LAND ORDINANCE OF 1785 (or Northwest Ordinance)
-Following the end of the Revolution the new US faced a dilemma, the Northwest Territories
-In part provided by British as attempt to destabilize the new nation
-local State disputes over ownership
-former British ally tribes in the area
A. Contributing factors for land ordinance and Public Land Survey System
1. Competition for control of continent
-occupy (possession is 9/10ths of the law)
2. Need to raise funds through disposal of asset
-Land main one
3. Establish title -- based on ideology -- life, liberty, & (land)
4. Want to do this cheaply, easily and quickly
B. Precedent
-All land belongs to Crown
-Title granted to individuals or Charter Companies
C. New United States
-Land belongs to people
D. Outcome
1. Policy of fixed price
-price eventually lowered to increase sales
2. Sale of land to raise money, pay-off debt
3. Creation of clear title
-extinguish native claims
-provide generally prior survey
E. Summary
- Rapidly Guarantee Ownership
- Balance budget through sale of land
- Encourage investment by individuals
- Encourage long term habitation and possession of Continent by Americans
- Very simple and rapid system to use
F. Criticism
1. Sale of land represents lottery -- unequal value or usefulness of land
- lack of foresight in utilizing resource
- no urban centers chosen
- maximized length of transportation systems
- no reserves (save for schools) planned into system
2. Low price of land sent signal low value
- result waste on unprecedented scale
3. Speed and inflexibility lead to useless 160acre farms especially in high plains of Midwest
4. Made PLANNING a dirty word (no pun intended)
SPECIAL NOTE -- Did a similar process also occur in JAPAN (click and find out)