[Ben Ficklin]

When you say the Northwest Territories I think you are meaning Mich, Wisc, Ohio, Ill, and Indiana. The methods they used there worked fine because that was in the wet zone and settlers could make a living off those size lands.

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

[morphing libertarian]

Yes, I did not address the size of lots etc, but the method was used throughout the 1800s IIRC.