The Confederation

1. The Confederation Life in America Under the Articles of Confederation

2. The Articles of Confederation • Like many textbooks, The American Vision goes out of its way to disparage the poor Articles of Confederation: 1. It calls them “a weak national government, which proved to be ineffective.”

3. The Congress Under the Articles of Confederation, the Congress was the only branch of government. Every state had one vote, and many new laws required a unanimous vote. For example: taxation.

4. Powers Granted to the Congress, Articles of Confederation: • 1. The right to declare war – as they did during the Revolutionary War. • 2. The right to raise and army – as they did during the Revolutionary War. • 3. The right to sign treaties – which it did during the Revolutionary War (with France, Spain, and Holland) and after the Revolutionary War: The Treaty of Paris of 1783, which secured our independence.

5. Powers Denied the Articles of Confederation Congress: • 1. The power to impose taxes. Congress was never able to impose a tax in order to collect revenue and repay debts. • 2. The power to regulate trade. Unanimous approval was required for trade regulations, and it was never forthcoming.

6. The Northwest Ordinance – Selling the Northwest Territory… Congress’s principle method of raising money was by selling the land which the United States had claimed from the British in the Treaty of Paris of 1783 – from the Appalachians to the Mississippi! By selling the land at a fair price, the Congress was able to control the settlement of the Western Territories and raise money for the repayment of debts.

7. Six Provisions of the Northwest Ordinance of 1787: • The Northwest Territory would be surveyed and divided into three to five districts (it was eventually divided into five parts.) • Congress would choose a governor, secretary, and three judges for each district. • When there were 5000 adult male citizens in a district, they could elect their own legislature. • When the population of the district reached 60,000, it could apply to become a state. • Certain rights were guaranteed, including freedom of religion, property rights, and the right to a trial by jury. • Slavery was made illegal throughout the territory.

8. Improved Trade • The Articles of Confederation was successful in promoting trade with nations in Europe and in the Caribbean. • The United States actually had more trade by 1790 than they had with Britain as a trading partner prior to the Revolution. • But, a lot happened between 1783 and 1790…

9. The States Taxed One Another! In an effort to raise revenues, states began to tax one another in order to trade. A person selling cloth or agricultural products from Massachusetts across state lines might be forced to pay a tax to Connecticut or Rhode Island. These taxes only served to discourage trade between the states, which benefited no one in the long run.

10. Our plan is commerce, and that, well attended to, will secure us the peace and friendship of all Europe; because it is the interest of all Europe to have America a free port. Her trade will always be a protection, and her barrenness of gold and silver secure her from invaders. I challenge the warmest advocate for reconciliation to show a single advantage that this continent can reap by being connected with Great Britain. I repeat the challenge; not a single advantage is derived. Our corn will fetch its price in any market in Europe, and our imported goods must be paid for buy them where we will. - Thomas Paine, Common Sense Well, Sort of… Thomas Paine was half right, anyway. We were able to sell our goods in Europe. However, the part about Americans trade serving as a protection against invasion proved to be too optimistic.

11. Failures of the Articles: 1. Because Americans could not raise tax money, they were unable to pay back their creditors. Spain, Holland, and France were all owed money at the end of the Revolutionary War. Debts owed to English creditors – or Loyalists – were the last on the list to get repaid. 2. Meanwhile, British soldiers maintained their outposts in the West. The United States did not have a large army. Americans disliked standing armies in general and couldn’t afford to pay soldiers anyhow.

12. Spain – From Ally to Enemy First of all, Americans owed the Spanish millions of dollars, and had no ability to repay the debt. Moreover, Americans and Spanish colonists were in competition for territory in the New World. Spain controlled both Florida, and the Louisiana Territory, and could stop Americans from gaining access to the Mississippi River and its trade routes.

13. A Flood of British Goods! • During the Revolutionary War, many American artisans profited because of non-importation treaties and boycotts against English goods. They were able to sell their products without competition. • After the Revolution, English goods once again flooded the markets, and hurt American business.

14. Shays’ Rebellion Daniel Shays was an ex-soldier in the Revolutionary War who was outraged when money speculators and government officials began to repossess the land of farmer and imprison debtors who could not pay their taxes. The rebellion was short lived, but the disorder and chaos caused by the event frightened many of the Founding Fathers. When the state legislators began passing laws forgiving debts the following year – and causing the property rights of the elite to be jeopardized – the Founding Fathers panicked.

15. Debtors VS. Creditors • The Founding Fathers feared that debtors would engage in a practice they called “Tyranny of the Majority.” • By passing laws that robbed minorities groups – like the rich – of their property, the state assemblies were violating the principles the nation was established upon: the peoples rights to life, liberty, and the pursuit of happiness – property…

16. George Washington’s Response “If there exists not a power to check them, what security has a man for life, liberty, or property? …Thirteen sovereignties, pulling against each other, and all tugging at the federal head will soon bring ruin on the whole…” Washington called for a Convention to revise the Articles of Confederation as soon as possible.