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Updated: May 7, 2025
Their clientele was largely employed in white-owned businesses. Many Negroes were laid off, and Negro-owned businesses immediately felt the pinch. Although Negro businesses had grown significantly during the 1920s, most were small establishments and, in the age of mass production and mass marketing, always had to struggle hard in order to compete.
Louis exploded into a minor riot in May. A Negro had accidentally wounded a white man during a liquor-store holdup but the story that was circulated was that an innocent young white girl had been shot and killed. The white community, especially the striking workers, became an enraged mob which roamed the streets beating any Negroes it could find. The mob also burned Negro-owned stores and homes.
After beating and burning them, the mob went on to loot and burn Negro-owned homes in the community. In 1906, a white mob raged out of control for several days in Atlanta, Georgia. In the same year, the 25th Infantry in Brownsville, Texas, became involved in a riot with the white citizens of that town, and Roosevelt dismissed the whole battalion without honor.
The Depression also proved that Harlem, like other Afro-American communities, was not as economically self-sufficient as Johnson had imagined. Although such communities had many Negro-owned businesses thriving on a Negro trade, these businesses were still dependent on the economy at large. Therefore, they were not at all free from the racial discrimination in the nation.
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