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objection. He said, the sending of agents might be of considerable advantage to the sale of the lots, as, on their return, their report would be heard by many, and probably influence persons to attend the sale at the Seat of Government; but, if the sale were on the land, no such advantage would arise from the mission of agents.

Mr. RUTHERFORD was in favor of the whole of the lands being sold on the Territory.

Mr. VENABLE said, if the large tracts of land were to be sold only at the Seat of Government, it would be a great disadvantage to the sale; for if a person goes from a very distant part of the country to view the land, he will perhaps have a still longer journey to the Seat of Government to make a purchase, as it is not to be presumed that all persons who mean to purchase will employ agents. This was a very serious inconvenience, and he hoped it would not be agreed to. The motion was put and carried.

Mr. HILLHOUSE thought it necessary to add a clause, in order to reserve all the salt springs for -the use of Government. Agreed to.

Mr. ISAAC SMITH moved that a suitable reservation of land should be made for colleges and schools. Agreed to.

Mr. WILLIAMS moved a clause to the following effect:

"Provided one actual settler be not on every acres of land within years from the sale thereof, it shall return to the Government of the United States, the same as if no such sale had taken place."

Mr. CLAIBORNE hoped the lands themselves would be sufficient inducement for settlers, and that purchasers would be left at full liberty in respect to settlement. He could never agree to any regulation that should go to the taking away of land from a purchaser who had fairly paid for it.

Mr. NICHOLAS and Mr. COOPER were both against the motion.

Mr. RUTHERFORD was in favor of the motion. Mr. WILLIAMS said, if the clause which was recommended was made a condition in the purchase, there was nothing unreasonable in it. It was as necessary that the country should be settled as that the land should be sold. Or shall it be said that the honest, industrious settlers, shall make roads, bridges, and other improvements, whilst the rich holders keep their lands in hand until these improvements are made, in order to increase the value of them? The member from New York who opposed this motion, knows that the poor inhabitants on the new settled lands in that State are obliged to do this. He thought

this clause very essential in the act.

Mr. COOPER replied, and the Committee rose, and asked leave to sit again.

WEDNESDAY, March 3.

A message was received from the Senate announcing that they insist on their amendments, disagreed to by this House, to the bill, entitled "An act for establishing trading houses with the Indian tribes."

[MARCH, 1796.

NORTHWESTERN LAND OFFICES. The House having resolved itself into a Committee of the Whole, on the bill for opening Land Offices for the sale of the Western lands, and the amendment proposing that there should be one actual settler upon every acres of land, being

read

Mr. HAVENS wished to give some reasons why he thought the amendment unnecessary. He said it had been introduced in the State of New York without effect; there was not rigor sufficient in Government to carry such a clause into effect. Besides, in order to avoid the forfeiture, a purchaser might build a hut, put in a person for a time, and then go off again. Another reason for objecting to it was, when a certain number of inhabitants shall have taken up their residence in the country, it would be organized into a State, and form itself into a Government, which could tax the property of non-residents. This would be an effectual measure to prevent the engrossing of land. A like regulation had taken place in the State of Vermont, which had answered the purpose, and he conceived always would have the effect. He should, therefore, vote against the amendment.

Mr. WILLIAMS said the regulation he proposed had not been carried into effect in the State of New York, but it was owing to the influence of the Legislative body preventing it. It was introduced four years ago; but it was now put into other hands, where the interest of great landholders will not prevent its operation. Were land sold in small tracts, it might be taxed in the way holders of such tracts have generally too great an proposed; but when sold in large tracts, the interest in the Legislature of the State to prevent a law passing to this salutary end. In the State of New York, a tax of this sort was every year proposed, but always rejected by those whose private interest would be affected thereby. He conceived that the happiness and prosperity of Mr. GALLATIN was in favor of the amendment. the country would be promoted by preventing the lands, the sale of which they were contemplating, from being engrossed in few hands, and he believed the provision now under consideration, together with the price fixed, would have that effect. The only material objection to it is, that it may diminish the revenue by reducing the price that would otherwise be paid for the land. He thought this a specious objection, not a solid one. He believed the regulation would prethought it a beneficial thing that they should be vent some speculators from purchasing, but he nothing were of no real value. The high price driven from the market. Lands which produced expected must be got from real settlers alone. The consequence will be, that a less quantity of land will be sold, but a sufficient quantity to satisfy actual settlers will be disposed of, notwithstanding this clause, and Government will pocket the profit which speculators otherwise would have had. And, in the following year, the land which would have been engrossed by speculators, but for a provision of this kind, will be brought

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into market to meet the demand of fresh settlers: at perhaps an advanced price.

