DISPOSAL OF THE PUBLIC LANDS
To turn this great domain with all its resources to the fullest service of the nation has been one of the greatest problems with which our government has had to deal. In the early part of our history various plans were tried by which to secure the occupancy and development of the agricultural lands by farmers, until in 1862 the first Homestead Act was passed by Congress.
About 10,000,000 acres of the public land were given to soldiers who fought in the Revolution and in the War of 1812 in recognition of then-service to their country. About 60,000,000 acres were later given to veterans of the Mexican War.
Until the year 1800 the plan in use for the disposition of the public lands was to sell large areas to colonizing companies, with the expectation that these companies would find settlers to whom they would sell the land in small quantities at a profit. This was not successful, as actual settlers found it difficult to get land they wanted at prices they could afford.
From 1800 to 1820 lands were sold in small areas ON CREDIT. Many bought more than they were able to pay for, and much land so disposed of had to be taken back by the government.
In 1820 a third plan was adopted: That of selling land for cash in any quantity to any purchaser. This led to speculation, individuals and companies of individuals buying recklessly, without intention of actual settlement, but with the purpose of selling again at a profit. This brought on a financial panic in 1837.
Then followed the "PREEMPTION" plan, by which actual settlers could "preempt" land (get the first right to it) by merely taking possession and paying a cash price of $1.25 an acre.
The Homestead Act of 1862 was an extension of the preemption plan; but instead of paying a cash price, the settler could acquire the land merely by living on it for a period of five years (now three) and paying fees of about $40.00.
HOMESTEAD ACTS
The Homestead Act, like earlier laws, made a direct appeal to men's desire to earn a living, to acquire property, and especially to own homes. It has been modified from time to time, but in all essentials it still remains in force and provides that any citizen of the United States who has reached the age of twenty-one, or who is the head of a family, may acquire a farm on condition of living upon it for a period of three years, cultivating the land and erecting a dwelling, and paying to the government a small fee. The size of the farm that he may so acquire varies according to the nature of the land, but the usual homestead on good agricultural land is limited to 160 acres.