THE CONFEDERATIONChapter 5 Section 1

The Achievements of the Confederation Congress

In Nov. 1777, the Continental Congress adopted the Articles of Confederation and Perpetual Union a plan for a loose union of states under

the authority of Congress Written by John Dickinson

Articles of Confederation

Established a weak central government gave more power to the state gov’ts

Once a year each state sent a delegate to the Confederation Congress Could declare war, raise armies, and sign

treaties Could not impose taxes and regulate trade

Western Policies

Only way the Conf. Congress could make money was to sell land west of the Appalachian Mountains Land Ordinance of 1785=established a

method for surveying western lands Townships=six miles square

Divided into 36 sections=1 squared mile Northwest Ordinance (1787)

Created new territory N. of Ohio River and E. of Mississippi River Could eventually be divided into 3-5 states

Northwest Territory

Northwest Territory

Northwest Territory

Western Policies

Congress chose governor, a secretary, and three judges 5,000 adult males=territorial legislature Pop. reached 60,000=apply for statehood

Guaranteed certain rights Freedom of religion Property rights Right to trial by jury Free public education No slavery in the Northwest Territory

Success in Trade

After American Revolution, the British government imposed restrictions on American access to British markets Force Congress to negotiate trade

treaties w/ France, Holland, Prussia, and Sweden By 1790, trade in the U.S. was ↑ than

trade in the colonies before the Revolution

Congress Falters

Problems With Trade After Revolutionary War, inexpensive

British goods flooded U.S. markets driving Americans out of business

American states fought back with duties Weren’t all the same=British still imported

goods into U.S. States began establishing customs posts

on state’s borders Wanted to prevent British from exploiting

different trade laws

Congress Falters

Each state levied taxes on their own goods to raise money Causes problems with trade Each state was acting as their own

country=threat to unity of U.S.

Problems With Diplomacy Had problems with Britain and Spain

British Problems=British lenders couldn’t receive payment for loans before the A.R., Loyalist lands confiscated during A.R. weren’t returned=British upset

Congress Falters

British wouldn’t leave American soil (occupied land near Great Lakes)

Spanish Problems=territory dispute b/w Georgia and Spanish territory, Spanish cutoff the use of the Mississippi River= closed river to farmers, couldn’t transport goods Confederation Congress could do nothing=can’t

regulate trade and impose taxes

Economic Crisis End of the Revolutionary War and the

restraining of economic activity by the British led to severe recession

Congress Falters

Farmers most affected=had to borrow money to grow crops

Increased debt for the from the Revolutionary War left Congress and states in debt Issued bonds to wealthy merchants and planters

Wanted them redeemed in gold and silver States were encouraged to make paper

money=help people payoff debt Paper money wasn’t trusted=wasn’t backed by

gold and silver Cause inflation=decline in value of money

Lenders opposed this b/c they wouldn’t receive true amount they were owed

Congress Falters

In 1785, 7 states issued paper money Read pg. 161 second paragraph

People with property were upset=poor debt-ridden citizens controlled the gov’t These citizens were even being elected to

office

Shay’s Rebellion

Erupted in Massachusetts in 1786 Mass. raised taxes instead of issuing paper

money Taxes fell heavily on farmers=poor farmers in

western part of state Couldn’t pay taxes=loss of farm

Farmers in western Mass. Rebelled Closed down county courthouses=prevented

farm foreclosure Marched on state supreme court

Daniel Shays= a former captain in the Continental Army and now a bankrupt farmer, emerged as one of the leaders of the rebellion

Shay’s Rebellion

In January 1787, Shays and about 1,200 farmers headed to state arsenal Wanted to seize weapons and planned to

march on Boston Governor sent 4,000 volunteers and Gen.

Benjamin Lincoln to defend the arsenal Shays attacked and the militia defended

the arsenal 4 farmers were killed the rest scattered

Next day Gen. Lincoln arrived and ended the rebellion

Shay’s Rebellion

Shay’s Rebellion

A Call for Change

People with greater income and social status viewed the rebellion and inflation as signs that the republic was at risk Feared stronger state gov’ts

Would take from them and give to poorer people

Many people began to argue for stronger central gov’t Confederation failing to deal with

rebellion, trade, and diplomacy led to a call for change