It had been said, Mr. G. observed, that this regulation would hold out too great encouragement to emigration. Whether this law passed or not, the same number of men would go to this land. It was not from a distance that emigrants were to be expected, but from tracts adjacent; this clause would inflict a penalty on men who purchased lands with speculative views alone. With respect to what had been said about an evasion of the act, it would be easy to define what constituted an actual settler.

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law which countenanced injustice could be carried into execution; and to take away land from a purchaser, after he had justly paid for it, could not be accounted anything less, as perhaps it might not be possible to get men to settle upon the land within the limited time. For instance, suppose a war was to take place with the Indians, it would be impossible to fulfil the contract. In such case, it will be said, petitions would be heard for relief. The regulation, in his opinion, might produce many evils. The large tracts of land, he said, must be purchased by moneyed men, and there ought to be no objection thrown in their way.

Mr. RUTHERFORD thought the amendment ought to be agreed to. He spoke highly of the people living on the frontier. He heard fishermen say that the best fish always rise highest, and so it was with the people, who were the best on the frontiers; they are not too polite to be religious; they are hospitable and neighborly, and do not employ their nights in nocturnal revellings. These honest men suffer immense inconveniences by the incursions of their savage neighbors, the Indians; they cast their eyes about them for assistance, and see nothing but large unoccupied tracts of lands, whose owners, perhaps, are living secure in some large city. This, he said, was distressing to them. Without this amendment, he thought the bill would have no good effect.

It has been said, that taxing non-residents would produce the effect intended by this clause. Mr. G. thought differently. In the State of Pennsylvania that practice had been adopted; the taxes laid upon persons of this description have never been sufficient to induce settlement. They have found their land increase more in value by means of settlements taking place, than any amount of taxes laid upon it. It has been said, that larger taxes might be imposed; but they will not be paid. In the country where he lived, the occupiers had been called upon to pay their quota of taxes which could not be got from non-residents. He would ask gentlemen whether they wished the land to be engrossed or not? and if they do not, he would be glad if they could produce a better plan for preventing it than this. Before the Revolution, a plan of this sort was adopted Mr. CLAIBORNE was sorry to differ in opinion from one end of the country to the other, and he from his colleague on this subjeet. He thought believed it was owing to this regulation, that they the land would not be settled in half a century, owed a great deal of the happiness and prosperity and that the amendment would be a clog on the which they had since enjoyed. He wished, there-sale, by deterring men from purchasing. They fore, the example to be followed. ought, he said, rather to throw out encourageMr. COOPER said few men could afford to payments to induce men to become purchasers. Extwo dollars an acre, and none would pay it, ex-cessive laws, he said, were never executed, and cept those who meant to settle upon the land. It to adopt this measure would destroy the bill. was not well to make severe settling clauses. Security would operate against them. In the State of New York the regulation could never be put in force.

Mr. WILLIAMS was confident his amendment would have the best effects. He believed no country was ever more speedily settled than the Genesee country, in the State of New York, in the law for effecting which, there was a clause of this sort. It is said that the price of two dollars will cause a settlement; then, said he, where is the harm of this clause? There is no forfeiture incurred in case of settlement. With respect to the regulation being a check to the sale, he believed it would be a salutary check. Large lots may be sold somewhat cheaper, but it would not affect the price of small lots. There might be a provision in case of an Indian war; the land, in that case, should not be forfeited for want of settlers. He referred to the practice in the State of New York, and was certain that this plan would eventually produce the most money, at the same time that it would insure a settlement. The lands should be paid for by instalments, and by being gradually brought in the market they would constantly rise in value.

Mr. DAYTON (the Speaker) said, if the sole object of the amendment had been to prevent the land being engrossed, it would have had his support: but he did not think it would have that effect. He thought that fixing the price of the land, which should not be less than two dollars per acre, would produce this effect; but the proposed regulation, he thought, would have a different effect; it would reduce the price of the land. He was of opinion that land, which, without this clause, would sell for four dollars an acre, with it, would not sell for more than three and a half. Besides, no Government ever did, or ever would, enforce such a regulation. It would be holding out, also, a premium to emigration, which, he trusted, was not the intention of the Legislature; for persons who purchased land at three dollars and a half an acre, to obtain settlers, might be obliged almost to give it away. Indeed, he thought it unnecessary Mr. DAYTON rose to explain, and again expressto multiply arguments against a regulation calcu-ed his disapprobation of the amendment. He said lated to produce so many injurious consequences. non-residents might be taxed as high for their unMr. S. SMITH said it did not appear to him that occupied lands as were the occupiers of improved the amendment could have any good effect. No lands, by which means they would be made te

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contribute their full proportion towards the expense of making roads, bridges, &c.

