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State of Indiana

ORIGIN OF STATE NAME: Named "land of Indians" for the many Indian tribes that formerly lived in the state.

NICKNAME: The Hoosier State.

CAPITAL: Indianapolis.

ENTERED UNION: 11 December 1816 (19th).

SONG: "On the Banks of the Wabash, Far Away."

MOTTO: The Crossroads of America.

FLAG: A flaming torch representing liberty is surrounded by 19 gold stars against a blue background. The word "Indiana" is above the flame.

OFFICIAL SEAL: In a pioneer setting, a farmer fells a tree while a buffalo flees from the forest and across the prairie; in the background, the sun sets over distant hills. The words "Seal of the State of Indiana 1816" surround the scene.

BIRD: Cardinal.

FLOWER: Peony.

TREE: Tulip poplar.

LEGAL HOLIDAYS: New Year's Day, 1 January; Birthday of Martin Luther King Jr., 3rd Monday in January; Good Friday, Friday before Easter, March or April; Primary Election Day, 1st Tuesday after 1st Monday in May in even-numbered years; Memorial Day, last Monday in May; Independence Day, 4 July; Labor Day, 1st Monday in September; Columbus Day, 2nd Monday in October; Election Day, 1st Tuesday after 1st Monday in November in even-numbered years; Veterans' Day, 11 November; Thanksgiving Day, 4th Thursday in November; Lincoln's Birthday, 12 February (observed the day after Thanksgiving); Christmas Day, 25 December; Washington's Birthday, 3rd Monday in February (observed the day after Christmas).

TIME: 7 AM EST = noon GMT; 6 AM CST = noon GMT.


Situated in the eastern north-central United States, Indiana is the smallest of the 12 midwestern states and ranks 38th in size among the 50 states.

Indiana's total area is 36,185 sq mi (93,720 sq km), of which land takes up 35,932 sq mi (93,064 sq km) and water the remaining 253 sq mi (656 sq km). Shaped somewhat like a vertical quadrangle, with irregular borders on the s and w, the state extends about 160 mi (257 km) e-w and about 280 mi (451 km) n-s.

Indiana is bordered on the n by Michigan (with part of the line passing through Lake Michigan); on the e by Ohio; on the se and s by Kentucky (the entire line formed by the north bank of the Ohio River); and on the w by Illinois (with the line in the sw demarcated by the Wabash River). The total boundary length of Indiana is 1,696 mi (2,729 km).

Indiana's geographic center is located in Boone County, 14 mi (23 km) nnw of Indianapolis.


Indiana has two principal types of terrain: slightly rolling land in the northern half of the state and rugged hills in the southern half, extending to the Ohio River. The highest point in the state, a hill in Franklin Township (Wayne County), is 1,257 ft (383 m) above sea level; the lowest point, on the Ohio River, is 320 ft (98 m). The mean elevation is approximately 700 ft (214 m). The richest soil is in the north-central region, where the retreating glacier during the last Ice Age enriched the soil, scooped out lakes, and cut passageways for rivers.

Four-fifths of the state's land is drained by the Wabash River, which flows westward across the north-central region and turns southward to empty into the Ohio, and by its tributaries, the White, Eel, Mississinewa, and Tippecanoe rivers. The northern region is drained by the Maumee River, which flows into Lake Erie at Toledo, Ohio, and by the Kankakee River, which joins the Illinois River in Illinois. In the southwest, the two White River forks empty into the Wabash, and in the southeast, the Whitewater River flows into the Ohio.

In addition to Lake Michigan on the northwestern border, there are more than 400 lakes in the northern part of the state. The largest lakes include the Wawasee, Maxinkuckee, Freeman, and Shafer. There are mineral springs at French Lick and West Baden in Orange County and two large caves at Wyandotte and Marengo in adjoining Crawford County.

The underlying rock strata found in Indiana were formed from sediments deposited during the Paleozoic Era, when the land was submerged. About 400 million years ago, the first uplift of land, the Cincinnati arch, divided the Indiana region into two basins, a small one in the north and a large one in the southwest. The land was steadily elevated and at one time formed a lush swamp, which dried up some 200 million years ago when the climate cooled. During the Ice Ages, about five-sixths of the land lay under ice some 2,000 ft (600 m) thick. The retreat of the glacier more than 10,000 years ago left excellent topsoil and drainage conditions in Indiana.


Temperatures vary from the extreme north to the extreme south of the state; the annual mean temperature is 49°f-58°f (9°c-12°c) in the north and 57°f (14°c) in the south. The annual average for Indianapolis is 53°f (11°c). Although Indiana sometimes has temperatures below 0°f (18°c) during the winter, the average temperatures in January range between 17°f (8°c) and 35°f (2°c). Average temperatures during July vary from 63°f (17°c) to 88°f (31°c). The record high for the state was 116°f (47°c) set on 14 July 1936 at Collegeville, and the record low was 36°f (38°c) on 19 January 1994 at New Whiteland.

The growing season averages 155 days in the north and 185 days in the south. Rainfall is distributed fairly evenly throughout the year, although drought sometimes occurs in the southern region. The average annual precipitation in the state is 40 in (102 cm), ranging from about 35 in (89 cm) near Lake Michigan to 45 in (114 cm) along the Ohio River; during 19712000, Indianapolis had an average of 41 in (104 cm) per year. The annual snowfall in Indiana averages less than 22 in (56 cm). Average wind speed in the state is 8 mph (13 km/h), but gales sometimes occur along the shores of Lake Michigan, and there are occasional tornadoes in the interior.

Parts of Indiana are prone to severe thunderstorms and tornados. On 6 November 2005, a tornado that swept through Evansville left 23 people dead.


Because the state has a relatively uniform climate, plant species are distributed fairly generally throughout Indiana. There are 124 native tree species, including 17 varieties of oak, as well as black walnut, sycamore, and tulip tree (yellow poplar), the state tree. Fruit treesapple, cherry, peach, and pearare common. Local indigenous speciesnow reduced because of industrialization and urbanizationinclude the persimmon, black gum, and southern cypress along the Ohio River; tamarack and bog willow in the northern marsh; and white pine, sassafras, and pawpaw near Lake Michigan. American elderberry and bittersweet are common shrubs, while various jack-in-the-pulpits and spring beauties are among the indigenous wild flowers. The peony is the state flower. As of April 2006, Mead's milkweed and Pitcher's thistle were considered threatened and running buffalo clover was considered endangered.

Although the presence of wolves and coyotes has been reported occasionally, the red fox is Indiana's only common carnivorous mammal. Other native mammals are the common cottontail, muskrat, raccoon, opossum, and several types of squirrel. Many waterfowl and marsh birds, including the black duck and great blue heron, inhabit northern Indiana, while the field sparrow, yellow warbler, and red-headed woodpecker nest in central Indiana. Various catfish, pike, bass, and sunfish are native to state waters.

The US Fish and Wildlife Service listed 21 Indiana animal species (vertebrates and invertebrates) as threatened or endangered as of April 2006. Among these are the bald eagle, Indiana and gray bats, gray wolf, piping plover, and two species of butterfly.


During the 19th century, early settlers cut down much of Indiana's forests for farms, leaving the land vulnerable to soil erosion and flood damage, particularly in the southern part of the state. In 1919, the legislature created the State Department of Conservation (which in 1965 became the Department of Natural Resources) to reclaim worn-out soil, prevent further erosion, and control the pollution of rivers and streams. In 1986, the Indiana Department of Environmental Management was initiated as a watchdog over the environmental laws and regulations designed to preserve the environmental well-being of the state. Still, almost 85% of Indiana's original wetlands have been lost and, in 1997, it was estimated that the state continues to lose 1-3% of its remaining wetlands per year.

The Department of Natural Resources regulates the use of Indiana's lands, waters, forests, and wildlife resources. Specifically, the department manages land subject to flooding, preserves natural rivers and streams, grants mining permits and regulates strip-mining, plugs and repairs faulty/abandoned oil and gas wells, administers existing state parks and preserves and buys land for new ones, regulates hunting and fishing, and examines any damage to fish and wildlife by investigating industrial accidents. Also, the department is responsible for preventing soil erosion and flood damage and for conserving and disposing of water in the state's watersheds.

The Indiana Department of Environmental Management (IDEM) seeks to protect public health through the implementation and management of environmental programs. The focus of the environmental programs is to protect Indiana's air, land, and water resources, as the proper management of these resources contribute to the health and well-being of the citizens of Indiana. Prior to April 1986, these environmental programs were under the auspices of the State Board of Health (ISBH).

In addition to the IDEM and the Department of Natural Resources, the following boards exist to aid in environmental involvement: Air Pollution Control Board, Water Pollution Control Board, Pollution Prevention Control Board, and Solid Waste Management Board.

In 1990, Indiana lawmakers passed landmark legislation that created an Office of Pollution Prevention and Technical Assistance within IDEM. OPPTA's long-term goal is to ensure that all Indiana industries use pollution prevention techniques as the preferred method for reducing waste and protecting the environment. This policy, along with programs that encourage reuse and recycling and discourage landfilling and incineration, will help conserve natural resources.

In March 1990, Indiana's Water Pollution Control Board adopted some of the strictest water quality standards in the nation. The standards set criteria for more than 90 chemicals and designated almost all water bodies for protection of aquatic life and recreational use. These standards will help improve and protect the quality of water in Indiana's lakes, rivers, and streams.

The IDEM devotes much attention to identifying, cleaning up, and remediating all forms of toxic contamination. On 31 January 1986, the agency gained federal delegation for the Resource Conservation and Recovery Act (RCRA), which governs the generation, storage, treatment, transport, and disposal of all hazardous waste. Beyond the RCRA, the IDEM encourages companies to examine their production cycles and to adopt processes that won't create hazardous waste. The Department of Environmental Management offers technical assistance for the installation of pollution prevention equipment and encourages consumers to rethink their use and disposal of hazardous household goods and chemicals. When that waste is not properly handled and disposed of, expensive remediation is often required. In 2003, 234.8 million lb of toxic chemicals were released in the state. In 2003, the US Environment Protection Agency's (EPA) database listed 210 hazardous waste sites in Indiana, 29 of which were on the National Priorities List as of 2006. In 2005, the EPA spent over $8.8 million through the Superfund program for the cleanup of hazardous waste sites in the state. Also in 2005, federal EPA grants awarded to the state included $25.9 million for a wastewater revolving loan program and $11.2 million for a drinking water revolving fund.

IndianaCounties, County Seats, and County Areas and Populations
Adams Decatur 340 33,849 Madison Anderson 435 130,412
Allen Fort Wayne 659 344,006 Marion Indianapolis 396 863,133
Bartholomew Columbus 409 73,540 Marshall Plymouth 444 46,945
Benton Fowler 407 9,039 Martin Shoals 339 10,386
Blackford Hardford City 166 13,849 Miami Peru 369 35,620
Boone Lebanon 424 52,061 Monroe Bloomington 385 121,407
Brown Nashville 312 15,154 Montgomery Crawfordsville 505 38,239
Carroll Delphi 372 20,426 Morgan Martinsville 409 align="right">69,778
Cass Logansport 414 40,130 Newton Kentland 401 14,456
Clark Jeffersonville 376 101,592 Noble Albion 413 47,448
Clay Brazil 360 27,142 Ohilo Rising Sun 87 5,874
Clinton Frankfort 405 34,091 Orange Paoli 408 19,770
Crawford English 307 11,216 Owen Spencer 386 22,823
Daviess Washington 432 30,466 Parke Rockville 444 17,362
Dearborn Lawrenceburg 307 49,082 Perry Cannelton 481 19,032
Decatur Greensburg 373 25,184 Pike Petersburg 341 12,766
Dekalb Auburn 364 41,659 Porter Valparaiso 419 157,772
Delaware Muncie 392 116,362 Posey Mt.vernon 410 26,852
Dubois Jasper 429 40,858 Pulaski Winamac 435 13,783
Elkhart Goshen 466 195,362 Putnam Greencastle 482 36,957
Fayette Connersville 215 24,885 Randolph Winchester 454 26,684
Floyd New Albany 150 71,997 Ripley Versailles 447 27,710
Fountain Covington 398 17,462 Rush Rushville 408 17,823
Franklin Brookville 385 23,085 St. Joseph South Bend 459 266,160
Fulton Rochester 369 20,665 Scott Scottsburg 192 23,820
Gibson Princeton 490 33,408 Shelby Shelbyville 412 43,766
Grant Marion 415 70,557 Spencer Rockport 400 20,528
Greene Bloomfield 546 33,479 Strake Knox 309 22,933
Hamilton Noblesville 398 240,685 Seteuben Angola 308 33,773
Hancock Greenfield 307 63,138 Sullivan Sullivan 452 21,763
Harrison Corydon 486 36,827 Switzerland Vevay 224 9,718
Hendricks Danville 409 127,483 Tippecanoe Lafayette 502 153,875
Henry New Castle 395 47,244 Tipton Tipton 261 16,385
Howard Kokomo 293 84,977 Union Liberty 163 7,208
Huntington Huntington 366 38,236 Vanderburgh Evansville 236 173,187
Jackson Brownstown 514 42,237 Vermillion Newport 260 16,562
Jasper Rensselaer 561 31,876 Vigo Terre Haute 405 102,592
Jay Portland 384 21,606 Wabash Wabash 398 33,843
Jefferson Madison 363 32,430 Warren Williamsport 366 8,785
Jennings Vernoon 378 28,427 Warrick Boonville 391 56,362
Johnson Franklin 321 128,436 Washington Salem 516 27,885
Knox Vincennes 520 38,366 Wayne Richmond 404 69,192
Kosciucko Warsaw 540 76,072 Wells Bluffton 370 28,085
Lagrange Lagrange 380 36,875 White Monticello 506 24,463
Lake Crown Point 501 493,297 Whitley Columbia City 336 32,323
Laporte Laporte 600 110,512 TOTALS 36,036 6,271,973
Lawrence Bedford 452 46,403

Since the IDEM was established in 1986, enforcement activity has increased fivefold. This is due, in part, to its unified Office of Enforcement, which consolidated enforcement staff who had been working separately in offices for air, solid waste, hazardous waste, and water. A key strategy in enforcement actions is to encourage violators to adopt pollution-prevention practices or restore environmental damage as part of their penalty.

Some of the state's most serious environmental challenges lie in Lake and Porter counties in northwest Indiana. A century of spills, emissions, and discharges to the environment there require comprehensive, regionally coordinated programs. In 1991, the IDEM opened a regional office in Gary to act as a liaison with local officials, concerned citizens, and industry. This office is helping drive the development of a comprehensive remediation plan, including the involvement of concerned citizens through the Citizen's Advisory for the Remediation of the Environment (CARE) committee. The Northwest Indiana Remedial Action Plan (RAP) is a three-phased program designed especially for the Grand Calumet River and the Indiana Harbor Ship Canal. Both waterways are heavily contaminated and, if left in their current state, would certainly degrade the waters of Lake Michigan, the primary source of drinking water for the northwest Indiana area. The RAP is a direct result of treaties of the International Joint Commission, a coalition formed to protect the waters between the United States and Canada.

The IDEM now offers expertise and approval for voluntary cleanup plans. When a voluntary cleanup is completed properly, the IDEM will issue a certificate of completion, and the governor will provide a covenant not to sue for further action involving the damage revealed to the IDEM. This innovative program has led to many cleanups at virtually no cost to Indiana citizens.


Indiana ranked 15th in population in the United States with an estimated total of 6,271,973 in 2005, an increase of 3.1% since 2000. Between 1990 and 2000, Indiana's population grew from 5,544,159 to 6,080,485, an increase of 9.7%. The population is projected to reach 6.5 million by 2015 and 6.7 million by 2025. The population density in 2004 was 173.9 persons per sq mi. In 2004, the median age was 35.7. Persons under 18 years old accounted for 25.7% of the population, while 12.4% was age 65 or older.

Although the French founded the first European settlement in Indiana in 1717, the census population was no more than 5,641 in 1800, when the Indiana Territory was established. Settlers flocked to the state during the territorial period, and the population rose to 24,520 by 1810. After Indiana became a state in 1816, its population grew even more rapidly, reaching 147,178 in 1820 and 988,416 in 1850. At the outbreak of the Civil War, Indiana had 1,350,428 inhabitants and ranked fifth in population among the states.

Indiana was relatively untouched by the great waves of European immigration that swept the United States from 1860 to 1880. In 1880, when the state's population was 1,978,301, Indiana had fewer foreign-born residents (about 7% of its population) than any other northern state. Indiana had doubled its population to 5,193,669 by the time of the 1970 Census.

Indianapolis, the capital and largest city, expanded its boundaries in 1970 to coincide with those of Marion County, thereby increasing its area to 388 sq mi (1,005 sq km) and its population by some 50% (the city and county limits also include four self-governing communities). The estimated population was 784,242 in 2004; the Indianapolis metropolitan area had an estimated population of 1,621,613. Other cities with 2004 populations estimated at more than 100,000 were Fort Wayne, 219,351; Evansville, 117,156; and South Bend, 105,494. All of these cities suffered population declines in the 1970s, 1980s, and 1990s.


Originally an agricultural state, Indiana was settled by Native Americans moving west, by a small group of French Creoles, and by European immigrant farmers. Although railroad building and industrialization attracted other immigrant groupsnotably the Irish, Hungarians, Italians, Poles, Croats, Slovaks, and Syriansforeign immigration to Indiana declined sharply in the 20th century, although there was a rebound in the final decade. As of 2000, foreign-born Hoosiers numbered 186,534 (3% of the total state population), nearly double the figure of 94,263 in 1990.

