Rod could very well be right. Since it's a little smudged, it could be Washington or Wisconsin. That was before the days of the two-letter state abbreviations.
Will need someone who is familiar with postmarks to chime in. I primarily deal with what's under the postmark.
Although it has nothing to do with the postmark shown, I found this an interesting period tourism piece on that community as contained on the reverse side of a cover (circa 1940's):
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