Mr. COOPER wished to get a good price for the land, in order to pay the Public Debt; and, on this account, he hoped no discouragement would be thrown in the way of purchasers.

[MARCH, 1796.

diminish that comfort. He concluded by hoping the amendment would obtain.

Mr. N. SMITH said the proposed amendment, in his opinion, would have no effect but to dimin ish the price of the land, and offer a premium to emigration. The advantage proposed by the meaMr. GALLATIN remarked that the member from sure is to drive all speculators from the market. New Jersey had said, the present amendment He thought the argument ill founded. He said would reduce the price of the land. He thought this clause would introduce considerable embardifferently. None would purchase but real set-rassment into the business, and where there was tlers. Of course, a less quantity will be sold in any one year; but what is sold will command a good price. Instead of selling three millions of acres at two dollars the first year, perhaps one million might be sold at four dollars, and the remaining two millions, instead of selling for two, will bring four dollars, which will be the effect of driving those purchasers from the market who meant to purchase on speculation. The quantity of land to be disposed of, Mr. G. said, was about ten millions of acres, which, divided by 4,000, would make 2,500. But there would be no hope of getting 2,500 families on the lands in one year; but to sell one million of acres a year, it would be disposed of in ten years, by which means 1,000 families might be accommodated with 1,000 acres each, and the highest price be got for it that the land was really worth. With respect to the revenue, this plan will give to the Government all the profits of the speculator. Government would be, in effect, its own speculator. If the land, said he, was the property of a private individual, he would never agree to sell the whole in one year. when he knew that a large number of families would every year be in want of a portion of this land. Another objection is, that this regulation would amount to a bounty on emigration. An observation made by gentlemen who opposed the amendment, struck him with much force in favor of it. Say they, if you oblige purchasers to settle the land within a limited time, they may be obliged to give their land for nothing. He wished that might take place. If the cause of the happiness of this country was examined into, he said it would be found to arise as much from the great plenty of land in proportion to the inhabitants, which their citizens enjoyed, as from the wisdom of their political institutions. It is, in fact, said he, because the poor man has been able always to attain his portion of land. And it was perfectly immaterial to them whether a man was happy in New Jersey or upon the Western Territory, it was their duty to do all in their power to promote the general happiness of the whole country.

any degree of embarrassment, the broader was the field for speculation. Speculators will still purchase, but at a price that will indemnify them against any contingency. For, suppose the land worth four dollars an acre, under these circumstances, not more than two or three will be given. Gentlemen suppose that, if this amendment takes place, every purchaser will go upon the land. No such thing will happen; a servant or tenant would answer the purpose. Advert to the bill, said Mr. S., and it will be seen that tracts are to be sold in lots of three miles square, by vendue, at the Seat of Government. The speculator comes forward, and every man who purchases will bear it in mind, that settlers must be upon the land in a certain time. This will not prevent the land from being sold, but it will diminish the price, and opesurprised to hear that the gentleman who, a few rate as an encouragement to emigration. He was days ago, had said he did not wish to encourage emigration, now support a measure which seemed to have that for its principal object. He would have men emigrate to what place, and when they pleased, but would not offer them a premium for doing so.

To resume, said Mr. G., the experience of a century might be called to prove that the happiness of this country had been promoted by regulations similar to that now under consideration. In New England no tract had ever been granted without an obligation to settlement. He thought therefore they ought not to part with such a provision on mere theory. The consequence would perhaps be, the price of labor would be kept up. He wished it to be so. It was not only a sure mark of prosperity, but afforded comfort to the poor man'; it was his wish to increase, rather than

Mr. NICHOLAS thought the clause proposed would be extremely discouraging to purchasers. The uncertainty of procuring settlers will deter moneyed men from adventuring their property in this land. He was of opinion it would have a tendency to put the land into the hands of speculators at a low price. The condition was an unreasonable one. Suppose, said he, a merchant was told by Government, you may import as many goods as you please, but if you have any left at the end of the year, they must be burnt; would he not think it a tyrannical decree? The object, if he understood it rightly, was to sell the land to emigrants going into that country, at as good a price as could be got, without throwing any discouragements in the way..

Mr. HAVENS understood the operation of the bill in this way: Government does not expect much above the minimum price. He that will first bid two dollars per acre will get the land. So that, when the land shall be thought to be worth this price, it will be sold to any person who bids it. He said the effect of a clause of the same kind with that under consideration had been tried in the States of Massachusetts, New Hampshire, and Vermont, and was found ineffectual. If he thought it would answer the purpose intended, he would vote for it; but he believed it would be a clog upon the sale, without any advantage. was of opinion, the wished-for effect might be ob

He

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tained in a different way, and therefore this clause was unnecessary.

