Industrial development

Logging and farming were mainstays of Minnesota's early economy. The sawmills at Saint Anthony Falls, and logging centers like Marine on St. Croix, Stillwater, and Winona, processed high volumes of lumber. These cities were situated on rivers that were ideal for transportation.[30] Later, Saint Anthony Falls was tapped to provide power for flour mills. Innovations by Minneapolis millers led to the production of Minnesota "patent" flour, which commanded almost double the price of "bakers" or "clear" flour, which it replaced.[35] By 1900, Minnesota mills, led by Pillsbury, Northwestern and the Washburn-Crosby Company (a forerunner of General Mills), were grinding 14.1% of the nation's grain.[36]

The state's iron-mining industry was established with the discovery of iron in the Vermilion Range and the Mesabi Range in the 1880s, and in the Cuyuna Range in the early 20th century. The ore was shipped by rail to Duluth and Two Harbors, then loaded onto ships and transported eastward over the Great Lakes.[30]

Industrial development and the rise of manufacturing caused the population to shift gradually from rural areas to cities during the early 20th century. Nevertheless, farming remained prevalent. Minnesota's economy was hard-hit by the Great Depression, resulting in lower prices for farmers, layoffs among iron miners, and labor unrest. Compounding the adversity, western Minnesota and the Dakotas were hit by drought from 1931 to 1935. New Deal programs provided some economic turnaround. The Civilian Conservation Corps and other programs around the state established some jobs for Indians on their reservations, and the Indian Reorganization Act of 1934 provided the tribes with a mechanism of self-government. This provided natives a greater voice within the state, and promoted more respect for tribal customs because religious ceremonies and native languages were no longer suppressed


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