are four grades of law in the United States. First and highest is
the United States Constitution; second, United States laws, or statutes
as they are called, passed by Congress; third, State constitutions; and
fourth, State laws, passed by the State legislatures. In case of
conflict of laws the lower must yield to the higher.

For the purpose of settling claims of private persons against the United
States, there has been established at Washington a Court of Claims, held
by five judges. From it appeals lie, in some cases, to the Supreme
Court, and, in others, they are referred to Congress for action.

CHAPTER XII.

The Ordinance for the Government of the Northwest Territory.

When the colonies joined in union under the Articles of Confederation,
in 1781, they ceded to the General government their claims to unoccupied
western territory. The largest land grant was that by the State of
Virginia, which occupied that part of the United States lying north of
the Ohio River and east of the Mississippi River.

The problem of management of public lands was thus early presented to
our Federal Government for solution. The manner in which Congress dealt
with this question has proven eminently wise and successful, and has
been largely influential in making the United States the nation that it
is to-day. The feature that has characterized the plan followed from the
beginning, and which still obtains, is the formation of States from such
territory as soon as there is sufficient population. Such States have
similar forms and powers of government as the original States, are on an
equal footing with them, and are bound by the Constitution of the United
States. Congress has absolute control of the Territories. (For
Territorial government see Article on Territories.)

The ordinance which the Continental Congress adopted in 1787 for the
government of the Northwest Territory is of great importance: it
provides for the establishment of our territorial system; it contains
many of those features of management which have been used from that date
until now; and it is also of interest because of the influence it has
had upon the history of slavery in our country.

This ordinance provided that the whole of this territory should form one
district. At first Congress appointed the governor, secretary, judges,
and military generals. The governor was to make the laws, subject to the
approval of Congress. When the population reached five thou