Editing Indiana Territory (section)

===Territorial finances===
During the non-legislative phase, the federal government paid the salaries of the governor, the three-member judicial council, and the territorial secretary, which cost about $5,500 per year. In addition, a small fund of approximately $200 covered other expenses such as printing, postage, and rent. The federal government did not provide funds for any additional governmental offices such as the treasurer and attorney general. Salaries for these officials were paid from the territory's treasury.

In the semi-legislative phase, the federal government paid the salaries of the territorial governor, judges, and secretary at a cost of approximately $6,687 per year. The territorial treasury was responsible for funding legislative expenses, as well as the salaries of the treasurer, auditor, attorney general, and chancellor. The territorial treasurer also paid operational expenses such as printing, rent, stationery, and other supplies and services. These expenses were estimated to cost $10,000 per year.<ref>Barnhart and Riker, pp. 432–33.</ref><ref>Bennett, ed., p. 11.</ref>

Revenue for the territory was limited, with the primary source of funds coming from the sale of federal lands. Other revenue came from the collection of duties, licenses, and excise taxes. In 1811 property taxes collected from landowners were based on the numbers of acres and its rating; previously, these taxes were based on land values. Taxes were also collected for territorial counties to use. After 1815 taxes were levied on some types of manufactured goods to provide additional funds for the territorial government.<ref>Barnhart and Riker, pp. 413, 433–34.</ref>

Territorial revenue fell to critical levels due to the War of 1812, when many of the territory's taxpayers were unable to pay what they owed, and their land reverted to the federal government. Financial issues also caused the movement for statehood to be delayed until after the war's end. At one point during 1813, for example, the balance in territory's treasury was a meager $2.47. To increase the treasury, tax levies were modified and new forms of revenue were established. These changes included reductions in some taxes, increases in others, and implementing licensing requirements for some types of business ventures in order to stabilize revenue. William Prince, the first territorial auditor, was also blamed for the territory's revenue shortage because he had failed to collect taxes from two territorial counties.<ref>Barnhart and Riker, pp. 414–15, 421.</ref>

Growth of territory's population helped improve its financial situation through the collection of various taxes, including property taxes and taxes on sale of public lands. However, governmental expenses also increased as new counties and towns were formed, causing the need for new governmental offices and further increases in the government's overall size.<ref>Barnhart and Riker, pp. 421–23, 442.</ref>