1. Chapter 5 Section 1

2. 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

3. 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

4. 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

5. Northwest Territory

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. Shay’s Rebellion

19. 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