Introduction
1788 was an eventful year for the United States and it saw important milestones for the real estate industry of the young nation. We saw a nation coming to its own. It was also the year when the first major move to expand the country outside of the thirteen colonies/states was made. For today’s Realty Time Capsule, we will be taking a look at the developments that will have an impact on the real estate industry of the United States for the year 1789.
Three Key Points
1. George Washington Becomes the First President: George Washington, riding on his popularity as a commanding general who won over the British Army was unanimously elected as the first president of the United States. This marks the change in the system of the government to a presidential one and will have a significant impact on the history of the United States and the everyday lives of Americans.
2. Establishment of Fort Washington: Fort Washington was founded in what is now the city of Cincinnati. Named after George Washington who was elected president, the fort served as a main staging area for the settling of the Northwest Territory. The fort itself did not last long because it was moved across the river into what is now known as Newport, Kentucky. For the few years that it was in use, Fort Washington was crucial for settling the new territories. It was vital in resupplying all the northern forts and was the base of operations for the troops that were trying to protect the settlers.
3. Treaty of Fort Harmar: The Treaty of Fort Harmar was between the government of the United States and the various Native American tribes that have claims to the land covering the newly established Northwest Territory. The new treaty was supposed to fix the problems raised by the Treaty of Fort Stanwix and the Treaty of Fort McIntosh. However, the Treaty of Fort Harmar failed in that goal resulting in the Northwest Indian War and a victory for the United States government. Although it mainly failed in its primary goal, the Treaty of Fort Harmar was another step in settling the Northwest Territory.
Headline Real Estate News Stories in 1789
Without a doubt, the biggest headline for 1789 was the election and inauguration of George Washington as the first President of the United States. This also marked the change from the form of government to a presidential one and the adoption of the Constitution. Although that is not real estate news specifically, these are fundamental changes that continue to shape the nation.
What Historic Real Estate Events Shaped 1789?
Like the years before it, 1789 was shaped by the Revolution, which was still an ongoing thing. The surrender of the British forces was, technically, not the end of the process initiated by the thirteen colonies. The adoption of the new Constitution was the formal conclusion of that revolution. Generally, that was the historic event that changed everything but historic actions like the establishment of the Northwest Territory shaped how 1789 would turn out.
Economic Factors, Supply, and Demand
The United States was undergoing a depression during this period. That started during the start of the conflict against Great Britain. It continued because of the lack of opportunities caused by the fighting and the loss of trade with the British Empire. The economy was so small back then that by 1789, there were only three banks in the country.
Government Policies and Interventions
The main government policy during this year would be the new Constitution, which has an impact on all aspects of everyday life. There are no new laws that have a direct impact on the real estate industry back then.
Demographic Factors
The population of the United States back then was just under 4 million. A vast majority of these lived in the rural areas and they will be the ones to drive the westward expansion of the country.
Societal Preferences and Trends
Societal trends back then saw people living off small farms where they were mostly self-sufficient. For the small items which were they were unable to produce on their farms, people tended to barter. To own land was the main societal trend back then and the impression was that America had a limitless supply of rich lands that were waiting for those brave enough to cultivate them.
Environmental Factors
Most of the new territory that was being prepared for settlement was filled with forests. A significant part of those lands will have to be cleared for those to be used agriculturally.
Transportation and Infrastructure
Horseback was still the fastest way to travel back then. There was yet to be a massive infrastructure that would cater to the traveling needs of common people. Traveling from one place to another was a major undertaking even though the distance might seem insignificant to our standards by now.
That’s our Realty Time Capsule for the year 1789. The country is still reeling from the effects of the Revolution, which has just concluded with the inauguration of George Washington and the adoption of the new Constitution. Finally, the country is ready to move on and take on new challenges that would allow it to take on its full destiny.
For a deeper understanding and look into these topics check out these titles:
George Washington: “To Rescue the Constitution: George Washington and the Fragile American Experiment” by Bret Baier
Northwest Territory: “The Boundaries Between Us: Natives and Newcomers along the Frontiers of the Old Northwest Territory, 1750–1850” by Daniel Barr
