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per mining than in communities dependent upon general industrial activity. The social repercussions of this situation are severe since the impact of the greater relative curtailment is accentuated by the fact that in periods of relatively good business demand activity in copper-mining areas expands above the level of general industrial production.

The lower graph of chart V shows the principal reason for the situation that has been outlined. It will be recalled that copper mines produce newly mined copper. In periods of depression the total demand for copper may drop significantly, but the proportion of this demand that is supplied by newly mined copper falls even more precipitously. This takes place because a certain volume of scrap metal continues to accumulate, and this scrap metal seeks a price at which it can be entirely disposed of. During periods of depression the price of scrap is generally below the price at which newly mined copper can be produced economically. Hence a larger proportion of the already depressed market for copper is captured by secondary copper than is normally true. Under these conditions operations at western mines reach an exceedingly low level, for their market is limited to that portion of the depressed demand that is left after the secondary copper has been absorbed. What is true of copper is true in varying degree of all metals for which secondary supplies are a factor in the market.

Mr. COMER. Dr. Kiessling, this seeming increase in secondary copper, I take it, is a percentage increase of the total consumption?

Mr. KIESSLING. That is correct.

Mr. COMER. But it is not an actual increase?

Mr. KIESSLING. That is correct; it is not an absolute increase. In other words, the amount of secondary copper from that scrap absorbed in a depression period may actually decline, but it is a greater proportion of the total consumption. However, that is in accord with the argument I have just advanced.

Mr. COMER. Yes. I just wanted to make that clear. It looks as though there has been a great increase in secondary copper; actually it is just a percentage increase.

Mr. KIESSLING. We come now to manufacturing activity west of the Mississippi River. Data on the density of manufacturing activity in States west of the Mississippi River as compared with the total United States are given in the accompanying table, exhibit A, which is based on periodic surveys of the Census of Manufactures. In 1939 these States accounted for 19.4 percent of the total value of manufactured products and employed 14.5 percent of total wage earners at manufacturing plants. Manufacturing activity in the West declined between 1929 and 1939 in conformity with the general trend. The table also shows details, by States, for the number of manufacturing establishments, wage earners, wages paid, cost of materials, value of products, and value added by manufacturing.

(Exhibit A is as follows:)

EXHIBIT A

Census of Manufactures-Summary for the States West of the Mississippi River: 1939 and 1929

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6, 930, 846, 959
8, 288, 749, 333

92,776, 835 108,962, 595 1,654, 318, 758 1,655, 139, 288

130,386, 505 175, 113, 774 58,704, 943 50, 132, 977 473, 612, 925

535, 143, 118 742, 558, 155 800, 094, 538 1,092, 552, 626 112,094, 844 205, 980, 493 204, 418, 572

11, 000, 742, 974
13, 002, 685, 359

97, 529, 481
194, 654, 302
160, 166, 984
195, 938, 667
2,796, 221, 903
2,841, 845, 647

221, 642, 666
286, 732, 996
90, 475, 147
92,496, 313
718, 418, 350
858, 429, 423
464, 353, 506
722, 403, 310
564, 404, 074

845, 771, 514 1, 120, 375, 334 1,388,056, 267 1,834, 227, 770

151,885, 026 260, 700, 416 273, 475, 444 460, 757, 514

4,069, 896, 015 4,713, 936, 026

32, 041, 290 28.900, 565 67, 390, 149 86, 976, 072 1, 141, 903, 145 1, 186, 706, 359

91, 256, 161 111, 619, 222 31, 770, 204 42,363, 336 244,805, 425 299, 230, 537 118,952, 470 189, 034, 696 206, 848, 143 235, 287, 370 310, 628, 396 377,817, 179 587, 961, 729 741, 675, 144

39, 790, 182 54, 719, 923 69,056, 872 108, 912, 878 11, 758, 007 5,636, 125 8,711, 764

660, 946, 356

20, 630, 850

29, 707, 627

25, 123, 641

North Dakota.. (1939

351

2, 809

2,901, 231

1929

346

2, 631

3,470, 803

8,367, 902 33,099, 249 36, 943, 172

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300, 752, 264

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Mr. KIESSLING. A detailed inventory of the specific manufacturing industries carried on in each State west of the Mississippi River in 1939 is given in a second table, exhibit B. This material shows what industries already exist that might be susceptible to further expansion and indicates the areas in which essential industries are now lacking. (Exhibit B is filed with the committee.)

Senator O'MAHONEY. Has this material ever been printed?

61, 216, 830 73, 971, 972 1,075, 763, 628

Mr. KIESSLING. This material has never been printed. It is submitted for the information of the committee and is not for publication. It lists for each State west of the Mississippi River every type of manufacturing industry carried on and the number of establishments carrying on that activity.

Senator O'MAHONEY. I assume that the Bureau of the Census will print this eventually?

