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REVIEW MONTHLY Agricultural and Business Conditions TENTH FEDERAL RESERVE DISTRICT VoL. 36, No. 9 FEDERAL RESERVE BANK OF KANSAS CITY SEPTEMBER 30, 1951 THE GROWTH OF METROPOLITAN AREAS IN THE TENTH DISTRICT During the last twenty years economic growth in the Tenth District, as in the nation as a whole, has been largely concentrated in urban areas. Agriculture has provided employment not only for a declining proportion of the population, but also for a progressively smaller number of people. Employment in manufacturing, trade, service, and governmental activities-all urban pursuits-has quite generally expanded. Consequently, jn order to observe the lines that economic development is following, it is necessary to inquire into the nature of the expansion occurring in urban communities. For this purpose, comparatjve information on various aspects of economic growth in the larger cities within the Tenth District is presented in the following paragraphs. A growth in the proportion of the total population living in urban places of more than 2,500, although somewhat retarded during the 1930's, has persisted in the United States ever since the first census in 1790. During the last thirty years, this tendency has been even more pronounced in the Tenth Distrjct than in the entire country. While total population in the seven District states increased at less than half of the rate at which total population in the United States grew from 1920 to 1950, as shown in Table 1, the rate of growth of urban populat,ion was approximately the same for the District states as for the nation-75 per cent and 77 per cent, respectively. The population of the District states is still more rural than for the country as a whole, but the difference has been narrowed since 1920, as shown in Table 2. The proportjon of the population of the seven District states living in urban communities increased from 37 per cent in 1920 to 56 per cent in 1950. In the United States, the increase was from 51 per cent to 64 per cent during the same interval. Since 1920, rural population-farm and small town-has declined approximately 8 per cent in the seven District states, while in the entire country it has increased 6 per cent. Most of this decrease in rural population within the Tenth District has occurred during the last decade. Urba nixation There are 168 urban areas in the United States which, for the purpose of collecting information, are designated by the Federal Government as standard metropolitan areas. They are generally defined in terms of county boundaries ( except in New England) in order to include fringe population and industrial activities located outside the central cities but associated economically wjth activities carried on inside. Eleven of these metropolitan areas are located in the Tenth Metropolitan Area Growth Tobie 1. URBAN AND TOTAL POPULATION 1920 1940 Wyo .............. .... Total 939,629 1,769,257 3,404,055 1,296,372 360,350 2,028,283 194,402 Urban 453,259 616,485 1,586,903 405,293 64,960 538,017 57,095 Total 1,123,296 1,801 ,028 3,784,664 1,315,834 531,818 2,336,434 250,742 Urban 590,756 753,941 1,960,696 514,148 176,401 879,663 93,577 7 States ............ U.S .................. 9,992,348 105,710,620 3,722,012 54,157,973 11,143,816 131,669,275 4,969,182 74,423,702 Colo .................. Kans ................. Mo ... ... ...... ......... Nebr ................. N. J\Iex .............. Okla .................. 1950* Urban** Total 831.318 1,325,089 993,220 1,905,299 2,432,000 3,954,653 621,905 1,325.51 0 341,889 681,187 1,139,481 2,233 ,351 144,618 290,529 11,715,618 150,697,361 6,504,431 96,028,000 Per Cent Change 1920-1950 1940-1950 Total Urban Total Urban +41.0 +83.4 +17.3 +40.7 +7.7 +61.1 +5.8 +31.7 +16.2 +53.3 +4.5 +24.0 +2.2 +53.4 +0.7 +21.0 +89.0 +426.3 +27,3 +93.8 +10.1 +111.8 -4.8 +29.5 +49.4 +1 53.3 +15.9 +54.5 +17.2 +42.6 +74.8 +s.1 . +30.9 +77.3 · +14.5 +29.0 •1950 urban data are preliminary for Kan sas, Missouri, Wyoming, and the United States. UThe 1950 "urban" definition was more inclusive than the one used in earlier Census tabulations; hence, the data are not strictly comparable in· all cases. SOURCE: Census of Population, 1940 and 1950. · · REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS 2 Tobie 2. URBAN POPULATION AS A PERCENTAGE OF TOTAL POPULATION Colorado ................... Kansas ..................... Missouri ................... Nebraska ................. New Mexico ............ Okla homa ................. Wyoming ................. 1920 48.2 34.8 46.6 31.3 18.0 26.5 29.4 1930 50.2 38.8 51.2 35.3 25.2 34.3 31.1 1940 52.6 41.9 61.8 39.1 33.2 37.6 37.3 1950 62.7 52.1 61.5 46.9 50.2 51.0 49.8 Seven states ............ United States .......... 