The new generation was strongly represented in the NKVD. The
By mid-1935, except for a few Chechen outlaws, the entire population of the USSR was under the NKVD’s total control. Iagoda had knuckled under to Stalin’s new favorite Nikolai Ezhov and was concocting material for the show trials of those opposition leaders who were still alive, some even at liberty. Ezhov began writing for Stalin a pamphlet entitled “From Fractionalism to Open Counterrevolution.” He was instructed to argue that Trotsky had made terrorists of ideological opponents like Kamenev and Zinoviev and to blame Iagoda for lack of vigilance.36
Lazar Kaganovich had now covered Moscow with asphalt and furnished it with an underground railway. The city began to impress foreign visitors. Iagoda cleared Moscow of its 12,000 professional beggars: instead of going back to their villages, where begging was a respected profession, they were sent to Kazakhstan. Thanks to the GULAG’s output of timber, coal, and nonferrous and precious metals, the Soviet economy was growing. The camps had over 500,000 inmates in 1934, and 750,000 in 1935. The GULAG was also more efficient: inmates’ annual mortality dropped from 15 percent in 1933 to 4 percent in 1935. Deported kulaks added their labor as industrial workers or farmers in Siberia and Kazakhstan. Their death rate also dropped to a fraction of the appalling 13 percent of 1933.
Iagoda was rewarded; the NKVD got new ranks and uniforms. On November 26 Iagoda became general secretary (a rank that hitherto only Stalin had enjoyed) of state security, equivalent to an army marshal. He ordered himself a tunic covered with gold stars and raspberry-striped dark blue trousers; his underlings were only slightly less garish. They exemplified William Cobbett’s “pigs in the parlour, peacocks on parade.” Secret police the NKVD were not.
Iagoda should have known that these marks of favor augured doom. Stalin had never forgotten that Iagoda had been named by Bukharin as a potential supporter of a right coup. He also failed to provide the forced labor he had promised for the Moscow–Volga canal and the Moscow underground; these projects were completed with paid and voluntary labor. The economic uses of the GULAG were limited.
In October 1935 the curious case of the old army commander Gai Gai-Bzhishkian exhausted Stalin’s patience with Iagoda. Gai had told a drinking companion, “Stalin has to be gotten rid of.” He was denounced and sentenced to five years in prison. On the train taking him away, his guards let him go to the lavatory, where he smashed the window and leapt onto the track. Gai, Iagoda had to admit to Stalin, had escaped. Two days later, he was found by a peasant.
Stalin was furious. He raged: