n Essential Question Question What were the longterm

n Essential Question: Question –What were the long-term problems with the Articles of Confederation? n Reading Quiz Ch 7 B (p. 217 -229)

Examining the Articles of Confederation

The Weaknesses of the Articles n The Articles of Confederation served as the framework for the U. S. gov’t from 1781 until 1789: –Early in the “Confederation Period, ” the weakness of the national gov’t was seen as good because it eliminated tyranny –Later, these same weaknesses kept the gov’t from solving serious national problems

Economic Problems n During the American Revolution, colonial boycotts hurt trade n Everyone expected the economy to improve after independence, but the Confederation Congress had a difficult time: –Paying off debt & collecting taxes –Halting inflation –Generating a favorable balance of trade (foreign & domestic)

Debt, Taxes, & Inflation n The U. S. was burdened with $40 million in war debt in 1783: –The Confederate Congress could not ease the national debt because it had no power to tax –Congress printed $200 million in new currency to pay off debt but this led to massive inflation

Trade Problems under the Articles Connecticut levied heavier duties on n. Massachusetts Congress was unable create a goods than onto. British goods favorable balance of trade: This especially hurt – To raise revenue, states created hurt the North Southern planters tariffs on goods from other states –Desire for cheap British goods hurt infant American industries –England prohibited its Caribbean colonies from trading with USA

U. S. Trade with Britain, 1783 -1789 Debt

Economic Washington kept generals Problems from overthrowing the new government: "Gentlemen, you will n The economic stagnation of the permit me to put on my spectacles, for I have eraalmost led to uprisings: not Confederation only grown gray but blind in the service of my country. " –The lack of tax revenue & failure Shays’ Rebellion proved to be the of the gov’t to pay soldiers convincing event that led to the sparked a military coup in 1783 Constitutional Convention of 1787 called the Newburgh Conspiracy –Property foreclosures led to desperation & uprising farmers in 1787 called Shays’ Rebellion

Shay’s Rebellion in Western Massachusetts n Poor farmers in western MA were angered over high taxes & prospect of debtors jail n Daniel Shays led an uprising & closed debt courts & threatened a federal arsenal

Economic Problems n “Nationalists” called for a stronger central gov’t & a constitutional amendment to allow create a 5% import tax & a national bank Led by Alexander Hamilton, n 12 states agreed, but a. Morris group of James Madison, & Robert Rhode Island “Localists” refused & killed the amendment n The failure to reform the Articles “ANationalists national debt iftonot excessive, the will led consider be a national blessing”—Hamilton Articles hopelessly defective

Policy Problems Congress. Foreign & the army were too weak to resist n The Articles proved inadequate to interstate. Treaty & foreign affairs: John handle Jay’s Jay-Gardoqui was met with regional resistance & was rejected in Congress –When Americans did not repay legitimate war debts, Britain kept troops in the Ohio Valley –Spain refused to recognize the southern U. S. border & closed access to the Mississippi River –Algerian pirates attacked & enslaved American merchants –States argued over rights

The USA in the Confederate Era

“Have We Fought for This? ” “Have we fought for this? Was it with these expectations that we launched into a sea of trouble? ” —George Washington, 1785