1927 The Texas Almanac and State Industrial Guide Page: 226
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226 THE TEXAS ALMANAC.
present date developed into the primary
processing stage with reference to all the
major raw materials produced with the
exception of cotton, wool and mohair.
manufacture of which, even into first
process materials, is relatively small.
The future of Texas manufacturing lies
in (1) developing of all processes of tex-
tile and garment manufacturing and (2)
in development of finishing processes and
by-products manufacture in other lines.
An intensively developed manufacturing
community ordinarily does not derive its
wealth and income from the initial manu-
facturing processeses-though it may do so
in case of iron and steel, textiles and
some other products-but in the manu-
facture of finished products-garments,
shoes, jewelry, clothes pins, musical in-
struments, automobiles, pick handles and
multiplied thousands of other articles.
Fuel and Power.
Texas has unlimited fuel resources.
Until comparatively recent years Texas
was generally considered as handicapped
in this respect. Then came the tremendous
development of the petroleum and natural
gas resources of the State. More lately
there has been another development of
equal importance, the discovery of proc-
esses of firing lignite which make it
adaptable to big scale power production
as in the new 40,000-kw plant at Trinidad
in Henderson County. Texas' gigantic
lignite resources may be looked upon as
an inexhaustible fuel reserve for indus-
trial development. (See chapter on Fuel
Resources and Power.)
Capital.
There exists in Texas an appreciable
surplus of capital available for invest-
ment in manufacturing industry. This
was not true until comparatively recently.
Throughout the earlier period of Texas
history there was not much wealth trans-
ported to this State. Immigrants came
into the frontier State to make money,
not to spend it. Early attempts at de-
velopment of industry in Texas, therefore,
were predicated upon the possibility of
outside capital coming to Texas. With
the passing of years, however, the popu-
lation has increased, thus increasing the
value of land, much wealth has been ac-
cuinulated from the operation of the ag-
ricultural industries, valuable mineral re-
sources have been discovered, and the
wealth of the State has increased rapidly.
Moreover, with the settlement of the
State, the rise of great cities, and the
establishment of all the conveniences of
life, persons of means began coming to
Texas bringing their wealth with them.
An immediate contributing cause to the
recently accumulated capital was the
good cotton price of 1917, 1918, 1919, 1922,
1923, 1924 and 1925. During these years
the index of the price of cotton was above
the general index of the cost of living.
Lowered interest rates, increased time
and demand deposits, and smaller Federal
Reserve credit extensions for farmers'
needs during recent years have been evi-
dence of the strengthened financial situ-
ation of the State as a whole. Today
Texas is in position to invest largely in
the building of its own industries; the
confidence inspired by the willingness of
Texas capital to back its own industries
has, in turn, induced much outside capital.Labor Situation Advantageous.
For many years labor presented another
supposed handicap to industrial develop-
ment in Texas. The labor situation has
not changed except in that the popula-
tion has grown and there has been an
acceleration of urban population. Racial
characteristics in the Texas population
have changed negligibly. However, the
limitation of foreign immigration into the
United States has changed the aspect of
the labor situation throughout the United
States and brought about new ideas and
practices, so that the labor situation in
Texas today is generally considered good,
and it is no longer considered that manu-
facturing development must be accom-
panied by importation of skilled workmen.
Living Cost Low.
An important factor in connection with
the labor supply in Texas is the mild win-
ter and the abundant food production
which keeps down living costs. It has
been estimated that on basis of equal
standard of living the cost is $7 per week
per family in Texas less than in the cold-
er climate of the North.
If Texas produced manufactured goods
in relation to its consumption the total
value of manufactured products would be
nearly $3,000,000,000 annually instead of
approximately $1,000,000,000. In the fu-
ture, Texas should actually manufacture
in greater proportion than its own market
really justifies because of its splendid
foreign trade opportunities in Latin
America.
Becoming Industry-Minded.
The greatest present drawback to the
upbuilding of manufacturing industry in
Texas is lack of experience. Up to the
present time the financial interest of
Texas has been centered in the develop-
ment of its chief resource-land. The ac-
quisition of more than 100,000,000 acres of
land and the establishment of nearly
500,000 farms has required billions of dol-
lars of credit. Consequently, the demand
for loans on gilt-edge security - real
estate-has always been good. Interest
rates- have been relatively high and the
man with money learned to look to that
very simple and safe form of investment,
mortgage on real estate. During recent
years there has been sufficient money in-
the State to force an appreciable reduc-
tion in interest rates, and for the first time
capital has had 'to seek investment. Under
such conditions it should flow readily into
needed industrial development, but Texans
are untrained in this field-simply not in-
dustrial minded. Indeed, of the past train-
ing in industrial development received by
Texans, some of it has been of the wrong
character. Promoters, by capitalizing on
community pride and promising large re-
turns, not infrequently succeeded in
charging large fees and unloading junk
machinery, leaving establishments bur-
dened with excessive overhead and han-
dicapped by lack of operating capital.
During the last few years this has not
been characteristic of Texas industrial
development; bankruptcies among ,new in-
dustrial establishments have been rare
exceptions. The Texas public is not yet
well versed in investment in industrial
securities and the fact is a drawback, but
rapid progress is being made in this line
of education.
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1927 The Texas Almanac and State Industrial Guide, book, 1927~; Dallas, Texas. (https://texashistory.unt.edu/ark:/67531/metapth123785/m1/230/: accessed April 30, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Texas State Historical Association.