[H. OF R.

He

would have it approached to. He wished the land to be settled gradually, and that an effectual check might be put on the rage of speculators, which seemed to have no bounds. The most barren mountains were embraced by them. thought it would be prudent to adopt the amendment as an experiment which would be perfectly safe; for, if the land was once engrossed, there would be no remedy. He said there were facts and experience in support of the proposition, and theory only against it. He should therefore vote for it, and trusted other checks would be provided before the bill passed into a law.

Mr. HILLHOUSE thought the gentleman from Pennsylvania was mistaken with respect to what he had asserted of the practice of the New England States. He believed the amendment would have a bad effect. The way in which the part of the country which he came from was peopled, was one part at once. If this amendment was adopted, what would be the consequence? Instead of the people who go upon the land being settled compactly, and in the neighborhood of each other, they will spread themselves over the face of the whole country, without the power of assisting or Mr. RUTHERFORD spoke again in favor of the defending each other. He did not think this re-amendment, and of the frontier inhabitants. Exgulation would prevent the sale of a single acre, perience, he said, was vastly preferable to a finebut lower the price, and the forfeiture never had, spun theory. He hoped the mind of every memand never would be enforced. Indeed, it might ber in that House was as pure as that of the great create a war to attempt to dispossess persons of FRANKLIN, and he paid great attention to their property they had paid for. He should have no sentiments, but experience taught him to differ objection to any clause which would confine set- from them on the present question. He had tlers on small tracts to a particular part of the been acquainted with the frontiers, he said, fifty Territory. years, and had seen the country progress from Mr. FINDLEY observed, there were many differ- woods to towns-(he was reminded by the Chairent opinions on the subject before them. Some man that there was a specific question before the members thought to obtain money was the grand Committee.) He wished, he said, to introduce object; others had different views. He did not his experience. He said the country would be think the raising of money ought to be the lead-settled, should be settled, and must be settled. ing object. He did not wish a single acre to be The most untaught Indians were to receive insold more than could be settled. He did not think formation; it should be compactly settled by hothe United States could have a greater advantage nest, respectable yeomanry; but will a man who than to have a reserve of good land to offer per- has his land, his orchards, his gardens, in good orsons who wish to emigrate. He thought the price der, pack up his all, and go to this new country? fixed upon the land would be a check on the sale. No; but he will send one or two of his sons. Genand discourage emigration. Had gentlemen con- tlemen thought the country would not be sold. sidered what they were about? Whether they There was no doubt of it. He said the people of were merchants, only to get money? Surely not; this country were doubled since the horrid, dethey had men, and the happiness of men in their testable war with England. The people were view. On the frontier parts of the country, there eight millions, at least; they increased like a beeis no greater unhappiness, said he, than that occa-hive. He was not, he said, for shutting out sioned by the settling too widely, the settlers can members of Congress from getting lots for their neither make the necessary improvements, nor children, but he wished to discourage speculators. defend themselves; but by settling compactly, the Mr. MADISON was not surprised to hear differinhabitants experience all the advantage of soci-ent opinions on this question, according as memety, good schools, and everything desirable. He bers felt from the usages of the States to which did not think the present amendment calculated they belonged. It was difficult to judge preciseto lower the price of the land; the price wouldly betwixt different opinions, from the blanks of advance by degrees. Why sell more lands than the bill not being filled up. Perhaps a good deal can be settled? To have them engrossed? This depended on the quantity of land to be offered for would be a great evil, and might have an effect on sale. Purchases made, he said, under a considerthe happiness of the country, which could notation that the land would be speedily settled, would be at present foreseen. The comparison betwixt be made at a higher price, and those made under a merchant selling goods, and a Government sell- an idea of a considerably distant settlement, would ing lands, would not hold. It is a sort of transac- command a price in proportion. The principal tion which should always be kept in the hands of object was to fill the Treasury as soon as possible. Government, and not in those of speculators; for, He believed the obliging of purchasers to settle if speculators had the sale of the land, the price land within a limited time would be an obstructhey would fix upon it would drive emigrants tion in the sale; but there were several considerupon the territory of other countries, who hold out ations which ought to be weighed. If, by requirencouragements to receive them. The prospecting actual settlers, they should repel a part of those of peace and security will have a considerable influence on the price of the land; he himself was fearful that the Indians would commit depreda

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who did not intend to settle themselves on the land, they might not repel others. Persons would be more ready to go into a wilderness, if they were assured of company. The amendment would have less effect in repelling large purchasers, than at first imagined. If persons knew when they