Restrictions on foreign immigration and the availability of jobs spurred the migration of black Americans to Indiana after World War I; by 2000, the state had 510,034 blacks, representing about 8.4% of the total population. Approximately one-fifth of all Indiana blacks live in the industrial city of Gary. In 2004, 8.8% of the population was black.

In 2000, approximately 3.5% (214,536) of Indiana's population was of Hispanic or Latino origin, up sharply from 1.8% (99,000) in 1990. Hispanics and Latinos accounted for 4.3% of the population in 2004. The Asian population was estimated at 59,126 in 2000, including 14,685 Asian Indians (up from 6,093 in 1990), 12,531 Chinese (6,128 in 1990), 6,674 Filipinos, 7,502 Koreans, 5,065 Japanese, and 4,843 Vietnamese (2,420 in 1990). Pacific Islanders numbered 2,005. In 2004, 1.2% of the population was Asian, and the Pacific Islander population was negligible.

The natives of early-19th-century Indiana came from a variety of Algonkian-speaking tribes, including Delaware, Shawnee, and Potawatomi. By 1846, however, all Indian lands in the state had been seized or ceded, and most Native Americans had been removed. In 2000, there were 15,815 Native Americans. In 2004, 0.3% of the population was composed of Native Americans.


Several Algonkian Indian tribes, including some from the east, met the white settlers who arrived in Indiana in the early 1800s. The heritage of the Delaware, Potawatomi, Miami, and other groups survives in many place-names, from Kokomo to Nappanee, Muncie, and Shipshewana.

In 2000, 93.5% of all Hoosiers five years old and older spoke only English at home, down from 95.2% in 1990.

The following table gives selected statistics from the 2000 Census for language spoken at home by persons five years old and over. The category "Other West Germanic languages" includes Dutch, Pennsylvania Dutch, and Afrikaans. The category "Other Slavic languages" includes Czech, Slovak, and Ukrainian.

Population 5 years and over 5,657,818 100.0
  Speak only English 5,295,736 93.6
  Speak a language other than English 362,082 6.4
Speak a language other than English 362,082 6.4
  Spanish or Spanish Creole 185,576 3.3
  German 44,142 0.8
  French (incl. Patois, Cajun) 18,065 0.3
  Other West Germanic languages 15,706 0.3
  Chinese 9,912 0.2
  Polish 7,831 0.1
  Serbo-Croatian 5,843 0.1
  Japanese 5,339 0.1
  Arabic 5,338 0.1
  Other Slavic languages 5,129 0.1
  Korean 5,032 0.1
  Italian 4,798 0.1
  Vietnamese 4,746 0.1
  Greek 4,233 0.1
  Tagalog 4,016 0.1

Except for the dialect mixture in the industrial northwest corner and the Northern-dialect fringe of counties along the Michigan border, Indiana speech is essentially that of the South Midland pioneers from south of the Ohio River, with a transition zone toward North Midland, north of Indianapolis. Between the Ohio River and Indianapolis, South Midland speakers use evening for late afternoon, eat clabber cheese instead of cottage cheese, are wary of frogstools rather than toadstools, once held that toadfrogs and not plain toads caused warts, eat goobers instead of peanuts at a ball game, and may therefore be sick at the stomach. In the same region, some Hoosiers use a few Midland words that also occur north of Indianapolis, such as rock fence (stone wall), French harp (harmonica), mud dauber (wasp), shucks (leaves on an ear of corn), and perhaps even some expanding North Midland words, such as run (a small stream), teetertotter (seesaw), and fishworm. North of Indianapolis, speakers with a Midland Pennsylvania background wish on the pullybone of a chicken, may use a trestle (sawhorse), and are likely to get their hands greezy rather than greasy. Such was the Hoosier talk of James Whitcomb Riley.


The first branch of Christianity to gain a foothold in Indiana was Roman Catholicism, introduced by the French settlers in the early 18th century. The first Protestant church was founded near Charlestown by Baptists from Kentucky in 1798. Three years later, a Methodist church was organized at Springville; in 1806, Presbyterians established a church near Vincennes; and the following year, Quakers built their first meetinghouse at Richmond. The Disciples of Christ, Lutherans, the United Brethren, Mennonites, and Jews were among the later 19th-century arrivals.

A dissident religious sect, the Shakers, established a short-lived community in Sullivan County in 1808. In 1815, some German separatists led by George Rapp founded a community called the Harmonie Society, which flourished briefly. Rapp moved his followers to Pennsylvania and sold the town to a Scottish social reformer, Robert Owen, in 1825. Owen renamed the town New Harmony and tried to establish a nonreligious utopia there, but the experiment failed after three years. A group of religious dissidents founded the Pentecostal Church of God at Beaver Dam in 1881; the world headquarters of the church, which had 101,921 adherents nationwide in 2000, is now at Anderson. The Youth for Christ movement started in Indianapolis in 1943.

The Roman Catholic Church is the largest single denomination, with about 765,699 adherents in 2004. One of the largest Protestant denominations is the United Methodist Church, which had about 212,667 members in 2004. Others (with 2000 membership data) include the Church of Christ (205,408 adherents), the Southern Baptist Convention (124,452), the American Baptist Church (115,101), and the Lutheran Church-Missouri Synod (111,522). The Southern Baptist Convention reported 3,769 newly baptized members in the state in 2002. The estimated Jewish population of the state in 2000 was 18,000, down from 20,314 members in 1990. The Muslim community had about 11,000 members in 2000. There were also over 17,000 Mennonites and over 19,000 members of Amish communities statewide. About 57% of the population (over 3.4 million people) was not counted as part of any religious organization.

Indianapolis services as a home base for several religious organizations, including the Christian Fellowship International, the international headquarters of the Pentecostal Assemblies of the World, Inc., and the Office of the General Minister and President of the Christian Church (Disciples of Christ), as well as several other offices of this denomination.


Indiana's central location in the United States and its position between Lake Michigan to the north and the Ohio River to the south gave the state its motto, "The Crossroads of America." Historically, the state took advantage of its strategic location by digging canals to connect Indiana rivers and by building roads and railroads to provide farmers access to national markets.

The success of the state's first railroad, completed in 1847 between Madison and Indianapolis, led to a tenfold increase in track mileage during the 1850s, and more railroad expansion took place after the Civil War. In 2003, there were 37 railroads operating on 5,136 rail mi (8,269 km) of track, of which the state's five Class I railroads operated 3,828 route mi (6,163 km) of track. As of 2006, regularly scheduled Amtrak passenger trains served Indianapolis, Hammond/Whiting, South Bend, and seven other stations in the state. Indianapolis and other major cities have public transit systems that are subsidized heavily by the state and federal governments. The South Shore commuter railroad connects South Bend, Gary, and East Chicago with Chicago, Illinois.

The east-west National Road (US 40) reached Indiana in 1827, and the north-south Michigan Road (US 421) was built in the late 1830s. In 2003, there were 94,597 mi (152,301 km) of public roads of all types in the state. In 2004, motor vehicle registrations totaled around 5.587 million, including 3.043 million passenger cars and 2.382 million trucks of all types. Several of the nation's largest moving companies have their headquarters in Indiana.

Water transportation has been important from the earliest years of European settlement. The Wabash and Erie Canal, constructed in the 1830s from Fort Wayne east to Toledo, Ohio, and southwest to Lafayette, was vital to the state's market economy. In 1836, the state legislature earmarked $10 million for an ambitious network of canals, but excessive construction costs and the financial panic of 1837 caused the state to go virtually bankrupt and default on its bonds. Nevertheless, the Wabash Canal was extended to Terre Haute and Evansville by the early 1850s.

The transport of freight via Lake Michigan and the Ohio River helped to spark Indiana's industrial development. A deepwater port on Lake Michigan, which became operational in 1970, provided access to world markets via the St. Lawrence Seaway. Indiana Harbor handled 18.228 million tons of goods in 2004, making it the 40th-busiest port in the United States, while the tonnage at the port of Gary totaled 8.531 million tons that same year. In 2004, Indiana had 353 mi (586 km) of navigable inland waterways. In 2003, waterborne shipments totaled 68.059 million tons.

In 2005, Indiana had a total of 629 public and private-use aviation-related facilities. This included 492 airports, 121 heliports, 3 STOLports (Short Take-Off and Landing), and 13 seaplane bases. Indianapolis International Airport is the state's main airport. In 2004, it handled 3,992,097 enplanements, making it the 45th-busiest airport in the United States.


When the first human beings inhabited Indiana is not known. Hundreds of sites used by primitive hunters, fishermen, and food gatherers before 1000 bc have been found in Indiana. Burial mounds of the Woodland culture (1000 bc to ad 900), when the bow and arrow appeared, have been located across the state. The next culture, called Mississippian and dating about ad 900 to 1500, is marked by gardens, ceramics, tools, weapons, trade, and social organization. It is well illustrated by remains of an extensive village on the north side of the Ohio River near Newburgh. The unidentified inhabitants are believed to have come up from the south about 1300, for reasons not known, and to have migrated back before 1500, again for unknown reasons.

The next Indian invaders, and the first to be seen by white men, were the Miami and Potawatomi tribes that drifted down the west side of Lake Michigan and turned across the northern sector of what is now Indiana after the middle of the 17th century. The Kickapoo and Wea tribes pushed into upper Indiana from northern Illinois. The southern two-thirds of the present state was a vast hunting ground, without villages.

The first European penetration was made in the 1670s by the French explorers Father Jacques Marquette and René-Robert Cavelier, Sieur de la Salle. After the founding of Detroit in 1701, the Maumee-Wabash river route to the lower Ohio was discovered. At the portage between the two rivers, Jean Baptiste Bissot, Sieur de Vincennes, lived at Kekionga, the principal village of the Miami and the present site of Fort Wayne. The first French fort was built farther down the Wabash among the Wea, near modern Lafayette, in 1717. Three years later, Fort Miami was erected. Vincennes's son constructed another fort on the Wabash in 1732, at the site of the town later named for him.

English traders venturing down the Ohio River disputed the French trade monopoly, and as a result of the French and Indian War, French Canada was given up to the British in 1760. Indians under Chief Pontiac captured the two forts in northern Indiana, and the area was not securely in English hands until 1765. The prerevolutionary turbulence in the Atlantic seaboard colonies was hardly felt in Indiana, although the region did not escape the Revolutionary War itself. Colonel George Rogers Clark, acting for Virginia, captured Vincennes from a British garrison early in 1779 after a heroic march. Two years later, a detachment of 108 Pennsylvanians, passing down the Ohio to reinforce Clark, was surprised by a force of French Canadians and Indians under Mohawk Captain Joseph Brant; most of the Pennsylvanians were killed during the battle or after capture.

Following the Revolutionary War, the area northwest of the Ohio River was granted to the new nation; known as the Northwest Territory, it included present-day Indiana, Ohio, Illinois, Michigan, Wisconsin, and part of Minnesota. The first US settlement in Indiana was made in 1784 on land opposite Louisville, Kentucky. granted to Clark's veterans by Virginia. (The new town, called Clarksville, still exists.) Americans also moved into Vincennes. Government was established by the Continental Congress under the Northwest Ordinance of 1787. Again, Indiana unrest endangered all settlements north of the Ohio, and the small US Army, with headquarters at Cincinnati, met defeat at what is now Fort Wayne in 1790 and disaster in neighboring Ohio in 1791. General Anthony Wayne was put in command of an enlarged army and defeated the Indians in 1794 at Fallen Timbers (near Toledo, Ohio). British meddling was ended by Jay's Treaty later the same year. Wayne then built a new fortnamed for himamong the Miami.

In 1800, as Ohio prepared to enter the Union, the rest of the Northwest Territory was set off and called the Indiana Territory, with its capital at Vincennes. There, Elihu Stout established a newspaper, the Indiana Gazette, in 1804. After the Michigan Territory was detached in 1805 and the Illinois Territory in 1809, Indiana assumed its present boundaries. The federal census counted 24,520 people in Indiana in 1810, including a new Swiss colony on the Ohio, where settlers planted vineyards and made wine.

William Henry Harrison was appointed the first governor and, with a secretary and three appointed judges, constituted the government of the Indiana Territory. Under the Northwest Ordinance, when the population reached 5,000 adult males, it was allowed to elect an assembly and nominate candidates for an upper house. When the population totaled 60,000as it did in 1815the voters were allowed to write a state constitution and apply for admission to the Union. A short constitution excluding slavery and recommending public schools was adopted, and Indiana became the 19th state on 11 December 1816.

Meanwhile, Indiana had seen Governor Harrison lead US troops up the Wabash in 1811 and beat off an Indian attack at Tippecanoe. The War of 1812 took Harrison away from Indiana, and battles were fought in other theaters. Hoosiers suffered Indian raids, and two forts were besieged for a few days. After the war, new settlers began pouring into the state from the upper South and in fewer numbers from Ohio, Pennsylvania, New York, and New England. A group of German Pietists led by George Rapp settled Harmonie on the lower Wabash in 1815 and stayed 10 years before selling out to Robert Owen, a visionary with utopian dreams that failed at the village he renamed New Harmony. In 1816, Tom Lincoln brought his family from Kentucky, and his son Abe grew up in southern Indiana from age 7 to 21.

Unlike most other states, Indiana was settled from south to north. The inhabitants were called Hoosiers; the origin of the word is obscure, but the term may have come from an Anglo-Saxon word for hill dwellers. Central and northern Indiana were opened up as land was purchased from the Indians. The Potawatomi were forced to go west in 1838, and the Miami left in 1846. Commerce flowed south to the Ohio River in the form of corn, hogs, whiskey, and timber. Indianapolis was laid out as a planned city and centrally located capital in 1820, but 30 years passed before its population caught up to the size of Madison and New Albany on the Ohio.

An overambitious program of internal improvements (canals and roads) in the 1830s plunged the state into debts it could not pay. Railroads, privately financed, began to tie Indiana commercially with the east. The Irish came to dig canals and lay the rails, and Germans, many of them Catholics, came to do woodworking and farming. Levi Coffin, a Quaker who moved to Fountain City in 1826, opened a different kind of road, the Underground Railroad, to help escaping slaves from the South.

A new constitution in 1851 showed Jacksonian preferences for more elective offices, shorter terms, a one-term governorship, limited biennial legislative sessions, county government, obligatory common schools, and severe limits on state debt. But this constitution also prohibited blacks from entering the state.

Hoosiers showed considerable sympathy with the South in the 1850s, and there was considerable "copperhead" activity in the early 1860s. Nevertheless, Indiana remained staunchly in the Union under Governor Oliver P. Morton, sending some 200,000 soldiers to the Civil War. The state suffered no battles, but General John Hunt Morgan's Confederate cavalry raided the southeastern sector of Indiana in July 1863.

After the Civil War, small local industries expanded rapidly. The first nonfarm enterprises were gristmills, sawmills, meat-packing plants, distilleries and breweries, leatherworking shops, furniture factories, and steamboat and carriage makers. Wagons made by Studebaker in South Bend won fame during the war, as did Van Camp's canned pork and beans from Indianapolis. Discovery of natural gas in several northeastern counties in 1886, and the resultant low fuel prices, spurred the growth of glass factories. Elwood Haynes of Kokomo designed a one-cylinder horseless carriage in 1894 and drove it. As America became infatuated with the new autos, 375 Indiana factories started turning them out. A racetrack for testing cars was built outside Indianapolis in 1908, and the famous 500-mi (805-km) race on Memorial Day weekend began in 1911. Five years earlier, US Steel had constructed a steel plant at the south end of Lake Michigan. The town built by the company to house the workers was called Gary, and it grew rapidly with the help of the company and the onset of World War I. Oil refineries were developed in the same area, known as the Calumet region.

Of the millions of immigrants who flocked to the United States from 1870 to 1914, very few settled in Indiana. The percentage of foreign-born residents declined from 9% in 1860 to 7% in 1880, all of them from northern Europe and over half from Germany. By 1920, the percentage was down to 5%, although some workers from southern and eastern Europe had gravitated to the industries of the Calumet.

Although many Hoosiers of German and Irish descent favored neutrality when World War I began, Indiana industries eventually boomed with war orders, and public sympathy swung heavily toward the Allies. Indiana furnished 118,000 men and women to the armed forces and suffered the loss of 3,370a much smaller participation than during the Civil War, from a population more than twice the size.

After 1920, only about a dozen makes of cars were still being manufactured in Indiana, and those factories steadily lost out to the Big Three car makers in Detroit. The exception was Studebaker in South Bend, which grew to more than 23,000 employees during World War II. The company finally closed its doors in 1965. Auto parts continued to be a big business, however, along with steel-making and oil refining in the Calumet region. Elsewhere, there was manufacturing of machinery, farm implements, railway cars, furniture, and pharmaceuticals. Meat packing, coal mining, and limestone quarrying continued to be important. With increasing industrialization, cities grew, particularly in the northern half of the state, and the number of farms diminished. The balance of rural and urban population, about even in 1920, tilted in favor of urban dwellers.

World War II had a greater impact on Indiana than did World War I. Most factories converted to production of war materials; 300 held defense orders in 1942. Du Pont built a huge powder plant near Charlestown. The slack in employment was taken up, women went into factories, more rural families moved to cities, and military training facilities were created. The enormous Jefferson Proving Ground tested ammunition and parachutes.

After the war, many small local industries were taken over by national corporations, and their plants were expanded. By 1984, the largest employer in Indiana was General Motors, with 47,800 employees in six cities. Inland Steel, with 18,500 workers, was second, followed by US Steel with 13,800 workers. Although the state's population in the mid-1980s was about two-thirds urban and one-third rural, agriculture retained much of its importance.

