Chapter Five U.S. History Mr. Kissam A More Perfect Union 1777 to 1790 Chapter Five U.S. History Mr. Kissam

The New Nation Faces Challenges The Big Idea Problems faced by the young nation made it clear that a new constitution was needed. Main Ideas The United States had difficulties with other nations. Internal economic problems plagued the new nation. Shays’s Rebellion pointed out weaknesses in the Articles of Confederation. Many Americans called for changes in the national government.

Relations with Other Countries Under the Articles of Confederation, Congress could not force states to provide soldiers for an army. Without an army, the national government found it difficult to protect its citizens against foreign threats.

Trouble with Britain Britain refused to obey the terms of the treaty and leave the American territories and forts. Britain said the U.S. violated the treaty by not paying the “loyalists” for their losses (Congress asked the states to do this, but they refused), so they would not leave. The United States wanted control of these forts to protect the valuable land and fur trade.

Trade with Britain Britain closed many of its ports to American trading ships, especially in the West Indies. Also Britain placed high tariffs on imports and exports, which forced Americans merchants to raise prices. This caused the economic condition of the country to get worse daily.

Trade with Spain Spain also closed the lower Mississippi River to Americans to stop the westward expansion and trade to eastern markets. This hurt American farmers living in the West who relied on the Mississippi River to send their goods to foreign markets. Congress tried to work with Spain, but if fell apart thanks to an ineffective Congress.

Impact of the Closed Markets Closing markets in the British West Indies caused American exports to drop. Cheap British goods flowed into the United States. This unequal trade caused serious economic problems for the new nation. This difference in prices hurt the profits of American businesses.

Impact of the Closed Markets The Confederation Congress had no authority to pass tariffs, or order states to pass tariffs, to help correct unequal trade with Britain. States worked independently to increase their own trade instead of improving the situation for the whole country. American merchants were forced to look for new markets in China, France, and the Netherlands.

Economic Problems The Confederation Congress had no power to regulate interstate commerce, making trade difficult across state lines Inflation was a problem in many states, which struggled to pay off war debts by printing money.

Economic Problems Money was not backed by gold or silver, so it was worth less. Loss of trade with Britain combined with inflation caused an economic depression. Depression is a period of low economic activity combined with a rise in unemployment.

Shays Rebellion Small farmers could not sell their crops, which meant they could not pay their state taxes (states started to take their land as payment) Some farmers had to serve terms in debtor prisons; others had to sell their labor. Daniel Shays led Massachusetts farmers in a revolt over high taxes and heavy debt in August 1786.

Shays Rebellion Tried to force the shutdown of the Supreme Court in Massachusetts No one’s property could be taken to pay off debts if the court was closed. Shays’s Rebellion was put down by state troops in January 1787. Many citizens agreed with the rebels and their cause. State officials freed most of the rebels.

Calls for Change Shays’s Rebellion showed the weaknesses of the Confederation government, which could not respond to Massachusetts’s call for help. People saw that the ideals of liberty were not protected. Shays’s Rebellion led people called for a stronger central government that could protect the nation in times of crisis.

Calls for Change The Virginia legislature called for a national conference to change the Articles of Confederation. The Annapolis Convention held in September 1786 failed to act because many delegates did not attend the convention.

Calls for Change The Constitutional Convention was called in May 1787 in Philadelphia to revise or improve the Articles of Confederation.

Questions pages 158-162 What problems did the United States have with Great Britain? (List 2) Why was the Confederation Congress unable to solve America’s international trade problems? What domestic economic problems did the states experience? (List 3) What was Shay’s Rebellion and why was it significant? Why did some people believe the national government needed change? (List 4)