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CHAPTER XVII.

TERRITORY OF WISCONSIN IN 1833.

The early organization of the new Territory of Wisconsin was, during the years 1835 and the early part of 1836, clearly foreseen as one of the inevitable results of the formation of the independent State of Michigan. The fragmentary Territory of Michigan thus left, was not designed and was illy adapted to the wants of the inhabitants of the country west of the lake.

The organization of the new Territory was delayed until the question of the boundaries of the State of Michigan could be acted upon by Congress, and so soon as it was known what that action would be, it was anticipated by the act to organize the Territory of Wisconsin, which was passed April 20, 1836, although the act to provide for the admission of the State of Michigan into the Union was not passed until twenty-five days later.

The scenes and events successively occurring during the twelve years of the existence of the Territory of Wisconsin, which were so commonplace at the time of their occurrence as to make but little impression upon those immediately connected with them, may now possess some historic interest to those who had no personal knowledge of them, if not create a revived interest in those who participated in them; which can only be gratified by a reference to the archives of the State Historical Society.

The spirit of migration, the desire for change, is believed to be the fundamental element, the inspiring cause of and chief reason for the wonderful progress which has marked the advance of American civilization, especially in the states formed out of the Northwest Territory.

Whatever the cause, the historical fact is now acknowledged, that the rapidity of settlement in Wisconsin for the fifteen years next succeeding 1835, was almost, if not quite, unprecedented in the settlement of new states. Previous to 1835 much the largest proportion-about two thirds-of the population of the Territory was to be found in Iowa county. They had, however, generally come in search of lead, and nearly all with the expectation of soon getting

rich and returning to the homes they had left behind them. It was emphatically a floating population. Many, however -some attracted by success, and some compelled by the necessities resulting from ill-luck-remained, and became permanent inhabitants of the country, which they had visited only as an adventurous experiment.

After the Indian right of occupancy on the lands south and east of the Wisconsin and Fox rivers had been extinguished, the lands had been surveyed and offered for sale, which to a limited extent occurred in November, 1834, and more extensively in August and September, 1835, the purposes of most of those who came with no fixed intention of remaining became changed. They purchased land and became permanently identified with the country; and the same influences which were thus operating upon those who were already here, produced a like effect upon large numbers possessed of the migratory spirit, but whose feet had never trod the soil west of Lake Michigan, and induced them also to become permanent inhabitants of the new Territory.

Another class, who were characterized by the settlers as "speculators," visited the country, either personally or by agents, in great numbers and purchased very large quantities of the choicest of the public lands, which had been offered for sale in 1834 and 1835. These purchases were almost exclusively made on speculation, and with no purpose of occupancy, but solely with the expectation of selling the lands at a future period at a greatly increased price. The effect of these speculations was greatly to retard and prevent the occupancy of the country by permanent inhabitants.

Some idea ay be formed of the magnitude of this land speculation from the fact, which the records of the General Land Office show, that the total sales of the Government lands in Wisconsin previous to December, 31, 1836, amounted to 878,014 acres, of which as much as 600,000 acres were probably sold to speculators.

The correctness of this estimate is confirmed by the fact that the total amount of sales during the years 1837 and 1838, after the spirit of speculation had ceased, amounted to only 360,919 acres, although the population during that period had more than doubled.

The wild spirit of speculation which pervaded the whole

country in 1836 is within the present recollection of the older persons of the present generation. The currency of the country, which consisted mainly of the notes of state banks, was abnormally expanded. The Receivers of the Land offices were authorized to receive the notes of many of the state banks in payment for the public lands, and appearances seemed to indicate that the entire body of the public domain would soon be exchanged for bank credits and paper money, and would be absorbed by speculators to the serious injury of actual settlers and emigrants.

In this condition of things, the specie circular, as it was called, of LEVI WOODBURY, Secretary of the Treasury, was issued by the direction of President ANDREW JACKSON, which had the effect to soon arrest the land speculating mania.

This circular was issued on the 11th July, 1836, and recited, that

"In consequence of complaints which had been made of frauds, speculations and monopolies in the purchase of the public land, and the aid which was said to effect these objects by excessive bank credits and through bank drafts and bank deposits, and in consequence of the general evil influence likely to result to the public interests, and especially the safety of the great amount of money in the Treasury, and the sound condition of the currency of the country from the further exchange of the national domain in this manner, and chiefly for bank credits and paper money;"

and then instructed the Receivers of Public Money,

"After the 15th day of August next to receive in payment of the public lands nothing except what is directed by the existing laws, viz.: GOLD AND SILVER and in the proper cases Virginia land scrip; provided, that till the 15th day of December next the same indulgences heretofore extended, as to the kind of money received, may be continued for any quantity of land not exceeding three hundred and twenty acres, to each purchaser who is an actual settler or bona fide resident of the State when the sales are made."

