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The Ordinance of 1787 set up the machinery for the organization of territories and the admission of states. Its terms prohibited slavery in the Northwest Territory, encouraged free public education, and guaranteed religious freedom and trial by jury. The Ohio Company of Associates, the most active force in early colonization, was followed by later companies that brought settlers into the territory.
British traders, however, opposed American expansion, and the Native Americans were also hostile to their encroachment. A series of campaigns against the indigenous tribes culminated in 1794, when Gen. Anthony Wayne won an American victory at Fallen Timbers; his victory was solidified by the Greenville Treaty of 1795. Meanwhile, Jay's Treaty and subsequent negotiations smoothed out some of the British-American difficulties. The Northwest posts were transferred to Americans in 1796, although British influence remained strong among the Native Americans.
Settlers poured into the southern part of the Territory, and in 1799 a legislature was organized. In 1800 the western part was split off as Indiana Territory, and by 1802, the eastern portion was populated enough to seek admission as a state; it was admitted as Ohio in 1803. Other territories were then formed : Michigan in 1805, Illinois in 1809, and Wisconsin in 1836.
The surviving British traders, however, wanted the Northwest set aside as Native American land, and continued unrest led Tecumseh and Shawnee Prophet to seek a permanent foothold for the Native Americans. Some western Americans, meanwhile, sought to extend the Northwest to Canada. The quarrel over the Northwest was a major cause of the War of 1812. The Treaty of Ghent (see Ghent, Treaty of), which ended the war, solved the problem of the Northwest. Despite opposition from British merchants in the region, Great Britain irrevocably gave the Northwest to the United States.
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