1939: Minnesota

Area and Population.

Known as the 'Gopher State,' Minnesota, situated in the center of the continent of North America, is 11th in size and 18th in population in the Union. The area is 84,682 sq. mi. and the population 2,652,000 (1937 estimate). The state is first in its thousands of lakes, its flour and feed milling industry, and in iron-ore production.

Foreign-born residents constitute about 20 per cent of the total population. They are chiefly Swedes, Norwegians, Germans, Canadians, Finns, and British. Negroes and Indians represent about 4 per cent each. Almost half the population are city-dwellers; Minneapolis has 464,356 (1930 census); St. Paul, the capital, 271,606; Duluth, 101,463; Winona, 21,850; Rochester (internationally famous for its Mayo clinic), 21,621; St. Cloud, 21,000.

Agriculture.

Agriculture is the state's chief activity. A third of the population live on farms, and almost three-fifths of the state is farm land. In the value of its crops — chiefly corn, hay, wheat, oats, and barley — the state ranks fifth in the Union. Apples are the chief fruit. In stock-raising the state ranks sixth in the Union.

Industry.

Among the state's industries meatpacking is first. Second come flour and feed milling and the processing of cereals, for which the state ranks first in the nation. Minneapolis leads the world in grain-elevator capacity. Next in importance in state industries are dairying, lumber production and manufactures; followed by printing and publishing.

Shipping also is a major industry, especially by water. The two chief cities, Minneapolis and St. Paul, occupy a strategic position at the head of navigation on the Mississippi; and the third city, Duluth, stands in a similar position on the Great Lakes. Through these three cities flows the great stream of the chief products of the northwestern states — grain, minerals, and lumber.

Mineral Products.

In 1938, as in other states, the iron-mining industry of Minnesota, in which it leads the Union, showed the effects of the industrial depression of the year. Production was down by 70 per cent to a total of 14,449,304 tons, compared with 47,878,042 tons valued at $141,542,594 in the preceding year. The bulk of the iron came as before from the Mesabi Range. Shipments of sand and gravel compared favorably with the figures for 1937, at 8,486,147 tons with a value of $1,586,836.

Education.

The State Department of Education reported in 1930 a school population (ages 5 to 17) of 659,090. In the school year 1938-39 there were 526,571 public school pupils enrolled in 81,951 schools: including in the elementary grades, 338,920; in the secondary, 187,651. This was a reduction from the previous year of 37 schools and 9,135 pupils. Teachers employed in 1938-39 were 22,177 (an increase of 765): 14,132 in elementary schools and 8,045 in secondary. Pupils enrolled in vocational courses in 1938-39 were 28,368, an increase of 5,347. The median salaries for superintendents are $2,051, for high-school principals $1,251, high-school teachers $1,292, elementary-school principals $1,382, elementary-school teachers $973.

An interesting development of the year has been a marked decrease in elementary school enrollment, with considerable increase in high school and vocational enrollment.

Business Conditions.

General conditions throughout the state were notably better in 1939 than in 1938. Money was easy, with much more available credit than was being used. Interest rates on residential loans dropped from 5½ per cent to 4½ and 4. Agriculture improved; though prices were still below normal they were better than in the previous year, and the corn crop of 1939 reached an all-time high. Manufacturing increased after September 1939, especially in connection with farm machinery, home equipment, residential building, and flour milling.

Lumbering is not what it was because timber-lands have mainly been cut over, but the manufacture of paper and insulation materials increased substantially in 1939. Iron ore production was conspicuously up; from 15,000,000 tons in 1938 to 45,000,000 tons in 1939. This increase, chiefly in the last four months of 1939, appeared to be largely due to war conditions in Europe.

Employment has increased, but relief problems have not decreased. The high relief scale in Minneapolis is being financed primarily by the sale of municipal bonds; and the steady approach to a limit in this will call for a reorganization of the relief set-up within the next year or two.

Legislative Matters.

Legislation during 1939 affected state employees, labor, and small merchants. A new civil service law takes in the employees of the state. A labor relations law has markedly reduced the number of strikes. A change in the unemployment insurance law favors many smaller merchants by exempting them from insurance taxation.

Most departments of the state government have been effectively re-organized during 1939 under Governor Harold E. Stassen, who is receiving wide and approving support.

Banking and Finance.

The 490 state banks and trust companies reported in 1939 a total capital of $13,403,600 (an increase over 1938 of $115,000), and total deposits of $282,964,056 (an increase of $17,959,028). The Commissioner of Banks reports as of December, 1939, that 'the picture today is much brighter than it was a year ago. Bank loans are increasing, and deposits have increased at a rapid rate.'

Receipts of the state treasury for the fiscal year ending June 30, 1939, were reported by the State Auditor as $143,201,671 ($16,635,298 less than the previous year). The chief items were: gasoline tax, $17,920,651; state income tax $14,588,778 (both increased over last year).

Expenses of the state government for the same period were $144,800,818, a decrease of $10,658,846. The three chief items were (as in the preceding year) trunk highways, $19,947,090; old-age assistance, $14,310,982; invested trust funds, $13,969,651 (the last two were increases).

State Officers.

The leading officials of the state are: Governor, Harold E. Stassen; Lieutenant Governor, C. Elmer Anderson; Secretary of State, Mike Holm; Auditor, Stafford King; Treasurer, Julius A. Schmahl; Attorney General. J. A. A. Burnquist; Commissioner of Education, John G. Rockwell.

United States Senators.

Hendrik Shipstead, Ernest Lundeen.