North Carolina never recognized the independence of the Franklin State. There were two factions in North Carolina politics on this question.[76] One of these, led by John Sevier, the Governor of Franklin, advocated independence; and the other, led by John Tipton, demanded the downfall of Franklin. The Tipton faction won, and the Franklin State came to an end in 1788. III. THE STATUS OF THE NEGRO IN THE SOUTHWEST TERRITORY FROM 1790 TO 1796 The western part of North Carolina continued to demand a separate political existence, and in February, 1790, it was ceded to the National Government by North Carolina. The Act of Cession provided that “the laws in force and in use in the State of North Carolina at this time, shall be and continue in full force within the territory hereby ceded until the same shall be repealed or otherwise altered by the legislative authority of the said territory”; and also, “that no regulations made or to be made by congress shall tend to emancipate slaves.”[77] The cession was accepted by Congress April 2, 1790, on the above condition;[78] and when Congress, on May 26, 1790, organized the government for the Southwest Territory, it mentioned the conditions laid down in the Act of Cession.[79] The provisions of the Act of Cession show how slavery, as it had developed in North Carolina by 1790, was transplanted and legalized in the territory that became Tennessee in 1796. There is no recorded protest on the part of the people of the territory. The contract between the National Government, North Carolina, and the Southwest Territory, shows that the economic importance of slavery was already recognized. The legislation of the Territory on slavery consists of one act, relating to the negro’s participation in court procedure. Negroes, whether bond or free, were permitted to be witnesses for and against each other, but denied this privilege in cases to which a white man was a party. Persons of mixed blood, descended from negroes or Indians, inclusive of the third generation, suffered a similar restriction. No person of mixed blood to any degree whatever, who had been held in slavery, could be a witness against a white person within twelve months of his liberation.[80]