Nostalgia for an older, simpler, rural way of life has pervaded much Hoosier thinking. The shoreline area of industrial Gary notwithstanding (although it, too, was the subject of cleanups during the 1990s), Indiana stands high in conservation, owing to the vision of Richard Lieber, a state official who from 1933 to 1944 promoted the preservation of land for state parks and recreational areas, as well as for state and federal forests.

The percentage of registered voters in Indiana who participate in elections has generally exceeded the national average by a wide margin. The evenness of strength between the two major political parties during much of its history made Indiana a swing state, eagerly courted by Democrats and Republicans alike. However, by the 21st century, Indiana had become one of the safest Republican states in the nation, seen as one of the most conservative states outside of the Deep South. In 1967, Democrat Richard Hatcher became one of the nation's first African Americans to serve as head of a major city when he was elected mayor of Gary. In 1988, Indiana native son J. Danforth Quayle, then a US senator, was elected vice president of the United States on the Republican ticket with George H. W. Bush.

The state legislature was dominated by rural interests until reapportionment in 1966 gave urban counties more representation. Biennial sessions were then changed to annual, although they are still limited in duration. The direct primary for nomination of governor, lieutenant governor, and US senator was mandated in 1975.

In the early 1980s, Indiana, along with other manufacturing-intensive states, suffered a recession that was compounded by declining farm prices and high operating costs for farmers. Later in the decade, the state's economy improved with the expansion of service industries, which continued through the 1990s. While the state's unemployment rate of 3% in 1999 was below the national average, median income and per capita income levels ranked in the mid-ranges nationally, owing in part to the state's agricultural and manufacturing character. Indiana's business leaders remained concerned in 2000 that Indiana had not attracted enough high-tech companies and that the state's economy was too reliant on the "old economy" manufacturing sector, causing many to worry about the consequences of a downturn. At the same time, the Indianapolis area lost several high-profile corporate headquarters.

In October 1999, for the first time in its 183-year history, the state named an African American, Justice Robert D. Rucker, to the Indiana Supreme Court. Governor Frank O'Bannon's appointment won praises from the legal community.

In 2002, the US Supreme Court let stand a 2001 federal appeals court ruling (Indiana Civil Liberties Union v. O'Bannon ) that a proposed 7-ft stone monument of the Ten Commandments, Bill of Rights, and preamble to the 1851 Indiana constitution on state capitol grounds violated the establishment clause of the First Amendment.

As of January 2003, Indiana had a $300 million budget deficitlike more than half of the 50 states that year that had budget shortfalls. In the struggle to come up with a two-year budget, Republican legislators squared off against Democratic governor O'Bannon on issues such as funding Medicaid and education. However, on 8 September 2003, Governor O'Bannon suffered a massive stroke while attending a conference in Chicago; he died on 13 September. He was succeeded by Lieutenant Governor Joe Kernan. In November 2004, Kernan lost the governorship to Republican Mitch Daniels Jr., who had been President George W. Bush's director of the Office of Management and Budget (OMB). Upon coming to office in 2005, Daniels, who is a first generation Arab American, called for strict controls on all state spending increases as a way to improve the state's fiscal situationthe budget being some $700 million out of balance. Daniels also called for a one-time, one-year tax increase of 1% on all Hoosiers making more than $100,000 per year. The measure was seen to be out of character for a conservative who had kept a tight rein on spending while at the OMB.


The first state constitution took effect when Indiana became a state in 1816. Reportedly written by convention delegates beneath a huge elm tree in Corydon, the first state capital, the brief document prohibited slavery and recommended a free public school system, including a state university.

This constitution did not allow for amendment, however, and a new constitution that did so was adopted in 1851. The second constitution authorized more elective state officials, gave greater responsibility to county governments, and prohibited the state from going into debt (except under rare circumstances). It also established biennial rather than annual sessions of the state legislature, a provision that was not repealed until 1971. With amendments (46 as of January 2005), the second constitution is still in effect today.

The Indiana General Assembly consists of a 50-member Senate elected to four-year terms, with half the senators elected every two years, and a 100-member House of Representatives elected to two-year terms. Legislators now meet in annual sessions, beginning the second Monday of January and lasting no longer than 61 legislative days during odd-numbered years (or not past April 30) and no longer than 30 legislative days in even-numbered years (or not past March 15). Members of the General Assembly must be US citizens and have been a resident of Indiana for at least two years and a resident of their district for at least one year. A senator must be at least 25 years old, a representative at least 21 years old. Senators and representatives are paid the same base salary and allowances; legislative leaders receive additional compensation. The legislative salary was $11,600 in 2004, unchanged from 1999.

The state's chief executive is the governor, elected to a four-year term and eligible for reelection, although ineligible to serve more than eight years in a twelve-year period. The governor must be at least 30 years old, a US citizen for at least five years, and a state resident for five years prior to election. Only the governor may call special sessions of the legislature (limited to 30 legislative days or 40 calendar days). The governor may veto bills passed by the legislature, but his or her veto can be overridden by a majority vote of the elected members in each house. If a bill is left unsigned for seven days (whether or not the legislature is in session), it becomes law. As of December 2004, the governor's salary was $95,000.

Indiana's other top elected officials are the lieutenant governor, secretary of state, treasurer, comptroller, attorney general, and superintendent of public instruction. Each is elected to a four-year term. The lieutenant governor, elected jointly with the governor, is constitutionally empowered to preside over the state Senate and to act as governor if the office should become vacant or the incumbent is unable to discharge his or her duties.

Legislation may be introduced in either house of the General Assembly, although bills for raising revenue must originate in the House of Representatives. A bill approved by both houses goes to the governor for signing into law; if the governor declines to sign it within seven days, the bill becomes law, but if the governor vetoes it, majorities of at least 26 votes in the Senate and 51 votes in the House are required to override the veto. Should the governor veto a bill after the end of a legislative session, it must be returned to the legislature when that body reconvenes.

A proposed amendment to the state constitution must be approved by a majority vote in two successive legislative sessions and be submitted to the voters for approval or rejection at the next general election.

In order to vote in Indiana, a person must be a US citizen, at least 18 years old, and a resident of the voting precinct for 30 days before the next election. Those jailed for criminal convictions may not vote.


The Democratic Party has been one of the two major political parties since Indiana became a state in 1816, as has the Republican Party since its inception in 1854. In that year, Hoosiers voted for Democrat James Buchanan for president, but in 1860, the voters supported Republican Abraham Lincoln. After voting Republican in four successive presidential elections, Indiana voted Democratic in 1876 and became a swing state. More recently, a Republican trend has been evident: The state voted Republican in 15 out of 16 presidential elections between 1940 and 2000.

Third-party movements have rarely succeeded in Indiana. Native son Eugene V. Debs, the Socialist Party leader who was personally popular in Indiana, received only 36,931 votes in the state in 1912 while garnering more than 900,000 votes nationally. Even in 1932, during the Great Depression, Socialist candidate Norman Thomas won only 21,388 votes in Indiana. The most successful third-party movement in recent decades was George Wallace's American Independent Party, which took 243,108 votes (11.5% of the Indiana total) in 1968. In each of the four presidential elections of the 1970s and early 1980s, minority party candidates together received only 1.1% or less of the votes cast.

In 2000, Indiana gave 57% of the vote to Republican George W. Bush and 41% to Democrat Al Gore. In 2004, Bush increased his margin to 60% of the vote over Democrat John Kerry, who won 39%. In 1996, Democrat Frank L. O'Bannon was voted in to succeed two-term Democratic governor Evan Bayh; O'Bannon was reelected in 2000. However, O'Bannon suffered a massive stroke in September 2003, and Lieutenant Governor Joseph E. Kernan became governor when O'Bannon died. Kernan was defeated by Republican Mitch Daniels in 2004. Republican Richard Lugar won election to his fifth term in the US Senate in 2000. The other Senate seat, which again went to the Republicans in the 1992 election, was surrendered to the Democrats in 1998 when Bayh was voted in; he won reelection in 2004.

Indiana's delegation to the US House of Representatives following the 2004 elections included two Democrats and seven Republicans. In mid-2005, the state Senate had 33 Republicans and 17 Democrats. The state House had 52 Republicans and 48 Democrats. In 2004, there were 4,009,000 registered voters; there is no party registration in the state. The state had 11 electoral votes in the 2004 presidential election, a loss of 1 vote over the 2000 election.


In 1816, when Indians controlled central and northern Indiana, the state had only 15 counties. By 1824, the number of counties had grown to 49. As of 2005, there were 92 counties.

Counties in Indiana have traditionally provided law enforcement in rural areas, operated county courts and institutions, maintained county roads, administered public welfare programs, and collected taxes. Under a home-rule law enacted by the state in 1980, they also have "all the power they need for the effective operation of government as to local affairs" or, in effect, all powers not specifically reserved by the state. In 1984, counties were given the power to impose local income taxes.

The county's business is conducted by a board of county commissioners, consisting of three members elected to four-year terms. Nine officials who are also elected to four-year terms exercise executive functions: the county auditor, treasurer, recorder, clerk, surveyor, sheriff, prosecuting attorney, coroner, and assessor. The county's appointed officials include the county superintendent of schools, highway supervisor, highway engineer, extension agent, attorney, and physician. An elected seven-member county council exercises taxing power and acts as a check on the board of county commissioners. The major exception to this general pattern is Marion County, which in 1970 was consolidated with the city of Indianapolis and is governed by an elected mayor and council.

Townships (1,008 in 2002) provide assistance for the poor and assess taxable property. Each township is administered by a trustee who is elected to a four-year term. In a few townships, the trustee oversees township schools, but most public schools are run by community school corporations.

Indiana Presidential Vote by Political Parties, 19482004
*Won U.S presidential election.
**WRITE-IN candidate Ralph Nader received 18,531 votes in 2000.
1948 13 Dewey (R) 807,833 821,079 9,649 14,711
1952 13 *Eisenhower (R) 801,530 1,13,259 1,222 15,335
1956 13 *Eisenhower (R) 783,908 1,182,811 6,554
1960 13 *Nixon (R) 952,358 1,175,120 6,746
1964 13 *Johnson (D) 1,170,848 911,118 8,266
1968 13 *Nixon (R) 806,659 1,067,885 243,108 4,616
1972 13 *Nixon (R) 708,568 1,405,154 4,544 5,575
1976 13 Ford (R) 1,014,714 1,185,958 14,048 5,695
1980 13 *Reagan (R) 844,197 1,255,656 4,852 19,627
1984 12 *Reagan (R) 841,481 1,377,230 6,741
1988 12 *Bush (R) 860,643 1,297,763 10,215
IND. (Perot)
1992 12 Bush (R) 848,420 989,375 455,934 7,936
1996 12 Dole (R) 887,424 1,006,693 224,299 15,632
2000** 12 *Bush, G. W. (R) 901,980 1,245,836 16,959 15,530
WRITE-IN (Nader)
2004 11 *Bush, G. W. (R) 969,011 1,479,438 1,328 18,058

Indiana's municipal governments (567 in 2005) are governed by elected city councils. City officials, including the mayor and city clerk, are generally elected for four-year terms. Indianapolis and Marion County were consolidated in 1969.

In 2005, Indiana had 295 public school districts and 1,125 special districts.

In 2005, local government accounted for about 239,827 full-time (or equivalent) employment positions.


To address the continuing threat of terrorism and to work with the federal Department of Homeland Security, homeland security in Indiana operates under state statute; the homeland security director oversees homeland security in the state.

In 1974, Indiana's state legislature created the State Ethics and Conflicts of Interest Commission to formulate and regulate a code of ethics for state officials. The state ethics commissioner investigates reported cases of misconduct or violations of the code of ethics by any state official or employee. After holding hearings, the commission reports violations to the governor and makes its findings public. Top-level state officials and heads of state departments must provide statements of their financial interests to the commission.

In 1977, the state established an interdepartmental board for the coordination of human service programs. Members include the chief administrative officers of state agencies for senior citizens and community services, mental health, health, corrections, and public welfare. The Family and Social Services Administration provides assistance to persons and families requiring help from one of these agencies and monitors federal service programs in the state.

Educational services are provided by the Department of Education and the Commission on Proprietary Education, which accredits private vocational, technical, and trade schools in the state. Health services are supplied by the Department of Health and emergency medical services commission. Disabled citizens are assisted by the Governor's Planning Council for People with Disabilities. The Civil Rights Commission enforces state antidiscrimination laws. The Department of Transportation is responsible for transportation services, and the Department of Veteran Affairs caters to the needs of veterans.


The Indiana Supreme Court consists of five justices who are appointed by the governor from names submitted by a nonpartisan judicial nominating committee. To qualify for selection, a nominee must have practiced law in the state for at least 10 years or have served as judge of a lower court for at least five years. A justice serves for two years and then is subject to approval by referendum in the general election. If approved by the voters, the justice serves a 10-year term before again being subject to referendum. The chief justice of the Indiana Supreme Court is chosen by the nominating commission and serves a five-year term.

The Indiana State Court of Appeals consists of 15 justices who serve 10-year terms. The court exercises appellate jurisdiction under rules set by the Indiana Supreme Court. Both the clerk and the reporter for the state's high courts are chosen in statewide elections for four-year terms.

Superior courts, probate courts, and circuit courts all function as general trial courts and are presided over by 279 judges who serve terms of six years. When the justice of the peace system in the counties was abolished by the state legislature in 1976, small-claims dockets (civil cases involving up to $1,500) were added to circuit and county courts.

As of 31 December 2004, a total of 24,008 prisoners were held in Indiana's state and federal prisons, an increase from 23,069 or 4.1% from the previous year. As of year-end 2004, a total of 1,892 inmates were female, up from 1,758 or 7.6% from the year before. Among sentenced prisoners (one year or more), Indiana had an incarceration rate of 383 per 100,000 population in 2004.

According to the Federal Bureau of Investigation, in 2004 Indiana had a violent crime rate (murder/nonnegligent manslaughter; forcible rape; robbery; aggravated assault) of 325.4 reported incidents per 100,000 population, or a total of 20,294 reported incidents. Crimes against property (burglary; larceny/theft; and motor vehicle theft) in that same year totaled 211,929 reported incidents or 3,397.6 reported incidents per 100,000 people. Indiana has a death penalty, of which lethal injection is the sole method of execution. From 1976 through 5 May 2006, the state executed 17 persons, of which five were executed in 2005 and one in 2006 (as of 5 May). As of 1 January 2006, Indiana had 26 inmates on death row.

In 2003, Indiana spent $110,288,354 on homeland security, an average of $18 per state resident.


US defense installations in Indiana had 1,131 active duty military personnel, 9,877 Reserve and National Guard personnel, and 4,169 civilian personnel in 2004. Army installations include the Jefferson Proving Ground. Grissom Air Force Base, which had been the state's only Air Force base, was closed in 1994. The Navy operates a weapons support center at Crane. Within the state $3.1 billion in prime defense contracts were awarded in fiscal year 2004, and there was another $1.2 billion in defense payroll spending.

Indiana supported the Union during the Civil War; about 200,000 Hoosiers served in Northern armies, and some 24,400 died while in service. During World War I, a Hoosier reportedly was the first American soldier to fire a shot, and the first American soldier killed was from Indiana; in all, about 118,000 Indiana citizens served and 3,370 lost their lives. In World War II, about 338,000 Hoosiers served in the armed forces, and some 10,000 died in line of duty. There were 550,871 veterans of US military service in Indiana as of 2003, of whom 74,109 served in World War II; 62,481 in the Korean conflict; 169,679 during the Vietnam era; and 79,307 in the Gulf War. After World War II, the state paid a bonus to veterans for the first time; in fiscal year 2004, veterans' expenditures in Indiana totaled $1.0 billion.

As of 31 October 2004, the Indiana State Police employed 1,155 full-time sworn officers.


Indiana's early settlers were predominantly northern Europeans who migrated from eastern and southern states. The influx of immigrants to the United States in the late 19th and early 20th centuries had little impact on Indiana. In 1860, only 9% of the state's population was foreignborn, mostly Germans and Irish. The percentage was only 5.6% in 1900 and further declined to 5.2% by 1920 and to just 1.7% by 1990. The principal migratory pattern since 1920 has been within the state, from the farms to the cities.

In 1860, more than 91% of the population lived in rural areas; the percentage fell to 67% in 1900, 50% in 1920, and 40% in 1960. In 1990, 65% of the population was urban and only 35% was rural.

Since World War II, Indiana has lost population through a growing migratory movement to other states, mostly to Florida and the Southwest. From 1960 to 1970, Indiana suffered a net loss of about 16,000 persons through migration, and from 1970 to 1983, a net total of 340,000 left the state. From 1985 to 1990, however, there was a net gain in migration of over 35,000, 90% of whom came from abroad. Between 1990 and 1998, the state had a net gain of 76,000 persons through domestic migration and a net gain of 25,000 in international migration. In 1998, 3,981 foreign immigrants arrived in Indiana. Between 1990 and 1998, the state's overall population increased 6.4%. In the period 200005, net international migration was 55,656 and net internal migration was 17,000, for a net gain of 38,656 people.


Indiana's Commission on Interstate Cooperation promotes cooperation with other states and with the federal government. It acts largely through the Council of State Governments. Indiana is a member of such interstate regulatory bodies as the Great Lakes Commission, the Interstate Mining Compact Commission, the Midwest Interstate Low-Level Radioactive Waste Compact Com-mission, the Ohio River Basin Commission, and the Ohio River Valley Water Sanitation Commission.

