A land of contrast, Montana's 147,138 square miles contain both vast prairies and towering heights (including the 12,799-foot Granite Peak, the state's highest elevation). Much of the history of the state, which is poor in water but rich in natural resources, has been connected to the extractive industries and the problem of aridity.
First Peoples
More than twelve thousand years ago, small bands of hunters and gatherers lived in present-day Montana in the northern Rocky Mountain foothills and in the Great Plains that lie east of the Continental Divide. The region was part of the Louisiana Purchase when the Lewis and Clark Expedition crossed it in 1805, following the Missouri River to its headwaters and later exploring the Marias and Yellowstone Rivers. The expedition spent one quarter of its journey within the state's current borders. In the Rocky Mountains, the expedition met probable descendants of Montana's early inhabitants as well as some of the area's more recent Native immigrants. Native cultures changed in the eighteenth century because of two major stimuli: the introduction of horses (brought or traded north by southwestern Indians who had obtained them from the Spanish) and guns (brought or traded west and south by eastern tribes who acquired them from British and French fur traders). European settlements to the east also indirectly affected the region's peoples as displaced eastern tribes pushed west. The resultant competition for rich hunting grounds, cultural factors (such as the honor accorded successful warriors), and the desire for the guns and horses owned by competing tribes combined to produce a period of intense intertribal warfare that lasted well into the nineteenth century.
The Fur Trade
Fur traders likely entered Montana before the arrival of Lewis and Clark, but competition for fur heightened after that expedition. In 1807, the St. Louis–based trader Manuel Lisa built a trading post at the confluence of the Big-horn and Yellowstone Rivers, the first permanent building constructed in Montana. A year later, the Canadian North West Company established a trading post near present-day Libby, Montana. The race for fur was on.
The fur trade was the dominant European industry in the region from 1807 through the 1850s and radically transformed tribal life. Tribes such as the Crows and the Blackfeet joined a global market economy as they began to hunt for furs—first beaver and then buffalo—to trade with the Europeans. The fur economy created new routes to status within the tribes and transformed internal tribal politics. Exposure to diseases such as smallpox, to which Native Americans had little immunity, decimated many bands; for example, an estimated 50 percent of the Blackfeet died in an 1837 epidemic. In addition, the trade brought easy access to liquor, which quickly became a destructive force.
Although the fur trade had a tremendous impact on Native Americans, it brought relatively few non-Indians to the region. Administratively, the eastern two-thirds of Montana was part of Missouri Territory until 1821, Indian Country until 1854, and Nebraska Territory until 1861, but in fact, there was little government presence with the exception of occasional road building and military expeditions.
The Mining Frontier
White settlement began in earnest following the discovery of gold in 1862 in present southwest Montana at Bannack, now a state park. An 1863 strike in Alder Gulch produced an estimated $35 million in gold during the first five years of mining. Gold fever brought approximately ten thousand people to the region by 1865, many of them from the goldfields of Idaho and California. Booming population expansion created the need for additional governmental services; to provide them, the federal government carved Idaho Territory from the Washington, Nebraska, and Dakota territories in 1863. Continuing growth led to the organization of Montana Territory on 26 May 1864, with first Bannack and then Virginia City as its capital. Other gold strikes followed, including in 1864 a major discovery in Last Chance Gulch (later called Helena), which became Montana's third territorial capital in 1875.
Although the image of the lone prospector dominates the myth of western mining, industrialized mining arrived early on the scene. Hydraulic mining, which used water from high-pressure hoses to wash away whole stream banks, and floating dredges, which mined the bottom of the rivers, required heavy capital investment and caused substantial environmental damage. Even more labor and capital intensive was quartz-lode mining, with its enormous stamp mills, smelters, and other expensive equipment.
In the 1870s, silver replaced gold as Montana's principle source of mineral wealth. The state became the nation's second largest producer of silver by 1883. Silver mining suffered a serious blow during the panic of 1893, however, when President Grover Cleveland ended mandatory government purchases of silver. Thereafter, copper dominated Montana's mining economy.
Mining wealth encouraged railroad construction, which in turn made possible larger mining operations. In 1881 the Union Pacific entered Butte (the heart of Montana's copper enterprises). The Northern Pacific crossed Montana in 1883; the Great Northern connected Butte to St. Paul in 1889. The Milwaukee Road, a relative late-comer, completed its line through Montana in 1909.
