The United States of America under the Articles of Confederation and Perpetual Union (Nov. 15, 1777) All government powers not “expressly delegated” to Congress belonged to the states Congress could borrow and coin money, conduct foreign affairs, set Indian policy, settle disputes between states. Congress could not require money from states Congress expected the states to help pay war debts States having more land were better able to help pay the debt than those with less land

Shays’ Rebellion An economic depression (1785) hurt farmers and forced them to pay debts with gold and silver, not pigs, wheat, or corn Massachusetts raised land taxes to pay war debts Debtor courts seized the lands of indebted farmers Daniel Shays led outraged farmers to shut down the courts and stop property auctions 1200 farmers set out to take guns from the army 4,000 militia defended the arsenal, Shays’ men lost Shays’ Rebellion raised doubts about the governments’ ability to handle civil unrest

The United States of America under the Articles of Confederation and Perpetual Union (Weaknesses) All states required to ratify (approve) the Articles for them to officially take effect Amendments (changes) required all 13 states in favor New laws required 9 of the 13 in favor Each state had ONE vote regardless of population Could not tax people directly to pay war debts Continentals (federal money) were worthless by not being backed by gold and silver Could not regulate foreign trade, allowing cheap foreign goods to flood the markets and hurt American business

The United States of America under the Articles of Confederation and Perpetual Union Land Ordinance of 1785 marked off land into townships of 640 acres tracts Tracts were sold for cash, at least $1 per acre One tract reserved for establishment of a school Four tracts reserved for Revolutionary War veterans Northwest Ordinance (1787) (OH, IN, IL, MI, WI) Established a system for governing the NW Territory Outline the steps to achieve statehood Guaranteed civil rights and banned slavery Required escaped slaves to be returned