The Indiana-Kentucky Boundary Compact was signed by Indiana in 1943 and received congressional approval the same year. In 1985, Indiana joined seven other states in signing a Great Lakes Charter, aimed at further protecting the lakes' resources. Federal grants to Indiana totaled $6.476 billion in fiscal year 2005, an estimated $6.913 billion in fiscal year 2006, and an estimated $7.318 billion in fiscal year 2007.


Indiana is both a leading agricultural and industrial state. The economy was almost entirely agricultural until after the Civil War. By 1900, rapid industrial development had tripled the number of factories in the state to 18,000, employing a total of 156,000 workers. During that period, the mechanization of agriculture doubled of the number of farms to a peak of 220,000 in 1900.

Metals and other manufacturing industries surged during and after World War I, lagged during the Great Depression of the 1930s, then surged again during and after World War II. Between 1940 and 1950, the number of wage earners in the state nearly doubled. Job opportunities brought in many workers from other states and encouraged the growth of labor unions.

The state's industrial development in Indianapolis, Gary, and other cities has been based on its plentiful natural resourcescoal, natural gas, timber, stone, and clayand on good transportation facilities. The northwestern corner of the state is the site of one of the world's greatest concentrations of heavy industry, especially steel. Indiana produced 24% of the nation's steel in 1999, the most of any state. Until the end of the 20th century, the manufacturing sector continued to grow in absolute terms (15% between 1997 and 2000) and continued to account for about 30% of the Indiana's total output. In the national recession of 2001, however, manufacturing output fell 9.2%, and manufacturing fell to 27.2% of total output. The Indiana economy experienced 8.1% growth in 1998, which moderated to 2.9% in 1999 and 4.7% in 2000, and then plunged to 0.1% in 2001. Job creation, which had averaged over 2% a quarter since 1993, became negative (layoffs exceeding job creation) by the second half of 2001 and remained negative throughout 2002. Although the unemployment rate remained below the national average, Indiana had the highest foreclosure rate on conventional family mortgages among the states in 2002.

In 2004, Indiana's gross state product (GSP) totaled $227.569 billion, of which manufacturing accounted for $63.477 billion or 27.8% of GSP, followed by real estate at $22.197 billion (9.7% of GSP) and health care and social services $16.035 billion (7% of GSP). In that same year, there were an estimated 451,437 small businesses in Indiana. Of the 125,746 businesses having employees, a total of 122,716 or 97.6% were small companies. An estimated 13,906 new businesses were established in the state in 2004, up 3.4% from the year before. Business terminations that same year came to 15,282, up 1% from 2003. There were 524 business bankruptcies in 2004, down 18.1% from the previous year. In 2005, the personal bankruptcy (Chapter 7 and Chapter 13) filing rate was 896 filings per 100,000 people, ranking Indiana as the sixth-highest in the nation.


In 2005, Indiana had a gross state product (GSP) of $239 billion, which accounted for 1.9% of the nation's gross domestic product and placed the state at number 16 in highest GSP among the 50 states and the District of Columbia.

According to the Bureau of Economic Analysis, in 2004, Indiana had a per capita personal income (PCPI) of $30,204. This ranked 33rd in the United States and was 91% of the national average of $33,050. The 19942004 average annual growth rate of PCPI was 3.8%. Indiana had a total personal income (TPI) of $188,064,673,000, which ranked 16th in the United States and reflected an increase of 5.1% from 2003. The 19942004 average annual growth rate of TPI was 4.6%. Earnings of persons employed in Indiana increased from $137,378,109,000 in 2003 to $144,552,055,000 in 2004, an increase of 5.2%. The 200304 national change was 6.3%.

The US Census Bureau reports that the three-year average median household income for 200204 in 2004 dollars was $43,003 compared to a national average of $44,473. During the same period, 10.2% of the population was below the poverty line, as compared to 12.4% nationwide.


According to the Bureau of Labor Statistics (BLS), in April 2006 the seasonally adjusted civilian labor force in Indiana numbered 3,252,000. Approximately 159,500 workers were unemployed, yielding an unemployment rate of 4.9%, compared to the national average of 4.7% for the same period. Preliminary data for the same period placed nonfarm employment at 2,972,000. Since the beginning of the BLS data series in 1976, the highest unemployment rate recorded in Indiana was 12.8% in November 1982. The historical low was 2.6% in April 1999. Preliminary nonfarm employment data by occupation for April 2006 showed that approximately 5.1% of the labor force was employed in construction; 19.2% in manufacturing; 19.6% in trade, transportation, and public utilities; 4.7% in financial activities; 9.2% in professional and business services; 12.8% in education and health services; 9.4% in leisure and hospitality services; and 14.3% in government.

Most industrial workers live in Indianapolis and the Calumet area of northwestern Indiana. The American Federation of Labor first attempted to organize workers at the US Steel Company's plant in Gary in 1919, but a strike to get union recognition failed. Other strikes by Indiana coal miners and railway workers in 1922 had limited success. By 1936, however, the Congress of Industrial Organizations had won bargaining rights and the 40-hour workweek from US Steel, and union organization spread to other industries throughout the state.

The BLS reported that in 2005, a total of 346,000 of Indiana's 2,789,000 employed wage and salary workers were formal members of a union. This represented 12.4% of those so employed, up from 11.4% in 2004 and just above the national average of 12%. Overall in 2005, a total of 368,000 workers (13.2%) in Indiana were covered by a union or employee association contract, which includes those workers who reported no union affiliation. Although Indiana is one of 22 states with a right-to-work law, the law is applicable only to school system employees.

As of 1 March 2006, Indiana had a state-mandated minimum wage of $5.15 per hour. In 2004, women in the state accounted for 47% of the employed civilian labor force.


Agriculture in Indiana is a large and diverse industry that plays a vital role in the state's economic stability, with 59,300 farms containing 15,000,000 acres (6,800,000 hectares) of farmland. In 2005, cash receipts from the sale of all commodities (crops and livestock) reached $5.4 billion. In the same year, Indiana ranked 16th in the United States in cash receipts from the sale of all commodities; crop sales amounted to $3.5 billion, and livestock sales totaled $1.9 billion.

Over 80% of Indiana's farm operators live on the farm, while more than 55% of farmers have a principal occupation other than farming. The average age for Indiana farmers is 54 years old, and the average farm size is 250 acres (101 hectares).

Corn and soybeans are Indiana's two main crops. In 2004 the state produced 929,040,000 bushels of corn for grain, ranking fifth in the United States. Indiana also grew 287,040,000 bushels of soybeans, the third most in the nation. Other principal field crops, based upon 2004 crop statistics, include spearmint, 64,000 lb; peppermint 594,000 lb; and cantaloupes 500,000 cwt.


Indiana dairy farmers produced an estimated 2.9 billion lb (1.3 billion kg) of milk from 149,000 milk cows in 2003. The state's poultry farmers sold an estimated 24.8 million lb (11.3 million kg) of chicken and an estimated 396.8 million lb of turkey during 2003.

Indiana had an estimated 850,000 cattle and calves worth around $799 million in 2005.


Fishing is not of commercial importance in Indiana. Fishing for bass, pike, perch, catfish, and trout is a popular sport with Indiana anglers. In 2004, there were 522,389 sport fishing licenses issued by the state. There are eight state fish hatcheries.


About 20% of Indiana's total land area was forested in 2004. Indiana has 4,501,000 acres (1,822,000 hectares) of forestland, of which 96% or 4,342,000 acres (1,757,000 hectares) is considered commercial timberland. Some 75% of the commercial forestland is located in the southern half of Indiana, where oak, hickory, beech, maple, yellow poplar, and ash predominate in the uplands. Soft maple, sweetgum, pin oak, cottonwood, sycamore, and river birch are the most common species found in wetlands and drainage corridors.

Indiana's wood-using industries manufacture everything from the "crinkle" center lining in cardboard boxes to the finest furniture in the world. Other wood products include pallets, desks, fancy face veneer, millwork, flooring, mobile homes, and recreational vehicle components. In 2004, Indiana produced 333 million board feet of lumber, 99% hardwood. Indiana has always been noted for the quality of its hardwood forests and the trees it produces.


According to data from the US Geological Survey (USGS), the value of Indiana's nonfuel mineral production in 2004 was $764 million, an increase from 2003 of almost 7%. The USGS data ranked Indiana 22nd among the 50 states by the total value of its nonfuel mineral production, accounting for around 1.7% of total US output.

In 2004, the state's leading nonfuel mineral by value was cement (portland and masonry), followed by crushed stone, construction sand and gravel, and lime, altogether which accounted for almost 92% of all nonfuel mineral output by the state.

The state's top two mineral commodities were crushed stone (estimated 2001 output 56 million metric tons, valued at $264 million) and cement (portland cement production was an estimated 2.86 million metric tons, valued at $195 million).

A total of 3,564 people were employed by Indiana's nonfuel minerals sector in 2004, up 1% from the previous year.


Indiana is largely dependent on fossil fuels for its energy supplies. Petroleum has become an important power source for automobiles, home heating, and electricity. Nevertheless, coal has continued to be the state's major source of power, meeting about half of Indiana's energy needs.

As of 2003, Indiana had 119 electrical power service providers, of which 72 were publicly owned and 41 were cooperatives. The remaining six were investor owned. As of that same year, there were 2,966,062 retail customers. Of that total, 2,215,877 received their power from investor-owned service providers. Cooperatives accounted for 494,708 customers, while publicly owned providers had 255,477 customers.

Total net summer generating capability by the state's electrical generating plants in 2003 stood at 25.640 million kW, with total production that same year at 124.888 billion kWh. Of the total amount generated, 90% came from electric utilities, with the remainder coming from independent producers and combined heat and power service providers. The largest portion of all electric power generated, 117.756 billion kWh (94.3%), came from coal-fired plants, with natural gas plants in second place at 3.049 billion kWh (2.4%) and plants using other gases in third place at 2.952 billion kWh (2.1%). Other renewable power sources, hydroelectric, petroleum, and "other" types of generating facilities accounted for the remainder.

The state has no nuclear power plants. In 1984, construction of the planned Marble Hill nuclear power plant on the Ohio River near Madison was permanently suspended by the Public Service Co. of Indiana because of escalating construction costs; total cost estimates had risen from $1.4 billion during the planning stage in 1973 to more than $7 billion.

As of 2004, Indiana had proven crude oil reserves of 11 million barrels, or less than 1% of all proven US reserves, while output that same year averaged 5,000 barrels per day. Including federal offshore domains, the state that year ranked 24th (23rd excluding federal offshore) in proven reserves and 24th (23rd excluding Federal Offshore) in production among the 31 producing states. In 2004, Indiana had 4,788 producing oil wells. The state's two re-fineries had a combined crude oil distillation capacity of 433,000 barrels per day.

In 2004, Indiana had 2,386 producing natural gas and gas condensate wells. In that same year, marketed gas production (all gas produced excluding gas used for repressuring, vented and flared, and nonhydrocarbon gases removed) totaled 1.464 billion cu ft (0.041 billion cu m). There was no data available on the state's proven reserves of natural gas.

In 2004, Indiana had 29 producing coal mines, 22 of which were surface mines and 7 were underground. Coal production that year totaled 35,110,000 short tons, down from 35,355,000 short tons in 2003. Of the total produced in 2004, surface mines accounted for 25,018,000 short tons. Recoverable coal reserves in 2004 totaled 398 million short tons. One short ton equals 2,000 lb (0.907 metric tons).


The industrialization of Indiana that began during the Civil War era was spurred by technological advances in processing agricultural products, manufacturing farm equipment, and improving transportation facilities. Meat-packing plants, textile mills, furniture factories, and wagon worksincluding Studebaker wagonswere soon followed by metal foundries, machine shops, farm implement plants, and a myriad of other durable goods plants.

New industries included a pharmaceutical house started in Indianapolis in 1876 by a druggist named Eli Lilly, and several automobile manufacturing shops established in South Bend and other cities by 1900. In 1906, the US Steel Co. laid out the new town of Gary for steelworkers and their families.

Indiana is a leading producer of compact discs, elevators, recreational vehicles, mobile homes, refrigerators and freezers, storage batteries, small motors and generators, mobile homes, household furniture, burial caskets, and musical instruments. Most manufacturing plants are located in and around Indianapolis and in the Calumet region.

According to the US Census Bureau's Annual Survey of Manufactures (ASM) for 2004, Indiana's manufacturing sector covered some 18 product subsectors. The shipment value of all products manufactured in the state that same year was $183.563 billion. Of that total, transportation equipment manufacturing accounted for the largest share at $57.766 billion. It was followed by primary metal manufacturing at $24.151 billion; chemical manufacturing at $17.522 billion; food manufacturing at $13.611 billion; and fabricated metal product manufacturing at $12.523 billion.

In 2004, a total of 534,942 people in Indiana were employed in the state's manufacturing sector, according to the ASM. Of that total, 403,781 were actual production workers. In terms of total employment, the transportation equipment manufacturing sector accounted for the largest portion of all manufacturing employees at 139,699, with 106,870 actual production workers. It was followed by the fabricated metal product manufacturing industry at 58,816 (44,879 actual production workers); plastics and rubber products manufacturing at 45,581 employees (36,807 actual production workers); primary metal manufacturing at 45,220 employees (36,123 actual production workers); machinery manufacturing at 38,362 employees (27,185 actual production workers); and food manufacturing with 31,693 employees (23,238 actual production workers).

ASM data for 2004 showed that Indiana's manufacturing sector paid $23.343 billion in wages. Of that amount, the transportation equipment manufacturing sector accounted for the largest share at $7.129 billion. It was followed by primary metal manufacturing at $2.610 billion; fabricated metal product manufacturing at $2.288 billion; machinery manufacturing at $1.655 billion; and plastics and rubber products manufacturing at $1.577 billion.


According to the 2002 Census of Wholesale Trade, Indiana's wholesale trade sector had sales that year totaling $79.8 billion from 8,213 establishments. Wholesalers of durable goods accounted for 5,080 establishments, followed by nondurable goods wholesalers at 2,415 and electronic markets, agents, and brokers accounting for 718 establishments. Sales by durable goods wholesalers in 2002 totaled $31.2 billion, while wholesalers of nondurable goods saw sales of $39.8 billion. Electronic markets, agents, and brokers in the wholesale trade industry had sales of $8.7 billion.

In the 2002 Census of Retail Trade, Indiana was listed as having 24,322 retail establishments with sales of $67.2 billion. The leading types of retail businesses by number of establishments were: motor vehicle and motor vehicle parts dealers (3,199); miscellaneous store retailers (2,963); gasoline stations (2,904); and clothing and clothing accessories stores, tied with food and beverage stores (2,633 each). In terms of sales, motor vehicle and motor vehicle parts stores accounted for the largest share of retail sales at $17.3 billion, followed by general merchandise stores at $11.7 billion; food and beverage stores at $7.5 billion; gasoline stations at $7.03 billion; and building material/garden equipment and supplies dealers $5.8 billion. A total of 343,551 people were employed by the retail sector in Indiana that year.

Indiana ranked 11th among the 50 states in exports during 2005, when its goods shipped abroad were valued at $21.4 billion. Major farm exports are soybeans; feed grains; wheat; meat (including poultry) and meat products; fats, oils, and greases; and hides and skins. Principal nonfarm exports include transportation equipment, electric and electronic equipment, nonelectric machinery, primary metals products, chemicals and allied products, food and kindred products, and fabricated metal products.


The Division of Consumer Protection of the Office of the Attorney General was created in 1971 and is empowered to investigate consumer complaints, initiate and prosecute civil actions, and warn consumers about deceptive sales practices. There is also a Utility Regulatory Commission that regulates the business of public utilities, including rates and environmental compliance plans.

The Consumer Protection Division consists of three sections. The General Consumer Complaint Investigation and Mediation Section attempts to mediate consumer complaints against businesses that are not regulated as licensed professionals by either the federal of state government. If a pattern of deceptive practices is determined, litigation may follow. The Licensed Professional Section handles complaints against most professionals licensed by the state of Indiana, except medical professionals, which come under the Medical Licensing Section.

When dealing with consumer protection issues, the state's Attorney General's Office can initiate civil but not criminal proceed-ings; represent the state before state and federal regulatory agencies; administer consumer protection and education programs; handle formal consumer complaints; and exercise broad subpoena powers. However, the Attorney General's Office cannot represent individual residents or consumers. In antitrust actions, the Attorney General's Office can act on behalf of those consumers who are incapable of acting on their own and can initiate damage actions on behalf of the state in state courts. However, the office cannot represent counties, cities, and other governmental entities in recovering civil damages under state or federal law.

Indiana's Consumer Protection Division has offices in Indianapolis.


The large-scale mechanization of agriculture in Indiana after 1850 encouraged the growth of banks to lend money to farmers to buy farm machinery, using their land as collateral. The financial panic of 1893 caused most banks in the state to suspend operations, and the Depression of the 1930s caused banks to foreclose many farm mortgages and dozens of banks to fail. The nation's subsequent economic recovery, together with the federal reorganization of the banking system, helped Indiana banks to share in the state's prosperity during and after World War II.

As of June 2005, Indiana had 193 insured banks, savings and loans, and saving banks, plus 49 state-chartered and 180 federally chartered credit unions (CUs). Excluding the CUs, the Indianapolis market area accounted for the majority of the state's financial institutions and deposits in 2004, with 56 institutions and $24.898 billion in deposits. As of June 2005, CUs accounted for 12.6% of all assets held by all financial institutions in the state, or some $14.845 billion. Banks, savings and loans, and savings banks collectively accounted for the remaining 87.4% or $103.420 billion in assets held.

