Unfavorable Balance of Trade
Britain banned American ships from trading in West Indies
Farmers, merchants from New England and Middle States lost major
market
British merchants sold goods at low prices
US buying much more from Britain than it sold to them
Congress could not impose tariffs – had no way to protect American
producers
Problems in the West
Could not enforce peace treaty
Britain refused to leave their forts in Northwest
Spain closed Mississippi River to American ships – took away only way to
transport goods
would only reopen river to people who swore allegiance to Spain
Congress split on issue
New England wanted more trade with Spain – new markets
Southern states wanted to stop all trade with Spain until they opened
Mississippi to Americans
Rivalries Between States
Each state looking out for itself
Often engaged in tariff battles – would try to tax each other
Also conflicting land claims caused disunity
Debts and Worthless Currency
Each state worried more about own debts instead of national debt
Asking states for money was pointless – they never gave any
US overprinted money, making it almost worthless
Each state printed its own money
All the paper money led to steep inflation – sharp rise in prices of goods