37.2 51.2 41.9 56.2 44.6 56.5 55.5 63.7 SOURCE: Census of Population, 194.0 and 1950. District. All are defined in terms of single counties with the exception of Kansas City and Denver, both of which jnclude four counties, and Omaha, which includes three counties. The metropolitan areas in the Tenth District display wide diversity in population growth, as shown in Table 3. Albuquerque had a more rapjd growth from 1940 to 1950 than any of the other 167 metropolitan areas in the United States. On the other hand, St. Joseph was one of seven metropolitan areas in the country which lost population. Taken together, the eleven metropolitan areas in the Tenth District increased jn population at a more rapid rate during the decade than did all 168 met ropolitan areas in the United States-27 per cent in comparison with 21 per cent for the nation. In both the Tenth District and the United States as a whole, however, urban growth occurred somewhat more rapidly jn the smaller cities than in the metropolitan areas, since the rate of all urban growth exceeded the rate of growth for metropolitan areas. Nevertheless, 80 per cent of the growth of population in the United States from 1940 to 1950 occurred in metropolitan areas, while the amount of the jncrease in population which took place in the eleven metropolitan areas in the Tenth District exceeded the population gain in the seven District states. Ninety of the metropolitan areas jn the country gained more than 20 per cent in population during the decade. Six of the metropolitan areas in the Tenth District-Albuquerque, Denver, Oklahoma City, Pueblo, Tulsa, and Wichita-had a gain in excess of that rate. Since World War I, the most rap.id growth of Albuquerque, Denver, Lincoln, Pueblo, and Wichit a occurred during the decade of the 1940's. Although urban growth was generally retarded during t he 1930's, substantial population increases took place ,in Albuquerque and Denver. Tulsa and Oklahoma Cit y experienced a major part of their growth as cities during the 1920's, and Kansas City, Omaha, and Topeka also grew more rapidly during that decade than they have ,in subsequent decades. The population of St. Joseph has declined by 5 per cent since 1930. The growth of population in urban communities is obviously dependent on the economic f unctions which they perform. The percentage d.istribution of nonagricultural civilian employment by m ajor industrial categories, shown for a recent month in Table 4, may serve as a guide to the predominant activities of the various communities. None of t he eleven metropol.itan areas in the Tenth District ar e extremely specialized in any single type of a ctivity, although within any industry group, such as manufact uring, employment may be found to be concentr ated in one particular industry. Descriptions are appropriately stated, therefore, in terms of different combinations of activities rather than a single major industrjal group. Indust rial employment (manufacturing and mining combined) constitutes a larger proportion of tot al employment than any other activity in Wich,ita, St. J oseph, Tulsa, Pueblo, and Kansas City. Only Wichita Economic Character of Metropolitan Areas Table 3. POPULATION OF METROPOLITAN AREAS Metropolitan Area Albuquerque ................. Denver 1 . . . . . . ... ... . . .. ..... . ... Kansas City2 ................ Lincoln .......................... Oklahoma City ............. Omaha3 .............. ... ........ Pueblo ............................ St. Joseph ..................... Topeka ........................... Tulsa .............................. Wichita .......................... 1920 29,855 299,087 528,833 85,902 116,307 275,444 57,638 93,684 69 ,159 109,023 92,234 1930 45,430 352,563 665,655 100,324 221,738 313,272 66,038 98,633 85,200 187,574 136,330 1940 69,391 407 ,768 686,643 100,585 244,159 325,153 68,870 94 ,067 91,247 193,363 143,311 1950* 146,014 560,36 1 808,231 118,260 322 ,520 362,203 89,592 93,629 104.430 248 ,6 58 220,213 1920-50 +389.1 +87.4 +52.8 +37.7 +177.3 +31.5 +55.4 -0.1 +51.0 +128.1 +138.8 District, 11 areas........ U. S., 168 areas.......... 1,757,166 n.a. 2,272,757 n.a. 2,424,557 69,276,481 3 ,074 ,111 83,929,863 +74.9 n .a Per Cent Change 1920-30 1930-40 1940-50 +52.7 +52.2 +110.4 +17.9 +15.7 +37.4 +25.9 +3.2 +17.7 +16.8 +o.3 +17.6 +90.6 +10.1 +32.1 +13.7 +3.8 +11.4 +14.6 +30.1 +4.3 -4.6 -0.5 +5.3 +23 .2 +14.4 +7.1 +72.0 +28.6 +3.1 +47.8 +5.1 +53.7 +29.3 n.a. +6.7 n.a. +26.8 +21.2 1930-50 +221 .4 +5 8.9 +21.4 +17.9 +45 .5 +15.6 +35.7 -5.1 + 22.6 +32 .6 +61. 5 +35.3 n .a. •1960 data are preliminary. Revised figures have been released for some areas, and in m ost cases show larger populations, but for the sake of comparability the preliminary data have been used; the error is within approximately 1 per cent. Adams, Arapahoe, Denver, and Jefferson counties, Colorado. Johnson and Wyandotte counties, Kansas, and Clay and Jackson counties, Missouri. •Includes Douglas and Sarpy counties, Nebraska, and Pottawattamie county, Iowa. n.a. Not available. SOURCE: Census of Population, 1940 and 1950. 1 Ineludes 1 Ineludes FEDERAL RESER VE BANK OF KANSAS CITY 8 Table 4. EMPLOYMENT IN MAJOR INDUSTRY GROUPS AS A PERCENTAGE OF TOTAL NONAGRICULTURAL CIVILIAN EMPLOYMENT Transportation, Finance, Metropolitan ManuInsurance, ConCommunication, GovArea facturing struction Public Utilities Trade Real Estate Service ernment Mining Albuquerquel ............... 14.1 12.4 19.8 10.5 25.1 4.6 13.5* Denver 1 ......................... 20.2 9.5 14.6 0.5 12.4 27.7 5.1 10.0* Kansas City2 ................ 28.5 6.2 6.4 0.3 12.9 27.9 5.8 12.0* Lincoln a......................... 22.8 6.2 17.7 11.3 25.2 5.0 11.7 Oklahoma Cityl ........... 11.2 4.6 6.7 25.1 9.0 27.3 5.4 10.7 Omaha3 ......................... 23.0 4.9 16.3 26.4 11.8 9.8 7.5 Pueblos .......................... 30.5 5.5 22.0 1.3** 13.0 10.9 15.2 1.6 St. Josepha ................... 