The Confederation seemed to be falling to pieces. That it did not actually fall to pieces was largely due to the fact that all the states were interested in the settlement of the region northwest of the Ohio River. It will be well to stop a moment and see how this came about. Under their old charters Massachusetts, Connecticut, Virginia, Carolina, and Georgia had claims to lands west of the Alleghanies. Between 1763 and 1776 the British government had paid slight heed to these claims (pp. 75, 89). But Daniel Boone and other colonists had settled west of the mountains in what are now the states of Kentucky and Tennessee. When the Revolution began the states having claims to western lands at once put them forward, and New York also claimed a right to about one-half of the disputed territory. Naturally, the states that had no claims to these lands had quite different views. The Marylanders, for example, thought that the western lands should be regarded as national territory and used for the common benefit. Maryland refused to join the Confederation until New York had ceded her claims to the United States, and Virginia had proposed a cession of the territory claimed by her.

In 1784 Virginia gave up her claims to the land northwest of the Ohio River with the exception of certain large tracts which she reserved for her veteran soldiers. Massachusetts ceded her claims in 1785. The next year (1786) Connecticut gave up her claims. But she reserved a large tract of land directly west of Pennsylvania. This was called the Connecticut Reserve or, more often, the Western Reserve. South Carolina and North Carolina ceded their lands in 1787 and 1790, and finally Georgia gave up her claims to western lands in 1802.