
Contents
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8.1 The First Crisis of Disunion: Who Should Get the Spoils of War? 8.1 The First Crisis of Disunion: Who Should Get the Spoils of War?
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8.2 What Was the Value of These Federally Owned Land Assets? 8.2 What Was the Value of These Federally Owned Land Assets?
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8.3 What Should Be Done with These Federally Owned Land Assets? 8.3 What Should Be Done with These Federally Owned Land Assets?
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8.4 How Are a Government's Debts and (Land) Assets Related? 8.4 How Are a Government's Debts and (Land) Assets Related?
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8.5 But How Should the Public Domain Be Used to Support the National Debt? 8.5 But How Should the Public Domain Be Used to Support the National Debt?
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8.5.1 Option One 8.5.1 Option One
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8.5.2 Option Two 8.5.2 Option Two
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8.6 How Should the Land Be Controlled, Distributed, and Sold? 8.6 How Should the Land Be Controlled, Distributed, and Sold?
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8.7 Epilogue 8.7 Epilogue
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References References
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8 U.S. Land Policy: Founding Choices and Outcomes, 1781–1802
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Published:January 2011
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Abstract
The U.S. government became “land rich” even before the Constitution when the original states with claims to land between them and the then-western border of the country, the Mississippi River, began to cede those claims to the national government. Under the Constitution, Congress opted to survey the lands and sell them gradually as the nation expanded and the population grew, and to pledge the revenue from future land sales to debt retirement via the sinking fund that Hamilton had created as a part of his financial reforms. The chapter estimates that at prevailing land prices, the federal government's holdings of land in 1790 had a value well in excess of national debt. Even if that value could not have been realized had the land been sold quickly, it served to give domestic and foreign creditors of the government confidence in its ability to honor its obligations in later years and decades.
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