Many Progressives hoped to see the wartime apparatus of economic planning continue after 1918. The Wilson administration, however, quickly dismantled the agencies that had established controls over industrial production and the labor market, although during the 1930s they would serve as models for some policies of Franklin D. Roosevelt’s New Deal. Wartime repression of dissent, however, continued. It reached its peak with the Red Scare of 1919-1920, a short-lived but intense period of political intolerance inspired by the postwar strike wave and the social tensions and fears generated by the Russian Revolution.

Convinced that episodes like the steel strike were part of a worldwide communist conspiracy, Attorney General A. Mitchell Palmer in November 1919 and January 1920 dispatched federal agents to raid the offices of radical and labor organizations throughout the country. They carried search warrants so broad that they reminded those with a sense of history of the writs of assistance against which James Otis had eloquently protested as being destructive of liberty in 1761. The Palmer Raids were overseen by the twenty-four-year-old director of the Radical Division of the Justice Department, J. Edgar Hoover. More than 5,000 persons were arrested, most of them without warrants, and held for months without charge. The government deported hundreds of immigrant radicals, including Emma Goldman, the prominent radical speaker mentioned in the previous chapter. Hoover also began compiling files on thousands of Americans suspected of holding radical political ideas, a practice he would later continue as head of the Federal Bureau of Investigation.

Local police with literature seized from a Communist Party office in Cambridge, Massachusetts, November 1919.

The abuse of civil liberties in early 1920 was so severe that Palmer came under heavy criticism from Congress and much of the press. Secretary of Labor Louis Post began releasing imprisoned immigrants, and the Red Scare collapsed. Even the explosion of a bomb outside the New York Stock Exchange in September 1920, which killed forty persons, failed to rekindle it. (The perpetrators of this terrorist explosion, the worst on American soil until the Oklahoma City bombing of 1995, were never identified.) The reaction to the Palmer Raids planted the seeds for a new appreciation of the importance of civil liberties that would begin to flourish during the 1920s. But in their immediate impact, the events of 1919 and 1920 dealt a devastating setback to radical and labor organizations of all kinds and kindled an intense identification of patriotic Americanism with support for the political and economic status quo. The IWW had been effectively destroyed, and many moderate unions lay in disarray. The Socialist Party crumbled under the weight of governmental repression (the New York legislature expelled five Socialist members, and Congress denied Victor Berger the seat to which he had been elected from Wisconsin) and internal differences over the Russian Revolution.

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