As railroads raced across the Plains and miners and the merchants who "mined the miners" poured into Montana Territory, tribal peoples found themselves under increasing pressure. Racism abounded and food was increasingly scarce, as the availability of game (particularly buffalo) declined due to overhunting, competition with horses and cattle for grazing land, and the introduction of exotic bovine diseases. Although the tribes most often negotiated political solutions, two legendary acts of Indian resistance to white incursion occurred in Montana Territory during the 1870s: the Great Sioux War of 1876– 1877, which included the most famous battle in the Indian wars, the Battle of the Little Bighorn; and the Nez Perce War of 1877.
Neither resistance nor negotiation worked particularly well. Montana's Indian tribes lost most of their lands—including much of the territory guaranteed by early treaties as permanent reserves. For example, an 1855 treaty recognized the Blackfeet's claim to two-thirds of eastern Montana (although the tribe, in turn, agreed to allow whites to live in and cross their territory). A series of subsequent treaties and executive orders reduced their reservation to a fraction of its former size. And when the buffalo approached extinction in the 1880s, starvation was the result. According to the historian John Ewers, an estimated one-sixth to one-fourth of the Piegan Blackfeet died of hunger in 1883–1884.
Another blow to Montana's Indians was the 1887 Dawes General Allotment Act, which opened reservation lands to white settlement after "allotting" 160-acre parcels to Indian heads of households. Applied unevenly and at various times, the policy of allotment affected each tribe differently. On the Flathead Indian Reservation in northwestern Montana, for example, the sale of "excess" land to non-Indians during the homestead boom of the 1910s left members of the Salish and Kootenai tribes owning less than half of the land on their reservation. In 2000, enrolled tribal members made up only 26 percent of the reservation's population.
Indians, primarily from ten tribes (Assiniboine, Blackfeet, Chippewa, Cree, Crow, Gros Ventre, Kootenai, Lakota or Sioux, Northern Cheyenne, and Salish), were the state's largest minority in 2000, at 7.3 percent of the population. Many lived on one of Montana's seven Indian reservations (Blackfeet, Crow, Flathead, Fort Belknap, Fort Peck, Northern Cheyenne, and Rocky Boy's), though tribal members also live in Missoula, Great Falls, Billings, and other Montana communities.
The Cattle Boom and Sheep Industry
Territory opened by the removal of Indians to reservations included rich grazing land. Large, corporate ranches—financed mainly by wealthy speculators—brought longhorns from Texas to feed on the area's expansive grasslands in the 1880s, supplementing older cattle operations established primarily by former prospectors. According to one source, at the peak of the open-range boom in 1886, approximately 664,000 cattle and 986,000 sheep grazed on Montana rangelands.
The legendary days of the open range—commemorated by Montana's "cowboy artist" Charles M. Russell—suffered a blow during 1886–1887, when summer drought and a long, cold winter struck the overcrowded range to cause the death of approximately 60 percent of Montana's cattle. Cattle remained an important industry, but increasingly ranchers began to grow hay to see their animals through the winters. The homesteading boom decreased the availability of open range, but the 1934 Taylor Grazing Act provided a boon to ranchers hard hit by the depression by allowing livestock to graze on public land.
Less celebrated than the cattle industry, the sheep industry in Montana also thrived and then declined. In 1900, Montana's six million sheep made it the biggest wool-producing state in the union. Eventually, however, foreign competition, the popularity of synthetic fibers, and an end to wool subsidies caused the number of sheep in Montana to drop from 5.7 million head in 1903 to 370,000 head in January 2000.
The Rise of Copper
Even at their height, the sheep and cattle industries could not rival the growth brought by copper. The discovery of rich veins of copper in Butte in the 1880s coincided with an expanding demand for the metal fueled by the electrical revolution and the growing need for copper wire. By 1889, Butte was the nation's largest copper producer and the biggest city between Minneapolis and Seattle. Perhaps the most ethnically diverse city in the intermountain west, Butte was known as the "Gibraltar of Unionism." The Western Federation of Miners, whose leaders later helped found the Industrial Workers of the World, was founded there in 1893. In 1912 even Butte's two chimneysweeps had their own union. Twenty-six miles west, Butte's sister town of Anaconda, founded by the Anaconda Copper Company in 1884, processed the ore wrested from the "richest hill on earth," while poisonous gases bellowing from its stacks killed crops, cattle, and forests for miles around.
