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TIe Inpacl oJ TVA Upon lIe SoulIeasl

AulIov|s) WiIIian E. CoIe


Souvce SociaI Fovces, VoI. 28, No. 4 |Ma, 1950), pp. 435-440
FuIIisIed I OxJovd Univevsil Fvess
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IMPACT OF TVA UPON THE SOUTHEAST 435
THE IMPACT OF TVA UPON THE SOUTHEAST*
WILLIAM E. COLE
University of Tennessee
A NY attempt to appraise the impact of the
Tennessee Valley Authority upon the
Southeast will of necessity be partial and
not, as one would wish, highly objective. There
are several reasons for this. There does not exist
an over-all comprehensive socio-economic backlog
study of the Valley made at the inception of TVA
against which change may be measured. The lack
of an equivalent of Southern Regions' for the
Tennessee Valley, as of 1935, is most uhfortunate.
TVA, in its eagerness to cooperate with Valley
agencies, and not to duplicate their areas of work
and jurisdiction, has left much record keeping and
research to these agencies. This was notably true
in agriculture where the responsibilities for records
on unit test demonstration farms and on area
demonstrations became a college responsibility.
As a result the data with which one has to work
frequently lack a central core of uniformity which
would furnish the basis for charting changes on
test demonstration farms and in demonstration
areas for the Valley as a whole. TVA and the col-
leges recognize the problems of lack of uniformity
in data and are now proceeding to correct it.
For reasons inherent in social change itself, both
in charting change and the assignment of causes
to change, much difficulty is involved. As MacIver,
in his discussion on "The Quest for a Specific Why"
says, "Many dynamic factors melt, focus, clash
and cooperate in the shaping of the pattern" of
change.2 To this difficulty is added the fact that
TVA's operations, aside from construction, power
development, and flood control in the river chan-
nel, are largely cooperative with other agencies.
Any attempt, therefore, in these cooperative pro-
gram operations to gauge the contributions of one
agency, as against those of another, is, for the most
part, impossible. It is, therefore, in the light of
these limitations, that we have to ask what has
been the impact of TVA upon the Southeastern
Region, and particularly the Seven Valley States
of the region?
First, TVA has been an important factor in the
regional identification of the Southeast. By re-
gional identification I mean the sense of unity,
importance and confidence which the people in the
Southeast have or which the 5,850,000 people
(1946 estimate) in the 212 County TVA Water-
shed and power service area have. This is not the
same as regional snobbishness. We of the South-
east have never been able to boast that we had a
region with "books on the slope of Beacon Hill,"
when the "wolves howled" in the wilderness.'
The Southeast has been on the defensive a long
time and still is. It was dubbed "Economic Prob-
lem No. 1" and perhaps properly so. Its sociologists
have often felt it necessary to explain "The Way
of the South," not only for our own cultural under-
standing, but also for export. We were well on the
way toward getting an inferiority complex and
this was doubly so in the depression of the thirties
-even Democracy had an inferiority complex, as
the iron heels of Europe were on the march.
Since 1933, more than 20 million people have
come into the Valley to see TVA projects. In
Europe we are told TVA is the most discussed
American enterprise, rivaled of course by atomic
energy. Thus it is that to the Southeast and to the
Nation "the Tennessee Valley has come to sym-
bolize the idea of evolutionary change,"4 a change
toward the improvement and better utilization of
resources, toward a better balanced economy with
higher incomes from more secure sources, and a
higher standard of living buttressed by better tools
and knowledge for making a living.
This record of substantial accomplishment by
an enterprise, which is part of the South, has been
a factor in bolstering the South's morale and has
added a tangible element of regional identification.
It constitutes a concrete demonstration that plan-
*
Adapted from a paper read before the twelfth
annual meeting of the Southern Sociological Society,
Knoxville, Tennessee, April 1, 1949.
1 Howard W. Odum, Southern Regions of the United
States (Chapel Hill: University of North Carolina Press,
1936).
2 R. M. MacIver, Social Causation (Boston: Ginn &
Co., 1942), p. 133.
