to something less than ten. Finally he found it necessary to allow a number of prominent citizens, in and out of Congress, to take part in another speculation scheme, in which some five million acres were involved.

Before the deal could be closed, the form of government had to be mapped out, so in less than a week, Congress settled down and passed the famous Ordinance of 1787. According to this the territories would pass through certain definite stages of development. First of all there would be a temporary government, with the officials all appointed by Congress. These were to be a governor, a secretary, and three judges, who might adopt any laws of any of the thirteen states which seemed to fit frontier conditions. So, although there was no provision for self-government at this early stage, the settlers would be guarded from tyrannical legislation.

The second stage would begin when the territory had five thousand free adult males in its population. These men, duly qualified as voters, could elect a local legislature, to take charge of making laws. The territory might also send a delegate to Congress, with the privilege of taking part in the debates, but not in the voting.

When the total population reached the sixty thousand mark, the territory might be admitted as a state. Incidentally, in all these territories the Ordinance provided that there should be neither slavery nor involuntary servitude.

Although the section of the Ordinance which prohibited slavery has attracted no little attention, it was not the more important part of the document itself. Slavery had not become a lively issue in those days, and there were none of the high lights of genuine abolitionism visible in 1787. Jefferson had suggested a prohibitory section in his plan of 1784. In fact, the hint was made at the time that in voting for the nonslavery principle, some southern members of Congress may have done so to deprive the Northwest of the advantages of slavery, and by so doing to prevent it from becoming a competitor of the South. In any case in the greater part of the old Northwest, climatic and agricultural conditions were unfavorable to slavery, so it would probably have taken no firmer hold there than it did in New York or New England. In southern Illinois, in spite of the prohibitory section, slavery existed until the Civil War.

The significant parts of the Ordinance are those dealing with the main question, that of government for the new regions. What Con

gress really did was to establish an unusually satisfactory colonial system. The new settlements on the frontier were to be given a period of apprenticeship in self-government as it were, during which, as wards of the nation, they could be trained to follow courses similar to those taken by the older states. Then, instead of looking forward permanently to an inferior position, they were encouraged to prepare for actual admission into the Union, on terms of equality with the other states. This was the new principle, and it is probably the key to the success of the experiment. The main features of the Ordinance were subsequently applied to the new acquisitions of territory, and they have proved to be big factors in the growth of the nation. As dependencies of the federal government the newer states, in time the bulk of the nation, tended to look to the central authorities as the authors of their being, and so they avoided the extreme particularism of many of the older states. Also, because they all had approximately the same sort of early training, state institutions came to have remarkable uniformity. Both these factors were instrumental in creating a strong national spirit.

Cutler's contribution to the Ordinance seems to have been, not authorship, but inspiration. He furnished the incentive which drove other men to work. It is hard to tell who was really responsible for the document. Many of its provisions had been under discussion for several years, so they were common property, and the author was little more than an able compiler. Probably Nathan Dane had more to do with form and phraseology than any one else, and the credit may as well go to him. He and Cutler therefore would have the distinction of turning out one of the greatest of all American laws.

Thus, in face of the utterly discouraging situation in the Northwest, unfairly barred from possession by sheer force, the Americans were able to make out a constructive program for the future. The easiest course would have been to wait at least until there was a prospect of the withdrawal of the British garrisons, but fortunately they went on, for practical purposes, as though they could occupy the region at will. That they could do this was a genuine tribute to American courage and idealism, especially so at this time, when the United States had experienced nearly all the disappointments which may come to a nation.

CHAPTER XXI

PROBLEMS OF READJUSTMENT

Although the problems of the frontier were troublesome enough to have tried the abilities of any statesmen, no matter how able, the Americans were not left to suffer with those alone. Everything in fact seemed to be taking distinctly a turn for the worse, making the period of reconstruction more burdensome in some respects than the war itself had been.

All these problems together, including of course those just described, make up what Fiske aptly called the "critical period." Like all wars, the Revolution had been responsible for a good deal of disintegration, political, social, and economic. On the human side, while it called out in some the qualities of self-sacrifice and heroism, it stimulated in others the traits of greed and all-round selfishness. At the same time it led to unusually loose thinking on public issues, and to a noticeable tendency to elevate some of the least fit to positions of high responsibility, largely because they had the knack of making an effective noise.

