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Tuesday, February 14, 2012

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Community Profile: State College, PA Metropolitan Statistical Area (MSA)

Historical Information*

Through much of the 19th century, Centre County's main industry was iron production. In 1792, eight years before the county came into being, Samuel Miles and John Patton put in operation the first charcoal iron furnace west of the Susquehanna and north of the Juniata on 8,000 acres of wooded tableland in the Nittany Valley. The "Juniata Iron" industry, which by 1810 was producing half of the pig iron in the United States, began on Spring Creek. The success of Miles attracted other entrepreneurs to the area. By 1826, nine furnaces, six forges, and two rolling mills in the county were turning out over 10,000 tons of pig iron and 3,100 tons of bar iron annually. The early iron industry exhibited a paternalistic social contract reflected in "company towns." Large company farms and surrounding tenant farms supplied meat and most vegetables for the whole community of workers. Each furnace owned vast tracts of oak forest where charcoal was made by colliers. Gradually, the iron industry of Centre County changed to extraction as the refining process migrated to Pittsburgh. The railroads eventually contributed to the decline of prosperity in Centre County, as a lack of railroad lines and high fees to use existing lines contributed to a decline in heavy shipping. Railroads also helped undercut the exports of the local wheat industry.

Nevertheless, the iron industry created the wealth of James Irvin, who provided the funding and site of Pennsylvania State College, now Pennsylvania State University. Throughout the 19th century, Pennsylvania State College had a small enrollment. It wasn't until 1920 that the college and later the university grew substantially. With the returning soldiers of World War I, the GI bill soldiers of World War II, and the baby boomers, the enrollment of Penn State University doubled every 20 years from 1920 to 1980. At present, the University Park campus enrolls 43,000 students. Largely reflecting the University's presence, education (which accounts for over one-third of total employment) is the MSA's principal economic engine today.

Historical data for the State College, PA MSA can be found at the following websites:

Contact Us

Federal Reserve Bank of Philadelphia
Community Development Studies and Education Department
Ten Independence Mall
Philadelphia, PA 19106-1574

(215) 574-6458 – phone
(215) 574-2512 – fax
info.communitydevelopment
@phil.frb.org

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