 Minnesota gained legal existence as the Minnesota Territory in 1849 , and became the 32nd U.S. state on May 11 , 1858 . After the upheaval of the American Civil War and the Dakota War of 1862 , the state 's economy started to develop when natural resources were tapped for logging and farming . Railroads attracted immigrants , established the farm economy , and brought goods to market . The power provided by St. Anthony Falls spurred the growth of Minneapolis , and the innovative milling methods gave it the title of the " milling capital of the world " . 
