An Historical Analysis of the Economic Growth of St. Louis, 1840-1945

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An Historical Analysis of the Economic Growth of St. Louis, 1840-1945 An Historical Analjrsis of The Economic Growth of St. Louis 1840 - 1945 By Harry L. Purdy, Ph. D» Assistant Director of Research Missouri Pacific Lines Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Index Part I The River Metropolis, l8k)~l870 Page Location Factors and Their Influence on St. Louis 1 Regional Specialization and Regional Interdependence. ..... 9 The City From l8k0 to l8?0. "13 The City and The Steamboat 20 Commerce and Industry ... 26 The Influence of Railroad Development Effects of the Civil War 51 Part II Commercial and Industrial Development 1870-1910 Gro\rth of the City and Its Population Rail and River, 1870-1910 57 Commerce and Industry, 1870-1910. 62 Rise and Decline of Iron Production . 80 Value of Manufactures, 1870-1910 86 Part III Commerce and Industry 1910-19^-5 General Business Conditions 93 Population Trends . 97 Commercial Trends 1910-19^-0 98 The St. Louis Trade Area 107 Manufacturing • 1910-19^5 , . 112 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis ii Page Appendices ....... 124 ff. Appendix Value of Manufactures St. Louis, 1870 and 1875 B Receipts and Shipments of Grain - St. Louis. Mo., 1867-1923 C Receipts of Leading Commodities at St. Louis, Mo., 1859-1883 D Receipts of Leading Commodities at St. Louis, Mo., 1865 E St. Louis Receipts By River and Rail, 1873 F St. Louis Shipments By River and Rail, IS65 G St. Louis Shipments By River and Rail, 1873 E Receipts and Shipments of Cattle, Sheep, Hogs, Horses and Mules - St. Louis, 1867-1923. I Value of Manufactures, in Leading Industries St. Louis City a,nd St. Louis Industrial Area For Selected Years J Cotton Compressed at St. Louis, 1875-1923 K Population of St. Louis and Chicago Industrial Districts, " 1840-1940 L Railroads, i860, 1870, i860, I89O M Gross and Net Receipts of Cotton at St. Louis, 1871-1923 N Receipts, Manufactures and Shipments of Flour - St. Louis, Mo., I85I-I923 0 Receipts and Shipments of Bran and Mill Feed - St. Louis, 1867-1923 P Receipts and Shipments of Hay, St. Louis, 1867-1923 Q Shipments of Bulk Grain "by River From St.. Louis to New Orleans, 1874-1893 R Receipts and Shipments of Wool, St. Louis, 1867-1913 S St. Louis Receipts and Shipments of Lead, I867-I923 T Tobacco Manufactured First Missouri Internal Revenue Collection District 1873-1913 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis iii Appendices Appendix U Receipts and Shipments of Hog Products - St. Louis 1867-1913 V Hogs Packed in the West and at St. Louis and East St. Louis, 1878-1912 ¥ Total Value of Manufactures By Decades 1880-19^0 For The St. Louis Industrial Area With a Breakdown "by Component Areas X Wheat. Corn, and Oats—Receipts at Primary Markets, By Crop Years: 1933 to 19^3 Y Building Permits Issued - St. Louis, 1875-1913 Z Trend of Receipts and Shipments "by Rail and River, St. Louis, 1883-.1923 AA. Business of St. Louis Bridges and Ferries, 1883-1923 BB Reference Bibliography Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis PART I The River Metropolis, 18UO-I87O Location Factors and Their Influence on St. Louis An exclusive right to the Missouri River Indian trade probably accounts more than any other factor for the precise location of St. Louis. The Louisiana Fur Company, known also as Maxent, Laclede and Company, need- ed a trading post near the mouth of the Missouri River and Laclede in 1763 found on the eastern edge of present day Saint Louis a site with the de- sired characteristics. First, of course, it was at the front door of the Missouri territory. In addition boats could be brought directly in for a landing and yet higher ground rising back from the river gave level areas needed for the proposed village and also promised protection against river floods. While the importance of its original advantages has long since disappeared the location possessed features which were of interest to Laclede, but which, in the economic environment of the Nineteenth Century, helped materially in the making of a great city. The twenty years preceding the Civil War have long been recog- nized as the heyday of the steamboat. In this period St. Louis was at the strategic center of one of the two great inland water transportation systems of the continent. In a letter, dated June 20, I8V7, to the St. Louis delegation to the Chicago Convention, the Honorable Thomas H. Benton described this central position with considerable enthusiasm. "Many years ago the late Governor Clark and myself under- took to calculate the extent of boatable water