1. IDEALISTIC DREAMS The Articles of Confederation

2. Focus Question Why do governments exist?

3. Objectives After this lesson, you will: Identify issues facing the nation during the Critical Period. Discuss the strengths and weaknesses of the Confederation government

4. Articles of Confederation U.S. governed by Articles of Confederation from 1781-1789  Essentially an alliance of independent states Designed to protect individual liberties  Strong state governments  Extremely limited central government

5. What could the government do? Pay the nation’s bills Wage War Pass laws  Nine states had to agree to those laws  To change the Articles, a unanimous vote was needed Mediate disputes between the states Administer Western lands

6. Levy taxes Recruit or draft soldiers Enforce its mediation on the states Operate a court system What the government could not do

7. As a result, the nation suffered Foreign relations were hampered Trade was held back States squabbled Economy sank into recession The National debt rose

8. Limited Achievements Land Ordinance of 1785  Outlined rules for surveying public lands  Divided land into 36 square mile townships  Each township divided into 36 sections  One section set aside for public schools Model for Development

9. Limited Achievements (II) Northwest Ordinance  Developed rules for new territories  Northwest Territory to divided into 3 to 5 states  Steps set up for self-government  Allowed for new states to enter the Union

10. The Debt Crisis U.S. facing a massive debt crisis  Public debt  Congress borrowed heavily during the war  Lacked ability to repay loans  Personal Debt  Small farmers borrowed heavily  Recession slashed price of farm goods

11. System Collapsed Nation divided into Creditors and Debtors Small farmers could not repay loans Creditors began to seize property

12. Shay’s Rebellion Small farmers and debtors in Western Massachusetts rose in revolt  Protest coalesced around Daniel Shays  Called for debt relief  Put down by the state militia

13. New Legislature Elected Brought about debt relief  Postponed debt repayments  Printed paper currency  Drove down value of money Stripped property from creditors System close to collapse

14. Why did all of this happen?

15. Summary Question Develop two questions you would like to know (or a classmate might like to know) about the material studied today.