1. The United States Under the Articles of Confederation

2. "I never considered a difference of opinion in politics, in religion, in philosophy, as cause for withdrawing from a friend."
-Thomas Jefferson

3. Before our current Constitution, what document became our written system of Federal Law?

4. The Articles of Confederation
Nov. 1777: Continental Congress adopted the first framework for a federal government
The Articles of Confederation and Perpetual Union organized the 13 former colonies into a loose Union under the central authority of Congress

5. Will the Articles of Confederation create a weak central government or a strong central government?
Why?

6. Weak Federal Government
The Articles deliberately left the central government very weak; states feared that a strong central government would become tyrannical and oppressive
Without a strong federal government, however, creating a “United States” proved difficult

7. Political Problems…

8. How the Government Operated
Each state selected 3 – 7 Congressional representatives each (although each state only received one vote in Congress)
Once a year those representatives were sent to serve in the capital of Philadelphia
The government had no legislative or judicial branches – Congress was the government

9. Powers of Congress
The Confederation Congress had the right to declare war, raise an army, and sign treaties with foreign powers; they also served to resolve disputes between states
The Confederation Congress could NOT levy taxes or put any restrictions on trade

10. If the Federal Government could not levy taxes, how will it generate revenue?

11. Land = Revenue
In order to generate revenue, Congress could only sell unsettled lands west of the Appalachians (which the 13 states had ceded to the central government as part of ratification of the Articles)
In order to sell these lands, however, Congress first had to survey and map it and then find settlers interested in buying tracts
To encourage settlement, the Congress had to also figure out a way to govern the region

12. The Northwest Ordinance
1787: Congress passed the Northwest Ordinance, which laid out a plan for organizing and governing the Northwest Territory (modern Ohio, Indiana, Illinois, Michigan & Wisconsin, + part of Minnesota)

13. The Northwest Territory
At first, Congress appointed a governor and other temporary officials to the Territory
Once 5000 adult male citizens had settled in a territory, they could elect a legislature
Once population reached 60,000 people, it could apply for full statehood

14. Protected Rights
The Ordinance guaranteed freedom of religion, protection of property rights, and trial by jury
It also banned slavery, reinforcing a trend of slavery in the South, but not in the North

15. Economics under the Articles…

16. Who was the Colonies’ ONLY trading partner before the revolution?
What economic system are we referring to?

17. British Trade Restrictions
After the Revolution, the British put tight restrictions on trade between their other colonies and the US; they also put strict rules in place for trade between the US and Britain

18. Open Trade
In response, Congress negotiated trade treaties with other European states and continued to trade with French colonies in the Caribbean
Despite limited trade with the British, US trade grew under the Confederation Congress

19. No Federal Tariffs
While few US goods hit British markets, the British were able to flood US markets because Congress was not empowered to levy tariffs (taxes on imports) and the individual states were inconsistent in their policies
These cheap British goods hurt American producers

20. State vs. State
To protect their own artisans, individual states began taxing not only British goods, but also goods from each other – New York, for instance, began taxing goods from New Jersey
The “United States” were not acting united

21. Foreign Policy issues…

22. Terms of the Treaty of Paris
In the Treaty of Paris, the US had agreed to allow British lenders to collect the pre-war debts owed to them by Americans and to return property which had been confiscated from Loyalists during the war

23. Congressional Weakness
Congress, however, could not compel the individual states to honor the terms of the Treaty, so many states simply refused to comply
This angered the British, leading them to refuse to give up forts in US territory

24. Trouble With Spain
The young US also had conflicts with Spain over the boundary between Florida and Georgia and over access to the Mississippi River through the Spanish port of New Orleans
Congress had no leverage to use against Spain – they could not impose trade sanctions – and so, could not resolve the issues

25. War Debts Create Problems
Making matters worse, people began trying to cash in bonds (loans) that the states and Continental Congress had taken out during the War
With few options available for repaying the bonds, the states began issuing paper money that was not backed by gold or silver to insure its value

26. Inflation
The result was inflation – a sudden rise in prices associated with a drop in the value of money
Debtors liked the inflation – it made it much easier for them to repay their debts; lenders hated it because they took huge losses on their loans

27. Paper Currency Problems
In some states, merchants began refusing to accept the paper money, forcing states to create laws requiring the acceptance of paper money as legal tender for all debts

28. The Rich Start to Panic
The paper money issue fed the fears of the rich that “democracy” gave the poor too much say in public policy
These fears would be further heightened by reports of “rebellion” by former army officers and poor farmers

29. Trouble With Rebellions

30. Shays’ Rebellion
Massachusetts elected to raise taxes to generate the revenue to pay back their bonds, rather than issue paper money
Poor farmers in the western part of the state could not afford a tax increase and, since inflation had occurred, also could not afford to pay back their own debts which put them in danger of foreclosure

31. Shays’ Rebellion
August 1776: These farmers banded together, seizing control of several courthouses to stop foreclosure proceedings
They were led by a former army officer turned farmer, named Capt. Daniel Shays

32. Shays’ Rebellion
In January 1787, Shays and farmers moved to seize control of the state arsenal in order to secure weapons for marching on Boston
The rebels, however, were repelled by the state militia, with 4 farmers being killed in the brief gun battle
After this, the rebellion collapsed

33. How will the Founding Fathers react to Shay’s Rebellion?

34. A Call for Change
Events like Shay’s Rebellion, however, convinced the wealthier Americans that the republic was being endangered by too much power being placed in the hands of the poor
As a result, they began calling for a stronger federal government which could be empowered to protect property rights, control inflation, and act against rebellions

35. “The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.”
-Thomas Jefferson

36. Unit 2 Constructed Response Questions

37. Rebellion Analysis
Part 1: Read Thomas Jefferson’s interpretation of the rebellion. Complete soapstone analysis.
Part 2: In essay format 3/4 page, respond to the following questions:
What general factors create rebellion?
How can rebellion be a good thing for a nation? Be specific?