Forming a Government, 1777-1791: The New Nation Faces Challenges United States History 8 Unit 2, Chapter 5, Section 2

Main Ideas The United States had difficulties with other nations Internal economic problems plagues the new nation Shays’s Rebellion pointed out weaknesses in the Articles of Confederation Many Americans called for changes in the national government Problems faced by the young nation made it clear that a new constitution was needed

Relations with Other Countries U.S. had no army after the Treaty of Paris of 1783 Troubles with Britain: British were slow to turn over forts on the U.S. side of the Great Lakes Trade with Britain: many ports were closed, high tariffs (taxes on imports/exports) were imposed on American merchants, Britain closed ports in the West Indies to American ships 1784: Congress could not work out an agreement with Spain; the lower Mississippi remained blockaded

Economic Problems Confederation Congress did not have power to pass tariffs or order states to pass tariffs, making British goods cheaper, hurting American businesses Trade among states: Confederation Congress had no authority to regulate interstate commerce Inflation: states were struggling with war debts and overdue taxes; they printed more money making it worth less Weak Economy: loss of trade combined with inflation created a depression

Shays’s Rebellion Massachusetts refused to print worthless paper money, instead paid war debts by collecting taxes on land, hitting poor farmer hard. 1786: farmers revolt to protest high taxes and heavy debt known as Shays’s Rebellion, although defeated, many citizens agreed with the rebels and their cause, showing the weakness of the Confederation government

Weakness of the Articles of Confederation Most power held by states One branch of government Legislative branch has few powers No executive branch No judicial system No system of checks and balances