3
Committee on Regional Planning, Yale University,
A Case for Regional Planning with Special Reference to
New England (New Haven: Yale University Press,
1947), p. 39.
4
David E. Lilienthal, TVA: Democracy on the March
(New York: Harper & Brothers, 1944), p. mi.
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436 SOCIAL FORCES
ning is compatible with democracy; that the re-
sources of the South can be developed and renew-
able resources rebuilt and used in the interest of the
people; that the Southeast has many natural ad-
vantages-chief of which are rainfall, climate and
mineral and soil resources, and that the production
patterns of the South's agriculture may be re-
arranged. From this has come a confidence that the
job of Southern resource development is not only
possible but practicable. One community leader
appraised this confidence as follows.
We can write of great dams... of the building of
home-grown industry and of electricity at last coming
to the farms of thousands of farm people in the Valley,
yet the significant advance has been made in the think-
ing of the people. They are no longer afraid. They have
caught the vision of their own powers.5
Regional identification is particularly strong
among the farmers, power consumers, power dis-
tributors and others closely associated with TVA
program activities. This sense of belonging to the
region, of being affected by it, of having a part of
its development has been a major factor in the
political strength of TVA, and has not been con-
fined to any single political party.
In addition to geographical features and natural
and institutional resources, it is important in
democratic regional development that the people
have a "collective self consciousness" necessary to
sustain the individual and collective demands
which are made upon them.6 No matter what the
resources of a region are, the people must have the
will to develop them. Identification is important in
developing such a will.
Probably the greatest single social impact of
TVA upon the Southeast has been its contributions
to the theory and practice of balanced develop-
ment. Balance is both a philosophy and a technique
and TVA has contributed to both.7
The problem of balance has long been a concern
of the sociologists of the South. Odum and Moore
develop strongly the theory that regionalism is the
key to balance and equilibrium. They point out
through a quotation from Mumford that, "Such
equilibrium is needed not only between and among
the several diversified areas of the nation, but
between industry and agriculture, between urban
and rural life, and between and among the various
groups of people who constitute the democracy,
since the aim of that democracy is to offer not only
each individual but each democratic group full
opportunity and representation."8 They indicate
furthermore that regionalism "offers a medium
and technique of decentralization and redistribu-
tion."9 Vance refers to the unbalanced man-land
ratios of the Southeast,'0 to the need for a better
balance between food, feed, and staple crops and
to the improvements made in the direction of ob-
taining this balance. He relates also to the fact
that the Southeast has lagged behind the Nation
in the ratio of producers to consumers.11 The im-
balance in age groups, incomes, and between the
carrying loads of institutions and resources, is re-
peatedly pointed out by the sociologists, the econ-
omists, and educators.
Now the thing that was unique about the legis-
lation giving birth to TVA was not the fact that it
was a government corporation, nor the novelty of
the tasks it was expected to do, but the fact that it
was a regional agency characterized as follows:
A federal autonomous agency, with authority to make
its decisions in the region.
Responsibility to deal with resources, as a uniform
whole, clearly fixed in the regional agency, not divided
among several centralized federal agencies.
A policy, fixed by law, that the federal regional agency
work cooperatively with and through local and state
agencies.2
As Lilienthal states:
TVA was created for the job of developing the re-
sources of a single region as a whole. The limits of its
responsibilities were fixed by the boundaries of nature,
a watershed and its adjacent area."3
He indicates further that its Charter recognizes
the unity of nature. Dr. H. A. Morgan, perhaps the
greatest exponent of balance in
TVA, in answer to
bDavid E. Lilienthal, The Tennessee Valley: A
Story of Change. Address before the Cleveland (Ohio)
City Club, March 23, 1946 (mimeographed).
6 Committee on Regional Planning, Yale University,
1947, op. cit., p. 39.
7
Howard W. Odum and Harry E. Moore,
American
Regionalism (New York: Henry Holt & Co., 1938),
pp. 3-34.
8
Ibid., p. 9.
9
Ibid., pp. 3-4.
10
Rupert B. Vance, All These People (Chapel Hill:
University of North Carolina Press, 1945), pp. 472-73.