in the valley of the Mississippi; we made it about fifty thousand miles.' of which thirty thousand were computed to unite above St. Louis, and twenty thousand below. Of course, we counted aJll the infant streams on which a flat, a keel, or a bateau could be floated, and justly^ for every tributary of the humblest boat- able character helps to swell not only the volume of the central waters, but the commerce upon them. Of this immense extent of river navigation, all combined in one system of waters, St. Louis is the centre and the entrepot, presenting even now, in its infancy, an astonishing and almost incredible amount of commerce, destined to increase forever.11 ^"Quoted in Scharf, J. Thomas, History of Saint Louis City and County (1883), Vol. II, p. 1037. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 2 As a site for the major harbor on the great inland vateway system, so rapturously described by the tla S. Senator from Missouri, St. Louie left a great deal to be desired. It did possess one advantage of paramount importance to towns located on the shifting Mississippi - a rocky foundation. It was thereby protected from the fate that befell its neighboring predecessor, Ste. Genevieve, Thirty years before the time when Laclede passed on his way up the river, the first white settlement in Missouri had been established by lead miners and hunters near the present site of Ste. Genevieve. However, even while the Louisiana Fur Company was developing its trade in the Upper Mississippi area the Mississippi was forcing inhabitants of the village to move back as banks of the river were eroded. By 1790 the original site was wholly abandoned. In 1850 when St. Louis could claim 104,978 residents, Ste. Genevieve had a population of only 2,258 and this represented the peak to which its population was to grow. Changes occurring in the channel of the river since that date have left the town some three miles west of the river.^ Other towns have been crippled by floods and by the vagaries of the changing Missississippi * channel. St. Louis, however, while finding far from ideal conditions on the banks of the riverA was at least well protected against annihilation from erosion or flood.d One study of the advantages and disadvantages of the St. Louis port, relative to others available in the area, comments that at least "it was obvious that it would be far more likely to be permanent. "3 The permanency of the St. Louis site may have been obvious to Pierre Laclede but it is more likely that being in possession of an eight year monopoly grant for the Missouri fur trade he was much more con- cerned with other aspects of the site, A comment made in 185^ by the commercial chroniclers Chambers and Khapp suggests that Laclede in choosing the precise site for his trading poet might have been interested in little more than the presence of a clearing! f,The next year (1763) Laclede set out to explore the country assigned to him, accompanied by two youths, afterwards well known citizens of this place, the brothers Auguste and Pierre Chouteau. Having carefully examined every point on the river, not omitting Ste. Genevieve, which had then for ten years been the headquarters of a considerable trade in peltry and lead, he satisfied himself that no other site presented the advantages sought for him to so great an extent as the spot on which now stands St. Louis. It was, at the time when Laclede first set foot upon it, a beautiful expanse of undu- lating prairie, free from woods, save at one point on the river bank, near the centre of the present city, which was then embellished by a grove of noble forest trees.11 -Violette, Eugene Morrow, A History of Missouri (1918), pp. 12-13, 2cf., Williams, Helen D., Factors in the Growth of St. Louis From iQkO to i860 (193*0, PP. 2-3. ^Marshall, Willis W., Geography of the Early Port of St. Louis (1932), P. 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 3 The terraces or "bluffs comprising the waterfront of St. Louie offered protection against floods but were no inconsiderable nuisance to the busy port city of the steamboat era. Warehouses must be crowdod down along the levee or built back at 'inconvenient distances and separated by steep slopes from the narrow strip of flat shoreline. Apparently crowding was preferred, for after the fire of UB49 serious proposals were made that the city should buy the property between the levee and Commercial Street between Vine and Market arad leave it open as a part of the levee.1 Nothing came of the matter. Crowding and disorder on the levee continued to make a costly problem for the steamboat operator and the merchant.
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