Mr. KIESSLING. It will not print it precisely in that form, Senator, because, as you will note, in some States there are only one or two establishments carrying on certain activities, and our organic act prohibits us from publishing that type of information. We are permitted to publish those data only when the publication would not reveal the figures of an individual operation. This does not reveal any figures of any individual establishment, but it does show us in 90 pages the volume of manufacturing that is carried on in a specific manner, that I believe has not been illustrated before.

At the present time the Bureau of the Census is preparing to conduct a survey of metal consumption in the United States. This work is being undertaken upon short notice at the request of the Office of Production Management and the Office of Price Administration and Civilian Supply and is typical of our services to other Government agencies. The effort will require the joint facilities of the Census of Mineral Industries, the Census of Manufactures, and the Census of Business, since the problem embraces the production of raw materials, the use of those materials by manufacturers for specific products, and the distribution and storage of both materials and products through the usual channels of trade. We expect to canvass a major portion of the 184,000 manufacturers on our list and to obtain from them vital information not heretofore available. The existing facilities of the Bureau of the Census, moreover, permit us to repeat such surveys with as wide a coverage and at as frequent intervals as may be required for the needs of the defense program. Although the results of the study are primarily directed to defense needs, much new vital information will result with reference to the uses, consumption, and distribution of metal products.

LABOR IN THE WEST

One question that arises regarding the establishment of industries in the Western States is whether the existing labor force would be ample for the purposes of such industries. To throw light on this problem the Census of Population has prepared for the committee the accompanying summary statistical analysis of the employment and unemployment status of persons in States west of the Mississippi River as of March 24-30, 1940. This is appended as exhibit C.

(Exhibit C is as follows:)

EXHIBIT C

Employment and Unemployment Status of Persons 14 Years Old and Over in States West of the Mississippi River, Mar. 24-30, 19401

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1 Based on a preliminary tabulation of a 5-percent cross section of the 1940 census returns. Persons seeking work during the week of Mar. 24-30, 1940, who were not working on private or nonemergency Government work, nor on public emergency work.

3 Persons reported in the census as on public emergency work (Work Projects Administration, National Youth Administration, and Civilian Conservation Corps) during the week of Mar. 24-30, 1940. Source: Bureau of the Census.

Mr. KIESSLING. This statement gives figures for each State on the total labor force, on persons seeking work, and on persons employed on public emergency work. An important point brought out by this table is that in the Mountain States the proportion of the total labor force that was unemployed at the period indicated was 17.2 percent, as compared with 14.2 percent for the United States. It is true that there have been changes in employment since the date on which the survey was made, but it is doubtful whether these changes have had a major effect on the relative position of the various States. The Census Bureau, however, has been asked by the Bureau of the Budget to submit plans for another survey of this type in order that the

Nation may be accurately informed on the basis of more recent information. Other products of the census of population show the occupational, age, sex, and employment status of all workers in the Western States.

As to regional surveys of industries and markets, this committee has heard testimony suggesting that for reasons of economic expediency mineral reserves in the public-land States should be utilized to make the western area as nearly industrially self-sufficient as practicable. It has been stated, for example, that the position of the West largely as a feeder of raw materials to the industrial East places the western communities in a dependent and sometimes exceedingly unstable economic position.

The degree to which Western States are able to absorb metals and minerals produced on public lands in those States and the fabricated products that can be made from such minerals can be determined only by a careful commercial and industrial survey of the West and Northwest. The Bureau of Foreign and Domestic Commerce and the Bureau of the Census are prepared and authorized under their organic acts to make such surveys. In fact, regional analyses published by the Bureau of Foreign and Domestic Commerce in collaboration with other offices of the Department include commercial surveys of both the Pacific Northwest and the Pacific Southwest. However, these reports are now outdated and do not indicate adequately present conditions and potentialities.

The regional character of industry and business is a problem to which the Department of Commerce expects to give increased attention. Recently we have established a Division of Regional Economy in the Bureau of Foreign and Domestic Commerce to give greater attention to this problem. Offices of this Division are now being set up in the 12 Federal Reserve districts. We are thus prepared without further authorization to undertake such commercial and industrial surveys of the West and Northwest as may be needed.

Senator O'MAHONEY. Would it be possible as a result of that study now projected to determine to what extent the West or, for that matter, any other area of the country imports for the use of its general population materials which are produced from commodities which are obtained in the first instance in the area?

Mr. KIESSLING. That would be a very knotty statistical problem, but I think that if you are willing to spend the money you can find out almost anything.

Senator O'MAHONEY. I wonder how knotty that would be. To state it in another way, it merely is to what extent the West or any particular area has to depend upon other areas of the country or of the district to manufacture goods which are produced from its own raw materials.

Mr. KIESSLING. It would be very hard to tell, Senator, whether the copper in a motor came from Michigan or came from Montana after the motor was once fabricated.

Senator O'MAHONEY. I do not think it would have to be taken to that extent. I think all raw copper could be listed under one head. Mr. KIESSLING. It does seem that it would be possible to outline the very broad features of such shifts, say, accounting for the major portion of the products in an area.

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