More important than the Ordinance of 1784, which indeed is interesting
chiefly because it was the forerunner of the final ordinance for the
Northwest Territory, is that adopted by Congress in the following year.
The so-called Land Ordinance of 1785 provided in general for the survey
of a series of townships six miles square in the region immediately west
of Pennsylvania, and for the further division of each township into
thirty-six lots, or, as they were later styled, "sections," one mile
square. After satisfying the claims of the soldiers of the Continental
Army, Congress proposed to distribute these lands among the States, to
be sold at auction for a minimum price of one dollar an acre, reserving
certain sections in each township and one third of the mineral ore which
might be found. The sixteenth section in each township was to be set
aside for the support of education. Each purchaser was to receive with
his deed a definite description of his holding. Subsequent amendments to
the Land Ordinance made the terms of purchase somewhat easier. Instead
of making an out-and-out purchase, prospective settlers might pay one
third in cash and receive a credit of three months for the balance of
the purchase price. Yet even with these inducements only seventy-three
thousand acres had been sold to individuals down to 1788. The hazards of
western settlement were still too great.
Disappointed in the sales under the Land Ordinance, Congress was
persuaded to consider the alternative course of selling large tracts to
companies. The collapse of national credit left the public domain almost
the only available source of revenue. Early in 1787 the Ohio Company
offered to purchase a tract of land between the Ohio and Muskingum
Rivers. The promoters of this company had been interested in an earlier
project of army officers for the founding of a military colony beyond
the Ohio. Organized at Boston in March, 1786, with a nominal capital of
one million dollars, it had within a year raised one fourth of that
amount and sent first General Samuel Parsons and then the Reverend
Manasseh Cutler to secure the desired grant from Congress. The labors of
this astute divine at the seat of government form an interesting chapter
in the evolution of American legislative methods. By devices well known
to the modern lobbyist he not only secured the grant of land, but also
took a hand in the shaping of a new ordinance for the Northwest
Territory. In order to secure the grant to his associates, he had to
resort to log-rolling and agree to procure for a group of land
speculators an option to lands on the Scioto River. The grant to the
Ohio Company contained a million and a half acres; that to the Scioto
Company, five million acres. But while the one paid down half a million
dollars, the other made no payment, expecting to dispose of their
"rights" before the first payment was due. In the following year a third
grant of a million acres on the Great and Little Miami Rivers in Ohio
Public-domain text, read in full here on John Shaqi.
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