Chapter 3 Section 1

1
Chapter 3 Section 1

• The Confederation

2
Do Now

• Why do governments tax?
• What taxes do American citizens pay today?

3
Introduction

• Continental Congress realized colonies needed
  some type of central gov.
• 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
• States preferred weak central gov. WhY
• Once a year each state would select delegate to
  go to the Capital (take part in Confederation
  Congress)
• Only one branch (legislative)
• Right to declare war, raise armies, and sign
  treaties
• Could not impose takes
• Explicity denied power to regulate

5
Western Policies

• Depended on state constitutions to fund
  government
• 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
• 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
• Americans created trade treaties with Holland,
  Prussia, and Sweden
• Already had treaty with France
• By 1790 American trade rate was greater than
  during British colonization

7
The Congress Falters

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

8
Problems With Diplomacy

• Problems With Britain
• American borrowed money from British before the
  War
• According to Treaty of Paris Americans were to
  repay debts
• 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
• 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
• Farmers were not earning as much and had to
  borrow money
• Mortgages to pay
• States govs. were in debt
• 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
Shays Rebellion

• Causes
• Mass. Gov. raised taxes rather than issuing paper
  money
• Poor farmers were heavily taxed
• 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.