At the close of the Mexican War, in 1848, the United States owned vast stretches of territory without local government. All the land now included in New Mexico, Arizona, and California was then unsettled.

In 1848, however, gold was discovered in California. Thousands of people, chiefly from the Northern states, joined the gold rush. In a few months some 80,000 of them had settled in the mining region.

To maintain order in these settlements, an established government was needed. California asked to be admitted to the Union as a "free state"--one which would not permit slavery. The United States, however, had entered the war with Mexico largely to satisfy the South, since the South wanted new territory which could be divided into slave states.

Throughout the South protest meetings were held. The Northern states were equally insistent that slavery should not be extended. All but one Northern state legislature demanded that Congress should ban slavery in the new territory.

Civil war seemed inevitable when Henry Clay offered a compromise, proposing that each side yield something in the dispute. The North should allow New Mexico and Utah to organize as territories with no mention of slavery and give the South a stronger fugitive slave law. The South should accept California as a free state and allow prohibition of slave trade in the District of Columbia. In the boundary dispute between Texas and the federal government, the Santa Fe region was to be ceded to New Mexico territory for compensation to Texas.

All spring and summer of 1850 a fight over these measures was waged in Congress. Clay won the support of influential Union men, including Stephen A. Douglas and Daniel Webster.

In Webster's famous Seventh of March speech, he declared that slave labor could never be profitable in New Mexico and that the North would lose nothing by granting this concession. He felt that it was not necessary to bar slavery by law of Congress; it was already excluded by "the law of nature."

After a fight of eight months, Webster and Clay secured the passage of the laws that are known as the Compromise of 1850, or Omnibus Bill. This measure did not prove, as Webster had hoped, "a finality that would give peace to a country long distracted by the quarrel over slavery." It merely postponed the Civil War for ten years.