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 towns were like armed camps, and laborers were shot down like dogs. Out of the vast army of the unemployed the strike-breakers were recruited; and when the strike-breakers were worsted by the labor unions, the troops always appeared and crushed the unions. Then there was the militia. As yet, it was not necessary to have recourse to the secret militia law. Only the regularly organized militia was out, and it was out everywhere. And in this time of terror, the regular army was increased an additional hundred thousand by the government.

Never had labor received such an all-around beating. The great captains of industry, the oligarchs, had for the first time thrown their full weight into the breach the struggling employers' associations had made. These associations were practically middle-class affairs, and now, compelled by hard times and crashing markets, and aided by the great captains of industry, they gave organized labor an awful and decisive defeat. It was an all-powerful alliance, but it was an alliance of the lion and the lamb, as the middle class was soon to learn.

Labor was bloody and sullen, but crushed. Yet its defeat did not put an end to the hard times. The banks, themselves constituting one of the most