Rivalry between two of Butte's "copper kings" profoundly effected statewide politics. Marcus Daly, owner of the Anaconda Company, successfully opposed copper magnate William Clark's 1888 run for territorial delegate and 1893 senate campaign, a race marked by massive corruption. Clark retaliated in 1894, successfully backing Helena as the permanent site of the state capital in opposition to Daly's choice of Anaconda.
Copper continued as a force in Montana politics after the state's copper mines and smelters were consolidated under the control of the directors of Standard Oil in 1899. The Company, as the conglomerate was often called, offered its most naked display of power in 1903 when it closed its operations and put 15,000 men out of work until the governor called a special session of the legislature to enact the legislation it demanded. In addition to its mining interest, the Company operated large logging operations to feed the mines' voracious appetite for lumber.
Even after it severed its ties to Standard Oil in 1915, the Company remained a political force. It controlled most of the state's major newspapers until 1959, and, some believed, many of the state's politicians. Unlike Clark and Daly, the directors of the Company in the teens actively opposed unionism. With the help of state and federal troops, which occupied Butte six times between 1914 and 1920, the Company completely crippled the miners' unions until a resurgence of labor activity during the 1930s.
Open-pit mining—initiated in the 1950s after the richest copper veins had played out—transformed Butte. While Butte shrank (open-pit mining employed fewer people than did traditional hardrock mining), the Company's Berkeley Pit grew, consuming entire neighborhoods. Low copper prices, declining concentrations of ore, reduced industrial use of copper, and increasing global competition led to the closure of the Anaconda smelter in 1980 and the shutdown of mining activity in Butte in 1983, leaving Butte and Anaconda economically and environmentally devastated. When mining resumed in the mid-1980s, it was as a small-scale, nonunion operation. In 2000, mining operations again ceased, due to high energy costs and low copper prices. The Butte and Anaconda region hosted the largest Superfund cleanup site in the United States, and jobs in reclamation were an important part of the area's sluggish economy.
The Homestead Era
With the homestead boom of 1909 to 1919, agriculture surpassed mining as the state's major source of income. The Enlarged Homestead Act of 1909 offered farmers 320 acres of free land. A second law passed in 1912 made it easier for homesteaders to "prove up." The railway companies, which foresaw a lucrative business in transporting crops to market and supplying settlers, conducted a massive advertising campaign and Montana quickly became "the most homesteaded state in the union." As the state's population ballooned from approximately 243,000 in 1900 to a high of approximately 770,000 in 1918, local governments multiplied, from sixteen counties at the time of statehood in 1889 to fifty-six by 1926.
Wartime inflation, resultant high prices, and relatively wet years through 1917 produced unprecedented prosperity for Montana's farmers. However, a six-year drought beginning in 1918 and the collapse of commodity prices in 1920 exposed the weakness of the homesteading economy. Montana's arid lands simply could not support small-scale farming. Between 1919 and 1925, more than half of Montana farmers lost their land and over 60,000 people left the state.
Wet weather after 1926 provided some help to those who stayed, but the agricultural depression of the 1920s grew into the Great Depression of the 1930s, when drought and falling prices again pushed farmers from the land. Nevertheless, agriculture—primarily wheat and beef—still dominates the landscape: Montana is second among states in the number of acres devoted to agriculture. However, as the depopulation of the eastern two-thirds of Montana attests, this increasingly industrialized enterprise requires fewer and fewer workers. In 2000, agriculture employed less than 6 percent of Montanans.
The Great Depression
The Great Depression hit Montana hard, as mining, smelting, and logging slowed to a halt. President Franklin Roosevelt's New Deal programs provided welcome relief. The federal government sent over $523 million to Montana (approximately 27 percent in loans), making Montana the union's second most subsidized state. The money arrived through payments to farmers; construction projects such as the massive Fort Peck Dam, which in 1936 employed more than 10,000 people; rural electrification loans to farmers' cooperatives; and direct relief. Federal jobs programs, according to the historian Michael Malone, provided income to a quarter of Montana households by 1935.
The New Deal also brought a shift in federal Indian policy. After decades of trying to "assimilate" Native Americans, the federal government recognized the value of tribal sovereignty with the Wheeler-Howard Act, cosponsored by Montana senator Burton K. Wheeler. In addition, the New Deal brought employment and infrastructure improvements to Montana's reservations through the formation of the Indian Conservation Corps.
