The Territory of Colorado was an organized incorporated territory of the United States that existed from February 28, 1861, The State of Kansas was created on January 29, 1861 formalizing the separation of the western portion of the now defunct Kansas Territory. Three new territories were created in as many days: Colorado (February 28), Nevada (March 1), and Dakota (March 2).
Colorado Territory was officially organized by Act of Congress on February 28, 1861 (), out of lands previously part of the Kansas, Nebraska, Utah, and New Mexico territories. The name Colorado was chosen for the territory after first considering Idaho. It had been previously suggested in 1850 by Senator Henry S. Foote as a name for a state to have been created out of present-day California south of 35° 45'.
Abraham Lincoln appointed William Gilpin of Missouri the first Governor of the Territory of Colorado and he arrived in Denver City on May 29, 1861. On June 6, 1861, Governor Steele issued a proclamation declaring the Territory of Jefferson disbanded and urging all employees and residents to abide by the laws governing the United States.
The Colorado General Assembly first met on September 9, 1861, and created 17 counties for the territory on November 1, 1861,
Civil War
In 1861 following the beginning of the American Civil War, there were several small disputes and skirmishes between confederate supporters and union supporters. In August, Governor Gilpin organized the 1st Colorado Infantry. John P. Slough led the group to New Mexico Territory in February–March 1862. There they fought in the battles of Apache Canyon, Glorieta Pass and Peralta. Slough resigned in April 1862 and was replaced by Major John M. Chivington.
right|thumb|John Chivington, commander of the 3rd Colorado Cavalry at the Sand Creek Massacre.
On March 26, 1862 John Evans was appointed by Abraham Lincoln as the second governor of the territory. After Evans took the governorship, many of the debts Gilpin had incurred were paid by the federal government. In response to their mistreatment, many bands of natives massacred and looted settlers and travelers around the territory. Black Kettle and Roman Nose were leaders in the hostility. During the Colorado War natives succeeded in blockade which cut off communication and severely restricted food supply. Nearly every ranch between Denver and Nebraska was burnt and its occupants raped and killed.
The United States Congress passed the Admission Act for the territory in late 1865, but it was vetoed by President Andrew Johnson. President Grant advocated statehood for the territory in 1870, but Congress did not act.
Demographics
The Colorado Territory began as 95% male. By 1870 it was only 62% male.
Infrastructure
Prior to the construction of railroads the state used wagons to transport goods and messages. These began as irregular services, but starting in 1861 several regular wagon lines operated multiple days a week.
Banks
Only private banking was available in Colorado Territory until 1865 when First National Bank opened in Denver. Jerome B. Chaffee and David Moffat were executives at the bank.
The mint value of gold extracted in Colorado through 1862 was $30 million ($ million inflation adjusted). However the industry was not nearly as profitable as the miners hoped and many were unemployed. Many returned from whence they came. Thousands left their placer mines which had quickly become unprofitable and became soldiers for $15 per month ($ inflation adjusted).