1940: Alaska

Population.

Ernest Gruening, Governor of Alaska, reporting for the fiscal year ended June 30, 1940, pointed out that the 1940 census showed the first substantial increase in Alaska's population since the boom period around 1900. The population, which had risen to 64,356 in 1910 and had declined to 59,278 in 1930, is now estimated to be approximately 73,000, an increase of 13,700 for the decade. This increase was uniform throughout the Territory, equally among white and native population, and seemed to indicate that Alaska had entered a new period of consistent growth. Preliminary estimates for the chief cities are as follows: Juneau, the capital, 5,748; Ketchikan, 4,601; Anchorage, 3,488; Fairbanks, 3,304; and Sitka, 1,945.

Governor's Recommendations.

The Governor's annual report, noting the decline of the gold-rush days and the development of a more stabilized civilization, urged the establishment of more adequate health services, particularly a tuberculosis sanitarium and an orthopedic hospital for crippled children. The death rate for tuberculosis in 1940 reached 498 per 100,000, the highest rate in eight years. He also urged improved communications and a thorough revision of the territorial tax structure. Except in a few incorporated towns, there is no property tax in Alaska, no taxes on corporations or incomes, no taxes on banks, utilities or mercantile establishments, except a nominal license fee. With these large categories of occupations and individuals wholly untaxed, Alaska seems unique in the civilized world. Pointing out that the economy of Alaska 'rests none too securely' on two props, mining and fishing, the Governor urged the development of new activities and suggested that the most obvious economic resource to be developed was the recreational industry.

Trade Relations.

Commerce between Alaska and the United States, virtually her only customer, declined during the year ended June 30, 1940, from $73,139,898 to $63,245,951, a drop of $8,893,947 from the previous year. The decrease was chiefly in shipments of canned salmon and other fish, and was due rather to a poor fishing season than to a decline in demand. On the other hand, gold production for the year reached a value of $20,951,791, over $1,500,000 more than the preceding year, and an all-time high. This brought the total production of gold in Alaska to over half a billion dollars since records have been kept. The expansion was due to higher prices for gold, and to the introduction of new machinery and modern methods which made mines hitherto unprofitable worth operating. There was expansion in one other commodity, fur skins, the total export value for the year amounting to $2,844,262. Although the year saw a considerable drop in the value of exports, the decline in the value of imports from the United States was small — from $44,759,880 to $43,827,202, or $932,678 less.

Economic Progress.

Despite a drop in exports the general economic condition of the Territory did not slump. This was due in part to increase in tourist traffic and to Federal defense activity. The number of tourists (not including those transported on government vessels) increased from 68,065 to 75,269. Defense work was continued on the Navy bases at Sitka and Kodiak and the Army bases at Fairbanks and Anchorage. Unemployment in the Territory declined during the year, partly as a result of governmental efforts to encourage the use of native residents rather than imported labor in the seasonal fishing industry. The total assessed valuation of the 20 incorporated towns in Alaska was $35,441,644, an increase of $3,533,039 from 1939.

The activities of public services of various kinds showed no diminution during the year. The government-owned Alaska railway continued a policy of improvement and rehabilitation and closed the year with an income in excess of expenses amounting to $341,663. The Alaska Road Commission, created by Act of Congress in 1905 as a Bureau in the War Department, built 19½ miles of new road, regraded and widened 47 miles and resurfaced 121½ miles. Among its other projects it constructed or improved airports at eight places. The Public Roads Administration, with money from Congress for roads in and adjacent to the national forests, spent $407,077 for maintenance and enlargement of such facilities. Through funds sanctioned by the territorial Legislature, the Griffin Memorial Hospital at Kodiak was refurnished, the Skagway school gymnasium was improved and a gymnasium constructed for the Douglas public school. During the year five Public Works Administration projects were under construction at a cost of $344,000. They included such municipal improvements as paying, sidewalks, and the building of water systems and sewers, for which the municipalities contributed 55 per cent. Of the territorial expenses during the fiscal year of $2,751,107.44, the chief items were welfare and relief $1,028,729.37 (38 per cent); education, $511,105.13 (19 per cent), and aid to municipalities $480,863.71 (17 per cent).

Transportation.

Some progress was made toward solving one of Alaska's greatest problems, that of improved transportation facilities. During the year Alaska was linked to the United States by regular commercial airplane service twice a week. While aeronautical operations expanded, new landing fields, radio stations, and Weather Bureau facilities were established both for the benefit of improved transportation and national defense. See also ANTHROPOLOGY; ARCHAEOOLOGY.