The circular further stated that

"The principal object of the President in adopting this measure was to repress alleged frauds, and to withhold any countenance or facilities in the power of the Government, from the monopoly of the public lands in the hands of speculators to the injury of the actual settlers of the new States, and of emigrants in search of new homes, as well as to discourage the ruinous extension of bank issues and bank credits, by which those results are supposed to be prompted."

The specie circular, considered with reference to its effects subsequent to the time when it went into operation, produced all the beneficial results which had been hoped for it by General JACKSON, but so far as related to southwestern Wisconsin, embracing the present counties of Grant, Iowa, La Fayette, Dane, Green, and the west half of Rock and Columbia, its wisdom was analagous to that of the old adage of locking the stable after the horse was stolen. A very

large proportion of the most valuable lands in that portion of the State had before the 15th of August, 1836, passed from the control of the government to that of speculators.

The result was that the great mass "of emigrants in search of new homes," during the years 1836, 1837, and 1838, avoided those counties which had been affected by the mildew of speculation, and swarmed upon the counties of Kenosha, Racine, Waukesha, Dodge, Jefferson, Walworth and the eastern parts of Rock and Columbia, where the lands were not offered for sale until 1839, and where a choice of location was open to them, and into which the blight of land monopoly had not yet entered. "Claims" were made and when accompanied by such visible acts as indicated the good faith of the claim and the intention of occupancy, were always respected.

These immigrants, thus locating upon the public lands, though called not inaptly "squatters," were not, and were never regarded, either by the Government, by themselves or by the community of which they formed a part, as trespassers. The pre-emption acts of 1830, 1832, 1833 and 1834, although limited in the period of their operation which expired in June, 1836, encouraged such "squatting" as well as a just expectation that the pre-emption right would be revived, which, however, was not realized until the act of June 22, 1838, by which this right was extended for a further period of two years.

A community of interest and a spirit of justice which demanded that the pioneer immigrant should not be robbed of the fruits of his honest toil, gave to these squatters' claims all the practical security which belonged to a patent from the government, and as a consequence the inhabitants. pursued their ordinary avocations in peace and safety and devoted the same time and attention to the interests of the public as was the case in older communities.

In the last chapter was given in detail the features of the organic act of the Territory. The first appointments made by the President and Senate of the several officers provided for by that act were:

Governor-HENRY DODGE of Dodgeville, Wisconsin.
Secretary-JOHN S. HORNER of Virginia.

Chief Justice-CHARLES DUNN of Illinois.

Associate Judges- DAVID IRVIN of Virginia and WM. C. FRAZER of Pennsylvania.

country in 1836 is within the present recollection of the older persons of the present generation. The currency of the country, which consisted mainly of the notes of state banks, was abnormally expanded. The Receivers of the Land offices were authorized to receive the notes of many of the state banks in payment for the public lands, and appearances seemed to indicate that the entire body of the public domain would soon be exchanged for bank credits and paper money, and would be absorbed by speculators to the serious injury of actual settlers and emigrants.

In this condition of things, the specie circular, as it was called, of LEVI WOODBURY, Secretary of the Treasury, was issued by the direction of President ANDREW JACKSON, which had the effect to soon arrest the land speculating mania.

This circular was issued on the 11th July, 1836, and recited, that

"In consequence of complaints which had been made of frauds, speculations and monopolies in the purchase of the public land, and the aid which was said to effect these objects by excessive bank credits and through bank drafts and bank deposits, and in consequence of the general evil influence likely to result to the public interests, and especially the safety of the great amount of money in the Treasury, and the sound condition of the currency of the country from the further exchange of the national domain in this manner, and chiefly for bank credits and paper money;"

and then instructed the Receivers of Public Money,—

"After the 15th day of August next to receive in payment of the public lands nothing except what is directed by the existing laws, viz.: Gold and SILVER and in the proper cases Virginia land scrip; provided, that till the 15th day of December next the same indulgences heretofore extended, as to the kind of money received, may be continued for any quantity of land not exceeding three hundred and twenty acres, to each purchaser who is an actual settler or bona fide resident of the State when the sales are made."

The circular further stated that

"The principal object of the President in adopting this measure was to repress alleged frauds, and to withhold any countenance or facilities in the power of the Government, from the monopoly of the public lands in the hands of speculators to the injury of the actual settlers of the new States, and of emigrants in search of new homes, as well as to discourage the ruinous extension of bank issues and bank credits, by which those results are supposed to be prompted."

The specie circular, considered with reference to its effects subsequent to the time when it went into operation, produced all the beneficial results which had been hoped for it by General JACKSON, but so far as related to southwestern Wisconsin, embracing the present counties of Grant, Iowa, La Fayette, Dane, Green, and the west half of Rock and Columbia, its wisdom was analagous to that of the old adage of locking the stable after the horse was stolen. A very

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