APUSH (3, #2)
Name ____________________
Date ____________ Pd _____
Problems with the Articles of Confederation during the “Critical Period” (1781-1789)
I. Problems with the Articles of Confederation
A. The “Confederation Period” lasted from 1781 to 1789
1. The intentional weakness of the Articles helped avoid tyranny by a strong central gov’t
2. These same weaknesses kept the gov’t from solving important problems
B. Economic Problems
1. The American economy dipped during & after the revolutionary war & Congress was too weak to fix it
2. America had $40 million in war debts by 1783
a. Congress had no power to tax so it printed $200 million in new currency; led to massive inflation
b. Creditors and debtors argued over the value of currency
3. America had a difficult time establishing a favorable balance of trade
a. States imposed protective tariffs on each other
b. British manufacturing & trade restrictions crippled the American economy in both North & South
4. The weak economy led to uprisings
a. Newburgh Conspiracy—military coup led by Revolutionary War veterans demanding their pay
b. Shays’ Rebellion—poor farmers rose up in reaction to mortgage foreclosures
5. “Nationalists” proposed a 5% import tax & national bank to strengthen the gov’t; “Localists” killed the plan
C. Foreign Policy Problems
1. The British failed to remove its army from the Ohio River Valley until American debts were paid
2. Spain refused to recognize the U.S. southern border & closed access to the Mississippi River
3. Algerian (Barbary)
pirates attacked
American
merchants
4. States fought over
water rights
D. Have we fought for this?