Realtor Income Exploration: Crowdsourced Funding for Agent Fees

Introduction:  

1795 was a promising year for the United States. It was a year of treaties, and those agreements allowed the United States government to expand itself without having to resort to conflict. We also discussed the events that happened in Hawaii at that time, which was not part of the United States yet. The country is undergoing so many changes so things would not be so different for our 1796 Realty Time Capsule.  

Three Key Points  

1. Ratifications of the Jay Treaty: The British government ratified the Jay Treaty on February 29, 1796. That was also the same date that the two ratifications were formally exchanged. As mentioned in our previous Time Capsule, the Jay Treaty aimed to resolve the issues between the two countries that the Treaty of Paris had not been iron. The most direct impact of the Treaty was the withdrawal of British forces from the Great Lakes region, particularly from the forts they refused to give up even after the Treaty of Paris was signed. With the treaty taking effect, the United States gained greater control over its territory, paving the way for more settlers to move into untapped regions.   

 One of the main results of the Jay Treaty taking effect was the taking over of Detroit from the British. Detroit was just a settlement built around a fort on the north bank of the Detroit River. It was far from the massive industrial city that it would become in the 20th Century. In fact, by 1805, the population of Detroit was merely 600 residents.  

 2. The Land Act of 1796: The Land Act of 1796 was a law that sought to encourage settlement in the Northwest Territory through the encouragement of the purchase of land there. The minimum area that can be purchased was 640 with a minimum price of $2 per acre. It played an important role in getting settlers into the area. 

 3. Panic of 1796–1797: The Panic of 1796–1797 was not a single event but a series of downturns in the credit markets of both Great Britain and the United States. These series of downturns affected the broader economy of both countries. The problem started when the land speculation bubble burst. A speculative bubble is an unusual increase in value that does not follow fundamentals caused by too much speculation. In this case, too much speculation led to a boost in the prices of land. Unfortunately for Americans, that was not the last time that they would see a land speculation bubble.  

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Headline Real Estate News Stories in 1796  

The ratifications and the taking effect of the Jay Treaty was the event for that year that had the most lasting impact on the history of the United States and its real estate industry. It meant that lands and territories could not be readily settled because of the presence of British forces in the area. The final withdrawal of the British military from the Great Lakes area meant that more land was available for settlers. The treaty also fostered trade between the United States and the British Empire with both sides needed it at the time.  

What Historic Real Estate Events Shaped 1796?  

The American Revolution ultimately shaped the events that took place in 1796. The ending of the hostilities did not resolve the issues of the border between the new country and the remaining British possessions in North America. This resulted in years of tension between the two sides, and an official treaty needed to be negotiated for those issues to be resolved.  

In the same vein, the Panic of 1796 was the result of land speculation that started after the Revolutionary War. Unfortunately, that was not the last time in history that Americans would suffer from the bursting of a land speculation bubble.  

Economic Factors, Supply, and Demand  

The Panic of 1796-1797 seriously affected the American economy. The most affected were the American port cities with many prominent merchants collapsing in the aftermath of the panic. The resulting collapse of business also revealed how the young United States was interconnected with Great Britain and the rest of Europe regarding the economy. 

The resulting problem of many debtors being unable to meet their obligations also resulted in the passing of the Bankruptcy Act of 1800, which although not renewed a few years later, was a move against the imprisoning of debtors.  

Government Policies and Interventions  

The implementation of the agreements of the Jay Treaty was the most significant government policy implementation of 1796. It finally determined the borders between the United States and the remaining British possessions in North America allowing lands that were previously unavailable to settlers to be utilized.  

Demographic Factors  

By 1796, the population of the United States was around 4.6 million spread around 16 states. 

Societal Preferences and Trends  

1796 was a presidential election year. George Washington refused a third term. John Adams won the election and Thomas Jefferson, who lost, became the Vice President.  

Technological Innovations  

Although it wasn’t developed in the United States, the vaccine was invented in 1796 by Edward Jenner. The invention remains to be one of the most important medical discoveries in history. It gave humanity a fighting chance against diseases like smallpox.  

Environmental Factors  

A large part of what is known as the United States by 1796 was still covered in forests. A French naturalist visiting the country in the same year noted that having a universal forest is the “almost universal forest” and he noted that he hardly traveled a stretch of land that was three miles long and was not covered by forest.  

Transportation and Infrastructure

1796 was also the year that the Treaty of Tripoli was signed. This was a treaty between the United States government and the Subjects of Tripoli of Barbary. The main aim of the treaty was to protect American ships and American citizens in the Mediterranean Sea from the Barbary pirates.  

1796 was a very eventful year for Americans back then. They got a new president and a full-blown financial panic on their hands. Hopefully, you learned a thing or two from our Realty Time Capsule. Our next stop would be 1797 and why that year is significant for the real estate industry of the United States. 

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

Presidential election of 1796:

The Jay Treaty: