Finally, after decades of waving good-bye to children leaving for jobs in other states, we can replace sorry stories with happier endings. Since WWII, Montana's most valuable export has been its educated children. Many, perhaps most, left reluctantly.

Why, then, did they leave? Usually because the opportunities gained were too valuable to resist. The better their education and the more promising their futures, the more likely they were to go.

Today, contrary to myth, most "newcomers" to Montana are not alien creatures from Southern California. Rather, they are "homecomers" wanting to recapture a rural culture and heritage. This testifies to the attractiveness of Montana.

Montana's traditional economy was based on the development of our natural resources and the export of commodities: fur trapping in the early 1800s, open range ranching in the late 1800s, sod-busting in the early 1900s, and a century of hard rock mining and logging.

I have a 1913 Milwaukee Railroad advertisement proclaiming Montana's golden future. It's an optimistic admonition to find America's Garden of Eden in Montana. Urging settlers to homestead, it claims: "Montana. Go Now. Land costing less than one third will produce twice the yields of Middle West."

For a few years, events ratified the railroads' claims. Virgin soil, abnormally high rainfall, and the high grain prices of WWI hinted truth to the lie of sustainable prosperity. But then reality intruded on dreams and four generations were rung out of their land.

Similar processes marked mining and forest products. Remote bureaucracies, the Anaconda Company or the Forest Service, are far more responsive to their interests than ours. They rarely coincide.

Part of Montana's attraction lies in an economy linked to its history. Ranches are culturally and ecologically important and there remains a legitimate and important place for logging and working timbers. However, in the emerging economy amenities, brains, and communication trump resource exploitation. Yet our towns are neither theme parks like Jackson, WY nor Silicon Valley Internet artifacts.

Although dirty, dangerous, and grueling work, our past is romantic stuff. I reluctantly give it up but that economy is forever gone. Here's why.

First, our resources have been high-graded. The best timber and richest ore have been extracted.

Second, as people become wealthier they place ever-higher values on environmental quality, and environmental standards for resource development become tighter and more expensive.

The third force offers optimism. Our world abounds in immense amounts of high quality, instantaneous, free information.

On the Internet, buyers learn the price of every commodity. Also, they can arrange to ship it anywhere for delivery at a specified date and the costs of transportation are decreasing.

Today, only the efficient, high quality, low cost commodity producers thrive. Wheat, wood, and wool will be produced where most economical. Thanks to ever cheaper, faster, more seamless communication, trade friction is reduced and the international economy becomes integrated.

Where does this leave us? Potentially quite well off if Montana's education builds human capital. Our great advantage lies in those we used to export, our educated young.

Montana, the most remote of the contiguous 48 states, long suffered the cost of distance. When our economy was based on commodities, distance from markets was a barrier to prosperity. Our colonial, boom and bust economy was a product of our location. But in the emerging economy, distance matters little. Today the success of our children depends primarily on what's in their heads, character, discipline, and knowledge.

Montana kids consistently score well on these scales. Our SAT scores are among the best. Our universities attract National Merit Scholars and their graduates are well respected nationally. But must they leave to succeed? Not if we invest wisely.

Today capital and labor are fluid. They flow to the most attractive places. And again, here we excel. No state has a superior mix of environmental amenities and civility. Entrepreneurs who move symbols not stuff, or who build specialized stuff, have found Montana. They will locate and invest here. Our challenge is to prepare our students for the resulting opportunities.

The character and native intelligence of Montana's young are the raw materials for building secure prosperity. This however, requires substantial commitments to and investments in education and outreach.

Our legislature is tempted but it shouldn't count on exploitable resources or federal largess. Both are transitory and undependable. Our first best bet for the last best place lies in education and outreach investments. Rejoice and invest in its potential.