The United States of America, Part 1: 1783-1830Sparks, Edwin Erle
History
The United States of America, Part 1: 1783-1830
Sparks, Edwin Erle
United States -- History
The original two million acres of public lands sold to the Ohio Company
was reduced to less than a million. Soon after, another million was
sold to John Cleves Symmes, of New Jersey, on a speculation, of which
about one-fourth was eventually taken. The State of Pennsylvania
purchased the "Erie triangle," in order to get a north-west frontage
on Lake Erie. These three sales were accomplished under the
Confederation. The price averaged about seventy-five cents an acre.
The care of the public lands had been given to the Treasury Department.
Hamilton, in 1790, presented to Congress an elaborate plan for their
disposal. Under this plan, individuals were to be dealt with as well
as companies. Lots of one square mile, containing 640 acres, were to
be placed upon sale at two dollars per acre. Public offerings were to
be made at Cincinnati, Pittsburg, and Philadelphia. But the hostility
of the Indians reduced the number of purchasers. Prior to 1800, only
a million acres had been disposed of in this manner. A law of that
year provided a system of registers and receivers, to be stationed at
land offices scattered through the North-west Territory. A credit
system was also established, whereby so small a portion as a
half-section could be purchased on instalment payments, with interest
at six per cent. This law made the lands very attractive, as credit
propositions always are. Prospective landholders rushed across the
mountains and stood in line before the register's doors. The saying,
"Doing a land-office business," brings the scene to the imagination.
As the embargo and the War of 1812 cut off men from employment on the
sea and along the coast, their attention was directed to the
possibilities of the public lands. Between 1800 and 1820, nearly twenty
million acres were sold, bringing in cash receipts of over forty-five
million dollars. After 1806, the old certificates and other forms of
government paper were no longer received in payment for lands. The
credit system had been adopted to allow poor men to purchase farms and
pay for them from the products of the land. But it tempted many to
purchase more land than they could pay for. In order to relieve these
creditors, Congress passed no less than fourteen acts. One of these
reduced the price for future purchasers to $1.25 an acre and made it
possible to purchase so small a quantity as eighty acres. This clemency
brought further demands and paved the way for the later pre-emption
acts.
Public-domain text, read in full here on John Shaqi.
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