11
Ibid., pp. 59-62.
12
David E. Lilienthal, TVA: Democracy on the March,
p. 153.
13 David E. Lilienthal, The Tennessee Valley, A
Story of Change, p. 17.
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IMPACT OF TVA UPON THE SOUTHEAST 437
"What is a watershed?" defined it as an organism
-a complex but unified composite of life systems.
As Vance points out:
More than anything else the future of the Southeast
depends upon the development of resources and capaci-
ties that are as yet largely unrealized. The region has
natural resources and human resources. The forms of
wealth are primary, but for their development they
depend upon the building up of technological resources,
institutional resources and capital resources.14
The concept of balance then appears to involve
the development of an environment that gives the
greatest use of human skills compatible with the
resource base: which offers alternative opportuni-
ties and which tries to preserve and perpetuate the
best of the value and cultural systems of both rural
and urban peoples. If there is wide range of alter-
natives for choice of place to live, of jobs, of free-
dom to move and to adjust, people to a remarkable
degree will affect an ecological balance.
Now in what ways have the joint program oper-
ations of TVA contributed to this balance and to
this diversity of opportunity? I believe in four
respects:
A. Through its fertilizer production and joint agri-
cultural development programs, TVA has pointed
the way to the achievement of a balanced program
of agriculture in the Southeast, particularly the
corn producing and upland cotton areas.
The keys of this program have been the im-
provement of managerial skills, in a soil rebuilding
and soil use program, which makes the maximum
use of climatic and water factors, plus the addition
of mineral plant food elements-especially phos-
phates-to the soil, along with lime as a condition-
ing element.
While the fertilizer and agricultural programs
are nationally significant, reaching a cumulation
of 64,00016 unit and area test demonstration farms
throughout the country, they are peculiarly
southem in significance.
On the 3,332 active unit test demonstration
farms and the 17,835 currently active area demon-
stration farms,'6 the specialists, county agents and
farmers are indicating how, under diverse southern
conditions, soil fertility may be rapidly restored;
how agricultural production may be adjusted to
varying conditions of slope and to the very com-
plex matrix of 1,200 soil types found in the Valley
area; how through the use of lime and phosphate
humus and nitrogen may be added to the soil; how
small grains may be substituted for corn; how
more cotton and tobacco may be grown on fewer
units of land, thus freeing acres for other use; how
with summer pasture and small grains for winter
pasture, livestock and dairying may be added to
the farm production program, and how these cash
crops may be further diversified through the pro-
duction of improved fruits, vegetables and numer-
ous specialty crops, and finally, how many of these
products may be processed for marketing close at
home. Are not these trends in the direction of the
solution of the Southeast's agricultural problems
insofar as the forces governing regional agriculture
may be directed through effort below the federal
plane?
In this economy corn and cotton are not being
given up, although about a million acres have been
shifted out of row crops since 1935. The upland
cotton farms, through diversification and changing
the character of production, are escaping some of
the competition that they must eventually face
from the delta and flatland mechanized cotton
areas.
Between 1935 and 1945 farm tenancy in the
Valley declined 38 percent as compared with a de-
crease of less than 25 percent in the Nation. In
fact in 1945 the proportion of tenancy was lower
in the Valley counties than in the Nation.
These contributions then to the agriculture of
the Southeast are in the direction of a more bal-
anced agriculture-better balance between what
goes into the land and what comes out; a better
balanced selection of products to sell and products
to eat, more opportunities for diversification, for
choice and adaptation, and, as a result, not only a
protective but a productive agriculture.
B. Through its forestry relations and wild life pro-
grams, which are carried out in cooperation with
State and Federal agencies and with the owners
of farm timberlands and commercial tracts, TVA
has demonstrated the very great potentialities
which lie in forestry and wild life development for
a better balanced economy in the Southeast and,
14 Vance,
op. cit.,
p. 476.
15
The cumulative total of. UTD farms established
to January 1, 1949 was 26,555 of which 11,191 were in
the Valley. The number of area farms totaled 38,111
of which 37,397 were in the Valley. Up to January 1,
1949, 299,499.61 tons of fertilizer materials had been
distributed in the Valley and 145,348.43 tons outside
the Valley.
