1. Problems in a New Nation 7.2

2. International Relations ► The young USA was very weak. ► Congress could not force states to provide money or soldiers ► Britain & Spain took full advantage

4. Britain ► Didn’t abandon their frontier forts ► Traded weapons to Indians in west ► Closed West Indies & Canada to U.S. trade ► Forced Americans to pay high tariffs Spain ► Closed Mississippi to U.S Shipping

5. Effect of Closed Ports ► All American businesses suffered ► Congress’ inability to regulate trade & interstate commerce allowed British goods to prosper in the U.S. ► U.S. opened trade with China in 1784

6. Internal Problems ► States had to pay individual war debts. ► They illegally printed their own $$$  Caused inflation ► States charged tariffs against eachother

7. Problems in Massachusetts ► MA Govt. needed money to pay off its debts = taxed property  Caused economic depression  Gold & silver in short supply ► Western farmers unable to pay!  Courts foreclosed on their farms.  Boston Govt. was unsympathetic

8. Shays’ Rebellion (1786) ► Farmers in Western MA revolt & shut down court houses in Springfield. ► War vet. Daniel Shays was its leader.

9. ► MA asked Congress for help, but it was powerless! ► Eventually the revolt was put down & most of the farmers were set free.

10. Impact of Shays’ Rebellion ► Showed that Congress under the Articles could not protect the states or citizens’ property ► Many began to call for a stronger central government.

11. ► James Madison (VA) & Alexander Hamilton (NY) call delegates to Philadelphia to revise the Articles ► Led to a whole new Govt. A Convention Called 1787