As of fourth quarter 2005, past due/nonaccrual loans accounted for 1.98% of all loans, down from 2.23% in 2004. The median net interest margin (the difference between the lower rates offered to savers and the higher rates charged on loans) in fourth quarter 2005 stood at 3.79%, up from 3.66% in 2004.

The Department of Financial Institutions regulates the operations of Indiana's state-chartered banks, savings and loan associations, and credit unions and monitors their observance of the state's Uniform Consumer Credit Code. The department is headed by a seven-member board; each board member serves a four-year term, and no more than four members may be of the same political party. A full-time director, also appointed by the governor to a four-year term, is the department's chief executive and administrative officer.


In 2004, there were 3.8 million individual life insurance policies in force with a total value of over $235.7 billion; total value for all categories of life insurance (individual, group, and credit) was $380.5 billion. The average coverage amount was $61,800 per policy holder. Death benefits paid that year totaled at over $1.1 billion.

As of 2003, there were 77 property and casualty and 40 life and health insurance companies domiciled in the state. In 2004, direct premiums for property and casualty insurance totaled $10.1 billion. That year, there were 28,854 flood insurance policies in force in the state, with a total value of $2.89 billion. About $526 million of coverage was offered through FAIR (Fair Access to Insurance) Plans, which are designed to offer coverage for some natural circumstances, such as wind and hail, in high-risk areas.

In 2004, 59% of state residents held employment-based health insurance policies, 4% held individual policies, and 23% were covered under Medicare and Medicaid; 14% of residents were uninsured. In 2003, employee contributions for employment-based health coverage averaged 21% for single coverage and 25% for family coverage. The state does not offer a health benefits expansion program in connection with the Consolidated Omnibus Budget Reconciliation Act (COBRA, 1986), a health insurance program for those who lose employment-based coverage due to termination or reduction of work hours.

In 2003, there were over 4.1 million auto insurance policies in effect for private passenger cars. Required minimum coverage includes bodily injury liability of up to $25,000 per individual and $50,000 for all persons injured in an accident, as well as property damage liability of $10,000. In 2003, the average expenditure per vehicle for insurance coverage was $670.39.

The Department of Insurance licenses insurance carriers and agents in Indiana, and it enforces regulations governing the issuance of policies.


There are no securities exchanges in Indiana. In 2005, there were 1,220 personal financial advisers employed. In 2004, there were over 116 publicly traded companies within the state, with over 67 NASDAQ companies, 22 NYSE listings, and 2 AMEX listings. In 2006, the state had five Fortune 500 companies; Wellpoint (based in Indianapolis) ranked first in the state and 38th in the nation with revenues of over $45.1 billion, followed by Eli Lilly (Indianapolis), Cummins (Columbus), NiSource (Merrilville), and Conseco (Carmel). All five companies are listed on the NYSE.


The State Budget Agency acts as watchdog over state financial affairs. The agency prepares the budget for the governor and presents it to the General Assembly. The budget director, appointed by the governor, serves with four legislators (two from each house) on the state budget committee, which helps to prepare the budget. The state budget agency receives appropriations requests from the heads of state offices, estimates anticipated revenues for the biennium, and administers the budget. The fiscal year (FY) runs from 1 July to 30 June of the following year. Budgets are prepared for the biennium beginning and ending in odd-numbered years.

In fiscal year 2006, general funds were estimated at $12.2 billion for resources and $11.9 billion for expenditures. In fiscal year 2004, federal government grants to Indiana were nearly $7.4 billion.


In 2005, Indiana collected $12,854 million in tax revenues or $2,049 per capita, which placed it 31st among the 50 states in per capita tax burden. The national average was $2,192 per capita. Property taxes accounted for 0.1% of the total, sales taxes 38.9%, selective sales taxes 17.1%, individual income taxes 32.8%, corporate income taxes 6.4%, and other taxes 4.8%.

IndianaState Government Finances
(Dollar amounts in thousands. Per capita amounts in dollars.)
Abbreviations and symbols: - zero or rounds to zero; (NA) not available; (X) not applicable.
source: U.S. Census Bureau, Governments Division, 2004 Survey of State Government Finances, January 2006.
Total Revenue 26,917,365 4,322.69
  General revenue 23,464,893 3,768.25
   Intergovernmental revenue 7,057,449 1,133.36
   Taxes 11,957,470 1,920.26
      General sales 4,759,445 764.32
      Selective sales 2,147,509 344.87
      License taxes 448,387 72.01
      Individual income tax 3,807,861 611.51
      Corporate income tax 644,787 103.55
      Other taxes 149.481 24.01
    Current charges 2,673,197 429.29
    Miscellaneous general revenue 1,776,777 285.33
  Utility revenue - -
  Liquor store revenue - -
  Insurance trust revenue 3,452,472 554.44
Total expenditure 25,373,330 4,074.73
  Intergovernmental expenditure 7,963,397 1,278.85
  Direct expenditure 17,409,933 2,795.88
    Current operation 13,014,329 2,089.98
    Capital outlay 1,700,913 273.15
    Insurance benefits and repayments 1,791,377 287.68
    Assistance and subsidies 455,884 73.21
    Interest on debt 447,430 71.85
Exhibit: Salaries and wages 3,461,530 555.89
Total expenditure 25,373,330 4,074.73
  General expenditure 23,542,970 3,780.79
    Intergovernmental expenditure 7,963,397 1,278.85
    Direct expenditure 15,579,573 2,501.94
  General expenditures, by function:
   Education 9,041,115 1,451.92
   Public welfare 5,675,769 911.48
   Hospitals 284,348 45.66
   Health 590,479 94.83
   Highways 1,920,891 308.48
   Police protection 226,051 36.30
   Correction 675,194 108.43
   Natural resources 269,222 43.23
   Parks and recreation 63,291 10.16
   Government administration 600,690 96.47
   Interest on general debt 447,430 71.85
   Other and unallocable 3,748,490 601.97
 Utility expenditure 38,983 6.26
 Liquor store expenditure - -
 Insurance trust expenditure 1,791,377 287.68
Debt at end of fiscal year 13,079,818 2,100.50
Cash and security holdings 36,948,023 5,933.52

As of 1 January 2006, Indiana had one individual income tax bracket of 3.4%. The state taxes corporations at a flat rate of 8.5%.

In 2004, state and local property taxes amounted to $6,073,538,000 or $975 per capita. The per capita amount ranks the state 26th highest nationally. Local governments collected $6,064,615,000 of the total and the state government $8,923,000.

Indiana taxes retail sales at a rate of 6%. Food purchased for consumption off premises is tax exempt. The tax on cigarettes is 55.5 cents per pack, which ranks 34th among the 50 states and the District of Columbia. Indiana taxes gasoline at 18 cents per gallon. This is in addition to the 18.4 cents per gallon federal tax on gasoline.

For every dollar of federal tax collected in 2004, Indiana citizens received $0.97 in federal spending.


The state's early economic policy was to provide farmers with access to markets by improving transportation facilities. During the Civil War era, Indiana encouraged industrial growth. In modern times, the state has financed extensive highway construction, developed deepwater ports on Lake Michigan and the Ohio River, and worked to foster industrial growth and develop its tourist industry. Tax incentives to business included a phaseout, by 1994, of the "intangibles" tax on stocks, bonds, and notes.

In the 1990s, the state government focused on a series of economic development initiatives. These included programs offering job training and retraining, the promotion of new businesses and tourism, the development of infrastructure, and the provision of investment capital for start-up companiesas well as programs providing additional tax incentives. The Indiana Economic Development Corporation (IEDCprior to 2005, the Department of Commerce), which has sole responsibility for economic development, solicits new businesses to locate in Indiana, promotes sales of exports abroad, plans the development of energy resources, continues to foster the expansion of agriculture, and helps minority-group owners of small businesses. In the 2000 budget, the General Assembly provided $50 million for Governor Frank O'Bannon's 21st Century Research and Technology Fund to stimulate high-technology development. In 2006, the IEDC operated 10 international offices in strategic locations around the world: Sydney, Toronto, São Paulo, Beijing, Jerusalem, Amsterdam, Tokyo, Seoul, Mexico City, and Taipei.


The infant mortality rate in October 2005 was estimated at 7.9 per 1,000 live births. The birth rate in 2003 was 14 per 1,000 population. The abortion rate stood at 9.4 per 1,000 women in 2000. In 2003, about 81.5% of pregnant woman received prenatal care beginning in the first trimester. In 2004, approximately 79% of children received routine immunizations before the age of three.

The crude death rate in 2003 was 9.1 deaths per 1,000 population. As of 2002, the death rates for major causes of death (per 100,000 resident population) were as follows: heart disease, 248.8; cancer, 208.9; cerebrovascular diseases, 60.4; chronic lower respiratory diseases, 50.9; and diabetes, 27.4. The mortality rate from HIV infection was 1.9 per 100,000 population. In 2004, the reported AIDS case rate was at about 6.3 per 100,000 population. In 2002, about 58.7% of the population was considered overweight or obese. As of 2004, about 24.8% of state residents were smokers.

In 2003, Indiana had 112 community hospitals with about 18,900 beds. There were about 712,000 patient admissions that year and 15 million outpatient visits. The average daily inpatient census was about 11,000 patients. The average cost per day for hospital care was $1,352. Also in 2003, there were about 527 certified nursing facilities in the state with 55,475 beds and an overall occupancy rate of about 73.2%. In 2004, it was estimated that about 66.6% of all state residents had received some type of dental care within the year. Indiana had 222 physicians per 100,000 resident population in 2004 and 834 nurses per 100,000 in 2005. In 2004, there was a total of 2,939 dentists in the state.

About 23% of state residents were enrolled in Medicaid and Medicare programs in 2004. Approximately 14% of the state was uninsured in 2004. In 2003, state health care expenditures totaled $5.4 million.


In 2004, about 187,000 people received unemployment benefits, with the average weekly unemployment benefit at $267. In fiscal year 2005, the estimated average monthly participation in the food stamp program included about 556,285 persons (240,045 households); the average monthly benefit was about $93.87 per person. That year, the total of benefits paid through the state for the food stamp program was about $626.6 million.

Temporary Assistance for Needy Families (TANF), the system of federal welfare assistance that officially replaced Aid to Families with Dependent Children (AFDC) in 1997, was reauthorized through the Deficit Reduction Act of 2005. TANF is funded through federal block grants that are divided among the states based on an equation involving the number of recipients in each state. The employment services section of Indiana's TANF program is called IMPACT (Indiana Manpower Placement and Comprehensive Training). In 2004, the state program had 131,000 recipients; state and federal expenditures on this TANF program totaled $125 million in fiscal year 2003.

In December 2004, Social Security benefits were paid to 1,038,130 Indiana residents. This number included 657,840 retired workers, 105,260 widows and widowers, 134,020 disabled workers, 54,400 spouses, and 86,610 children. Social Security beneficiaries represented 16.8% of the total state population and 95.2% of the state's population age 65 and older. Retired workers received an average monthly payment of $1,003; widows and widowers, $955; disabled workers, $899; and spouses, $507. Payments for children of retired workers averaged $526 per month; children of deceased workers, $660; and children of disabled workers, $259. Federal Supplemental Security Income payments went to 96,191 Indiana residents in December 2004, averaging $398 a month. An additional $297,000 of state-administered supplemental payments were distributed to 1,140 residents.


In 2004, the state had an estimated 2,690,619 housing units, 2,412,885 of which were occupied; 71.8% were owner occupied. About 21% of all units were built before 1939. About 71.5% of all units are single-family, detached homes. Most units relied on utility gas and electricity for heating, but about 1,030 units were equipped for solar power. It was estimated that 158,051 units lacked telephone service, 10,304 lacked complete plumbing facilities, and 12,973 lacked complete kitchen facilities. The average household had 2.51 members.

In 2004, 39,200 privately owned housing units were authorized for construction. The median home value was $110,020. The median monthly cost for mortgage owners was $963. Renters paid a median of $589 per month. In 2006, the state received over $31.5 million in community development block grants from the US Department of Housing and Urban Development (HUD).


Although the 1816 constitution recommended the establishment of public schools, the state legislature did not provide funds for education. The constitution of 1851 more specifically outlined the state's responsibility to support a system of free public schools. Development was rapid following passage of this document; more than 2,700 schoolhouses were built in the state from 1852 to 1857, and an adult literacy rate of nearly 90% was achieved by 1860. The illiteracy rate was reduced to 5.2% for the adult population in 1900, to 1.7% in 1950, and to only 0.7% in 1970, when Indiana ranked 14th among the 50 states. In 2004, 87.2% of those aged 25 years and over were high school graduates, and 21.1% had completed four or more years of college.

The total enrollment for fall 2002 in Indiana's public schools stood at 1,004,000. Of these, 714,000 attended schools from kindergarten through grade eight, and 290,000 attended high school. Approximately 81.5% of the students were white, 12.4% were black, 4.8% were Hispanic, 1.1% were Asian/Pacific Islander, and 0.2% were American Indian/Alaska Native. Total enrollment was estimated at 1,009,000 in fall 2003 and was expected to be 1,029,000 by fall 2014, a 2.5% increase during the period 200214. Expenditures for public education in 200304 were estimated at $10 billion or $8,280 per student, closest to the $8,287 United States average. There were 109,101 students enrolled in 784 private schools in fall 2003. Since 1969, the National Assessment of Educational Progress (NAEP) has tested public school students nationwide. The resulting report, The Nation's Report Card, stated that in 2005, eighth graders in Indiana scored 282 out of 500 in mathematics, compared with the national average of 278.

As of fall 2002, there were 342,064 students enrolled in college or graduate school; minority students comprised 12.6% of total postsecondary enrollment. In 2005, Indiana had 101 degree-granting institutions. Indiana University, the state's largest institution of higher education, was founded in 1820. It is one of the largest state universities in the United States, with a total of eight campuses. The Bloomington campus has a nationally recognized music program. Other major state universities include Purdue University (Lafayette), Ball State University (Muncie), and Indiana State University (Terre Haute). Well-known private universities in the state include Notre Dame (at South Bend) and Butler (Indianapolis). Small private colleges and universities include De-Pauw (Greencastle), Earlham (Richmond), Hanover (Hanover), and Wabash (Crawfordsville).


The earliest center for artists in Indiana was the Art Association of Indianapolis, founded in 1883. It managed the John Herron Art Institute, consisting of a museum and art school (190608). Around 1900, art colonies sprang up in Richmond, Muncie, South Bend, and Nashville. Indianapolis remains the state's cultural center, especially since the opening in the late 1960s of the Lilly Pavilion of the Decorative Arts; the Krannert Pavilion, which houses the paintings originally in the Herron Museum; the Clowes Art Pavilion; and the Grace Showalter Pavilion of the Performing Arts (all collectively known as the Indianapolis Museum of Art). Since 1969, the Indiana Arts Commission has taken artand artistsinto many Indiana communities; the commission also sponsors biennial awards to artists in the state. In 2004, the Indiana Arts Commission awarded 86 artists up to $1,000 per grant as part of the Individual Artist Project461 grants were awarded overall for that year, aiding artists in 85 of Indiana's 92 counties.

The state's first resident theater company established itself in Indianapolis in 1840, and the first theater building, the Metropolitan, was opened there in 1858. Ten years later, the Academy of Music was founded as the center for dramatic activities in Indianapolis. In 1875, the Grand Opera House opened there, and the following year it was joined by the English Opera House, where touring performers such as Sarah Bernhardt, Edwin Booth, and Ethel Barrymore held the stage. Amateur theater has been popular since the founding in 1915 of the nation's oldest amateur drama group, the Little Theater Society, which later became the Civic Theater of Indianapolis. The Civic Theater's 200506 season included performances of Annie Get Your Gun, Disney's Beauty and the Beast, and Brighton Beach Memoirs.

Music has flourished in Indiana. Connersville reportedly was the first American city to establish a high school band, while Richmond claims the first high school symphony orchestra. The Indianapolis Symphony Orchestra was founded in 1930. There are 23 other symphony orchestras in the state. The Indianapolis Opera was founded in 1975. The Arthur Jordan College of Music is part of Butler University in Indianapolis, and the music program at Indiana University's Bloomington campus has a national reputation, especially its string department, which has attracted some of the world's most renowned musicians to its faculty. The annual Indiana Fiddlers' Gathering, founded in 1973, is a three-day festival featuring the bluegrass, swing fiddle, string band, and Celtic and other ethnic music.

In 2005, the Indiana Arts Commission and other Indiana arts organizations received 19 grants totaling $935,700 from the National Endowment for the Arts. The Indiana Humanities Council sponsors programs that include Habits of the Heart, a youth volunteer leadership development program, and History Alive!an educational program featuring live portrayals of famous historical figures. In 2005, the National Endowment for the Humanities supported 28 programs in the state with grants totaling $2,599,475.


For the calendar year 2001, Indiana had 239 public library systems with a total of 430 libraries, of which 191 were branches. The state constitution of 1816 provided for the establishment of public libraries. A majority of Indiana cities opened such libraries but neglected to provide adequate financing. Semiprivate libraries did better: Workingmen's libraries were set up by a bequest at New Harmony and 14 other towns. After the state legislature provided for township school libraries in 1852, more than two-thirds of the townships established them, and the public library system has thrived ever since. In 2001, operating income for the state's public library system totaled $245,243,000, including $784,000 from federal grants and $19,947,000 from state grants. The largest book collections are at public libraries in Indianapolis, Fort Wayne, Gary, Evansville, Merrillville, and Hammond. The total book stock of all Indiana public libraries in 2001 was 22,145,000 volumes of books and serial publications, and a total circulation of 62,744,000. The system also had 1,146,000 audio and 1,068,000 video items, 72,000 electronic format items (CD-ROMs, magnetic tapes, and disks), and 38 bookmobiles.

