50 THE UTILIZATJON OF THE VACANT PUBLIC LANDS 



held in trust, to be disposed of for the common benefit of all the 

 states, and this condition applied as well to all land thereafter 

 acquired by the United States. At first the controlling purpose 

 in the disposal of the lands was to create a fund for the redemp- 

 tion of the public debt. Settlement upon the public domain 

 was not only discouraged, but was actually forbidden. In pur- 

 suance of the policy to convert the public domain into cash as 

 rapidly as possible for the extinguishment of the public debt, 

 large tracts of land in the Northwest Territory were sold to indi- 

 viduals and companies under authority granted by special act 

 of Congress prior to the adoption of the Constitution. 



In 1790 Mr Hamilton, then Secretary of the Treasury, sub- 

 mitted to Congress a plan for the disposal of the public domain, 

 which has formed the basis of the public-land system. All legis- 

 lation upon this subject, until the Homestead Act of 1862, em- 

 bodied the fundamental principle of Mr Hamilton's plan, which 

 contemplated the raising of revenue from the sale of the land- 

 His plan presented two leading features : one, the facility of ad- 

 vantageous sales, which, as a financial operation, claimed pri- 

 mar}' attention; the other, the accommodation of individuals 

 then inhabiting the Northwest Territory, or who might afterward 

 settle therein, who were permitted to purchase small tracts for 

 homes. Upon this plan our public land system was laid. It 

 provided for the disposal of the public domain at public offer- 

 ing, by private cash sales, and by the allowance of the preference 

 right of purchase to actual settlers under the several preemption 

 laws. The preemption laws were at first temporary, being limited 

 in their operation, until the general law of 1841, which continued 

 in force until its repeal by the act of March 3, 1891. 



While the preemption right was generally considered as a 

 special favor or benefit conferred upon those who inhabit, culti- 

 vate, and improve a tract of public land, with the intention of 

 making a permanent home, it was practically only the extension 

 of a credit for twelve months to the settler, but with no actual 

 security that he would finally get the land. Up to 1843 there 

 was no land subject to preemption that could not at any time be 

 bought upon application at the local office, at private cash entry, 

 at the same price the preemptor was required to pay, and it was 

 not until 1860 that preemption rights could be initiated b}'' set- 

 tlement upon unsurveyed lands. Even in the bestowal of the 

 munificent grants of alternate sections to aid in the construc- 

 tion of railroads and other works of public improvement, the 