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purchased that they must provide settlers, they will see that a great advantage may arise from their enterprise, and will give a greater price. With respect to the policy of increasing emigration there seemed to be a middle course. It would not be right, he said, to encourage emigrations, nor to throw obstacles in the way of them. He believed, with the gentleman from Pennsylvania, that if they were ever so desirous that emigrations should not take place to that country, it would not hinder them. He was opposed to a greater quantity of land being brought to market than could be settled. The consideration of settlement, he said, would be found to operate much less on the price than was supposed; he knew not whether it would increase the price. But as the subject was important, and greater light might be thrown upon the subject hereafter, he would wish the forfeiture of the land to be struck out, and left to be modified by the select committee.

[MARCH, 1796

settle the whole of that country at present, as there remains yet much unappropriated land in the Atlantic States, which is in want of settlers. He believed when land could be purchased, for the purpose of actual cultivation, at two dollars an acre, it was a proof there was no want of land. And there was a certain proportion of population, he said, which was necessary to the happiness of society. While lands, therefore, could be purchased at this price in the neighborhood, he should not be for sending people into the back country. He was, on these accounts, against the amendment.

Mr. KITTERA thought the best price might be obtained by competition, and that driving out of the market many purchasers, would not increase the price of the land. Gentlemen have said that money is not the object, but settlement. Perhaps it was not correct to say that universal experience was in support of the present amendment. With respect to the State of Pennsylvania, the proprietors had never fettered land with conditions of this sort. It was true, they did at one particular time give improvers a pre-emption right, which was States, but, being found an injurious policy, it was given up. Since the Revolution, there was only one instance in which restrictions were made. He saw many evils that would arise from persons purchasing lands on the other side of the Alleghany mountains, as there were many persons at present settled on lands there. This kind of bounty, to encourage emigration, was not good policy. He said there were millions of acres in this State yet to be disposed of. He thought it necessary to mention these facts.

Mr. FINDLEY went over the history of the settlement of Pennsylvania, in order to support the propriety of the proposed amendment, and to controvert some of the statements of the last speaker.

Mr. HARPER said, when the amendment was first proposed, he thought it a good one; but, on more mature consideration, he found it would not only fail in producing the effect intended, but be pregnant with evil. The good effects propos-done to encourage emigrants from neighboring ed by the amendment were to restrict the quantity of land sold, and to accommodate that class of settlers who may be in want of land at a low price. The first object was of great importance. But does it not appear that, by limiting the quantity of land sold, it would have an effect to decrease the competition? Decreasing the competition will not decrease the quantity sold, but the price; for when, the competition is greatest, the price will be highest. But if you substract a certain number of purchasers, you leave the market open to a few bidders, you will get the land at a less price. The amendment must, therefore, produce a disadvantageous effect, as the same quantity of land will be sold, and less money produced. The next beneficial consideration was, to accommodate those persons who want lands, but cannot afford a high price. A certain proportion of citizens every year emigrate: some of them will be able to purchase, others must either obtain land at a low price or on long credit. If the sale be left unfettered, the competition will be increased by persons purchasing, who will be willing to accommodate this latter class of persons. As to Mr. NICHOLAS proposed to strike out the fourth that class, who purchase with a view of settle-section, and insert a clause for extending the ment, they can accommodate themselves. Per- time of payment to one quarter of the amount in sons, he said, who purchase at a high price, with- hand, and one quarter each of the three succeedout this amendment, will be induced to settle the ing years; which, after a few observations, was land as soon as possible. The amendment will agreed to, with the amendment of a blank instead tend to scatter settlers over the whole country; of the word quarter. for if purchasers get land in quite opposite parts of the Territory, they will be obliged to settle it, whereas a person who might purchase lands at two dollars an acre in distant parts of the country, might not be very desirous of having it immediately settled. He believed these restrictions had been tried in different States, and it was found impossible to carry them into effect. If this was so, all the inconveniences of them would be experienced, and the proposed benefits lost. But he believed it was not the object of Government to

Mr. KITTERA said, it was agreed that a provision should be made that, in case of an Indian war, land should not be liable to forfeiture for want of settlement. This, it might be seen, would be a motive for purchasers to excite an Indian war. The motion being put, it was lost, only twentytwo members appearing in favor of it.

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Mr. HARPER proposed the following resolution:

Resolved, That payment shall be received for lands purchased in pursuance of this act, in certificates of such parts of the Public Debt as bear a present interest of six per cent:"

Which, after a number of observations from different members, was negatived.

The sixth and seventh sections of the bill, on motion, were agreed to be struck out.

Mr. WILLIAMS moved to strike out the eighth

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