Situation: 1787 Articles of Confederation are in effect Articles of Confederation are in effect Congress of Confederation meets to run national affairs but is unsuccessful due to lack of power Congress of Confederation meets to run national affairs but is unsuccessful due to lack of power Successes of Congress Successes of Congress –Won the war –Created peace treaty with Great Britain –Secured recognition of US as an independent nation –Northwest Ordinance of 1787

Northwest Ordinance of 1787 Area North of Ohio River, West of PA, and East of Mississippi River Area North of Ohio River, West of PA, and East of Mississippi River Transition of area from territory to statehood Transition of area from territory to statehood 5 new states 5 new states CC had complete control over this area CC had complete control over this area

Limitations of the Articles No money and no power to get it No money and no power to get it No power over the state governments and their citizens No power over the state governments and their citizens Unenforceable trade agreements Unenforceable trade agreements Unfair competition among the states Unfair competition among the states

1. NO money and no power to get it No power to tax Needed to repay War debts Request $$ from states Asked for $10 M, Received only $1.5 M from states Could not prevent States from issuing Their own currency Could not raise/ pay National Army

2. No power over the state governments and their citizens National Congress no power Over states No way to force states Enforce/follow laws Made in Congress States didn’t have To live up to treaties Made by Congress Loyalists were unable To collect on loaned $$- CC couldn’t enforce CC- no power to force State gov’s to respect Property rts of loyalists No national court system Forced CC to rely on state Courts to enforce laws

3. Could not enforce trade agreements Could not Regulate trade Citizens imported foreign Goods -> didn’t pay for them Great Britain saw this weakness And closed West Indies to US trade US exporters/importers lost markets due to this Lack of confidence Treaties and negotiations With foreign countries Could not be enforced

4. Unfair competition among states No power to regulate trade Between the states States levied taxes/ Tariffs on goods Passing through NJ forced to pay taxes on Goods between NY & PA Trade relations between States became Extremely strained Protectionism -> Postwar Economy worsened

5. Threats to citizens’ Right to Property States unable to protect Citizens property rights Factions in state legislatures Passed laws to cancel debts -> Confiscated Loyalist prop One class of citizen denying Another class to rights Of property Attempts to create laws against Were stopped by majority Vote of states

Crossroads of a Nation Crossroads of a Nation In a letter to James Madison, George Washington said, In a letter to James Madison, George Washington said, “ We are either a united people or we are not. If the former, let us act as a nation. If we are not, let us no longer act a farce by pretending to it.” “ We are either a united people or we are not. If the former, let us act as a nation. If we are not, let us no longer act a farce by pretending to it.”

Annapolis Convention  Initiated by James Madison  Held September 11, 1786 in Annapolis, MD  Two purposes –Open free trade on the Potomac River –Make amendments to the Articles of Confederation Maryland State House

Annapolis Convention proceedings  All 13 states were invited to send representatives  5 states attended: NY, NJ, PA, DE, & VA  The other states didn’t attend because free trade on the Potomac River didn’t effect their state  Accomplishments –Alexander Hamilton proposal of meeting of all state delegates to be held in May 1787 in Philadelphia –Object of meeting to consider changes to the Articles of Confederation –Congress authorized a National Convention of delegates to a Philadelphia Conference for the purpose of amending the Articles of Confederation