40.9 2.8 9.5 11.4* 5.6 29.8 Topeka2 ......................... 16.6 5.3 24.0 0.2 10.3 17.3 21.2 5.0 Tulsa 1 ... . ....... . . . .............. 22.4 6.2 6.2 10.6 12.0 10.6 26.9 5.0 Wichital ........................ 43.2 4.8 6.9 9.1 7.2 1.3 23.8 3.7 United Statesl ............. 34.2 13.7 2.0 5.8 10.4 9.0 20.9 4.1 3 July, 1951. ••Mining and other. tJune, 1951. 2 May, 1951. •Service and other. SOURCE: Compiled from estimates prepared by the state and local employment security offices and the U. S. Department of Labor. and St. Joseph, however, have a higher percentage of their total nonagricultural employment engaged in manufacturing than does the entire country, which has approximately 34 per cent. Kansas City is an· important wholesale and retail trade center; employment in trade and manufacturing are of about equal relative importance. St. Joseph does a large volume of wholesaling, in addition to manufacturing, as reflected in the high portion of employment engaged in trade. Heavy industry in Pueblo is paired with a relatively high volume of governmental employment in conjunction with the operation of the Federal ordnance depot. Although the relative importance of manufacturing is not h igh in Tulsa, manufacturing in combination with mining activities (oil and gas) accounts for about a third of total employment. Trade absorbs the largest portion of employment in Denver, Oklahoma City, Omaha, Lincoln, and Albuquerque. Wholesaling is particularly prominent in Omaha, Denver, and Oklahoma City. Denver also has a fifth of its workers engaged in manufacturing and an important segment in governmental occupations, chiefly state and Federal. Governmental employment constitutes a larger share of the total in Oklahoma City than in any of the other ten metropolitan areas in the District. This arises because it possesses important military installations, chiefly Tinker field, in addition to the various state offices. Governmental employment is only slightly less important than trade in Albuquerque, which has an assortment of state and Federal establishments. Despite the fact that Lincoln serves as the seat of state government and of the state university, governmental employment is exceeded by employment in trade and manufacturing. For a city of its size, it is uniquely balanced in economic activities. Omaha, although it is important as a marketing center, likewise exhibits a fairly high degree of diversification. Manufacturing ranks second and is of considerable significance. Employment in transportation is relatively high because Omaha serves as the location of the offices and shops of a major railroad, and employment in finance, insurance, and real estate is high relative to the other areas because of the presence of insurance company home offices. Governmental employment makes up the largest share of the total in Topeka, as Table 4 indicates. Again this represents the combination of heavy employment by both state and Federal governments. Trade is second in importance, and employment in transportation is relatively high for the same reason as in Omaha-the presence of repair shops and administrative offices of an important railway system. The significance of the particular functions performed by various urban communities lies in the different rates of growth in these various activities within the regional and national economies, in addition to the geographic changes which may be taking place within any industry group. For example, in the United States as a whole from 1940 to 1950, employment in mining increased by 6 per cent, in comparison with an increase of 34 per cent in manufacturing, 38 per cent in trade, and 19 per cent in service industries. During the decade, agricultural employment declined by 15 per cent. Some assistance can be gained in understanding the past and potential growth of metropolitan areas in this District by investigating more specifically the changes which have occurred in several of these major lines of activity. The growth of a number of the metropolitan areas in the Tenth District, like urban growth in the country as a whole, can be attributed to the process of industrial expansion which has been under way in the United States since early in the nineteenth century. From 1939 to 1947 the expansion in manufacturing employment, shown in Table 5, was considerably faster in the eleven metropolitan areas, which contain approximately two thirds of the Tenth District total, than in the entire United States. The rate of growth in each of the eleven areas during that period exIndustrialization 4 REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS Table 5. MANUFACTURING EMPLOYMENT Number of Number of Establishments Production Workers 1947 1939 1929 1947 1939 1929 110 52 1,695 1,610 917 47 844 637 17,817 26,932 828 12,588 1,345 1,023 48,417 61,698 1,183 38,085 120 120 3,093 164 6,001 1,662 346 306 6,552 261 5,979 9,903 427 524 522 18,439 11,622 21,543 65 80 81 5,831 4,967 7,658 110 114 144 7,499 5,697 9,190 105 119 119 3,847 2,481 4,448 342 252 220 6,137 6,313 11,527 185 326 239 5,925 5,019 13,584 Metropolitan Area Albuquerque ........ ...................... Denver ................................. ....... Kansas City .............................. Lincoln ........................................ Oklahoma City .......................... Omaha ........................................ Pueblo ......................................... St. Joseph .................................. Topeka ........................................ Tulsa ........................................... Wichita ..................... .................. District, 11 areas .................... United States ............................ 3,808 206,663 3,282 173,802 4,270 240,881 125,252 8,369,705 95,330 7,808,205 174,094 11,916,188 Per Cent Change in Production Worker s 1929-47 1929-39 1939-47 -5.0 -45.9 + 75.6 +51.2 -29.4 + 113.9 +27.4 -21.3 +62.0 +94.0 -46.3 +261.1 -8.8 +65.6 +51.1 +16.8 -37.0 +85.4 +31.3 -14.8 +54.2 +22.5 -24.0 +61.3 +15.6 -35.5 + 79.3 +87.8 +2.9 +82.6 +129.3 -15.3 +1 70.7 +39.0 +42.4 -23.9 -6.7 +82.6 +52.6 SOURCE: Census of Manufactures, 1929, 1939, and 1947. The expansion of manufacturing in the Wichita ceeded the rate of increase of 53 per cent for the United States. The conclusion that there is a long- area, occurring especially in the aircraft industry, term trend for industrial expansion with,in the Tenth • has been phenomenal within the last decade. EmDistrict to catch up with the level of industrialization ployment in aircraft production greatly expanded in other parts of the country is forestalled, however, during the war period, contracted quickly in the early by the experience of the decade prior to 1939. In the postwar years, and is once again growing rapidly period from 1929 to 1939, manufacturing employ- under the impact of defense orders. More diversified ment fell off much more severely in the eleven metro- manufacturing activities in the Lincoln area have politan areas, taken collectively, than in the United provided for a surge in industrial employment at more States-it declined 24 per cent in the Tenth District t han twice the national rate. On the other hand, at metropolitan areas, as compared with 7 per cent in the St. J oseph, the various food products industriesentire United States. Consequently, a significant especially meat packing-which employ the bulk of part of the growth of manufacturing employment dur- manufacturing wage earners, constituted the basis ing the last ten years in all but one of the eleven for a more moderate expansion in job opportunities. metropolitan areas in the Tenth District was absorbed Pueblo's iron and steel industry also provided for only in the recovery of manufacturing activity from the a moderate expansion in manufacturing employment adverse effects of the depression years. The eighteen- from 1939 to 1947, although there has been a conyear growth of 39 cent in manufacturing employment tinued growth at a fairly rapid rate since that time. in the eleven metropolitan areas was slightly less than The 51 per cent increase in manufacturing employthe increase of 42 per cent in the nation. Notwith- ment in Denver during the last twenty years was standing the failure of manufacturing in the Tenth greater than the average rate ofincreaseforalleleven District to display growth greater than that for the metropolitan areas and for the country as a whole. entire country, industrial activity did provide a very The food products industrjes account for about a marked expansion in job opportunities in several of quarter of Denver's manufacturing employment ; the metropolitan areas. other important industries are machinery, rubber Tobie 6. WHOLESALE TRADE Metropolitan Area Albuquerque ................... Denver............................. Kansas City................... Lincoln ............................. Oklahoma City............... Omaha .............................. Pueblo ................ .............. St. Joseph ....................... Topeka ............................. Tulsa ................................ Wichita ............................ District, 11 areas ... ........ United States ................. Number of Establishments 1929 1939 1948 ~ 90 205 977 1,050 1,366 1,876 1,764 2,152 166 200 183 506 572 766 730 800 920 71 107 134 216 238 227 122 141 173 306 418 528 328 419 575 5,345 169,702 5,782 200,573 7,246 244,705 9 Averaire for the year. 1 19,8 employment divided by 1950 population. SOURCE: Censue of Business, 1929, 1939, and 1948. 1929 2 Number of Employees 1939 2 506 848 10,649 27 ,577 2,284 6,785 10,159 730 4,248 1,856 2,666 3,347 10,045 20,089 1,754 5,966 8,739 717 2,150 1,163 3,116 3,237 19483 2,144 19,646 32,327 2,062 9,610 12,609 1,070 2,800 1,870 6,572 6,248 70,807 1,605,042 57,824 1,561,948 96,958 2,463,433 3 Per Cent Change in Employees 1929-48 1939-48 +323.7 +152.8 +84.5 +95.6 +17.2 +60.9 -9.7 +17.6 +41.6 +61.1 +24.1 +44.3 +46.6 +49.2 -34.1 +30.2 +o.8 +60.8 +146.5 +110.9 +86.7 +93.0 +36.9 +53.5 +67.7 +57.7 Number employed full workweek ended nearest November 16. Per Capita Wholesaling Employment 19481 .015 .035 .040 .017 .030 .035 .012 .030 .018 .026 .028 .032 .029 FEDERAL RESERVE BANK OF KANSAS CITY products, printing and publishing, fabricated metal products, apparel, and primary metals. Tulsa has had a still more rap.id growth in manufacturing, based chiefly on the making of oil field equipment and storage tanks. The number of new manufacturing jobs created in Kansas City between 1929 and 1947 exceeded the increase in any of the other ten metropolitan areas and constituted over a quarter of the total ,increase in the