By 1880 Texas had emerged definitely from under the spell of depression cast by the Civil War, the Reconstruction, and the panic of 1873. Conditions which trace their origin to these unhappy periods persist, however, and tend to complicate many of the political and economic problems which engage the present generation.

The growth of population during this period took Texas from out of eleventh place and put her in 1910 into fifth place among the states. The decennial census figures were as follows:

The negro element in the population declined relatively, its percentage of the total being 24.7 in 1880, 21.8 in 1890, 20.4 in 1900, and 17.7 in 1910. Negroes numbered 393,384 in 1880, 488,171 in 1890, 620,722 in 1900, and 690.049 in 1910. In 165 counties out of a total of 245, the percentage of negroes of the population was less than 12.5. These were mainly the Panhandle and the western and southwestern counties, or the newer, more sparsely settled and non-cotton-growing counties. In only eight counties, in 1910, was the percentage of negroes over 50, whereas in 1900 this was true in the case of thirteen counties. In those counties in which negroes are numerous they are an asset as a labor force, but otherwise they are a heavy social liability. They accumulate little property, they are an unskilled and indifferent class of laborers, and the expense of their policing and education falls almost wholly upon the whites.

The population of Texas is very largely rural, and though the urban element is increasing, the change is not at a rapid rate. In 1890 the rural percentage of the population was 84.4, in 1900 it was 82.9, and in 1910 it was'75.9. The density of population was 6.1 persons to the square mile in 1880 and 14.8 persons in 1910.

Agriculture in 1910 engaged 60 per cent of the population ten years of age and over employed in all occupations, as compared with 68.8 per cent in 1880, 64.3 per cent in 1890, and 62.4 per cent in 1900. Since 1880 the expansion of agriculture resulted in a large part of the area of the state being reclaimed from a state of uselessness to one of production. In 1880 21.6 per cent of the land area was in farms; in 1890, 30.6 per cent; in 1900, 74.9 per cent; and in 1910, 67 per cent. The decline between 1900 and 1910 was due to the fact that land which was used for grazing in 1900 and which was classified under farm land had been cut into small tracts by 1910, and at this latter date these tracts were owned by speculators or others who withheld them from use, which prevented them from being classified as farm land. During this period the Panhandle, the western and the southwestern parts of Texas were brought into the area of cultivation. While the per cent of lands in farms greatly increased, the percentage of this area which was improved declined. In 1880 34.9 per cent of farm land was improved and the percentage in 1910 was only 24.3. But there was, of course, an enormous increase in the absolute acreage of improved land. The acreage of such was 12,650,314 in 1880 and 27,360,666 in 1910.

Remarkable increases occurred in the value of farm property during the period 1880-1910. The values of lands and buildings were $170,468,886 in 1880, $399,971,289 in 1890, $691,773,-613 in 1900, and $1,843,203,395 in 1910. The value of livestock was $339,433,843 in 1910, as compared with $60,307,987 in 1880.

The statistics for manufacturing are not comparable farther back than 1899.1 The value of the products of manufactures increased from $92,894,000 in 1899 to $272,896,000 in 1909. In 1909 the number of persons ten years of age and over engaged in manufacturing and mechanical industries was 184,396, as compared with 934,140 in agriculture. The manufactures which led in values of products in 1909 were those whose finished products were not far removed from the raw material stage, such as slaughtering and meat packing, flour and grist milling, the manufacture of lumber and of timber products, and the manufacture of cottonseed oil and .cake. There was not much pure manufacturing carried on in 1909, by which is meant manufactures which are far removed from the raw material stage. The gross value of the products of mining enterprises - that is, mines, quarries, and wells - was $10,742,150 in 1909. Petroleum and natural gas accounted for $6,356,000, or 59.4 per cent of the total. The oil industry has developed mainly since 1900. The value of the bituminous coal mined in 1909 was $3,136,004.

1 Beginning with 1899 the United States Census enumerated only manufacturing establishments conducted under the factory system. Before that date neighborhood, hand and building industries were included.

Though manufacturing and mining increased considerably between 1880 and 1910, Texas was in 1910 predominantly agricultural. In value of products, capital invested, and population engaged, agriculture far outdistanced other occupations.

The growth of banking in Texas is one of the best evidences of the material development of the state. In 1880 there were in the state only 13 national banks, with a total capital of $1,579,000. and deposits of $2,081,000. In 1890 the number of banks was 189, the capital and surplus amounted to $25,760,000, and deposits were $30,450,000. In 1900 the number of banks had increased to only 223, with capital and surplus of $25,337,-000 and deposits of $49,749,000. The greatest increase took place after 1900, and was due to the modifications in the national bank act in 1900. to the incorporation of state banks, and to prosperous times. In 1915 there were 535 national banks, with a combined capital and surplus of $81,208,000, and with demand and time deposits of $185,100,000.1

The incorporation of state banks began in 1905. An amendment to the state constitution removed the ban which had existed since 1876. The number grew rapidly on account of the low minimum capital requirements ($10,000) and the law guaranteeing demand deposits. In September, 1905, there were 29 state banks, with a capital and surplus of $1,936,000, and demand and time deposits of $1,701,832. By 1915 there were 835 state banks and trust companies, their combined capital stock and surplus was $39,575,738, and they had demand and time deposits of $77,253,027.1 The development of banking has made easier the taxation of loanable funds, inasmuch as such funds are more readily reached when in the control of corporations than when they are in the hands of private lenders.

1 Report of the Comptroller of the Currency, 1915, vol. 2, p. 351.

Railroad mileage amounted to 3,244 in 1880, 8,710 in 1890, 9,867 in 1900, and 15,635 in 1915. Though the absolute mileage was very large in 1915, there were only 5.9 miles of line to each 100 square miles of area of the state. In 1880 there were 1.2 miles of line to each 100 square miles of area. In 1882 the policy of land grants by the state in aid of railroad construction came to an end. The important construction since 1880 was that which opened up the Panhandle and the southwest and made possible the expansion of agriculture into those sections.

1 MSS. Statement, September 2, 1915, department of insurance and banking.