The Indiana State Library has a strong collection of documents about Indiana's history and a large genealogical collection. The Indiana University Library has special collections on American literature and history and an extensive collection of rare books; the University of Notre Dame has a noteworthy collection on medieval history; and the Purdue University Libraries contain outstanding industrial and agricultural collections, as well as voluminous materials on Indiana history.

Private libraries and museums include those maintained by historical societies in Indianapolis, Fort Wayne, and South Bend. Also of note are the General Lew Wallace Study Museum in Crawfordsville and the Elwood Haynes Museum of early technology in Kokomo. In all, Indiana had 179 museums in 2000 registered with the American Association of Museums. Many county historical societies maintain smaller museums, such as the Wayne County Historical Museum.

Indiana's historical sites of most interest to visitors are the Lincoln Boyhood National Memorial near Gentryville, the Levi Coffin Home (one of the Underground Railroad stops) in Fountain City, the Benjamin Harrison Memorial Home and the James Whitcomb Riley Home in Indianapolis, and the Grouseland Home of William Henry Harrison in Vincennes. Among several archaeological sites are two large mound groups: one at Mounds State Park near Anderson, which dates from about ad 800900, and a reconstructed village site at Angel Mounds, Newburgh, which dates from 13001500.


About 91.8% of all households had telephone service in 2004. Additionally, by June of that same year there were 2,844,568 mobile wireless telephone subscribers. In 2003, 59.6% of Indiana households had a computer and 51.0% had Internet access. By June 2005, there were 745,511 high-speed lines in Indiana, 678,417 residential and 67,094 for business. The state's first radio station was licensed in 1922 at Purdue University, Lafayette. Indiana had 20 major AM, 102 major FM radio stations, and 30 television stations as of 2005. Powerful radio and television transmissions from Chicago and Cincinnati also blanket the state. In 1999, the Indianapolis area had 963,320 television households, 65% of which received cable. A total of 73,696 internet domain names were registered in the state in 2000.


The first newspaper was published in Indiana at Vincennes in 1804 and a second pioneer weekly appeared at Madison nine years later. By 1830, newspapers were also being published in Terre Haute, Indianapolis, and 11 other towns; the following year, the state's oldest surviving newspaper, the Richmond Palladium, began publication. Most pioneer newspapers were highly political and engaged in acrimonious feuds; in 1836, for example, the Indianapolis Journal referred to the editors of the rival Democrat as "the Lying, Hireling Scoundrels." By the time of the Civil War, Indiana had 154 weeklies and 13 dailies.

The last third of the 19th century brought a sharp increase in both the number and the quality of newspapers. Two newspapers that later became the state's largest in circulation, the Indianapo-lis News and the Star, began publishing in 1869 and 1903, respectively. In 1941, there were 294 weekly and 98 daily newspapers in Indiana; the number declined after World War II because of fierce competition for readers and advertising dollars, rising operating costs, and other financial difficulties.

In 2005, the state had 24 morning dailies and 44 evening dailies; Sunday papers numbered 25. In 2005, the Indianapolis morning Star had a daily circulation of 252,021 (Sunday circulation, 358,261) and the Gary Post-Tribune's circulation averaged 65,621 daily and 73,795 on Sundays.

A number of magazines are published in Indiana, including Children's Digest and the Saturday Evening Post.

Indiana is noted for its literary productivity. The list of authors claimed by Indiana up to 1966 showed a total of 3,600. Examination of the 10 best-selling novels each year from 1900 to 1940 (allowing 10 points to the top best-seller, down to 1 point for the 10th best-selling book) showed Indiana with a score of 213 points, exceeded only by New York's 218.

Many Hoosier authors were first published by Indiana's major book publisher, Bobbs-Merrill. Indiana University Press is an important publisher of scholarly books.


In 2006, there were over 8,895 nonprofit organizations registered within the state, of which about 5,099 were registered as charitable, educational, or religious organizations. National organizations with headquarters in the state include the American Camping Association, located in Martinsville, and the Amateur Athletic Union of the United States, the American Legion, the US Gymnastics Federation, and Kiwanis International and Circle K International, all in Indianapolis. National sports and hobby associations based in Indiana include the Academy of Model Aeronautics, the United States Auto Club, the United States Rowing Association, USA Track and Field (which sponsors a Hall of Fame), and USA Gymnastics.

There are several fraternities with national offices in the state, including Delta Psi Omega, Alpha Chi Omega, Alpha Gamma Delta, Kappa Delta Pi, and Lambda Chi Alpha. Professional and educational organizations include the American College of Sports Medicine, American Theatre Critics Association, and Bands of America.

Philanthropic foundations headquartered in Indiana include the Eugene V. Debs Foundation (Terre Haute) and the Irwin Sweeny-Miller Foundation (Columbus). The international headquarters of the Pentecostal Assemblies of the World is located in Indianapolis. The Indiana Arts Commission is the primary state organization for promoting study and appreciation for the arts. There are numerous local arts organizations and many county historical societies. The Quilters Hall of Fame is located in Marion.


Tourism is of moderate economic importance to Indiana; in 2004, the industry declined slightly. That year, some 57.7 million visitors to the state spent $6.5 billion, down from $6.7 billion in 2003. The industry supported some 94,000 full-time jobs. Tourism payroll is $1.7 billion.

About 70% of visitors participate in outdoor activities. Summer resorts are located in the north along Lake Michigan and in Steuben and Kosciusko counties, where there are nearly 200 lakes. Popular tourist sites include the reconstructed village of New Harmony, site of the famous communal living experiments of the early 19th century; the Indianapolis Motor Speedway and Museum (home of the Indianapolis 500 auto race); and the George Rogers Clark National Historic Park at Vincennes. The city of Huntington has a museum dedicated to US vice presidents and Fort Wayne has a Lincoln Museum. The city of Fremont has the Wild Winds Buffalo Preserve, and the College Football Hall of Fame is in South Bend, also home to the University of Notre Dame.

Indiana has 23 state parks comprising 59,292 acres (21,800 hectares). The largest state park is Brown County (15,543 acres/6,290 hectares), near Nashville. There are 15 state fish and wildlife preserves, totaling about 75,200 acres (30,400 hectares). The largest are Pigeon River, near Howe, and Willow Slough, at Morocco. Game animals during the hunting season include deer, squirrel, and rabbit; ruffed grouse, quail, ducks, geese, and partridge are the main game birds.

In addition to the Indiana State Museum, there are 15 state memorials, including the Wilbur Wright State Memorial at his birthplace near Millville, the Ernie Pyle birthplace near Dana, and the old state capitol at Corydon. Among the natural attractions are the Indiana Dunes National Lakeshore on Lake Michigan (12,534 acres/5,072 hectares); the state's largest waterfall, Cataract Falls, near Cloverdale; and the largest underground cavern, at Wyandotte.


Indiana is represented in professional sports by the Indiana Pacers of the National Basketball Association, the Indiana Fever of the Women's National Basketball Association, and the National Football League's Colts, which moved to Indianapolis from Baltimore in 1984. There are also several minor league baseball, basketball, and hockey teams in the state.

The state's biggest annual sports event is the Indianapolis 500, which has been held at the Indianapolis Motor Speedway on Memorial Day or the Sunday before every year since 1911 (except for the war years 1917 and 194245). The race is now part of a three-day festival held over Memorial Day weekend that attracts crowds of over 300,000 spectators, the largest crowd for any sporting event anywhere in the world.

The state's most popular amateur sport is basketball. The high school boys' basketball tournament culminates on the last Saturday in March, when the four finalists play afternoon and evening games to determine the winner. A tournament for girls' basketball teams began in 1976. Basketball is also popular at the college level: Indiana University won the National Collegiate Athletic Association (NCAA) Division I basketball championship in 1940, 1953, 1976, 1981, and 1987 and the National Invitational Tournament (NIT) in 1979; Purdue University won the NIT title in 1974; and Indiana State, led by state basketball legend Larry Bird, advanced to the NCAA finals in 1979. Evansville College won the NCAA Division II championships in 195960, 196465, and 1971.

Collegiate football in Indiana has a colorful tradition stretching back to at least 1913, when Knute Rockne of Notre Dame unleashed the forward pass as a potent football weapon. Notre Dame, which competes as an independent, was recognized as National Champion in 194647, 1949, 1966, 1973 (with Alabama), 1977, and 1988. The Notre Dame Fighting Irish won the following string of bowl games: the Orange Bowl in 1975 and 1990; the Cotton Bowl in 1971, 1978, 1979, 1993, and 1994; the Sugar Bowl in 1973 and 1992; and the Fiesta Bowl in 1989. Indiana and Purdue compete in the Big Ten Conference. Purdue won the Rose Bowl in 1967. Indiana State is part of the Missouri Valley Conference.

The Little 500, a 50-mi (80-km) bicycle race, is held each spring at Indiana University's Bloomington campus. The RCA Championships are held annually in Indianapolis.

Other annual sporting events include the National Muzzle-Loading Rifle Association Championship Shoot, which is held in Friendship in September, and the Sugar Creek canoe race, which is held in Crawfordsville in April.


Indiana has contributed one US president and four vice presidents to the nation. Benjamin Harrison (b.Ohio, 18331901), the 23rd president, was a Republican who served one term (188993) and then returned to Indianapolis, where his home is now a national historic landmark. Three vice presidents were Indiana residents: Thomas Hendricks (b.Ohio, 181985), who served only eight months under President Grover Cleveland and died in office; Schuyler Colfax (b.New York, 182385), who served under President Ulysses S. Grant; and Charles Fairbanks (b.Ohio, 18521918), who served under President Theodore Roosevelt. Two vice presidents were native sons: Thomas Marshall (18541925), who served two four-year terms with President Woodrow Wilson, and James Danforth Quayle of Indianapolis (b.1947), President George H. W. Bush's running mate in the 1988 presidential election. Marshall, remembered for his wit, originated the remark, "What this country needs is a good five-cent cigar."

Other Indiana-born political figures include Eugene V. Debs (18551926), Socialist Party candidate for president five times, and Wendell L. Willkie (18921944), the Republican candidate in 1940.

A dozen native and adoptive Hoosiers have held cabinet posts. Hugh McCulloch (b.Maine, 180895) was twice US secretary of the treasury, in 186569 and 188485. Walter Q. Gresham (b.England, 183295) was successively postmaster general, secretary of the treasury, and secretary of state. John W. Foster (18361917) was an editor and diplomat before service as secretary of state under President Benjamin Harrison. Two other postmasters general came from Indiana: Harry S. New (18581937) and Will H. Hays (18791954). Hays resigned to become president of the Motion Picture Producers and Distributors (192245) and enforced its moral code in Hollywood films through what became widely known as the Hays Office. Two Hoosiers served as US secretary of the interior: Caleb B. Smith (b.Massachusetts, 180864) and John P. Usher (b.New York, 181689). Richard W. Thompson (b.Virginia, 18091900) was secretary of the Navy. William H. H. Miller (b.New York, 18401917) was attorney general. Two native sons and Purdue University alumni have been secretaries of agriculture: Claude R. Wickard (18731967) and Earl Butz (b.1909). Paul V. McNutt (18911955) was a governor of Indiana, high commissioner to the Philippines, and director of the Federal Security Administration.

Only one Hoosier, Sherman Minton (18901965), has served on the US Supreme Court. Ambrose Burnside (182481) and Lew Wallace (18271905) were Union generals during the Civil War; Wallace later wrote popular historical novels. Oliver P. Morton (182377) was a strong and meddlesome governor during the war and a leader of the Radical Republicans during the postwar Reconstruction. Colonel Richard Owen (b.England, 181090) commanded Camp Morton (Indianapolis) for Confederate prisoners; after the war, some of his grateful prisoners contributed to place a bust of Owen in the Indiana statehouse. Rear Admiral Norman Scott (18891942) distinguished himself at Guadalcanal during World War II. Nearly 70 Hoosiers have won the Medal of Honor.

Dr. Hermann J. Muller (b.New York, 18901967) of Indiana University won the Nobel Prize in physiology or medicine in 1946 for proving that radiation can produce mutation in genes. Harold C. Urey (18931981) won the Nobel Prize in chemistry in 1934, and Wendell Stanley (190471) won it in 1946. The Nobel Prize in economics was awarded to Paul Samuelson (b.1915) in 1970. The Pulitzer Prize in biography was awarded in 1920 to Albert J. Beveridge (b.Ohio, 18621927) for his Life of John Marshall. Beveridge also served in the US Senate. Booth Tarkington (18691946) won the Pulitzer Prize for fiction in 1918 and 1921. A. B. Guthrie (190191) won it for fiction in 1950. The Pulitzer Prize in history went to R. C. Buley (18931968) in 1951 for The Old Northwest.

Aviation pioneer Wilbur Wright (18671912) was born in Millville. Other figures in the public eye were chemist Harvey W. Wiley (18441930), who was responsible for the Food and Drug Act of 1906; Emil Schram (18931897), president of the New York Stock Exchange from 1931 to 1951; and Alfred C. Kinsey (b.New Jersey, 18941956), who investigated human sexual behavior and issued the two famous "Kinsey reports" in 1948 and 1953.

Indiana claims such humorists as George Ade (18661944), Frank McKinney "Kin" Hubbard (b.Ohio, 18681930), and Don Herold (18891966). Historians Charles (18741948) and Mary (18761958) Beard, Claude Bowers (18781958), and Glenn Tucker (18921976) were Hoosiers. Maurice Thompson (18441901) and George Barr McCutcheon (18661928) excelled in historical romances. The best-known poets were James Whitcomb Riley (18491916) and William Vaughn Moody (18691910). Juvenile writer Annie Fellows Johnston (18631931) produced the "Little Colonel" series.

Other Indiana novelists include Edward Eggleston (18371902), Meredith Nicholson (18661947), David Graham Phillips (18681911), Gene Stratton Porter (18681924), Theodore Dreiser (18711945), Lloyd C. Douglas (18771951), Rex Stout (18861975), William E. Wilson (190688), Jessamyn West (190784), and Kurt Vonnegut (b.1922). Well-known journalists were news analyst Elmer Davis (18901958), war correspondent Ernie Pyle (190045), and columnist Janet Flanner "Genet" (18921978) of The New Yorker.

Among the few noted painters Indiana has produced are Theodore C. Steele (18471928), William M. Chase (18511927), J. Ottis Adams (18511927), Otto Stark (18591926), Wayman Adams (18831959), Clifton Wheeler (18831953), Marie Goth (18871975), C. Curry Bohm (18941971), and Floyd Hopper (190984).

Composers of Indiana origin have worked mainly in popular music: Paul Dresser (18571906), Cole Porter (18931964), and Howard Hoagland "Hoagy" Carmichael (18991981). Howard Hawks (18961977) was a renowned film director. Entertainers from Indiana include actor and dancer Clifton Webb (Webb Hollenbeck, 18961966); orchestra leader Phil Harris (190495); comedians Ole Olsen (18921963), Richard "Red" Skelton (191397), and Herb Shriner (b.Ohio, 191870); actresses Marjorie Main (18901975) and Carole Lombard (Jane Peters, 190842); and singer Michael Jackson (b.1958).

Hoosier sports heroes include Knute Rockne (b.Norway, 18881931), famed as a football player and coach at Notre Dame. Star professionals who played high school basketball in Indiana include Oscar Robertson (b.Tennessee, 1938) and Larry Bird (b.1956), who was honored at Indiana State University in 197879 as college basketball's player of the year.


Blakey, George T. Creating a Hoosier Self-Portrait: The Federal Writers' Project in Indiana, 19351942. Bloomington: Indiana University Press, 2005.

Boomhower, Ray E. Jacob Piatt Dunn, Jr.: A Life in History and Politics, 18551924. Indianapolis: Indiana Historical Society, 1997.

Cayton, Andrew R. L. Frontier Indiana. Bloomington: Indiana University Press, 1996.

Council of State Governments. The Book of the States, 2006 Edition. Lexington, Ky.: Council of State Governments, 2006.

Ferrucci, Kate. Limestone Lives: Voices from the Indiana Stone Belt. Bloomington, Ind.: Quarry Books, 2004.

Gisler, Margaret. Fun with the Family in Indiana: Hundreds of Ideas for Day Trips with the Kids. Guilford, Conn.: Globe Pequot Press, 2000.

McAuliffe, Bill. Indiana Facts and Symbols. New York: Hilltop Books, 1999.

Nation, Richard Franklin. At Home in the Hoosier Hills: Agriculture, Politics, and Religion in Southern Indiana, 18101870. Bloomington: Indiana University Press, 2005.

US Department of Commerce, Economics and Statistics Administration, US Census Bureau. Indiana, 2000. Summary Social, Economic, and Housing Characteristics: 2000 Census of Population and Housing. Washington, D.C.: US Government Printing Office, 2003.

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INDIANA, often called "the crossroads of America," was a center of commerce even before the arrival of European explorers in the 1670s. Bounded on the north by Lake Michigan and on the south by the Ohio River, the state's several important rivers and portages made it a strategic military location as well. The dominant Indian tribe in the region, the Miamis, lived throughout the state from the early 1600s. They were joined by bands of Shawnee and Delaware Indians in the southern part of the state and by groups of Delaware, Potawatomi, Piankashaw, and Wea in the north. By 1700, the Miamis had settled in several villages throughout the region, including large villages at Kekionga (present-day Fort Wayne), Ouiatanon (near present-day Lafayette), Vincennes, and Vermillion. In 1679, led by the French explorer Robert Cavelier, Sieur de La Salle, the first Europeans reached the region. Eager to establish outposts for the fur trade, the French laid claim to the area and erected military forts at Kekionga (known as Fort Miami, possibly as early as the late 1680s and permanently after 1704), Ouiatanon (1719), and Vincennes (1732). Although they had survived primarily as an agricultural people, the tribes eagerly entered into the fur trade, especially after epidemics from smallpox, measles, and other diseases decimated their numbers and made farming more difficult. By the 1750s, only about 2,000 Indians of various tribes survived in the region.

