1. The New Nation Faces Challenges
Chapter 5 Section 2
The New Nation Faces Challenges

2. The New Nation Faces Challenges
Since the Articles was weak, the government couldn’t keep a standing army and the
The U.S. couldn’t enforce the terms of the Treaty of Paris
Trade was a huge issue also, Britain closed many of it ports to Americans
British also forced Americans to high tariffs on their imports or exports

3. The New Nation Faces Challenges
Trade With Spain
1784- Spain closed the lower Mississippi River to Trade with America
Congress tried to work things out but due to the weakness of the Articles, it didn’t get enough votes and the negotiations ended.
People started seeing the need for a strong central government
Impact of a closed market
Without the West Indies, and Mississippi there was a major disparity in imports vs. exports
Hurt American business and Congress couldn’t fix anything
States worked separately instead of together

4. The New Nation Faces Challenges
Economic Problems
Trade laws differed state to state
It was difficult for a business to go across state lines
War debt had mounted and no one was collecting taxes, so individual states printed their own money
The Inflow of money caused inflation
Increase in prices of goods and lowering the value of money
Weak Economy
Paper money became worth almost nothing, and people who had lent money were losing out
The loss of trade, with inflation caused a depression to hit. Period of low economic activity combined with rise in unemployment.

5. The New Nation Faces Challenges
Shay’s Rebellion
Massachusetts refused to print money and tried to pay off debt with new taxes.
Farmers hit very hard
Farmers rebel
Aug rebel and close the courts
If courts were closed no on could lose their land
Daniel Shays led one of these revolts in Sept. against a court in Springfield, he was threatened with death, but that only made him fight more
The uprisings became known as Shays’s Rebellion
He was defeated and 14 leaders were sentenced to Death

6. The New Nation Faces Challenges
Calls for Change
The Rebellions and lack of trade showed the weakness of the Articles of Confederation
1786- Virginia called for a meeting with the other states
9 sent delegates to Annapolis, MD.
Due to the turn out another meeting was called for in Philadelphia in May of 1787 to revise the Articles of Confederation
Became known as the Constitutional Convention.