History: American Old West, United States

• Federal land system
In acquiring, preparing, and distributing public land to private ownership, the federal government generally followed the system set forth by the Land Ordinance of 1785. Federal exploration and scientific teams would undertake reconnaissance of the land and determine Native American habitation. Through treaty, land title would be ceded by the resident tribes. Then surveyors would create detailed maps marking the land into squares of six miles (10 km) on each side, subdivided first into one square mile blocks, then into 160-acre (0.65 km2) lots. Townships would be formed from the lots and sold at public auction. Unsold land could be purchased from the land office at a minimum price of $1.25 per acre.
In theory, the system would provide a fair distribution of land and reduce large accumulations of land by private owners. In reality, speculators could exploit loopholes and acquire large tracts of land. There was no limit to purchases of the unsold land by speculators. Furthermore, settlers often got to the land ahead of the surveyors and became squatters, living on land they held no title to.
As part of public policy, the government would award public land to certain groups such as veterans, through the use of "land script". The script traded in a financial market, often at below the $1.25 per acre minimum price set by law, which gave speculators, investors, and developers another way to acquired large tracts of land cheaply. Land policy became politicized by competing factions and interests, and the question of slavery on new lands was contentious. As a counter to land speculators, farmers formed "claims clubs" to enable them to buy larger tracts than the 160-acre (0.65 km2) allotments by trading among themselves at controlled prices.