South Dakota

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SOUTH DAKOTA

In 1742 the first explorers traveled the area that is present day South Dakota, opening up the Upper Missouri Valley to French traders who bartered with the Indians by offering them metal pots, pans and tools for animal furs.

In 1762 France gave Louisiana to Spain during the French and Indian War. But when France was defeated in 1763, Britain gained control of French lands in Canada and east of the Mississippi. Later, in 1800, French emperor Napoleon Bonaparte forced Spain to return the land of Louisiana to France. And in turn Napoleon sold the Louisiana land to the U.S. for $15 million in order to finance his wars in Europe. The U.S. benefited greatly in this deal because its territory was doubled in size.

The next year President Thomas Jefferson (1801–1809) sent Captain Meriwether Lewis and Lieutenant William Clark (leaders of the Lewis and Clark expedition) to explore the region. In 1817 fur trading had begun to take place on the Missouri River at "Fort Pierre."

In the 1850s the fur trade was in decline. Fort Pierre was sold to the U.S. Army and soldiers took up the task of keeping peace between Indians and white settlers. Pierre would become the capital of South Dakota. Slowly over the years groups of Indians gave up their land and moved onto reservations. The land parcels they left behind were then purchased by land companies for farming, forestry, and building stone. These companies pressured the government to assign territorial status to the land, and in 1861 President James Buchanan (1857–1861) signed a bill which designated it as the Dakota Territory. The region included what is now North Dakota and South Dakota and most of the land in Montana and Wyoming.

During the 1860s and 1870s transportation networks opened up the Dakota Territory for additional markets making migration to the area much easier. Thus, when gold was discovered in Montana in the 1860s thousands of miners were able to travel from the east through Dakota. Federal money was also secured to begin building roads to Montana. When the Pacific Railroad to Sioux City, Iowa, was completed in 1868, farmers could transport wheat to eastern markets. Bridges were constructed over the Vermillion and James rivers which made it easier to reach the railroad at Sioux City. And when the Dakota Southern Railroad between Sioux City and Yankton opened in 1873 Yankton became an important stopover on the river which, in turn, helped attract more settlers to the area.

Immigrant farmers—Swedish, Danish, and Czech— entered the territory through Sioux City and settled in the territory to farm. These pioneers could purchase 160 acres for $1.25 per acre. The Homestead Act of 1862 allowed pioneers to claim the same amount of land for free if they worked the land for five years. (Farm crops often included corn, potatoes, onions, beets, beans, and other vegetables.) Life on the prairie was not easy for the pioneers; ever-present was the threat of blizzards in winter, fires in spring and fall, and drought in summer which could destroy homes, fields, and crops. Only the heartiest settlers could withstand the utter devastation possible in the difficult climate.

In 1874 gold was discovered in the Black Hills. However, the Sioux Indians considered the Black Hills sacred ground. (Although most of Native Americans lived on reservations some still roamed the area.) The U.S. government was aware of this Native American belief and agreed in the Laramie Treaty (1868) to protect the area. However, when news spread that gold was discovered more than 800 miners flocked to the area to mine for gold illegally. When the government tried to buy the Black Hills from the Sioux for $6 million they refused, and instead attacked mining camps over the next few years in what was known as the Sioux War of 1876. The Sioux eventually agreed to surrender the Black Hills and most of the Native Americans settled in reservations. Miners settled in the area. At the height of the gold rush in 1877 more than 25,000 people lived in the Black Hills. The towns they populated included restaurants, laundries, grocery stores, saloons, and gambling houses.

At the same time as the Black Hills gold rush, cattle ranchers began to establish themselves in the area. Texas longhorn steers were driven from Texas to the lush range surrounding the Black Hills and the popularity of sheep ranching also grew. In 1884 more than 800,000 head of cattle and 85,000 sheep grazed the land. Not only did people in the Black Hills region purchase meat for food but as additional railroads were built ranchers were able to transport cattle and sheep to eastern cities for slaughter. In 1885 amid this period of heightened settlement and economic activity, South Dakota and North Dakota were approved for statehood.

When World War I (1914–1918) started prices of crops and livestock increased while the demand for farm products rose. This helped to bolster South Dakota's economy. However, after the war ended the price for these items fell. Because farmers received less income they couldn't repay debts; many lost their farms, and left the state. Soon after, The Great Depression (1929–1939) devastated many South Dakotans who were already affected by the state's economic crisis. In addition the 1930s brought drought, grasshopper plagues, dust storms, and crop failures which lasted for nearly ten years. Assistance arrived when President Franklin D. Roosevelt's (1933–1945) New Deal put 25,000 men to work planting trees for windbreaks and building recreational facilities. The government gave South Dakota $35 million to build schools and other public buildings, bridges, and roads. The federal government also purchased cattle and sheep and taught farmers to grow drought-resistant grass.

The start of World War II (1939–1945) helped lift South Dakota out of the depression because meat, dairy and grain products were needed for the war effort. The Sioux Falls Air Force Training Base and the Ellsworth Air Base outside Rapid City were built and machine shops and foundries were constructed all over the state.

After the war incomes from farming were on the upswing again. Many who had lost their farms were able to buy them back. Between 1945 and 1966 the government developed and implemented a plan that improved the state's economy and made it less dependent on farming for income. To control flooding and irrigation, dams were built on the Cheyenne, Grand, and Moreu rivers and on Rapid Creek. The Missouri River also was dammed in four locations to provide electric power, flood control, and irrigation. The Oahe, Francis Case, Sharpe, and Lewis and Clark lakes were created by damming the Missouri River, also known as the "Great Lakes of South Dakota," they have become a tourist attraction.

Severe weather continued to affect the state's economy. In the blizzards of 1966 and 1975 several people died and thousands of cattle were killed. The Rapid City Canyon Lake Dam burst in 1972, flooding the city, killing 238 people, and causing $100 million worth of property damage. In 1988 a drought in the state caused millions of dollars in damage to the wheat, rye, and corn crops. The drought also caused the Black Hills National Forest to catch fire; a lightening strike set $4.4 million worth of timber ablaze.

During the 1980s Native American unemployment on reservations reached 80 percent due to cuts in federal spending. Also, farm incomes fell as prices for farm products decreased while mortgages rose causing many people to lose their farms. In response to public suffering the state government provided $40 million in 1987 for low-interest loans to help new and expanding businesses. The state supported specific industries including plastic products, electronic components, women's clothing, surgical instruments, and life insurance, hoping that this initiative would create jobs for both Native American and non-Native American residents as well as attract other businesses.

In the 1990s Citicorp, the largest bank-holding company in the United States, set up a credit card operation in Sioux Falls. In the early 1990s manufacturing also expanded up to 10 percent each year, and in 1994 the state produced record corn and soybean crops. Casino gambling also became an important source of revenue after it was legalized in the state in 1989.

In 1995 the median household income was $29,578 with 14.5 percent of all South Dakotans below the federal poverty level.

See also: Dry Farming, Native American Policy