eleven areas in the Tenth District. As in Denver, meat packing and other food products industries provide employment for approximately one fourth of those engaged in manufacturing. However, other manufacturing activ,ities, which are widely diversified, furnished most of the basis for expansion. They include the apparel, paper and allied products, printing and publishing, chemical, petroleum refining, steel, automobile, machinery, and metal products industries, among others. N evertheless, the rate of growth of manufacturing in Kansas City since 1929 has been less rapid than for the nat,ion as a whole. Similarly, Omaha's industrial growth has lagged behind the expansion in other parts of the United States. Meat packing, which has exh,ibited little disposition to grow in the older packing centers in recent years, and other food products industries account for the major part of manufacturing employment ,in Omaha. Changes in employment in wholesaling, shown in Table 6, indicate that since 1929 the metropolitan areas in the Tenth District have experienced a lesser rate of growth in thjs activity than the United States as a whole, just as in the case of manufacturing. Data on the number of employees in 1948 are not strictly comparable with the two earlier census years (since they refer to the number employed during the full workweek ended nearest November 15, while the 1929 and 1939 data refer to the average number employed during the year), but the relative changes among the different Wholesale Trade 5 areas are indicative of developments in wholesaling within each community. Two of the chief wholesaling centers in the Tenth District--Kansas City and Omaha-lost ground in wholesaling relat,ive to six of the other metropolitan areas and to the rest of the United States. Employment in wholesale trade in St. Joseph and Lincoln actually declined. The loss to St. Joseph was especially severe, as wholesaling was of considerable relative ,importance. The Census data suggest a drift of wholesale activities to the outlying centers in the Tenth District-to Denver, Tulsa, Wichita, and Oklahoma C,ity. The rapid growth of wholesaling in Albuquerque appears to be primarily associated with internal population growth. Both the relative and absolute changes ,in the number of persons employed in retailing between 1929 and 1948 in the metropolitan areas in the Tenth District are closely connected with changes in income and populat,ion, as a comparison between data in Table 7 and Table 3 suggests. As in the cases of both manufacturing and wholesale trade, retailing increased more rapidly from 1939 to 1948 in the Tenth District c,ities than in the rest of the United States, but the eleven areas showed less relative growth over the entire period from 1929 to 1948. The number of retail jobs created during the last twenty years was almost as large as the increase in job opportunit.ies in manufacturing but, unlike a large part of manufacturing and wholesale trade, most increases in retailing are incident to the growth in other primary income-generating ,industries and are not the initial source of new urban expansion. Retail Trade Detailed information on government, transportation, communication, pub1,ic utility, finance, mining, and construction employment is not available from Census sources for a recent year. It is clearly evident from the foregoing information, however, that an imporOther Sources of Growth Table 7. RETAIL TRADE Metropolitan Area Albuquerque .............. Denver ........................ Kansas City ............. . Lincoln ........................ Oklahoma City......... Omaha ........................ Pueblo ......................... St. Joseph .................. Topeka .......... .............. Tulsa ........................... Wichita ....................... 1929 541 5,112 9,390 1,196 2,814 3,618 773 1,360 1,060 1,988 1,862 District. 11 areas .... United States ............ 29,714 1,543,158 Number of Establishments 1939 942 5,725 9,690 1,235 3,284 4,297 952 1,387 1,300 2,691 2,197 33,700 1,770,355 1948 1,428 5,433 8,988 1,091 3,550 3,536 935 1,186 1,196 2,682 2,418 32,443 1,769,540 1948 sales diviiied by 1950 population. 'Average for the year. SOURCE: Census of Business, 1929, 1939, and 1948. 1 Sales Per Capita 19481 $ 836.74 1,061.28 1,225.67 1,054.74 985.72 1,057.44 845.56 959.08 954.01 1,023.11 1,022.07 $1,066.27 866.11 3 Number 1929 2 1,723 20,424 40,142 4,949 11,266 13,467 2,604 4,524 4,190 9,540 7,421 120,250 3,833,581 Number of Employees 19392 1948 3 2,935 5,666 23,229 29,284 38,351 53,432 5,659 6,305 16,536 12,613 16,383 18,417 2,774 3,644 4,242 4,639 4,435 4,945 9,581 12,641 7,956 12,083 128,158 4,600,217 167,592 5,608,398 employed full workweek ended nearest November 15. Per Cent Change in Employees 1929-48 1939-48 +228.8 +93.0 +26.1 +43.4 +33.1 +39.3 +27.4 +11.4 +46.8 +31.1 +36.8 +12.4 +39.9 +31.4 +2.5 +9.4 +18.0 +11.5 +32.5 +31.9 +62.8 +51.9 +39.4 +46.3 +30.8 +21.9 6 REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS tant part of the growth of Oklahoma City, Topeka, Albuquerque, Pueblo, Lincoln, and Denver was due to the expansjon of Federal and state governmental activities in those areas. The fortunes of Oklahoma City, Topeka, and Albuquerque, in particular, have been closely related to the growth of various functions of government. In the