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Authors: Timothy Egan

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II BETRAYAL
1931–1933
6. First Wave

T
HE FIRST NATIONAL BANK
of Dalhart did not open for business on June 27, 1931. The doors were locked, the shades down. People banged on the windows and demanded answers—this was their money, not the bank's.
Open the door!
A sign said the bank was insolvent.
Thieves!
The same day, the temperature reached 112 degrees, the hottest in the short history of Dalhart. The villainous sun and the starved bank did not seem related—yet. People slumped against the side of the building, in the oppressive shade, wondering,
What now?
Nearly two years into the Depression, the town was taking on a meaner edge, more desperate, like the rest of the country. What started on Wall Street twenty months earlier now hit the High Plains, a domino of distrust. The more things unraveled, the more it seemed like the entire boom of the previous decade had been helium.

Doc Dawson had money in the failed bank. He was approaching sixty and was worried about his future. Social Security did not yet exist. He had no pension. People owed him money from way back. Patients had offered him chickens, venison, old cars. Usually, he waved it off. The Doc looked strong, usually, but it had been a struggle to overcome his own infirmities. Bright's disease. Tuberculosis. Asthma. He didn't need much sleep, running from operation to operation, the spittoon by his side, the black Stetson atop his head. He trained himself to relax at intervals, nearly shutting his body down, and through this method he said he could go days without a normal man's sleep. It was easier to do when his labors were not so physical. Since giving up
the sanitarium, he had become a full-time farmer. The work caught up with him. He felt sharp pains running up his arm, and then the lightheadedness and trouble getting his breath—a heart attack. During a month of recuperation, he took stock of his life. It boiled down to the land; he had to make the dirt work for him. But on the day the First National failed, with the temperature at 112 degrees, his fields looked dry as chalkboard.

A crowd formed outside the office of the new sheriff, Harvey Foust. They wanted him to force the bank to open. Use your power to get our money back, they said. Denrock was full of angry people, blocking the street. The fear spread with fresh rumors. Late in the day, the crowd's mood turned ugly; they went from citizens to a mob, and the heat made it like the worst kind of sweat-soaked nightmare:
Knock the bank door down! It's our money! Where did it go?
Bank accounts were not backed by anything but the good name of the people who ran the bank. And too many of them saw the personal savings of High Plains nesters as just another source of cash for the stock market or an ill-conceived business loan. No matter the exact cause: the First National was broke.

Sheriff Foust tried to calm the mob. There wasn't much he could do; it was a federal matter. But the national government could not do anything either. Deposits were uninsured. In one month alone—November 1930—256 banks failed. The question grew louder, a demand now:
where did our money go?
The mob turned on Foust: was he afraid to do his job? They'd been robbed by the First National.
Do something!

Foust did not seem himself of late. People saw him drinking, his words slurring, even at midday. He talked to himself, withdrew quickly, didn't look people in the eyes. Just a year earlier, Foust—then a deputy—was a hero. He was serving a warrant along with Sheriff Lon Alexander on a pair of low-level bootleggers, Spud and Ron Dellinger. At the Dellinger house, Spud fired at the sheriff, killing him with a single bullet to the brain. Foust had waited outside. When he heard gunshots, he stormed into the shack, his revolver drawn. Spud's brother lunged for the deputy. As the deputy and the bootlegger struggled, Ron's wife entered the shack with a shotgun. Foust broke away and fired at the wife, then at Ron Dellinger. He turned to a
corner and got off a third shot, this one at Spud. Three shots: one killed Spud, the other killed his brother Ron, and the third wounded the wife. A week later, Foust was made sheriff. But he was a haunted man, second-guessing himself.

One block from the bank, at the DeSoto Hotel, Uncle Dick Coon tried to keep spirits up, telling the same jokes, saying failure was not going to drag Dalhart down. People thought Uncle Dick kept his dough in a mattress or a ditch out back. Big shots and paupers did the same thing. Senator "Cotton Ed" Smith of South Carolina hauled all his money around in a belt that never left his waist. Dick had his poker face on and not just for the card game. He was in trouble. The properties he had picked up after the crash were not paying rent. He knew the tenants and sympathized with their plight. Business was dead. People had stopped buying cars, clothes, hats, bicycles, even basics. Once the fear started and the wave of collapse started to spread, it was hard to let a buck go, because there might not be one to replace it. Usually, a few wildcatters could be counted on to throw money around when everyone else had closed their wallets. But oil had fallen from $1.43 a barrel to a dime. A dime! Nothing was moving. The economy was a pool of glue. The wildcatters fled as quickly as they had arrived. Dick had his hundred-dollar bill, of course. To his friends, though, he seemed worried. They could see through his poker face. The man had survived the Galveston hurricane, for Christ's sake. At Galveston, he ran a casino, and he lost it all—money, the building, all washed away. More than six thousand had died, so Uncle Dick did not mourn the paper money buried by rampaging sea and eighty-mile-an-hour winds. He knew poverty and he knew death in their worst forms. But like everyone in the summer of 1931, he had the jitters. Dalhart was sick, acting like a dog with rabies, and that mob outside the bank: what would they turn on next? Uncle Dick's namesake, the Coon Building, was empty, sitting like a hobo on the street right across the way from the DeSoto. And the hotel business had slowed to a crawl, people no longer pouring into Dalhart looking to strike oil or hit a crop.