Post–world War II Montana
Commodity prices rose with the beginning of World War II, bringing economic recovery to Montana. The state, however, lost population as young men and women joined the armed forces or found work in the war industries on the West Coast. Malmstrom Air Force Base in Great Falls—which employed approximately 4,000 people in 2001—was established during World War II, but the military-industrial complex had less impact on Montana's economy than it did on other western states.
The 1950s through the 1970s saw booms in petroleum, tourism, wood products, and coal industries. The oil industry—concentrated along the "hi-line" (Montana's northern tier) in the 1910s and 1920s—moved east with the discovery of the oil-rich Williston Basin. Three large refineries opened in Billings, which became the state's largest city by 1960. Jobs in government, tourism, and healthcare helped the city maintain this status despite the oil market crash in the 1980s.
Tourism boomed in the prosperous postwar period, building on its earlier significance to the state (Yellow-stone National Park was established in 1872, Glacier National Park in 1910). In the 1950s, the timber industry, centered in the rich forests west of the Continental Divide, transformed into a genuine wood-products industry (manufacturing plywood, cardboard, and particle board), making it one of Montana's few value-added industries, albeit one with a large environmental cost. The construction of missile silos and dams and the infusion of highway money played a major role in the state's economy during the 1950s and 1960s. The 1970s energy crisis encouraged coal production in southeastern Montana, which claims 13 percent of the nation's coal reserves. In 1971, 7 million tons of coal were mined in Montana; by 1980, that figure had skyrocketed to 30 million, well over half of it from federally owned land.
The Role of the Federal Government
The federal government has always been important to Montana. Examples of early federal policies that have shaped Montana include Indian removal, railroad subsidies, an 1872 mining law (still in effect today, and the source of much controversy) that encourages the development of mineral resources, the homestead acts, timber sales at below-market value from the national forests, and the creation of national parks and wilderness areas. Despite the myth of the independent westerner and many Montanans' deep-seated distrust of "big government," the federal government remains crucial in shaping Montana's economy. In 1969, Montana received $1.88 from Washington ($1.59 in 2000) for every $1.00 its residents paid in taxes. Federal payments to farmers, for example, made up 22 percent of total agricultural receipts in 1999.
Politics
Remarkably corrupt and dominated by copper, Montana has displayed what many have deemed "political schizophrenia" through much of its history, sending conservatives to Helena and liberals to Washington. Many of Montana's representatives on the national level have become quite prominent: Senator Thomas Walsh, who led the investigation into the Teapot Dome scandal; Representative Jeannette Rankin, the first woman elected to Congress; and Senator Mike Mansfield, the Senate's longest-ruling majority leader.
Since state senators were elected by county, rather than by population, rural Montana dominated the legislature through the 1960s, leading to charges of "one cow, one vote" and court-ordered reapportionment. A constitutional convention to revise the original 1889 state constitution followed. A remarkably progressive document, the 1972 constitution enshrined the rights to privacy and "a clean and healthful environment," and committed the state to the preservation of "the unique and distinct cultural heritage of American Indians."
At the end of the twentieth century, Montana's politics moved increasingly rightward, as evidenced by the election of the conservative senator Conrad Burns in 1988, and his reelections in 1994 and 2000. Another political trend was tribal governments' determination to assert sovereignty on the reservations and their increasing willingness to resort to the courts when necessary to accomplish it.
Facing a New Century
At the beginning of the twenty-first century, Montana remained a low-population, high-acreage state, the most "non-metropolitan state in the nation," according to a 1999 study. The fourth largest state in the union, Montana ranks forty-fourth in population, with (according to the 2000 census) 902,195 residents. Energy deregulation, passed by the legislature in 1997, was followed by soaring energy prices and shutdowns in the wood-products, mining, and refining industries. Tourism—which barely trailed agriculture as the second largest segment of the economy—continued to grow in importance. Remaining dependent on the federal government, beset by frequent droughts, and prey to the cyclical nature of an economy based on natural resource extraction, the state—listed as forty-seventh in per capita income in 1999—faced an uncertain economic future.
Bibliography
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Bryan, William L., Jr. Montana's Indians, Yesterday and Today. 2nd rev. ed. Helena, Mont.: American World and Geographic, 1996.
Dobb, Edwin. "Pennies from Hell: In Montana, the Bill for America's Copper Comes Due." Harper's 293 (October 1996): 39–54.
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