During the French and Indian War, French claims over the territory were ceded to the British, a concession ratified by the Treaty of Paris on 10 February 1763. British rule over the region was brief, however. In 1778 and 1779, during the American Revolution, forces led by George Rogers Clark controlled the area after capturing Vincennes. After the Revolution, the United States took possession of the land between the Appalachians and the Mississippi River in another Treaty of Paris, signed in 1783. The United States reorganized the region under the Ordinance of 1787, recognizing it as the Northwest Territory the following year. In July 1800, the region was divided into an eastern section that later became the state of Ohio and a western section that extended to the Mississippi River on the west and up to Canada in the north. Known as the Indiana Territory, a name that reflected it as "the land of the Indians," the territory later was divided even further to create the Michigan Territory (January 1805) and the Illinois Territory (February 1809). Thus, by 1809, the boundaries of present-day Indiana were secure.

Beginning with the Treaty of Greenville in 1795, which ceded a portion of eastern Indiana to the United States, federal authorities gradually purchased land from various Indian tribes through the 1830s. The governor of the territory, William Henry Harrison, signed the Treaty of Fort Wayne in 1809 with the Delawares, Potawatomis, and Miamis, adding the southern third of the territory to federal reserves; other agreements, including the Treaty of St. Mary's (1818) and the Treaty of Wabash (1826), completed the transfer of land from Indian hands. In the meantime, however, major conflicts occurred, most notably with Harrison's victory over Indian forces led by Tenskwatawa (also known as the Prophet) at Tippecanoe in 1811. During the War of 1812, British and Indian forces combined to fight American troops throughout the territory. The last major battle was between Miami and American forces and took place on the Mississinewa River on 17 and 18 December 1812; the battle concluded with the Miamis' defeat.

Early Statehood

With the opening of U.S. land offices at Vincennes (1804), Jeffersonville (1807), Terre Haute (1817), and Brookville (1819), almost 2.5 million acres of Indiana land were sold to speculators and settlers through 1820. Later, additional offices opened at Fort Wayne (1822), Craw-fordsville (1823), and La Porte (1833). With the territory's population reaching 24,520 in 1810, agitation for state-hood gained momentum, and on 11 December 1816, Indiana was admitted to the Union as the nineteenth state. The location of its first capital, Corydon, in south-central Indiana reflected the fact that the overwhelming majority of the state's population resided close to its border with the Ohio River. On 7 June 1820, the capital was relocated to Indianapolis, a site chosen for its location in the geographical center of the state.

In its first decade as a state, Indiana's population surged as migrants from the Carolinas, Kentucky, Tennessee, and Virginia bought newly opened federal lands; later, arrivals from Ohio, Pennsylvania, and New York joined them. Although slavery was prohibited by the 1816 state constitution, other legal restrictions kept some African Americans from settling in Indiana. By 1830, just over 1 percent of the state's 343,031 inhabitants was African American, a figure that remained steady until well after the Civil War. A surge in the number of foreign-born immigrants, particularly German-speaking arrivals

to central and southern Indiana, contributed to well over 5 percent of the state's population after 1850.

With land well suited to farming and raising livestock throughout the state, most of the newcomers settled into agricultural pursuits. Early attempts at industrial concerns included furniture making, farm implement production, and food processing. However, small-town life characterized Indiana throughout the nineteenth century; even up to 1850, the state's largest city, the Ohio River town of New Albany, held no more than 8,181 residents. While the towns of Indiana remained important trading centers for commercial farmers, the state's cultural fabric was constructed by thousands of small family farms. At the end of the antebellum era, more than 91 percent of Indiana residents lived in rural areas. From the predominance of its small-town character, the appellation "Hoosier" was affectionately bestowed upon Indiana's residents from the 1820s onward. Although many folkloric explanations have been given for the term, one of the most likely is that it came from the employment of Indiana canal workers by the Kentucky contractor Samuel Hoosier. The workers became known as "Hoosiers," and the name soon became generalized to describe all Indianians.

Although only a few minor engagements of the Civil War touched Indiana soil, the state's unity was tested by its commitment to the Union's cause. With so many recent migrants from southern states, support for the Confederacy ran high during the conflict's early days. However, a majority of residents—especially antislavery Quaker migrants from the Carolinas who came to the state in the 1810s and 1820s—eventually made the state a stalwart supporter of the Union. After the war, political allegiance shifted back once again, and the state remained roughly divided between the Democratic and Republican parties, a trait it retained through succeeding generations.

While Indiana engaged in the internal improvement craze of the 1840s with heavy state investment in canal building, the state's geographic importance between the agricultural centers of the Midwest and the markets of the East became more apparent after the Civil War. While the Ohio River trade favored the growth of Evansville and New Albany in the first half of the nineteenth century, railroads covered central and northern Indiana by the 1880s. Indianapolis and Terre Haute ranked as major rail centers. The latter city witnessed the formation of the American Railway Union by Eugene V. Debs in 1893, one of the first labor unions of industrial workers in the United States. Rail traffic also spurred commercial and manufacturing growth throughout the state. In 1852, the Studebaker brothers founded a blacksmith shop that made South Bend the site of the largest wagon works after the Civil War; the company would produce automobiles under the Studebaker name in the northern Indiana city until 1963. Another city, Muncie, gained fame as the site of the Ball Brothers Company; relocated to Indiana from New York in 1886, the factory immediately became the leading producer of glass jars and canning instruments in the United States. The most dramatic urban development, however, occurred in the northwestern corner of the state. Founded and built largely to serve the U.S. Steel Corporation's mills, the city of Gary grew from its inception in 1907 to have over 100,000 residents by 1940. The refineries of the Standard Oil Company in Whiting, opened in 1889, along with numerous other major steel and metal works throughout the area made northwest Indiana's Calumet region the most heavily industrialized in the state.

Like many state capitals, Indianapolis owed most of its early growth to its status as a center of government. Located on the White River, with insufficient depth to allow commercial navigation, the city had to wait until the railroad era to take advantage of its strategic location in the center of the state. Although hampered by a lack of natural resources in the immediate area, Indianapolis eventually developed a diverse manufacturing base to supplement its role as a center of government and commerce.

Hoosier Values

Even as the state edged into urbanism, it retained much of the small-town values from its early days. As explored by Robert S. Lynd and Helen Merrell Lynd in their classic sociological study of Muncie, Middletown: A Study in ModernAmerican Culture (1929), typical Hoosiers valued consensus and conformity, even as they embraced modern conveniences at home and at work. Although Middle-town's residents respected differences in religion and politics, they were suspicious of beliefs deemed foreign or strange. The source of both the state's strength and weakness, these dichotomous characteristics were the basis for some of the best literary works produced by Indiana writers, including native sons such as Booth Tarkington, James Whitcomb Riley, and Theodore Dreiser.

Increasingly, the white, Anglo-Saxon character of small-town Hoosier life became more heterogeneous in the twentieth century. In 1920, a bare majority of the state's almost three million residents lived in urban areas. Foreign-born residents represented over 5 percent of the population; the Great Migration of African Americans northward after World War I increased their presence to almost 3 percent. These demographic changes, along with a conservative reaction to the spread of Jazz Age culture in the 1920s, fueled a rebirth of the Ku Klux Klan in Indiana. The state became the midwestern center of the organization in the 1920s. Under the banner of patriotism, combined with directives against Roman Catholics, the foreign-born, and African Americans, the Klan attracted upwards of 300,000 Hoosier members by 1923 in urban and rural areas alike. By the following year, Klan-endorsed candidates controlled the Indiana legislature and the governor's office as well. Only in 1925, after the conviction of Klan leader D. C. Stephenson for murder and rape, did the organization relinquish its hold on Indiana politics. A 1928 Pulitzer Prize–winning campaign by the Indianapolis Times against the Klan finally purged it from legitimate political circles.

Industrial Strength

Aside from the conservative politics of the decade, the driving force in Hoosier life was the state's continuing industrialization that linked it firmly with the national economy, especially the automobile industry. By the end of the 1920s, steel production was the state's largest industry, with automobile and auto parts manufacturing and electrical component production ranked just behind it. Most northern and central Indiana cities were tied to the auto industry with at least one automobile or parts production factory employing their citizens, while the Calumet cities continued to expand their steel output. To the south, Evansville became a major center of refrigeration unit production. The state's natural resources also continued to make Indiana a center of limestone, sand, and coal output, particularly throughout the southern part of the state.

Given the economy's growing dependence on durable goods manufacturing by 1930, the onset of the Great Depression hit the state hard. Industrial employment plunged to almost half its pre-Depression level by 1932, as employers such as U.S. Steel, which had doubled its production capacity in the 1920s, shut down. In the midst of New Deal attempts to revive the economy, Hoosier workers responded with a number of organizational efforts to form labor unions. A sit-down strike at Anderson's Guide Lamp factory in 1936 and 1937 led by the United Auto Workers (UAW) was a pivotal action in forcing General Motors to recognize the right of workers to collectively bargain through their unions. Anderson became a bastion of UAW support in politics and society, while Evansville witnessed the rise of the United Electrical Workers and the Calumet region, the United Steel Workers. As it had been since the 1890s, the United Mine Workers remained a strong force in the lives of thousands of Hoosiers in the coal mining towns of southern Indiana.

Spurred on by lucrative federal contracts to industrial employers during World War II, the state's emphasis on manufacturing investment continued into the postwar era. By 1958, over 40 percent of the state's total earnings came from the manufacturing sector, a rate that far outpaced the national average. Even as the national economy moved away from durable goods manufacturing, Indiana remained a bastion of manufacturing strength: in 1981, the national economy derived less than 17 percent of its earnings from durable goods production, while in Indiana, the rate was over 31 percent. Although the manufacturing sector provided many Hoosiers with high-wage jobs and advantageous benefits, the state's dependence on the industrial sector came under criticism during the recession from 1979 to 1982. With prohibitively high interest rates and energy prices, many industrial corporations failed to reinvest in new technology and equipment; as a result, many of the so-called "smokestack industries" lost their competitive advantage during the recession. About one-quarter of the employees in the durable goods sector lost their jobs in Indiana, and unemployment rates in Muncie and Anderson topped 18 percent in 1982.

While those without a college degree had previously obtained high-paying jobs in the manufacturing sector, public leaders were concerned that the state's economy might not provide such opportunities in the future. Calls for greater access to Indiana's system of higher education prevailed in the 1980s and 1990s. Although the Purdue University and Indiana University systems had expanded greatly with branch campuses around the state after World War II, in 1990 the college attendance rate of 37 percent continued to trail the national average of 45 percent. Indiana also ranked low on the number of college graduates who completed their degrees and remained in the state's workforce.

As it emerged from the recession of the early 1980s, Indiana's manufacturing base contributed to the recovery and the state remained one of the top five producers of aircraft engines and parts, truck and bus bodies, steel, surgical supplies, and pharmaceuticals. In 1999, manufacturing jobs made up 23.4 percent of nonfarm employment. While the overall number of manufacturing jobs in Indiana increased throughout the 1990s, the service sector became the single largest provider of nonagricultural jobs, with a 24.3 percent share. Agricultural production, once a mainstay of the state's development, represented just 1.8 percent of Indiana's economic output in 1997. In Indianapolis, the Eli Lilly Company, making products from insulin to Prozac, ranked as the state's largest corporation, with global sales approaching $11 billion in 2000. Overall, the Hoosier economy was the nation's eighteenth largest in 1997; with 27 percent of its manufacturing workforce making products for export, Indiana ranked fifteenth in the nation as an exporting state.

At the millennium, Indiana had 6,080,485 inhabitants, making it the nation's fourteenth most populous state. African Americans comprised the state's largest minority group, with 8.4 percent of the total population; 87.5 percent of Hoosiers identified themselves as white. Indianapolis had a population of more than 750,000 people, but no other city other than Fort Wayne had more than 200,000 residents. Indeed, Indiana's reputation remained rooted in a small-town, Hoosier identity. Steve Tesich's portrait of town-and-gown relations in Bloomington, the subject of the coming-of-age movie Breaking Away (1979), won an Academy Award for best screenplay. Hammond resident Jean Shepherd's wry reminiscences of the 1940s served as the basis for the movie A Christmas Story (1983). The movie Hoosiers (1986), based on the basketball team from the town of Milan that won the state championship in the 1950s, also thrilled audiences who rooted for the underdog team. Few other states follow high school and college sports teams so avidly. Basketball remains the top Hoosier pasttime, and Indianapolis waged a successful campaign to become the home of the National Collegiate Athletic Association in 1999. The NCAA Hall of Champions museum, along with the annual five-hundred-mile race at the Indianapolis Motor Speedway, has added to the city's popularity as a tourist destination.

While the ascendancy of Dan Quayle to vice president in 1988 led some observers to herald a period of Republican dominance in the state, Indiana voters remained steadfastly centrist in their habits. The Indiana legislature typically was evenly split between Republicans and Democrats. After a twenty-year run of Republican governors, the Democrat Evan Bayh in 1989 began the first of two terms as governor. In 1998, Bayh went on to the U.S. Senate in a landslide victory with 63 percent of the vote. He was replaced by another Democrat, Frank O'Bannon, who in 2000 won another term in office with 57 percent of the vote. Like Bayh, the state's senior senator, Republican Richard Lugar, was regarded as a political centrist, holding conservative views on fiscal matters while avoiding stridency on foreign relations or public policy issues. Avoiding the political extremes, both senators embodied the central values of their Hoosier constituents.


Cayton, Andrew R. L. Frontier Indiana. Bloomington: Indiana University Press, 1996.

Critchlow, Donald T. Studebaker: The Life and Death of an American Corporation. Bloomington: Indiana University Press, 1996.

Lynd, Robert S., and Helen Merrell Lynd. Middletown: A Study in Modern American Culture. New York: Harcourt, Brace, 1929.

Madison, James H. The Indiana Way: A State History. Bloomington: Indiana University Press, 1986.

———, ed. Heart Land: Comparative Histories of the Midwestern States. Bloomington: Indiana University Press, 1988.

Nelson, Daniel. Farm and Factory: Workers in the Midwest, 1880–1990. Bloomington: Indiana University Press, 1995.

Timothy G.Borden

See alsoIndianapolis ; Iron and Steel Industry ; Miami (Indians) ; Midwest ; Northwest Territory .

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Indiana (state, United States)

Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio River (S), and Illinois (W).

Facts and Figures

Area, 36,291 sq mi (93,994 sq km). Pop. (2010) 6,483,802, a 6.6% increase since the 2000 census. Capital and largest city, Indianapolis. Statehood, Dec. 11, 1816 (19th state). Highest pt., 1,257 ft (383 m), Wayne co.; lowest pt., Ohio River, 320 ft (98 m). Nickname, Hoosier State. Motto, Crossroads of America. State bird, cardinal. State flower, peony. State tree, tulip poplar. Abbr., Ind.; IN


Northern Indiana is a glaciated lake area, separated by the Wabash River from the central agricultural plain, which is rich with deep glacial drift. The southern portion of the state is a succession of bottomlands interspersed with knolls and ridges, gorges and valleys. Limestone caves, such as the big Wyandotte Cave, and mineral springs, as at French Lick and West Baden Springs, are found there. The unglaciated soil is shallow in S Indiana, and the cutting of timber has caused erosion, but there is still extensive farming.

The capital and largest city is Indianapolis, in the central part of the state. Indiana Dunes National Lakeshore, with a 3-mi (4.8-km) frontage on Lake Michigan, is noted for its beautiful shifting sand dunes. Formerly a state park, the area was made a National Lakeshore in 1966. Four years earlier, in 1962, the U.S. Congress authorized the establishment of the Lincoln Boyhood National Memorial in S Indiana. The Indianapolis Motor Speedway is the site of the famous 500-mi (800-km) auto race, held annually.


Although Indiana is primarily a manufacturing state, about three quarters of the land is utilized for agriculture. With a growing season of about 170 days and an average rainfall of 40 in. (102 cm) per year, Indiana farms have rich yields. Grain crops, mainly corn and wheat, are important and also support livestock and dairying industries. Soybeans and hay are also principal crops, and popcorn and widely varied vegetables and fruits are also produced. Hogs, eggs, and cattle are also important. Meatpacking is chief among the many industries related to agriculture. Although the urban population exceeds the rural, many towns are primarily service centers for agricultural communities.

There are, however, cities with varied heavy industries; prominent, besides Indianapolis, are Evansville, Fort Wayne, Gary, Kokomo, South Bend, and Terre Haute. These cities were among the highest in the nation in unemployment during the recession of the early 1980s. Indiana's leading manufactures are iron and steel, electrical equipment, transportation equipment, nonelectrical machinery, chemicals, food products, and fabricated metals. Rich mineral deposits of coal and stone (the S central Indiana area is the nation's leading producer of building limestone) have encouraged construction and industry.

Throughout the state the products of farms and factories are transported by truck and by train. Indiana calls itself the crossroads of America, and its extreme northwest corner—where transportation lines head east after converging on nearby Chicago from all directions—is one of the most heavily traveled areas in the world in terms of rail, road, and air traffic. Waterborne traffic is also important; improvements on the Ohio River and the opening (1959) of the St. Lawrence Seaway have benefited the state. With the opening in 1970 of the Burns Waterway Harbor on Lake Michigan, Indiana gained its first public port and enhanced its shipping facilities.

