Economic Development in Louisiana: 1877-1935

Louisiana's economy began to diversify during these years. Before this era the economy was a "plantation" economy with sugar cane and cotton grown. While some other southern states continued with their reliance on cotton, Louisiana had other natural resources to offer the state and national economy, namely, petroleum natural gas, sulfur, salt and timber.

Timber was the first of these resources to be widely used. In 1900 alone over 1 billion board feet of timber was harvested. Lumbermen from other areas could come into Louisiana and purchase land for as little as 25 cents an acre

Many sawmills were to be build to serve the logging industry and. Some were small family businesses and some were extremely large operations. By 1910 Louisiana ranked second in the nation in board feet of timber produced. (Washington was number one.) During this time 60 percent of all industrial wage earners in the state worked in the timber industry. By 1930 most companies had initiated reforestation projects to ensure a future supply of timber.

Encouraged by the find of a great oil gusher in Texas near the southwestern corner of Louisiana, drilling for oil in south louisiana began in 1901. These operations were not disappointing. Louisiana first oil field was developed near Jennings in August 1901,

A second oil field came in near Lafayette in 1902. The search for oil expanded north and by 1910 the Caddo Lake field near Shreveport was outperforming the field at Jennings. Oil from the north was carried by pipeline to the Standard Oil Refinery at Baton Rouge.

Some oil seekers were disappointed to find natural gas. At that time, natural gas had no commercial value, therefore, wells that brought in natural gas rather than oil were allowed to blow themselves out. In Monroe one company did develop a use for natural gas as a source for carbon black which is used in paint, printer's ink and tires. But their industrial process allowed 97 percent of the gas to be wasted. I twas not until after 1935 that natural gas was properly piped and became used widespread for industrial or private home purposes.

The earth provided Louisiana with two other sources of wealth: salt and sulfur. Louisiana is still the U.S. leader on salt production and ranks number two in sulfur production.

Many of the businesses exploiting Louisiana's natural resources were from out-of-state, so much of the financial gain profit was taken out o the state, leaving Louisiana to benefit only from the payroll. To help keep part of the money in the area, severance taxes were levied . The state still relies heavily on these severance taxes and Louisiana'a property taxes are still among the lowest n the nation.

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