History: American Old West, United States

With the war over, the federal government focused on improving the governance of the territories. It subdivided several territories, preparing them for statehood, following the precedents set by the Northwest Ordinance of 1787. It also standardized procedures and the supervision of territorial governments, taking away some local powers, and imposing much "red tape", growing the federal bureaucracy significantly.
Federal involvement in the territories was considerable. In addition to direct subsidies, the federal government maintained military posts, provided safety from Indian attacks, bankrolled treaty obligations, conducted surveys and land sales, built roads, staffed land offices, made harbour improvements, and subsidized overland mail delivery. Territorial citizens came to both decry federal power and local corruption, and at the same time, lament that more federal dollars were not sent their way.
Territorial governors were political appointees and beholden to Washington so they usually governed with a light hand, allowing the legislatures to deal with the local issues. In addition to his role as civil governor, a territorial governor was also a militia commander, a local superintendent of Indian affairs, and the state liaison with federal agencies. State legislators, on the other hand, spoke for the local citizens and they were given considerable leeway by the federal government to make local law, except in extreme cases, as when the Federal government suppressed polygamy by the Mormons in Utah.
These improvements to governance still left plenty of room for profiteering. As Mark Twain wrote while working for his brother, the secretary of Nevada, "The government of my country snubs honest simplicity, but fondles artistic villainy, and I think I might have developed into a very capable pickpocket if I had remained in the public service a year or two." "Territorial rings", corrupt associations of local politicians and business owners buttressed with federal patronage, embezzled from Indian tribes and local citizens, especially in the Dakota and New Mexico territories.