Government, Politics, and Higher Education

Indiana's constitution dates from 1851 and provides for an elected executive and legislature. A governor serves as the chief executive for a term of four years. The legislature, called the general assembly, has a senate with 50 members and a house of representatives with 100 members. Indiana elects 9 representatives and 2 senators to the U.S. Congress and has 11 electoral votes.

During the 20th cent. Indiana has been generally conservative and Republican, although Democrats have had some successes in gubernatorial and congressional elections. Evan Bayh, elected governor in 1988 and 1992, was succeeded by another Democrat, Frank O'Bannon, elected in 1996 and reelected in 2000. Lt. Gov. Joseph E. Kernan, also a Democrat, succeeded O'Bannon when the latter died in 2003, but Kernan lost to Republican Mitch Daniels in 2004. Daniels was reelected in 2008, and Republican Mike Pence was elected in 2012.

Among the institutions of higher learning in Indiana are Indiana Univ., at Bloomington; Purdue Univ., at West Lafayette; the Univ. of Notre Dame, near South Bend; Indiana Univ./Purdue Univ. at Indianapolis (IUPUI); Indiana State Univ., at Terre Haute; DePauw Univ., at Greencastle; Butler Univ., at Indianapolis; Valparaiso Univ., at Valparaiso; Wabash College, at Crawfordsville; Earlham College, at Richmond; and Goshen College, at Goshen.


From the Mound Builders to Tippecanoe

The Mound Builders were Indiana's earliest known inhabitants, and the remains of their culture have been found along Indiana's rivers and bottomlands. The region was first explored by Europeans, notably the French, in the late 17th cent. The leading French explorer was Robert Cavelier, sieur de La Salle, who came to the area in 1679. At the time of exploration, the area was occupied mainly by Native American groups of the Miami, Delaware, and Potawatamie descents. Vincennes, the first permanent settlement, was fortified in 1732, but for the first half of the 1700s, most of the settlers in the area were Jesuit missionaries or fur traders.

By the Treaty of Paris of 1763 ending the French and Indian Wars, Indiana, then part of the area known as the Old Northwest, passed from French to British control. Along with the rest of the Old Northwest, Indiana was united with Canada under the Quebec Act of 1774 (see Intolerable Acts). During the American Revolution an expedition led by George Rogers Clark captured, lost, and then recaptured Vincennes from the British. By the Treaty of Paris of 1783 ending the Revolutionary War, Great Britain ceded the Old Northwest to the United States.

Indiana was still largely unsettled when the Northwest Territory, of which it formed a part, was established in 1787. Native Americans in the territory resisted settlement, but Gen. Anthony Wayne's victory at Fallen Timbers in 1794 effectively ended Native American resistance in the Old Northwest. U.S. forces led by Gen. William Henry Harrison also defeated the Native American forces in the battle of Tippecanoe (1811) in the Wabash country.

Indiana Territory and Statehood

In 1800, Indiana Territory was formed and included the states of Indiana, Illinois, and Wisconsin, and parts of Michigan and Minnesota. Vincennes was made the capital, which in 1813 was moved to Corydon. A constitutional convention met in 1816, and Indiana achieved statehood. Jonathan Jennings, an opponent of slavery, was elected governor. Indianapolis was laid out as the state capital, and the executive moved there in 1824–25.

Indiana was the site of several experimental communities in the early 19th cent., notably the Rappite (1815) and Owenite (1825) settlements at New Harmony. In the 1840s the Wabash and Erie Canal opened between Lafayette and Toledo, Ohio, giving Indiana a water route via Lake Erie to eastern markets. Also in the 1840s the state's first railroad line was completed between Indianapolis and Madison. The Hoosier spirit of simplicity and forthrightness that developed during Indiana's early years of statehood figured in the writings of Edward Eggleston in The Hoosier Schoolmaster and was represented in much later days by James Whitcomb Riley, George Ade, Gene Stratton Porter, and also in the nostalgic lyric by Paul Dresser (brother of Indiana-born novelist Theodore Dreiser) for the song "On the Banks of the Wabash, Far Away."

The Civil War and Its Aftermath

The Civil War brought great changes in the state. In the elections of 1860, Indiana voted for Lincoln, who had spent his boyhood in the Hoosier state. Although there was some proslavery sentiment in Indiana, represented by the Knights of the Golden Circle, Oliver P. Morton, governor during the war, held the state unswervingly to the Union cause even after constitutional government broke down in 1862. General John Hunt Morgan led a Confederate raid into Indiana in 1863, but otherwise little action occurred in the state.

Manufacturing, which had been stimulated in Indiana by the needs of the war, developed rapidly after the war. Factories sprang up, and the old rustic pattern was broken. However, Indiana's farmers continued to be an important force in the state, and in the hard times following the Panic of 1873 indebted farmers expressed their discontent by supporting the Granger movement and later the Greenback party in 1876 and the Populist party in the 1890s.

Industrialization and the Labor Movement

Industrial development came to the Calumet region along Indiana's Lake Michigan shoreline in the late 19th cent. Marshy wastelands were drained and transformed into an area supporting a complex of factories and oil refineries. As the 19th cent. drew to a close, industry continued to expand and the growing numbers of industrial workers in the state sought to organize through labor unions. Eugene V. Debs, one of the great early labor leaders, was from Indiana, and the labor movement at Gary in the Calumet area figured prominently in the nationwide steel strike just after World War I. Indiana was an early leader in the production of automobiles. Before Detroit took control of the industry in the 1920s, Indiana boasted over 300 automobile companies.

Indiana society in the first half of the 20th cent. has been described in a number of studies and books. The classic sociological study by Robert S. Lynd and Helen M. Lynd of an American manufacturing town, Middletown (1929), was based on data from Muncie, Ind. Midwestern life and American boyhood were portrayed realistically, and often with humor and optimism, in the novels of Booth Tarkington. Another Indiana author, Theodore Dreiser, wrote more generally of American society in a changing age. In the 1930s and 1940s, Wendell Willkie and Ernie Pyle, both natives of Indiana, became nationally prominent figures in politics and journalism, respectively.

Although Indiana in the latter half of the 19th cent. was regarded as a "swing state" electorally, it has generally been conservative throughout the 1900s. Republican J. Danforth "Dan" Quayle, elected to the U.S. Senate in 1980 and 1986, was elected vice president of the United States in 1988. From the 1980s through the mid-1990s, the northern industrial portion of the state experienced a period of significant decline, along with the rest of the midwestern "rust belt." However, the area around Indianapolis experienced significant growth with a diversified economy.


See H. H. Peckham, Indiana, a History (1978); J. S. Blue, Hoosier Wit & Wisdom (1985); E. E. Lyon and L. Dillon, Indiana: The American Heartland (1986); J. H. Madison, The Indiana Way (1986); R. M. Taylor, Jr., et al., Indiana: A New Historical Guide (1989).

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The stereotypical picture of Indiana is one of rolling farm fields, open space, and small towns with picturesque courthouse squares. The state of Indiana is much more than this, however. It is as urban as it is rural, and has a highly diversified economy. The state's economy has a high proportion of agriculture, but the state also houses a large heavy industrial and high technology sector. The urban-industrial lifestyle in some parts of Indiana coexists well with the rural small-town ways of life in other parts of the state.

Europeans first ventured into Indiana in the 1670s. It was the Frenchmen Father Jacques Marquette (163775) and Robert Cavelier (164387) who first explored the region. Another Frenchman named Jean Baptiste Bissot lived in a Native American village at the present site of Fort Wayne. The French erected Fort Miami in 1720. Vincennes' son constructed another fort at the site of the town that later bore his name. The British vied with the French for control of the territory during this period, and the land was ceded to the British after the French and Indian War (17541763). During the American Revolution (17751783) George Rogers Clark (17521818) captured Fort Vincennes from a British garrison.

Future development in what would become Indiana was regulated by the Ordinance of 1785 and the Northwest Ordinance of 1787. The Northwest Territory was the area between eastern Pennsylvania and the Mississippi River. It was bounded on the south by the Ohio River and on the north by Canada. This region included the present-day states of Indiana, Ohio, Illinois, Michigan, Wisconsin, and parts of Minnesota. In 1794 General Anthony Wayne (174596) defeated the Native Americans in Ohio at the Battle of Fallen Timbers. The resulting Treaty of Greenville pushed many Native American tribes out of the territory. This encouraged the rapid settlement of the region by white Americans.

The first state to form out of the Northwest Territory was Ohio in 1803. By that time the rest of the Northwest Territory was called the Indiana Territory. The Michigan and Illinois territories soon separated from the Indiana Territory, and Indiana took on its present boundaries. In 1816 it became the nineteenth state of the union.

Indiana developed from south to north, largely because of the commerce made possible by the Ohio River. An increasing number of settlers established farms in the area as Native American tribes were driven out of the state. Trade in corn, hogs, whiskey, and timber flourished along the river. Indianapolis was a centrally located and planned city, being the capital of the state. It grew slowly, however. The major transportation arteries were located far away from it early on.

In the 1830s the state embarked on a massive internal improvements program that left it in severe debt. The Wabash Canal was built, largely using the labor of Irish immigrants. The National Road (now U.S. 40) reached Indiana in 1827, and the Michigan Road (now U.S. 421) was completed in the late 1830s. The first railroad in Indiana was completed in 1847. It ran from Madison to Indianapolis. Railroad building increased rapidly in the 1850s and continued to do so after the American Civil War (18611865).

Indiana was staunchly pro-Union during the Civil War. Primarily an agricultural economy when the war began, Indiana began to industrialize during the war. The industries included such enterprises as gristmills, sawmills, meat packing plants, breweries, furniture factories, and carriage makers. The Studebaker Company became well known for its wagon manufacture during the Civil War. The Van Camp Company was also important during the war for its canned pork and beans.

Industrialization and growth continued after the war. In 1867 the famous Eli Lilly drug company was established in Indianapolis. Glass factories proliferated in the 1880s in northeastern Indiana after the discovery of natural gas. New manufacturing towns like Terre Haute, Muncie, Fort Wayne, and South Bend began to grow. Steel manufacture became the lifeblood of Gary and an oil refining industry was centered in nearby Calumet. By the beginning of the twentieth century, Indiana had become a center for the developing automobile industry, with 375 manufacturers were turning out "horseless carriages." The popularity of cars in the state made possible the construction of a speedway at Indianapolis; the first Indianapolis 500 race was held in 1911.

Indiana industries were benefited by the onset of World War I (19141918). But things changed once the war was over. By 1920 the number of automobile manufacturers had declined to around a dozen. The only one to compete successfully with the "big three" automakers in Detroit was Studebaker. It grew to around 23,000 employees during World War II (19391945). Studebaker ceased manufacturing in 1965, but auto parts remained a large segment of Indiana's industrial base. By 1920 the urban population was beginning to outnumber the rural population.

World War II gave a strong boost to Indiana's economy. Most factories converted to production of war materials, and unemployment virtually disappeared in the state. DuPont and Goodyear built large powder plants near Charlestown. That virtually made the sleepy small town of just under 900 "explode" overnight. According to historian John Bartlow Martin, 45,000 were employed in the plants' operations and 15,000 managed to stay in Charlestown. Martin wrote: "The single liquor store reportedly earned more than one hundred thousand dollars net." The town was again virtually deserted after the war: "[T]housands of war workers hadn't even waited to be laid off; they just piled their mattresses, stepladders, and pots and pans onto their cars and put the kids in the back seat and went back across the river to the hills to stay."

The economy of Indiana remained strong even after wartime production ceased. The number of wage earners in Indiana nearly doubled between 1940 and 1950. Workers came in from other states. Labor unions grew despite Indiana's reputation as an anti-union state. National corporations like General Motors and Inland Steel were absorbing smaller companies. In 1984 General Motors was the state's largest employer, followed by Inland and U.S. Steel. The availability of natural resources such as coal, natural gas, and stone encouraged industrial development; good transportation networks also enabled industrial success. This was especially true in the northwestern part of the state.

The early 1980s were difficult economic times for Indiana. The state suffered a recession like many of the other "Rust Belt" states. In addition Indiana had been losing population since the 1960s as many workers migrated south. The state's economy began to improve as high-technology industries were brought in and the service sector expanded. That brought a net gain in population between 1990 and 1996. In 1995 Indiana's per capita income was over $21,000, ranked 28th in the nation. In 1997 there were six Fortune 500 companies with headquarters in Indiana. The state continued to rank among the top ten states in agricultural production, with cash receipts for all crops and livestock reaching $5 billion by 1995.

See also: Northwest Ordinance, Rust Belt


Barnhart, John D., and Donald F. Carmony. Indiana from Frontier to Industrial Commonwealth,. 4 vols. New York: Lewis Historical Publishing, 1954.

Latta, William C.Outline History of Indiana Agriculture. Lafayette, IN: Purdue University and Indiana County Agricultural Agents Association, 1938.

Martin, John Bartlow. Indiana: An Interpretation. New York: Knopf, 1947.

Starr, George W. Industrial Development of Indiana. Bloomington, IN: Indiana University Press, 1937.

Wilson, William E. Indiana: A History. Bloomington: Indiana University Press, 1966.

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"Indiana." Gale Encyclopedia of U.S. Economic History. . 20 Oct. 2016 <>.

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Evansville . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Fort Wayne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Gary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Indianapolis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

South Bend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

The State in Brief

Nickname: Hoosier State

Motto: Crossroads of America

Flower: Peony

Bird: Cardinal

Area: 36,417 square miles (2000; U.S. rank: 38th)

Elevation: Ranges from 320 feet to 1,257 feet above sea level

Climate: Temperate, with four distinct seasons

Admitted to Union: December 11, 1816

Capital: Indianapolis

Head Official: Governor Mitchell Daniels (R) (until 2009)


1980: 5,490,000

1990: 5,610,000

2000: 6,080,517

2004 estimate: 6,237,569

Percent change, 19902000: 9.7%

U.S. rank in 2004: 14th

Percent of residents born in state: 69.3% (2000)

Density: 169.5 people per square mile (2000)

2002 FBI Crime Index Total: 230,966

Racial and Ethnic Characteristics (2000)

White: 5,320,022

Black or African American: 510,034

American Indian and Alaska Native: 15,815

Asian: 59,126

Native Hawaiian and Pacific Islander: 2,005

Hispanic or Latino (may be of any race): 214,536

Other: 97,811

Age Characteristics (2000)

Population under 5 years old: 423,215

Population 5 to 19 years old: 1,340,171

Percent of population 65 years and over: 12.4%

Median age: 35.2 years (2000)

Vital Statistics

Total number of births (2003): 86,865

Total number of deaths (2003): 56,017 (infant deaths, 672)

AIDS cases reported through 2003: 3,686


Major industries: Manufacturing, agriculture, mining

Unemployment rate: 5.6% (March 2005)

Per capita income: $28,797 (2003; U.S. rank: 33rd)

Median household income: $42,124 (3-year average, 2001-2003)

Percentage of persons below poverty level: 9.2% (3-year average, 2001-2003)

Income tax rate: 3.4%

Sales tax rate: 6.0%

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Indiana State in n central USA, s of Lake Michigan; the capital is Indianapolis. Indiana was explored by the French in the early 18th century and ceded to the British in 1763. It passed to the USA after the American Revolution. The Native American population was not subdued until 1811. The state remained a rural area until late 19th-century industrialization. Access to Lake Michigan and to the Ohio River in the s ensures efficient distribution of the state's agricultural and manufacturing products. The area is a rich farming region. The development of heavy industry in the nw has made Indiana a leading producer of machinery. Industries: grain, soya beans, livestock, coal, limestone, steel, electrical machinery, motor vehicles. Area: 93,993sq km (36,291sq mi). Pop. (2000) 6,080,485.

Statehood :

December 11, 1816

Nickname :

Hoosier state

State bird :


State flower :


State tree :

Tulip tree

State motto :

Crossroads of America

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Indiana (city, United States)

Indiana, industrial borough (1990 pop. 15,174), seat of Indiana co., W Pa.; inc. 1816. It is the principal supply and trading center for a bituminous-coal mining area in the Alleghenies and has factories that produce diesel engines, medical and rubber products, food, and laboratory equipment. Indiana Univ. of Pennsylvania is there.

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IndianaAlana, Anna, bandanna, banner, Branagh, canna, canner, Diana, fanner, Fermanagh, Guyana, Hannah, Havana, hosanna, Indiana, Joanna, lanner, Louisiana, manna, manner, manor, Montana, nana, planner, Pollyanna, Rosanna, savannah, scanner, spanner, Susanna, tanner •Abner • Jaffna • Patna • caravanner •Africana, Afrikaner, Americana, ana, banana, Botswana, bwana, cabana, caragana, Christiana, Dana, darner, Edwardiana, garner, Georgiana, Ghana, Gloriana, Guiana, gymkhana, Haryana, iguana, Lana, lantana, liana, Lipizzaner, Ljubljana, Mahayana, mana, mañana, marijuana, nirvana, Oriana, pacarana, piranha, prana, Purana, Rosh Hashana, Santayana, Setswana, sultana, Tatiana, Tijuana, Tirana, tramontana, Tswana, varna, Victoriana, zenana •Gardner • partner •antenna, Avicenna, duenna, henna, Jenna, Jenner, Morwenna, Ravenna, senna, Siena, sienna, tenner, tenor, Vienna •Edna • interregna • Etna • Pevsner

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