1. The New Nation Faces Challenges
Chapter 4, Section 2

2. Main Ideas The US had difficulties with other nations.
Internal economic problems plagued the new nation.
Shay’s Rebellion pointed out the weaknesses of the Articles of Confederation.
Many Americans called for changes in the national government

3. Trouble with Britain
*Congress could NOT force states to provide soldiers for an army, and without one the government found it difficult to protect citizens against foreign threats.
*Britain was slow to withdraw from forts (especially in the Great Lakes region) now belonging to the US. They also threatened to use force if the US tried to seize the forts.

5. Trade with Britain *Britain closed many ports to American ships.
*Britain imposed (put) high tariffs, taxes on imports or exports.

6. Trade with Spain
*1784, Spain closed the lower Mississippi River to US shipping.
*Congress tried to negotiate, but Spain broke off talks. Many felt that a strong military could have persuaded Spain to continue negotiations.
*There was a call for the national government to be more powerful!

7. Closed Markets
*Farmers could no longer export their good to the British West Indies.
*They had to hire British ships to carry their goods, which was very $$$. British goods flowed into the US.
*Serious economic problem
*Congress could not correct the problem, because they did not have the authority to pass tariffs or order states to pass tariffs.
*The Dis-United States!
*Merchants tried to trade with other countries, but needed England.

8. Economy Inflation: *States had a hard time paying off war debts
*Printed large amounts of paper money.
Depression:
*Loss of trade + inflation= Depression (period of low economic activity combined with a rise in unemployment.

9. Shay’s Rebellion
*Massachusetts refused to print paper money and instead taxed taxed land.
*This tax policy hit farmers hard. They couldn’t pay.
*The courts put them in jail or forced them to sell their land.
*Farmers rebelled by closing down courts, if courts were closed no land could be taken.
*September, 1786, Daniel Shays led a group of hundreds of men to force the closing of the MA Supreme Court.

10. Farmers Unite!

11. What happened to Shays?
*Shays forces were defeated in January, By February, many of the rebels were in prison.
*14 of the leaders were sentenced to DEATH!!
*So unfair! State officials knew that most citizens agreed with the rebellion, so all were released.

12. Call for Change!
*Shays Rebellion showed the weakness of the Articles of Confederation (Congress was powerless to stop or help).
*James Madison and Alexander Hamilton called on all 13 states to send delegates to Philadelphia to a Constitutional Convention in May, 1787 to REVISE the AoC.