Ibid.222BureauofCensus,SixteenthCensus:Agriculture,Vol.I,363;BureauofCensus,CensusofAgriculture:1945,351.

152

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