In Dalhart's grim decline, the Number 126 house flourished. The girls were not afraid of showing it, either. The house had more girls
than they could use and a fiddler, Jess Morris, who played with his band on Saturday nights until dawn. The Number 126 kept some commerce in Dalhart going: the girls getting their hair tinted and coiffed, buying new clothes, the mustard-colored house always in need of fresh blinds, new sheets, furniture. The owner, Lil Walker, drove a pink Cadillac—the nicest car in three counties. She would pile her new girls in the car, dressed to the nines, their hair up like Mae West, and cruise past the crumbling empire of Uncle Dick. The girls waved and shouted yoo-hoo, leaving a trail of perfume.

It steamed John L. McCarty, sitting in his editor's office at the
Texan,
working to keep alive the Dalhart vision. The town had nearly eight thousand people now, almost double what it was ten years ago. In McCarty's mind, it would double again by the end of the 1930s. But Dalhart needed to be slapped to its senses time and again, and it was the job of the loudest voice in the Panhandle to do just that. McCarty could not stand that the one business still thriving in Dalhart was the whorehouse. It was time to drive Mrs. Walker and her pink Cadillac out of Dallam County, out of the Panhandle, out of Texas. McCarty prepared the front page of the
Texan
with a searing exposé, a write-up on the doings at the Number 126, and how it was a moral abomination to have these hookers parading around in a pink Caddy when Dalhart limped along, the Coon Building empty and people no longer showing up with suitcases and ambition to spare.

"
SO THE PEOPLE MAY KNOW
" was his headline for the next day's
Texan.
When he took the page dummy to the shop, his printer shook his head. He refused to print it. The printer had lived in Dalhart since its creation and he knew the Number 126 like people knew Rita Blanca Canyon south of town. McCarty was indignant. This whorehouse was a sore on the face of Dalhart; it had to go. It was one thing to be invisible at the edge of town but another to flash and parade painted women and their dresses and the pink Caddy. Sorry, Mr. McCarty, the printer said. Can't do it. Won't do it. We need them girls. McCarty pulled his story.

As the ranks of the jobless grew, they took to the rails, going from town to town, dodging Rock Island bulls in the south, Burlington
Northern bulls in the other direction, swapping stories about places where the sun shined and a man might still get paid for a day's work. Two million Americans were living as nomads. They were not long-time drifters, most of them, according to reporters who had spent some time on the trains. They were family men, farmers and factory hands, merchants, some professionals among them, writers and bank clerks and storeowners—all broke, people who could not stand to see their kids in rags, hungry. When they arrived in Dalhart—sometimes as many as eighty people a day—at the railroad crossroads that could lead a man north to Denver, west to Santa Fe, or east to Kansas City, Sheriff Foust was supposed to put them back on the train. And if they were black, they weren't even supposed to step off the tracks, or he could arrest them for vagrancy. The penalty for "vag" was stiff: four months on a chain gang, doing hard labor. In September 1929, just over 1.5 million people were out of work; by February of the following year, the number had tripled. The economy was not fatally ill, President Hoover said; Americans had simply lost their confidence.

"All the evidences indicate that the worst effects of the crash on unemployment will have passed during the next sixty days," Hoover said on March 3, 1930.

By the end of that year, eight million people were out of work. The banking system was in chaos. The big financial institutions had once looked invincible, with the stone fronts, the copper lights, the marbled floors, run by the best people in town. Now bankers were seen as crooks, fraud artists who took people's homes, their farms, and their savings. In 1930, 1,350 banks failed, going under with $853 million in deposits. The next year, 2,294 banks went bust. At the end of 1931 came the biggest failure of all—the collapse of the Bank of the United States in New York. When the Bank of the United States folded, it had deposits of two hundred million dollars. Fittingly, the bank's biggest office was next to Union Cigar, the company whose president had committed suicide after the stock fell from $103 to $4 in a day. When the bank failed, twelve million people were without jobs—25 percent of the work force. Never before had so many people been thrown off payrolls so quickly, with no prospects and no safety net.
Never before had so many people been without purpose, direction, or money.

