Land ownership The Northwest Ordinance of 1787 established the concept of
fee simple ownership by which ownership was in perpetuity, with unlimited power to sell or give it away. That was called the "first guarantee of freedom of contract in the United States."
Abolition and transfer of state claims Passage of the ordinance, which ceded all unsettled lands to the federal government and established the
public domain, followed the relinquishing of all such claims over the territory by the states. The territories were to be administered directly by Congress, with the intent of their eventual admission as newly created states. The legislation was revolutionary in that it established the precedent for new lands to be administered by the central government, albeit temporarily, rather than under the jurisdiction of the individually-sovereign original states, as under the Articles of Confederation. The legislation also broke colonial precedent by defining future use of the natural navigation, transportation and communication routes. It did so in a way that anticipated future acquisitions beyond the Northwest Territories and established federal policy. Article 4 stated: "The navigable waters leading into the Mississippi and
St. Lawrence, and the carrying places between the same, shall be common highways and forever free, as well to the inhabitants of the said territory as to the citizens of the United States, and those of any other States that may be admitted into the confederacy, without any tax, impost, or duty therefor."
Admission of new states The most significant intended purpose of the legislation was its mandate for the creation of new states from the region. It provided that at least three but not more than five states would be established in the territory and that once such a state achieved a population of 60,000, it would be admitted into representation in the Continental Congress on an
equal footing with the original thirteen states. The first state created from the Northwest Territory was
Ohio in 1803, and the remaining territory was renamed
Indiana Territory. The other four states were
Indiana,
Illinois,
Michigan, and
Wisconsin. A portion (about a third) of what later became
Minnesota was also part of the territory.
Education The 1787 ordinance encouraged education, stipulating that "Religion, morality and knowledge being necessary to good government and the happiness of mankind, schools and the means of education shall forever be encouraged." This built on the 1785 ordinance, which had specified that each township should set aside land that would be rented out to support public schools. In 1786,
Manasseh Cutler became interested in the settlement of western lands by
American pioneers to the Northwest Territory. The following year, as agent of the
Ohio Company of Associates, which he had been involved in creating, he organized a contract with Congress whereby his associates, former soldiers of the Revolutionary War, might purchase of land at the mouth of the
Muskingum River with their Certificate of Indebtedness. Cutler also took a leading part in drafting the Ordinance of 1787 for the government of the Northwest Territory, which was finally presented to Congress by Massachusetts delegate
Nathan Dane. For the smooth passage of the Northwest Ordinance, Cutler bribed key congressmen by making them partners in his land company. By changing the office of provisional governor from being elected to appointed, Cutler was able to offer the position to the president of Congress, Arthur St. Clair. In 1797, settlers from
Marietta traveled upstream via the
Hocking River to establish a location for the school and chose
Athens for its location directly between
Chillicothe and Marietta. Originally named in 1802 as the American Western University, the school never opened. Instead,
Ohio University was formally established on February 18, 1804, when its charter was approved by the Ohio General Assembly. Its establishment came 11 months after Ohio was admitted to the Union. The first three students enrolled in 1809. Ohio University graduated two students with bachelor's degrees in 1815.
Establishment of territorial government While the population of free, male inhabitants of a territory was less than 5,000, there would be a limited form of government: a governor, a secretary, and three judges, all being appointed by Congress. The governor, appointed for a three-year term and given a "freehold estate therein, in one thousand acres of land," would be the commander-in-chief of the militia, appoint magistrates and other civil officers, and help create and publish laws. The secretary, appointed for a four-year term and given a similar freehold estate as the governor but of five hundred acres, would be in charge of keeping and preserving the acts and laws passed by the territorial legislatures, keep the public records of the district, and transmit authentic copies of such acts and proceedings every six months to the secretary of the Continental Congress. Three judges, who would be appointed indefinitely "during good behaviour" and be given the same freehold as the secretary, would be in charge of helping the governor create and pass acts and laws and in making official court rulings. Once the population of a territory reached 5,000 free, male inhabitants, it would receive the authority to elect representatives from counties or townships to a territorial general assembly. For every 500 free males, there would be one representative until there were 25 representatives. Then, Congress would control the number and proportion of the representatives from that legislature. No male could be a representative unless he was a
citizen of the United States for at least three years or lived in the district for three years and owned at least 200 acres of land within the same district. The representatives would serve for a term of two years. If a representative died or was removed from office, a new one would be elected to serve out the remaining time.
Establishment of natural rights The
natural rights provisions of the ordinance foreshadowed the
Bill of Rights, the first ten amendments to the
U.S. Constitution. The language of the ordinance prohibits slavery but also contains a clear fugitive slave clause. An attempt to add limited slavery to the proposed constitution of Ohio in 1802 was defeated after a major effort led by Ephraim Cutler, who represented Marietta, the town founded by the Ohio Company. Efforts in the 1820s by proponents of slavery to legalize slavery in two of the states (Illinois and Indiana) created from the Northwest Territory failed, but an "
indentured servant" law allowed some slaveholders to bring slaves under that status who could not be bought or sold. Southern states voted for the law because they did not want to compete with the territory over tobacco as a commodity crop since it was so labor-intensive that it was grown profitably only with slave labor. Also, slave states' political power would be merely equalized since there were three more slave states than there were free states in 1790. The
Thirteenth Amendment, ratified in 1865, which outlawed slavery throughout the United States, quotes verbatim from Article 6 of the Northwest Ordinance.
Effects on Native Americans In two parts, the Northwest Ordinance mentions the
Native Americans within the region. One pertains to the demarcation of counties and townships out of lands that the Indians were regarded as having lost or relinquished title: The other describes the preferred relationship with the Indians: Many Native Americans in Ohio who were not parties refused to acknowledge treaties signed after the Revolutionary War that ceded lands north of the Ohio River inhabited by them to the United States. In a conflict sometimes known as the
Northwest Indian War,
Blue Jacket of the
Shawnees and
Little Turtle of the
Miamis formed a confederation to stop white expropriation of the territory. After the Indian confederation killed more than 800 soldiers in two battles, the worst defeats ever suffered by the United States in conflicts with Indigenous nations, U.S. President
George Washington assigned General
Anthony Wayne command of a
new army, which eventually defeated the confederation and allowed
European Americans to continue to settle the territory. ==Commemoration==