hio
and east of the Mississippi were brought within similar regulations, and
an act was passed concerning the country acquired under Spanish and
British grants. In the same month Louisiana was erected into two
territories. The sums received from the sales during the first term of
Jefferson's administration amounted to little more than one million of
dollars. In January, 1805, the territory of Indiana was divided into two
separate governments; that one which was set off received the name of
Michigan, and in 1808, its territory was brought under the regulations
of the land office.

The sums received from the sales in the second term of Jefferson's
administration reached nearly two and one half millions of dollars, and
in Madison's first term, nearly three millions of dollars. From first to
last Mr. Gallatin never lost sight of the subject, though occasion did
not serve for more than organization of the system which, in the four
years ending 1836, yielded nearly fifty million dollars, and paid more
than one third of the entire expenses of the government. To John W.
Eppes[18] Mr. Gallatin wrote in the crisis of 1813, "The public lands
constitute the only great national resource exclusive of loans and
taxes. They have already been mentioned as a fund for the ultimate
extinguishment of the public debt." The land offices were then in full
operation.

In 1810 Mr. Gallatin prepared an "Introduction to the collection of
laws, treaties, and other documents respecting the public lands," which
was published pursuant to an act of Congress passed in April of that
year.

_Free Trade_

While Mr. Gallatin differed from his early Republican associates in many
of their theories of administration, he was a firm believer in the best
of their principles, namely, the wisdom of giving free scope to the
development of national resources with the least possible interference
on the part of government. One of his purposes in his persistent desire
for economy in expenditure was to reduce the tariff upon foreign
importations to the lowest practicable limit. He was the earliest public
advocate in America of the principles of free trade, and an experience
of sixty years confirmed him in his convictions.

The extinguishment of the debt rendered a great reduction in the revenue
possible. On the other hand, it brought the friends of a low tariff face
to face with the problem of internal improvements. As the election of
1832 drew near, the advocat