case of the construction industry, changes jn the level of activity have been dependent on the amount of industrial, commercial, and institutional expansion taking place in the areas and have been closely tied to changes in population. The relative importance of construction employment is greatest in Albuquerque, where the rate of increase in population was largest in the last decade, and least jn St. Joseph, where a loss of population occurred. Mining has been of direct consequence in providing employment only in the case of Tulsa and Oklahoma City, although the proximity of certain minerals for processing has been important to the economic development of several of the areas, particularly Pueblo and Denver. Industr,ial growth at about the national rate during the last twenty years has formed the chief basis for the growth of metropolitan areas in the Tenth District. Manufacturing alone contributed most of the expansion at Wichita and Lincoln. Economic growth in Kansas City and Omaha was governed by their diversified industrial expansion and continued rise as retail trading centers. Wholesale trade, along with ,industry, formed the basis for growth in Tulsa and Denver, and the latter also extended its governmental functions. In the case of Pueblo, military activities, in addition to the steel jndustry, have provided expanding job opportunities. Although industrial growth has occurred in St. Joseph, it has been largely offset by a contraction of employment in wholesaling. Growth in Oklahoma City, Topeka, and Albuquerque, on the other hand, can be attributed primarily to the expansion of governmental activities, including civilian employment at military bases which has been a particularly important factor in the case of Oklahoma City. Summary BUSINESS AND AGRICULTURAL CONDITIONS MEMBER BANK CREDIT Loan volume of District member banks began a belated seasonal increase during the five-week period ended August 29, reflecting demand by grain dealers and millers following the retarded wheat harvest and reversing the downward trend which had persisted for the previous three months. Total loans of all member banks in the District increased by 42 million dollars, reserve city and country banks increasing by 24 million and 18 million dollars, respectively. District member banks increased their holdings of Government securities by 80 million dollars in the period under review, as the result of net purchases by city banks of 56 million and by country banks of 24 million dollars. Other investments by member banks increased 11 million dollars during August. Total deposits at District member banks increased by 35 million dollars, with the largest part of the change representing an expansion of 25 million in demand deposits of country banks. Demand deposits at city banks declined by 4 million dollars, and time deposits of all District banks showed an increase of 14 million dollars. The increase in loans and jnvestments of banks in the District appears to have been financed to an important extent through a reduction of 65 million in balances with banks in the United States and by credit from the Reserve Bank totaling 21 million. Reserve city banks were responsible for the entire SELECTED ITEMS OF CONDITION OF TENTH DISTRICT MEMBER BANKS (In millions of dollars) ALL MEMBER BANKS Loans and investments ..................................... . Loans and discounts ................................... ... . U. S. Government obligations .....................Other securities .............................................. . Reserve with F. R. Bank ................................. . Balances with banks in U. S .......................... . Cash items in process of collection ................. . Gross demand deposits ...................................... . Deposits of banks ........................................... . Other demand deposits .................................. . Time deposits ...................................................... . Total deposits ..................................................... . Borrowings .......................................................... . Aug. 29 1951 4,820 1,969 2,375 476 884 622 285 5,521 918 4,603 752 6,273 29 July 25 Aug. 30 1951 1950 4,687 4,640 1,927 1,672 2,295 2,508 465 460 869 744 687 604 306 264 5,500 5,277 915 843 4,585 4,434 738 684 6,238 5,961 8 10 RESERVE CITY BANKS Aug. 29 1951 2,720 1,164 1,299 257 556 255 265 3,192 855 2,337 401 3,593 25 July 25 Aug. 30 1951 1950 2,631 2,570 1,140 956 1,243 l,3n9 248 255 541 462 314 253 285 246 3,196 2,994 854 782 2,342 2,212 395 366 3,591 3,360 3 9 COUNTRY BANKS Aug. 29 1951 2,100 805 1,076 219 328 367 20 2,329 63 2,266 351 2,680 4 July 25 Aug. 30 1951 1950 2,056 2.070 787 716 1,052 1,149 217 205 328 282 373 351 21 18 2,304 2,283 61 61 2,243 2,222 343 :us 2,647 2,601 5 1 FEDERAL RESERVE BANK OF KANSAS CITY increase in member bank borrowing dur,ing the period and also accounted for 59 million, or 90 per cent, of the reduction in District member bank balances with other banks. DEPARTMENT STORE TRADE Dollar volume of sales at reporting department stores ,in this District in August was 6 per cent below that of a year ago, but in the first three weeks of September sales were only 2 per cent below last year despite an upsurge in sales that had taken place in mid-September a year earlier, just prior to the imposition of consumer credit controls on durable goods. Sales ,increased more than is usual from July to August, and the seasonally adjusted index of daily BANK DEBITS COLORADO Colo. Springs ....... Denver* ................ Grand Junction ... Greeley ................. Pueblo* ................. Aug. 8 Mos. 1951 1951 ( Thousand dollars) 445,320 60,727 5,866,894 758,079 16,198 136,787 26,462 214,350 49,021 422,809 Change from '50 Aug. 8 Mos. ~ e r cent) +31 +16 +24 +11 -2 +17 +22 +s -8 +23 KANSAS 11,238 Atchison ............... 12,679 Emporia ............... 45,146 Hutchinson .......... 8,026 Independence ...... 84,138 Kansas City ... ...... Lawrence ............. 11,993 12,531 Manhattan** ....... Parsons ................ 10,396 Pittsburg ............. 13,046 Salina ................... 50,616 Topeka ................. 101,818 Wichita ................ 320,467 MISSOURI Independence** .. 13,060 Joplin ................... 30,955 Kansas City ......... 1,257,891 St. Joseph ............ 129,709 8G,D85 97,657 32 ,244 64,230 694,356 97,374 86,201 70,321 103,196 310,713 822,573 2,369,607 +23 +4 +23 +s +38 +15 +12 +12 +11 +27 101,634 242,170 9,868,881 913,132 +6 +3 +9 +15 +16 +18 21,110 33,035 17,180 92,696 655,288 164,763 234,170 127,240 744,337 5,122,947 0 +25 +12 +3 +12 +13 +25 +22 +14 +29 121,085 36,793 986,781 274,160 -17 +8 186,905 37,995 4,436 19,879 26,768 7,288 388,900 6,817 24,547 640,168 1,375,817 296,560 38,284 145,773 218,876 66,078 3,140,049 56,913 168,506 4,878,083 +31 +s +1 +31 +4 +11 +1 +9 +s -2 +22 +19 +11 +5 +12 +24 37,014 37,038 293,857 294,028 +11 +4 +27 +21 District. 40 cities* .. 5,419,138 41,970,656 U.S., 342 cities .....125,291,000 1,040,398,000 +10 -2 +20 +17 -10 +17 +20 +13 +s +12 +10 +16 +11 +14 +23 +17 :N°EW MEXICO Albuquerque* ...... Santa Fe** .......... OKLAHOMA Bartlesville .......... Enid ...................... Guthrie ................. La"\vton** ............. Muskogee ............. Norman** ............ Oklahoma City* .. Okmulgee ............. Ponca City ........... Tul.:;a .................... WYOMING Casper .................. Cheyenne ............. average sales rose to 333 per cent of the 1935-39 average in August from a rather steady level of around 315 per cent the previous four months. Department store inventories, which usually show little change during August, increased somewhat this year and the seasonally adjusted index of stocks rose from 356 per cent of the 1935-39 average at the end of July to 361 per cent at the end of August, reversjng the trend of the three preceding months. Stocks of merchandise on hand at the end of August were about one fourth larger in value than a year earlier, but the volume of outstanding orders was only half as large as a year ago, when stores had been placing heavy orders to replenish inventories. DEPARTMENT STORE SALES AND STOCKS SALES STOCKS Aug. 1951 8 Mos.1951 Aug. 31, 1951 comp. to comp. to comp. to Aug. 1950 8 Mos.1950 Aug. 31, 1950 (Per cent increase or decrease) Denver.............................. -7 +3 +30 Hutchinson ....................... -10 -1 +29 Topeka .............................. +u +9 +16 Wichita............................. +5 +15 +30 Joplin............................ -7 +5 +10 Kansas City..................... -5 +2 +23 St. Joseph......................... -8 +2 • Omaha.............................. -4 +6 +46 Oklahoma City................ -16 -4 +15 Tulsa ................................. -10 0 * Other cities...................... -5 +2 +22 District............................. -6 +3 +25 •Not shown separately but included in District total. NEBRASKA Fremont ............... Grand Island ....... Hastings .............. Lincoln* ............... Omaha .................. 7 - •Dollar figures inclu de one or more additional reporting banks, beginning January, 1961; however, percentage changes shown are computed from comparable data for both 1951 and 1950. .. New reporting center. beginning January, 1951. EMPLOYMENT The employment situation and outlook is recejving increasjngly widespread attention as forecasts of expanding defense activities are made for the months ahead. After allowance is made for students seeking summer jobs and still in the labor force, unemployment dropped to the lowest level of the postwar period during- August, while nonagricultural employment reached a new all-time high. The largest part of the July-August gain occurred in manufacturing industries, as various seasonal and defense-related activities expanded their work forces. The change, however, was substantially smaller than a year ago, largely because of a smaller than usual seasonal rise in employment in the soft goods industries. Over the past year, employment has increased rapidly in the mountain states of the Tenth District. From the standpojnt of type of activity, the largest increase has been in governmental work. Construction, primarily "heavy," has contributed the next largest number of new jobs in Colorado, while Wyoming and New Mexico report a drop in construction employment. Increases in manufacturing employment have been shared by all three states and have been particularly marked in the Colorado metal in- 8 REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS dustries. It is interestjng to note that, although there has been a greater expansion of employment