In Dalhart, with the First National shuttered and downtown merchants unable to pay city taxes, John McCarty now worried about the survival of his paper. The
Texan
had been his before his thirtieth birthday. He had taken it from a weekly to a daily, and circulation growth had been robust. The paper would grow into a great daily only if Dalhart kept reaching for legroom. McCarty begged his advertisers to stick with him. He presented a new strategy for survival: he would emphasize good news. Good news? In the worst depression in history. Good news? When stacks of grain rotted near the railroad. Good news? When the land was starting to dry and crack with a spell of drought that had become more than a curiosity. It sounded preposterous. But from here on out, McCarty would only see the omelet in the broken eggs. A bank collapse was an opportunity. A store closing was a competitive advantage. A death was not nearly as important as a birth. As for the heat wave: it's the golden sun at its best. Other states would kill for it. He got the Mission Theater, the grocery store, a couple of lawyers, and Uncle Dick to keep advertising. And he leaned on Herzstein's, the clothing store that gave people in Dalhart something to dream about.

Some people said Jews were to blame for the bad times—that they did not belong in this country, a place where the
Texan
had boasted that its citizens were "of the highest type of Anglo-Saxon ancestry." In Nebraska, four thousand people gathered on the capitol steps, blaming the "Jewish system of banking" for the implosion of the economy. They held banners with rattlesnakes, labeled as Jews, coiled around the American farmer. Father Charles E. Coughlin, the mellow-voiced radio priest from Detroit, also blamed Jews for America's stumbles as he spoke to a weekly audience of more than a million listeners. Often, he would read the names of Hollywood movie stars and then "out" them, revealing their original Jewish names as if detailing a sinister plot.

Herzstein's filled a need in Dalhart, Boise City, and across the line at their headquarters of Clayton, New Mexico, and the fact that they
were Jews in the Anglo prairie was secondary. Their customers let them be. Their sign read: "
HERZSTEIN READY TO WEAR.
" The idea of buying a complete outfit—or even a shirt or pair of pants—that came fully stitched to size was novel. Most people bought bolts of material and sewed their own clothes. In the early years of the Depression, people made clothes from burlap potato sacks, the labels still printed on them, or tore out the seat covers from junked cars and refashioned them as something to wear. Herzstein's slashed prices below their break-even point. McCarty convinced the family to run a small ad, once a week: "new shirts, two for three dollars." But they were bleeding money like everybody else, falling further behind, looking at a growing mountain of unpaid bills. In 1931, over 28,000 businesses failed; it did not matter if they were family run institutions or big corporations, they were sucked under by the same force. Money did not circulate. Those who had jobs saw their wages collapse by a third or more. The average factory worker, lucky to be still drawing a paycheck, went from earning twenty-four dollars a week just before the collapse to sixteen dollars a week in the early thirties.

Relatives from Philadelphia would visit the Herzsteins and wonder why they held on in land so foreign, so full of cowboy twang, wildcatter bluster, and two-fisted Christianity. But the family had been in the High Plains longer than anyone in Dalhart or Boise City, and they were here to stay. As the first Jewish family in the High Plains, they had spilled blood in this land. Their struggle, their despairs and triumphs, were as tied to the hard brown flatland as anybody's. The Herzsteins had come west over the Santa Fe Trail with the first group of Jews in New Mexico—Spiegelbergs, Zeckendorfs, Floersheims, and Bibos among them—beginning in the late 1840s. In New Mexico, they found an open world: cultures of old Spain, Indians from the pueblos, and Yankee traders. The light was different. The landscape was unreal. And socially, it was unlike the layered, segregated world of the East or old Europe. One of the Jews, Solomon Bibo, married into an Indian family in Acoma, a pueblo on a high mesa that is the oldest continuously inhabited town in the United States. Bibo even became governor of Acoma, known as the Sky City, a thousand-year-old community. The Herzsteins drifted north and east of Santa Fe to the high
desert and a wind-tugged piece of New Mexico Territory. They were counting on a railroad line putting down tracks and a depot in Liberty, the town they had selected as their stake. The railroad never came. But one day in 1896, a gang led by Black Jack Ketchum rode into Herzstein's general merchandise store. Black Jack was thirty-two, at the height of a reign of terror across the High Plains. He had killed more than a dozen men, according to the wanted posters, robbing trains, banks, stores, and homes throughout Oklahoma, Texas, and New Mexico.

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