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Unpaid War Debt

1. Financial - most war debts were unpaid and states issued worthless paper money. Congress had to request donations from states to meet national needs.

2. Foreign - European nations had little respect for a new nation that could neither pay its debts nor take effective and united action in a crisis. Britain and Spain were threatening to take advantage.

3. Domestic - States were squabbling with each other over the thirteen different currencies; erecting trade barriers; and unable to suppress popular protests.

"Newburgh Conspiracy"
Shay's Rebellion

Summer of 1786  in Massachusetts

Farmers from the western portion led by Captain Daniel Shay.

Uprising was over high state taxes, imprisonment for debt, and lack of paper money.

Lack on the institutional response to uprising.

Confederation Congress was unable to prevent and appeared helpless and ineffective.

Alarmed many nationalists and spurred call for meeting to reform the Articles.

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Peace- The Confederation Congress negotiated successful peace settlement to the Revolution in the Treaty of Paris of 1783

-Britain would recognize the existence of the U.S. as independent
-Mississippi River would be the western boundary
-Americans pay debts owed to the British merchants and honor loyalist claims for property confiscated.
Unity- It kept the country together until a stronger government was established.
Adjustment of Land Claims- The Congress succeeded in having states surrender their western land claims to the national government and created the Northwest Territory.
-Land Ordinates of 1785
-Northwest Ordinates of 1785

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- Articles of Confederation written by John Dickinson of Pennsylvania

-Consisted of only a Confederation Congress

Each state had only one vote

Laws passed by 2/3 majority and a

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Declare war and make peace

Borrow Money

Establish a postal system

Mange Indian affairs

Settle disputes between states

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Western Land

All western land got succeeded to the Articles of Confederation

Land Ordinance of 1785

Created a system of townships which provided for the orderly sale and settlement of land in the Northwestern  territory. Funds from the sale of one section of land to be designated for schools in the area

Northwest Ordinance of 1787

-Set the rules for creating new states.
-Creates 3-5 new territories in Northwest
-Population of 5,000 may elect Assembly
-Population of 60,000 may petition for statehood
-Bill of Rights provided
-Slavery outlawed

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One branch equals no separation of powers

Each state gets only one vote (13 all together)

Large states will be underrepresented and small states will be over represented.

Could not levy direct taxes. Could only ask states for contribution.

No army! had to rely on state militias fir defense.

Could not regulate interstate and foreign trade.

Could not levy tariffs on imports and exports.

Get 9 states to agree to a law and all 13 to amend the Articles.

13 different currencies