Realtor Income Exploration: Crowdsourced Funding for Agent Fees

Introduction:  

1797 was another eventful year for the United States. The XYZ Affair came out and it threatened to drag the country into a war with a former ally. It was also a year of invasions, although none of those directly involved the United States. The financial panic was still in full swing, and many Americans will be losing money in the next few years because of it. For our next Time Capsule, we will look at the events of 1798 and how those affected the real estate industry in the country. 

Three Key Points  

1. Organization of the Mississippi Territory: In April 1798, the Mississippi Territory was organized from lands that originally belonged to Spain. Under the Treaty of Madrid, Spain gave up its claims to those lands. The territory was created under an organic act that President Adams signed into law. By 1817, the western part of the territory will be admitted into the Union as the State of Mississippi with the remaining eastern half redesignated as the Alabama Territory. 

 2. Quasi-War: The XYZ Affair was such a scandal that it actually threatened to heat things up between the United States and France. The relationship between the former allies has been going downhill, particularly since the War of the First Coalition, during which France claimed that the United States should be fighting alongside it because of treatises between the two countries. 

Another major cause for the deterioration of the relations between the two was the suspension of the payment of loans incurred by the United States during the Revolutionary War. All those factors added up resulting in an undeclared naval war between the two countries. The war was fought in the Caribbean and the Eastern Coast of the United States. The conflict had a significant impact since it limited the ability of the United States to trade. 

 3. Treaty of Tellico: On October 2, 1798, the Treaty of Tellico was signed. This was a treaty between the Cherokee nation and the United States government. The treaty ceded lands to the United States government. The treaty was important because it facilitated the settling of lands, which otherwise might not be safe for settlers.  It was a promising step towards a peaceful understanding between the Native American tribes and Americans as represented by their government. Time will prove that it was all wishful thinking but at the time, there was reason to hope that there could be no bloodshed.

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Headline Real Estate News Stories in 1798

 The Quasi War which was the result of the deteriorating relationship between France and the United States was the biggest headline for the year. As the name suggests, it was an unofficial war between the two countries. Still, the conflict had a major effect on the economy of the country.

 What Historic Real Estate Events Shaped 1798?  

It was still the American Revolution that had the biggest influence on the things that happened in 1798. The Quasi-War happened mainly because of the actions taken by the United States government and France after the war. The U.S. government’s refusal to honor the loans incurred during the war and the XYZ Affair all piled up to the point where conflict was inevitable.  

Economic Factors, Supply, and Demand  

The undeclared war between the U.S. and France was the main thing that had an impact on the economy of the former. The fighting was a naval one and so it affected the maritime trade of the United States.  

Ironically, it was Great Britain that saved the United States from suffering the full impact of the fighting. The Royal Navy protected American merchant ships, allowing the small U.S. Navy to focus on fighting the French instead of guarding the country’s shipping. 

Government Policies and Interventions  

The Treaty of Tellico was a major boost to the availability of new land for settlers. By relinquishing and ceding lands, the Cherokee nation gave the United States more room to grow and additional space for settlers to come in. This would be an important factor when the flood of migrants from Europe would start to flow. 

This was also the year that the Act further to protect the commerce of the United States was approved by Congress. This act authorized the government to fight France on naval engagements, resulting in the limited Quasi War. 

Demographic Factors  

The next census would take place in 1800. There has been no major shift in the population of the country. The trickle of migrants would continue. 

Societal Preferences and Trends 

Very little has changed when it comes to societal preferences. At that time, there were few things to do for amusement even in the bigger American cities. One way that the more affluent citizens can entertain themselves is by hosting large dinners.  

For example, George Washington, who had just stepped down as president, hosted guests for dinner for 203 days in 1798.   

Technological Innovations  

Eli Whitney gets a contract from the United States government to supply 10,000 rifles with interchangeable parts. Although Whitney would meet delays in fulfilling the contract and the idea for firearms with interchangeable parts was not his own, this was an important step in building the eventual industrial prowess of the United States which would boost its economy. 

Environmental Factors  

With the gradual opening up of the rest of the continent through agreements such as the Treaty of Tellico, the interior of the continent with its vast forests and prairie will become open to explorers, settlers, and missionaries.  

Transportation and Infrastructure    

The Turner Falls Canal opens in Massachusetts. The canal was along the Connecticut River and was just one of the many built before the railroad. 

A lot of things happened in 1798 that would shape how the real estate industry of the United States would turn out eventually. Will 1799 be another eventful year? Check out our next Realty Time Capsule to find out. 

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

Quasi War

The Mississippi Territory