Owing to the vague and undefined boundaries given by the British government to its original colonies on the Atlantic slope, several of the thirteen States claimed that their territory extended out into the Northwest; but finally all these claims were surrendered to the general government, in order that there might be formed a national domain, from which to create new States. By the famous Ordinance of 1787, Congress created the Northwest Territory, which embraced the wide stretch of country lying between the Great Lakes and the Ohio and the Mississippi rivers. The present Wisconsin was a part of this great territory.

In the year 1800 Indiana Territory was set off from the rest of the Northwest Territory, and took Wisconsin with it. Nine years later Illinois Territory was formed, Wisconsin being within its bounds. Nine years after that, when Illinois became a State, all the country lying west of Lake Michigan was given to Michigan Territory; thus was the ownership of Wisconsin once more changed, and she became a part of Michigan.

By this time settlers were coming into the region west of the lake. There had long been several little French villages; but, in addition to the French, numerous American farmers and professional men had lately arrived. The great distance from Detroit, at a time when there were no railways or telegraphs, was such as to make it almost impossible to carry on any government here. Hence, after a good deal of complaint from the frontiersmen living to the west of Lake Michigan, and some angry words back and forth between these people and those residing east of the lake, Congress was induced, in 1836, to erect Wisconsin Territory, with its own government.

Thus far, this region beyond Lake Michigan had borne no particular name. It was simply an outlying part of the Northwest Territory; or of the Territories of Indiana, Illinois, or Michigan, as the case might be. But, now that it was to be a Territory by itself, a name had to be adopted. The one taken was that of its principal river, although "Chippewau" was preferred by many people. Wisconsin is an Indian name, the exact meaning of which is unknown; some writers have said that it signifies "gathering of the waters," or "meeting of the waters," but there is no warrant for this. The earliest known French form of the word is "Misconsing," which gradually became crystallized into "Ouisconsin." When the English language became dominant, it was necessary to change the spelling in order to preserve the sound; it thus, at first, became "Wiskonsan," or "Wiskonsin," but finally, by official action, "Wisconsin." The "k" was, however, rather strongly insisted on by Governor Doty and many newspaper editors, in the days of the Territory.

The first session of the legislature of the new Territory of Wisconsin was held at the recently platted village of Belmont, in the present county of Lafayette. The place of meeting was a little story-and-a-half frame house. Lead miners' shafts dimpled the country round about, and new stumps could be seen upon every hand. There were many things to be done by the legislature, such as dividing the Territory into counties, selecting county seats, incorporating banks, and borrowing money with which to run the new government; but the matter which occasioned the most excitement was the location of the capital, and the bitterness which resulted was long felt in the political history of Wisconsin.

A month was spent in this contest. The claimants were Milwaukee, Racine, Koshkonong, Fond du Lac, Green Bay, Madison, Wisconsinapolis, Peru, Wisconsin City, Portage, Helena, Belmont, Mineral Point, Platteville, Cassville, Belleview, and Dubuque (now in Iowa, but then in Wisconsin). Some of these towns existed only upon maps published by real estate speculators.

Madison was a beautiful spot, in the heart of the wild woods and lakes of central southern Wisconsin. It was unknown save to a few trappers, and to the speculators who had bought the land from the federal government, and thought they saw a fortune in inducing the legislature to adopt it as the seat of government. Madison won, upon the argument that it was halfway between the rival settlements on Lake Michigan and the Mississippi, and that to build a city there would assist in the development of the interior of the Territory.

When Madison was chosen, a surveyor hurried thither, and in a blinding snowstorm laid out the prospective city. The village grew slowly, and it was November, 1838, before the legislature could meet in its new home.