States. If the power to create courts is given to the territorial legislature, those courts are to be deemed strictly territorial; and in no just sense constitutional courts, in which the judicial power conferred by the constitution can be deposited. They are incapable of receiving it. They are legislative courts, created in virtue of the general right of sovereignty in the government, or in virtue of that clause, which enables congress to make all needful rules and regulations respecting the territory of the United States.[1] The power is not confined to the territory of the United States; but extends to "other property belonging to the United States;" so that it may be applied to the due regulation of all other personal and real property rightfully belonging to the United States. And so it has been constantly understood, and acted upon.
§ 1320. As if it were not possible to confer a single power upon the national government, which ought not to be a source of jealousy, the present has not been without objection. It has been suggested, that the sale and disposal of the Western territory may become a source of such immense revenue to the national government, as to make it independent of, and formidable to, the people. To amass immense riches (it has been said) to defray the expenses of ambition, when occasion may prompt, without seeming to oppress the people, has uniformly been the policy of tyrants. Should such a policy creep into our government, and the sales of the public lands, instead of being appropriated to the discharge of the public debt, be converted to a treasure in a bank, those, who, at any time, can command it, may be tempted to apply it to the most nefarious purposes. The- ↑ American Insurance Company v. Canter, 1 Peters's Sup. R. 511, 546.
