I believe it began with the survey of the Northwest Territories. There were dispute going back to colonies about where the western boundaries were. The feds ordered a survey of the Northwest terr. After the survey they sold off parcels of land and retired the national debt which came out of the revolution war and thereafter,
I believe this was the model for subsequent territories and one of the reasons the income tax was not permanent until the 1900s after we ran out of new territories.
I would like to see a balanced budget amendment followed by a federal land sale off. Say 50% sold and 50% under state control. We may not retire the national debt, but we could pay it down by a few trillion.
It didn't work in the dry zone west. In order for it to work in the west, these parcels would have to be huge and Congress was not willing pass out large tracts of land..
So, instead the tracts remained small, and these other lands would be available so individuals could graze out onto the govt land.
Land was/is power
Good idea, as long as the feds don’t sell it to the Chinese, or other foreign interests. American citizens only.