16 As of
January 1,
1949.
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438 SOCIAL FORCES
furthermore, has indicated concrete ways through
which these potentialities may be realized.
Our remarks on the above point will be limited
to forestry since space will not permit a treatment
of the all-year round recreation tourist and recrea-
tional possibilities of impounded reservoirs. Cer-
tainly, also, the folkways of the sportsmen and the
wildlife experts were upset, agreeably so, by the
"no dosed-season-no-stocking" policies on TVA
lakes.
Rainfall and climatic factors give the Southeast
tremendous possibilities and advantages in timber
production which should in time rapidly do away
with the imbalances and some of the problems of
timbered-out areas. Through 27 industrial, invest-
ment, municipal, and institutional forest manage-
ment demonstrations, including a half million
areas of forest land, and through 266 farm wood-
land demonstrations,'7 reforestation and improved
cutting practices are pointing the way to per-
petual timber crop yield without stand impair-
ment. Equally important is the demonstration
that timber is a good farm crop, as important to
many farms as any other crop.
Through organized fire control which has been
extended to 42 counties and to 5,598,000 acres
since 1933, a major obstacle to full development of
forest resources in the Valley is being improved.
Through improved planting techniques and thin-
ning procedures, new insect control measures,
fertilization studies, reservoir margin plantation
studies, forest influence investigations and research
in forest products utilization, new information and
new procedures on forestry resource development
and utilization of immense significance to the
restoration and full development of renewable
resources in the Southeast is being made.
C. TVA, through its developmental and industrial
program operations, is setting in motion a series
of changes which is resulting in not only a more
adequate regional economy but a better balanced
economy.
Aside from the agrarianists, who "took their
stand" somewhat unsuccessfully, most regional
sociologists and economists have long stressed the
need for improved income base and a better bal-
ance between sources of income than the Southeast
has had in the past. They have, furthermore,
stressed the need for developing this balance out of
existing regional resources and without dislocating
the economics of other regions. TVA, through its
uniform power rate policies, through emphasis
upon the unified development of the region with
the aid of the natural, human, and institutional
resources of the region, is demonstrating how an
improved economic balance may be effected.
In 1929 there were 49 industrial workers per
1,000 population in the Tennessee Valley, in 1947
there were 80, as compared to the Nation's 107.
In 1933, 15 counties in the Valley were without
manufacturing plants, but by 1947 plants were re-
ported in all counties. Between 1940 and June 1948,
1,448 new manufacturing and processing plants
were added to the Tennessee Valley and the area
supplied by TVA power. Of these only 9 were
originally located outside the Valley and moved
in.18 In the 18-months period, prior to June 30,
1948, 389 new plants were established.
The changes in sources of income in the Ten-
nessee Valley also indicate an improved balance in
income sources. Keeping in mind the differences
in bases in 1929, between 1929-47 wages and sala-
ries in the Tennessee Valley increased 255.9 percent
in the Valley as compared with 127.1 percent for
the Nation. In 1929 employees in the Valley re-
ceived 0.82 percent of the Nation's wages and
salary payments but by 1947 this had increased to
1.28 percent.
Between 1929-47 proprietors' income from
farms and unincorporated private business enter-
prises increased 204 percent in the Valley as com-
pared to 180.2 in the Nation. During the same
period income from property increased 102.8 per-
cent in the Valley as compared to 30.2 percent in
the Nation. From 1929 to 1933 the average per
capita income in the Valley was about 40 percent
of the national average. By 1945 this had increased
to 60 percent of the national average and re-
mained at 60 percent through 1947. In terms of
dollars these data mean that in 1945 the income
of the people in the Valley was $680 million more
than the income would have been had the average
per capita income continued to be only 40 percent
of the national average as it was in 1933.19
Now, these balances are being achieved without
excessive urbanization of the population-an im-
portant achievement according to most proponents
of balance. In the first place one-third of the 1,448
17
Tennessee Valley Authority, Division of Forestry
Relations, Annual Report, 1948, pp. 2-4.
18
Data from Industrial Economics Branch, Division
of Regional Studies, Tennessee Valley Authority.
19 Data from Industrial Economics Branch, Division
of Regional Studies, Tennessee Valley Authority.
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IMPACT OF TVA UPON THE SOUTHEAST 439
new manufacturing plants locating in the Tennes-
see Valley and areas supplied by TVA power
between 1940 and 1948 located in open country
and places of less than 5,000 population,
another
third in places between 5,000 and 100,000,
and
another third in cities of over 100,000 population.20
While electric power at low rates is only one of a
dozen or so items attractive to industries, the uni-
form power rates throughout the Valley are with-
out a doubt a factor facilitating the wide distribu-
tion of industry. Furthermore, electricity is a
flexible source of power as compared with less mo-
bile forms, thus making it possible to be used
economically in small units.
D. Another factor contributing to the balanced de-
velopment of the Tennessee Valley is rural elec-
trification.
The electric power service and watershed area
of TVA now covers 212 counties. In 1933, 3.5 per-
cent of the farms in the TVA power area were
electrified. By December, 1949, about 75 percent
of the farms were electrified; farmers of the area
were using 50 times as much electricity as they
used in 1933 and the average farm consumer using
more than three times as much in 1948 as in 1933.
At the close of 1949 fiscal year, local municipal
and cooperative systems had plans to construct
25,000 miles of new rural lines which will add 135,-
000 new rural customers.2'
TVA's electric rate structure has significance
for southern regional development. We may use
residenitial rates as a case in point. At the time that
resale rates were established, the idea prevailed
that increased use of electricity had to precede rate
reductions. TVA's resale structure was built on the
principle that a drastic reduction in rates would
stimulate use of power-a fact particularly sig-
nificant in a low income area. The wisdom of this
policy is clear. Low rates are good business as indi-
cated by the fact that the average residential use
per customer in the TVA area increased from 600
kilowatt hours in 1933 to 2,500 in 1948. A sig-
nificant fact in spite of the fact that many new
customers tend at first to use little current thus
holding down the average. The average annual use
for the United States, however, was 1,505 kilo-
watt hours.22
It is impossible to assess the social impact of
rural electrification made possible through TVA, in
cooperation with REA. Its contributions to bring-
ing into better balance the rural-urban differential
must have been considerable. The inferiority feel-
ings of rural people were enhanced by the fact that
the cities had electricity and they did not. Elec-
tricity has had an effective role in stimulating com-
munity organization and cooperation,
in encour-
aging small industry, in decreasing drudgery, in
improving food care, and without a doubt in mak-
ing the rural regions more attractive to rural
youth.
Despite some excellent examples of community
organization and development in the Southeast,
the most significant community development
movement in the Nation is taking place in the
Tennessee Valley area. This has been largely the
outcome of the area-demonstration work carried
on as a joint undertaking by TVA, the land-grant
colleges and the farmers, and aided, recently, by
the community improvement contests, which have
reached some 600 communities during the past
four years.
Up to January 1, 1950, over 600 area demon-
strations-containing as a rule 30 to 200 farms
each and involving in all 37,785 farms with
3,965,110 acres had been established in the Tennes-
see Valley. Some 17,835 farms are still active in
these area demonstrations.23 Whereas TVA unit
test demonstration farms have been widely dis-
tributed throughout the Nation, area demonstra-
tions have been almost completely limited to the
Valley as part of the water control program on the
land. For the most part these are found on minor
watersheds where flooding and erosion are prob-
lems.
From area demonstrations and area organiza-
tions which are at first limited to receiving and
using TVA fertilizer materials, supplemented by
lime and other fertilizer supplements, and to
erosion control and other improved land use prac-
tices, have developed dozens of communities with
active community organizations working in the
direction of general community improvement.
Where only areas-minor watersheds-trouble
spots on the land existed, today full fledged com-
munity areas, cutting across school areas and
neighborhoods in many instances, are found.
20
Data from Industrial Economics Branch, Division
of Regional Studies,
Tennessee Valley Authority.