Before the Revolution had started, American leaders had been fond of indulging in the most optimistic prophecies concerning the coming greatness of their country, and there was ample justification for their unbounded faith. There was not a nation in the world with greater potential advantages. Although the total population numbered only about three and a half million, the land beyond the Alleghenies afforded room for fully twenty times as many. This growth too could take place without meeting any pressure from outside powers. The wide range in climate and varieties in soil guaranteed a diversified agriculture, amply sufficient to meet all possible needs. To the civilization of that day the forest resources seemed inexhaustible, and there was a wealth in other natural resources, undreamed of at the time, destined to make the United States one of the greatest industrial nations of the world.

There is no doubt that the prosperity of the colonies had depended entirely upon a highly successful commerce. Farmers, fishermen,

fur-traders, lumbermen, all relied upon foreign markets for their profits. The complete disorganization of trade during the war had been taken as one of the consequences inseparable from conflict; after it was over, the losses could easily be made good. Moreover, if the Americans had done so well with their commerce as wards of Great Britain, their superior ability would bring genuine triumphs once they were in full control of their own destinies.

COMMERCE

This had been one of the most loudly proclaimed promises of the Revolutionary orators and committeemen. Once free from the Navigation Acts, they could offer trade to all the world, and in their optimism they really expected the world to come to them. Out of the frustration of this hope came either directly or indirectly much of the hardship and most of the discontent of the period. It soon became clear that European nations were no more favorable to American trade after the Revolution than before. The eighteenth century commercial monopolies still existed, and not even France offered concessions enough, at this time, to give any impetus to American shipping. More than that, the United States found itself outside the British monopoly, which had brought so much prosperity in spite of its restrictions. (See Chapter VIII.)

After the Revolution, as before, the bulk of American foreign commerce was with England, and the Navigation Acts worked an obvious hardship. Unwilling to face the strict logic of the situation, the Americans complained bitterly when they found this trade placed under restriction, along with that of all foreign nations. The British regulations permitted unmanufactured goods, with few exceptions, and naval stores to come into England. These might be carried either in British or American ships, in accordance with the custom when the states were colonies. American tobacco destined for Europe could be brought to England and stored there free of any duty. This opportunity seemingly offered to American vessels was in reality almost worthless, because of the impossibility of getting a return cargo. Commodities going from England to America were regularly carried in English ships.

To the West Indies, nothing but tobacco, provisions, and naval stores could be exported from the United States, and these only in British vessels. No West Indian commodities could be taken from

the islands in American vessels. Thus the West Indian trade, one of the most important and lucrative branches of American commerce, was cut off as a result of the war. In the case of Canada, no importation of American goods was permitted, except under special arrangements, as in the case of Vermont, and no American ship could take part in Canadian trade.

The British government had imposed practically these same restrictions on all foreign shipping before the war, so there was nothing new in principle here. The only difference was that the Americans had shared in the benefits; now, by their own choice and action, they had placed themselves outside the system. After the manner of human beings, having eaten their cake, they complained when it disappeared.

Congress had no authority to regulate trade, but the individual states took up the matter of retaliatory legislation. Three of the New England states, Massachusetts, New Hampshire, and Rhode Island, prohibited British vessels to load any American commodities. Other states imposed heavy tonnage duties on British vessels, while still others imposed double tariff duties on British cargoes. But because there was no uniformity in the policy it was never effective; some one state, usually Connecticut, would welcome all British shipping, duty free.

Because of the value to both countries of Anglo-American commerce, this combination of British restrictive and state retaliatory acts created an impossible situation. Ninety per cent of American imports came from Great Britain, and however anxious the British authorities were to reap all the advantages from their own trade, they could not sacrifice such a market. Nor could the Americans afford to stop buying merely to punish England. Something had to be done, otherwise political independence threatened to sweep the country into economic ruin.

This brief description of the commercial situation goes far to explain the economic crisis which helped to make this a critical period. The old lines of commerce seemed to be completely thrown out of joint, and it took time, either to restore them or to build up new ones. Being ambitious and resourceful, the Americans tried to do both. Reports were current of enterprising American merchant vessels operating in the Far East, and in the Scandinavian ports. By 1789 a definite measure of recovery had taken place.