By setting the price of public lands at prices too high for most settlers, wealthy speculators were favored in the land ordinance of 1785 over ordinary settlers.
The United States Congress of the Confederation adopted the Land Ordinance of 1785 on May 20, 1785. This setup a standardized system where titles to farmland in the undeveloped west could be purchased by settlers.
The US Congress of the Confederation adopted the Land Ordinance of 1785 on 20th May 1785. As continental congress was unable to tax citizens, so it decided to sell the land of the unmapped territory of the west for raising money. The ordinance acted as the land policy until the Homestead Act was passed in 1862, according to the ordinance the land had to be divided into townships of thirty-six sections, each one of which was of 640 acres. The section was sold to land speculators and the settlers. It helped in getting the funding for public education by reserving the sixteenth section of each township for the maintenance of public schools. Some sections were also reserved for compensating the revolutionary war. <em>The main issue with this ordinance was that the price of land was too high and it favored the wealthy settlers. The terms for the sale were that 640-acres section were to be sold at the section for more than one dollar per acre. Poor settlers couldn't pay that amount.</em>