21 Annual Report of the Tennessee Valley Authority,
1948, pp. 90-92.
2JIbid., p. 94.
23
Data from Agricultural Development Section,
Test Demonstrations Brancb, Agricultural Relations
Division, TVA.
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440 SOCIAL FORCES
Existing community areas were not neglected in
setting up area demonstrations but the facts are
that most of the areas did not contain communities
or were not part of communities. The possibilities
of establishing communities from natural areas is a
significant contribution from these communities,
as are also their methods or organization and
records of accomplishment. The most important
thing is what has happened to the people them-
selves. As one community leader phrased it:
We are a warmer community, we are closer together,
we are happier. In fact there is no word in Webster's
dictionary that can describe the power such clubs as
ours have to bring families closer together. Formerly
there was a lot of stand-offish feeling between people
of different churches. But now that the whole com-
munity has helped to beautify our four churches that
feeling has disappeared. We can do things now that
didn't use to be possible.24
Space will not permit one to discuss the impact
of other phases of TVA and its cooperative pro-
grams upon the Southeast. Within range of dis-
cussion are malaria control, the development of an
excellent employee health program, the coopera-
tive stream sanitation program, the industrial
health and safety program, and the community
assistance programs designed to aid small towns
and cities in their planning and operational activi-
ties. These programs have all been documented
and reported upon from time to time.
There is still, as Chairman Gordon Clapp indi-
cates, much "unfinished business" in the Tennessee
Valley.25 The per capita income of the Valley is
only about 60 percent of the national average;
there are still acute problems of soil erosion and
human erosion; a substantial number of farms are
still to be electrified; States need to apply more
fully the fertilizer and agricultural test demonstra-
tion experiences of the Valley counties to non-
valley counties rather than to treat Valley agri-
culture as distinct from non-valley agriculture;
private enterprises and business corporations need
to realize more fully the useful data, studies, and
opportunities which are now available; need to
understand better the role of TVA in their
lives,
and the colleges and schools need to aid them in
making this interpretation. More than anything
else the South and the Nation need to utilize the
constructive experiences of TVA. It is part of the
South but, more important, part of the Nation
with many contributions to make to the Nation.
TVA's experience in regional development has
demonstrated, as Odum and Moore said, "a media
and technique of decentralization and distribution
in an age being characterized as moving toward
over-centralization, urbanism and totalitarian-
ism."26 Although this was written in 1938, it is
good today, and TVA has proved this prediction.
24
Winifred Raushenhush, "Farmers Join Hands for
a Better Life," Survey Gr-aphic, 37: 244-249 (May 1948).
25
Gordon Clapp, Unfinished Business in the Ten-
nessee Valley, July 19, 1948 (mimeographed).
26
Odum and Moore, op. cit., pp. 3-4.
SOCIAL SCIENCE RESEARCH COUNCIL
FACULTY RESEARCH FELLOWSHIPS
Faculty research fellowships
to help young college faculty members, selected for their out-
standing research ability, to do original work in the social sciences have been announced by the
Social Science Research Council. A grant of $465,000 has been received from the Carnegie
Corporation of New York to finance the fellowship program for a five-year period.
According to Dr. Pendleton Herring, president of the Council, these fellowships are (lesigned
to enable young social scientists with exceptional research ability to advance their research activi-
ties early in their teaching careers and will provide substantial financial aid for approximately
three years. In each case, financial cooperative arrangements will be worked out with the recipi-
ent's college or university so he will be relieved of half his teaching duties in order to do sustained
research.
Fellowships will be awarded each year to a total of seven men and women, not over 35 years
of age, chosen from the whole range of the social science faculties in American colleges and uni-
versities in all parts of the country. Only a single appointment will be made at a given institution
in any one year. A representation from different types of colleges and universities in all parts of
the country will be sought.
The Council hopes to award the first Faculty Research Fellowships for the academic year,
1950-51. Detailed information on these fellowships may be obtained from Elbridge Siblev,
executive associate of the Council, at its Washington office, 726 Jackson Place, N. W.
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