1. Chapter 3 Section 1 The Confederation

2. Do Now Why do governments tax? Why do governments tax? What taxes do American citizens pay today? What taxes do American citizens pay today?

3. Introduction Continental Congress realized colonies needed some type of central gov. Continental Congress realized colonies needed some type of central gov. Nov. 1777 Continental Congress adopted the Articles of Confederation and Perpetual Union Nov. 1777 Continental Congress adopted the Articles of Confederation and Perpetual Union –Loose union of states under authority of Congress

4. The Articles of Confederation Weak central government Weak central government –States preferred weak central gov. WhY Once a year each state would select delegate to go to the Capital (take part in Confederation Congress) Once a year each state would select delegate to go to the Capital (take part in Confederation Congress) Only one branch (legislative) Only one branch (legislative) Right to declare war, raise armies, and sign treaties Right to declare war, raise armies, and sign treaties Could not impose takes Could not impose takes Explicity denied power to regulate Explicity denied power to regulate

5. Western Policies Depended on state constitutions to fund government Depended on state constitutions to fund government Raised money be selling land it controlled west of Appalachians Raised money be selling land it controlled west of Appalachians –Land Ordinance of 1785 – made orderly system for dividing and selling land Township 6 X 6 miles Township 6 X 6 miles Northwest Ordinance Northwest Ordinance –Governed land north of Ohio R and East of Miss. –5,000 adult male citizens could elect a territory leg. –If 60,000 inhabitants lived there, could apply for statehood –Guaranteed freedom of religion, property, and trial by jury –No Slavery – created a North vs. South Division

6. Success in Trade British put harsh restriction on America access to goods from British colonies in Caribbean British put harsh restriction on America access to goods from British colonies in Caribbean Americans created trade treaties with Holland, Prussia, and Sweden Americans created trade treaties with Holland, Prussia, and Sweden Already had treaty with France Already had treaty with France By 1790 American trade rate was greater than during British colonization By 1790 American trade rate was greater than during British colonization

7. The Congress Falters Problems with Trade Problems with Trade –British flood market with inexpensive goods Americans loose jobs Americans loose jobs Some states restrict British Imports and place duties (taxes) on British goods Some states restrict British Imports and place duties (taxes) on British goods States taxed goods from different states States taxed goods from different states –Began acting like independent countries

8. Problems With Diplomacy Problems With Britain Problems With Britain –American borrowed money from British before the War According to Treaty of Paris – Americans were to repay debts According to Treaty of Paris – Americans were to repay debts Most Americans refused to repay and the American courts sided with Americans Most Americans refused to repay and the American courts sided with Americans –Britain refused to leave America and occupied forts on great lakes –Congress could impose taxes to pay Britain or to fund an army to expel Britain

9. Problems With Diplomacy Cont… Problems With Spain Problems With Spain – Spain regarded US as rival rather than ally –Spain wanted territory in Georgia, closed port river to shipping for American farmers –States could not agree on a treaty to resolve issues

10. The Economic Crisis US in severe recession after Rev. War US in severe recession after Rev. War Farmers were not earning as much and had to borrow money Farmers were not earning as much and had to borrow money Mortgages to pay Mortgages to pay States gov’s. were in debt States gov’s. were in debt States issued paper money, caused inflation and a decline of value for the currency States issued paper money, caused inflation and a decline of value for the currency –Many merchants refused to accept paper money. –Rhode Island gov. said merchants had to accept paper money – riots started

11. Shay’s Rebellion Causes Causes –Mass. Gov. raised taxes rather than issuing paper money –Poor farmers were heavily taxed Effects Effects –1,200 Famers lead by former Continental Army Captain, Daniel Shay, rebelled against Mass. Gov. –The Confederation was weak: merchants, artisans, and creditors argued for a stronger central gov. George Washington agreed with their reasoning. George Washington agreed with their reasoning.