Realtor Income Exploration: Crowdsourced Funding for Agent Fees

Introduction

In our previous Time Capsule, we saw the creation of the Southwest Territory. This was the culmination of the dreams and efforts of people from North Carolina. This was just one major step that was needed to expand the land of the United States, which eventually boosted the real estate industry of the country. Today, we will be going through the year 1791 and the events that helped shape America’s real estate future.

Three Key Points

1. First Bank of the United States Is Chartered: The First Bank of the United States was chartered in February of 1791. It followed the Bank of North America which was chartered ten years earlier as the national bank of the United States. These two banks did not act as modern-day central banks however in that they did not set monetary policies. They acted as national banks by operating in multiple states and lending to the U.S. government. The founding of the bank marked a major development in the financial system of the country which is integral to the real estate industry.

2. Founding of California Missions: Missions Santa Cruz and Mission Nuestra Señora de la Soledad were founded in California. Those were the 12th and the 13th missions in the future state. At that time, California was still under the Spanish crown and the missions were part of an effort to Christianize the Native American population in the area. The establishment of missions in the area was a crucial part of the development of the area and would help in the eventual settlement of the future state.

3. The Establishment of the District of Columbia: Washington D.C. was formally established on March 30, 1791. It was created to be the seat of the Federal government and is not part of any state. The establishment of the capital was not only significant politically but was also a milestone for the real estate industry of the country because the capital would draw in people to it.

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Headline Real Estate News Stories in 1791

The most significant real estate headline for 1791 was the establishment of Washington D.C. as the capital of the United States. It would take decades before the city was actually ready for people to move in and have an impact on the real estate market but its establishment was very significant.

What Historic Real Estate Events Shaped 1791?

The decision to place the capital city of the United States along the Potomac and to establish a totally new city instead of choosing existing cities such as New York or Philadelphia was a historic choice that would shape the real estate of the federal district.

Economic Factors, Supply, and Demand

The establishment of the First Bank of the United States was a promising indicator of the economic condition of the country. It indicated that the economy was starting to develop and recover from the ravages caused by the war for independence.

The Secretary of the Treasury, Alexander Hamilton presented a report to Congress regarding the promotion of manufacturing in the country. “The expediency of encouraging manufactures in the United States, which was no long since deemed very questionable, appears at this time to be pretty generally admitted,” according to the report.

Government Policies and Interventions

The law that established the First Bank of the United States was significant because it helped develop the financial sector of the country, which would work hand in hand with the real estate industry.

Demographic Factors

The census which was just taken in the previous year indicated that there were almost 4 million Americans, although authorities believe that the number was inaccurate because of the flawed system of gathering the data. The majority of the population lived outside of urban centers of which there were few.

Societal Preferences and Trends

Nothing much has changed with the societal trends for the year. People still tend to live off farms where they produce most of their needs. However, the urban centers were starting to develop.

Environmental Factors

In 1791 some parts of the country suffered from drought. This was particularly recorded in Vermont where the family of James Madison recorded 89 precipitation events for the year. That was 25% less than the previous. Drought would be a problem for many parts of the country in the years to come.

Transportation and Infrastructure

The Schuylkill and Susquehanna Navigation Company was established in Pennsylvania. The company was founded to improve the river navigation system. This highlights the importance of river transport in the early years of the United States.

That’s our 1791 Realty Time Capsule. Look out for our next article to read about the real estate history of the United States. It’s going to be an exciting ride as the nation starts to expand and gain strength.

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For a deeper understanding and look into these topics check out these titles:

History of Washington D.C.:

California Missions: