Yazoo Land Fraud (This arrow points to the next IN page.) 1 6 2 8 5 3 4 9 7.

Yazoo Land Fraud

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Yazoo Land Fraud

Occurred in 1795 when Augusta was Georgia’s Capital

Augusta

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Yazoo Land Fraud was Georgia’sworst political scandal

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At this time Georgia’s boundaries extended to the Mississippi River

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Yazoo Land Fraud

Creek, Cherokee, & other tribeslived in the land to the west

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If the tribes could be persuaded to leave, then there could be a land rush in Ga.

land rush = greater populationGreater population = greater profits as

land is sold5

Land speculators (businessmen who had formed land companies) wanted to buy

large portions of Ga.’s western territory

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Yazoo Land Fraud

Note: Land speculation is legal (buying land at low prices, holding

it until Prices rise, and then selling it for profit)

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Land speculation is illegal when done by gov’t officials who are

looking to benefit rather than looking out for the best interest of citizens

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Four private companies (land speculators)

bribed many members of Ga.’s General Assembly to pass a law

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Yazoo Land FraudThis law allowed the companies to

buy 35 million acres of Ga.’s western territory – extending to

the Yazoo River

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Land sold at LOW prices(less than two cents per acre)

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Companies made HUGE profits when they sold the land

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Yazoo Land FraudGeorgians learned of the

Yazoo Land Fraud & becameangry, then many of

the dishonest legislatorsFled the state

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Georgia’s capital moved to Louisville in 1796

Louisville14

The next year (1796) a newly electedlegislature repealed (abolished) thelaw authorizing the Yazoo Land sale

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Yazoo Land Fraud

Ga. Legislature directed the Yazoo Actbe burned on the statehouse grounds –

all copies were destroyed

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Ga. Legislature provided for refund of money to buyers – many weren’t

willing to give up their bargain

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The Yazoo Land Fraud went to theSupreme Court in 1814 – Federal Gov’t

paid off remaining claims

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