Creation of New States
While various States delayed in ceding their western lands, Americans were busy trying to settle them. In 1790, North-Carolina ceded territory that eventually constituted the state of Tennessee, admitted to the Union on June 1, 1796. (See L. U. S. 1 Cong. 1 Sess. c. 6. and 4 Cong. c. 47.) It was never a "public land state" because its entire area was already covered with private land claims.
Most of the land in Kentucky was already privately patented. It remained a district or county of Virginia until the legislature on December 18, 1789, "consented that the district of Kentucky, within the jurisdiction of the said commonwealth, and according to its actual boundaries at the time of passing the act aforesaid, should be formed into a new state." With approval of Congress, (given February. 4, 1791, 1 Story's L. U. S. 168,) Kentucky entered the Union on June1, 1792.
In 1791, Vermont became the 14th State, ending 14 years as an independent Republic.
According to Tucker's Blackstone's Commentaries, among the provisions of the supplemental land disposal acts of 4 Cong, c. 29, and 6 Cong, c. 55, were:
That four sections at
the center of every township, and every other section upon which a salt
spring may be discovered shall be reserved for the use of the United States
(confirming prerogatives); and
That all navigable rivers
shall be deemed, and remain public highways; and all
lesser streams, and their beds shall become common to the proprietors of
the lands on the opposite banks.
Policy was to dispose of the lands at a low price of not more than $2.00 per acre under the theory that the government should not amass wealth that renders it financially independent of the political process::
"...whenever any government becomes independent of the nation all ideas of responsibility are immediately lost: and when responsibility ceases, slavery begins. It is the due restraint, and not the moderation of rulers that constitutes a state of liberty; as the power to oppress, though never exercised, does a state of slavery." (Tucker's Blackstone's Commentaries, Section 9.)
In 1795, the dispute with Spain over land between 32 degrees 28' and 31 degrees latitude was settled. In 1798, the Act of 5 Cong. c. 45 organized the Spanish cession as "Mississippi Territory" under the same principles as the Northwest Ordinance, except for the clause prohibiting slavery. (Georgia's later cession was added to this Territory.)
In 1800, by an act of 6 Cong. c. 41, the "Northwest Territory" was divided into two separate governments: Indiana and Ohio.
In 1803, Ohio entered the Union as the first "public land state" under the Ohio Enabling Act, 7 Cong. c. 40. Among the provisions of the Act was agreement that the people of the state disclaimed all right or title to unappropriated land in favor of the sovereign/U.S and could not tax the "public land." However, because title to the public land held by the federal government did not vest in the settler until he paid the final installment four years after initial purchase, the Ohio government found itself with little property tax base. In exchange for refraining from taxing any lands sold by the U.S. for five years from the date of sale, Congress gave Ohio some sections containing salt springs, reserved school lands and agreed to spend 5% of all future Ohio net land proceeds to build roads to (2%) and through (3%) the state.
In 1805, Congress formed the Michigan Territory out of the northern part of the Indiana Territory. In 1809 the Illinois Territory was formed from the western part of The Indiana Territory. In 1817, the Mississippi Territory was divided into the new State of Mississippi and the Alabama Territory. In 1836, the Wisconsin Territory was formed from the western part of the Michigan Territory.