in Colorado than in the other two states, the reactivation and expansion of military facjlities, together with stepped up minerals production, has allowed all three states to expand their labor forces in competition with more industrjalized areas. Recognizing that the full impact of defense manpower mobilization has not yet hit the Rocky Mountain region, the Secretary of Labor has appojnted a regional labor-management committee to assist in over-all planning and to assist local areas in solving problems involving manpower requirements, defense training needs, recruiting, transportation, community facilities, day-care centers for children of defense workers, and other matters. The commjttee plans to work with officials of the employment security agencies in the eight mountain states in setting up jts own operational machinery. In other parts of the Tenth District a sjmilar tightening of the labor supply is reported. In Kansas and western l\1issouri most communities affected by the July flood report that employment is approachjng the preflood level, and in Missouri unemployment compensation claims were lower during July of this year than they were a year ago in spite of the flood s,ituation. On September 1, there were fewer workers without jobs in the Omaha labor market than at any time on record and, for the state as a whole, 25 per cent fewer job seekers were registered than a year ago. Unemployment has shown similar declines in Oklahoma, particularly in Tulsa where manufacturing has recorded better than a 20 per cent gain over the past year. The only severe labor shortage reported for District cities is at Wichita, where several major plants are heh.ind on their hiring schedules and there is a critical need for construction workers for the housing program and air base project. BEEF PRODUCTION Unless unforeseen events cause rapid slaughtering during the remaining months of 1951, beef cattle numbers on farms on January 1, 1952, will exceed by a substantial figure the record number on farms on January 1, 1945. On January 1 of this year, the United States Department of Agriculture reported 84.2 million head of cattle and calves on United States farms and ranches. This number was 4.1 million larger than the number on farms the previous January and only 1.4 million lower than the all-time record number jn January, 1945. During the first six months of this year, 9 per cent fewer cattle and 18 per cent fewer calves were slaughtered commercially than in the same six months of 1950. Furthermore, the number of calves produced this year should be signifjcantly greater than last year because there are 1.6 million more cows in the breeding herd. On the basis of this evidence, it is apparent that farmers are retainjng beef cattle on farms. Cattle numbers on farms usually follow a rather definite cycle. The cycle normally averages about 14 years in length. Currently, cattle numbers are passing through the increasing phase of the cycle. For the country as a whole, several factors have contributed toward encouraging an increase jn the number of beef cattle. First, a large feed production during the past few years has resulted in relatively cheap feed prices. Second, the large demand for beef has been reflected in relatively high prices for beef, and feeding ratfos have been favorable. Third, an intensive effort has been made to encourage farmers to adopt good land use practices. Better pasture and land managemen~ has resulted in higher production of pasture and legume crops. These crops can be marketed most successfully through livestock. The large increase in numbers of beef cattle in the South Atlantic and South Central states can be attributed to better land use practices jn these areas and the use of better pasture management. Fourth, pastures and ranges in most areas of the United States, exclusive of the Southwest, have been good. Rainfall, combined with cool weather, has increased the carrying capacity of pastures in large areas of the United States. Fifth, developments and uncertajnties in legislation have retarded marketings during recent months. As a result, cattle numbers on farms are large and cattle slaughter should increase in the near future as farmers market a larger proportion of their cattle. With numbers of cattle on farms on January 1, 1952, likely to exceed the record numbers on farms on January 1, 1945, average annual beef production during the per,iod from 1952 to 1954 could exceed the current year's production by from 5 to 15 per cent, if pasture and feed grain production can be maintained at recent levels. In the Tenth District, conditions encouraging the retention of large numbers of beef cattle on farms have been somewhat mjxed during the past year. Pasture and hay conditions throughout most of the District, with the exception of the southwestern part, have been good. Prospects now appear favorable for an abundant supply of winter wheat pasture during the fall and winter. On the other hand, the production of feed grains will be reduced from last year's level because of excessive ra,i nfall and flood damage throughout much of the District. Abundant rainfall and cool weather, except for the southern and southwestern parts of the District, have resulted in the holding of many cattle on pastures for a longer period of time than normal.
@FedFRASER