The close of the Revolutionary War found our country with an empty treasury and a large public debt, but possessed of a large quantity of valuable public lands northwest of the Ohio river and elsewhere, ceded by Great Britain, supplemented by a cession from Virginia and some of the older States, from which were afterward carved great States, though the public domain was at that time regarded chiefly as an asset from which the Government could obtain revenues for its wants and needs.
The first general land law of a public nature for the disposal of our public lands was passed in 1796. This law, after prescribing a system of surveying the public lands, substantially the same as has been since adhered to, provided for the sale of the lands at public auction to the highest bidder, partly for cash and partly on credit.
By the Act of 1800 the minimum price was fixed at $2 an acre, and land not sold at public auction could be bought at private sale at that price.
The Act of 1820 abolished sales on credit and fixed the minimum price at $1.25 per acre, at which rate it has since remained. Lands offered at public sale became known as "offered land," and if not sold at public sale could be obtained at private sale or entry at the minimum price.
The result of this system was that, owing to the great scarcity of money in the country at that time among the masses of the people, large blocks of land were purchased by speculators and held by them indefinitely for an excessive profit, and the masses of the people--the settlers, the real home builders--had to purchase the land from these speculators instead of securing it from the Government. The Government got but scant return for its valuable public land. The chief profit was made by the middlemen, those speculators who bought it up in large blocks; they reaped a rich harvest. But in the midst of this system the settlers pressed on to the frontier. They were without money, but they settled on the public lands, squatted there without authority of law; and finally the Government, to help these settlers, to relieve them and give them a little breathing time, in 1841 passed what was known as the general Preemption Law. Under this law the head of a family, a widow, or a single person over twenty-one years of age who was a citizen or had declared his intention to become a citizen of the United States, could secure 160 acres of public land by settling upon, improving and cultivating it, and by paying for and entering the same within from one to three years after settlement, the time of payment in each case depending on whether the land was offered, unoffered, or unsurveyed. This law (the Preemption Act of 1841) was clearly intended to help the pioneers and the settlers, and it proved of great advantage to them; but owing to the lax procedure that prevailed (under which a man could go on a preemption claim, make a few limited and pro forma improvements, and at the end of six months appear in the land office and prove up and have his final entry made and ultimately get a patent), the Preemption Law itself became a great instrument in the hands of speculators and land grabbers, and in consequence Congress concluded to repeal the law.
