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The Articles of Confederation. FOCUS QUESTION: Describe some of the changes brought about by the American Revolution. Describe the opinions and attitudes of two of the three people in this sequence. The Articles of Confederation. The U.S. was governed under the Articles of
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FOCUS QUESTION: Describe some of the changes brought about by the American Revolution.
Describe the opinions and attitudes of two of the three people in this sequence.
The Articles of Confederation The U.S. was governed under the Articles of Confederation from 1781 through 1789
Under the Articles, the National Government (Congress) could: • Pay the nation’s bills • Wage War • Pass laws • Nine states had to agree to those laws • To change the Articles, a unanimous vote was needed • Mediate disputes between the states
The National Government could not: • Levy taxes • Recruit or draft soldiers • Enforce its mediation on the states • Operate a court system
As a result, the nation suffered • Foreign relations were hampered • Trade was held back • States squabbled • Economy sank into recession • The National Debt Rose
The Debt Crisis • U.S. facing a massive debt crisis • Public debt • Congress borrowed heavily during the war • Lacked ability to repay loans • Personal Debt • Small farmers borrowed heavily • Recession slashed price of farm goods
System Collapsed • Nation divided into Creditors and Debtors • Small farmers could not repay loans • Creditors began to seize property
Shay’s Rebellion • Small farmers and debtors in Western Massachusetts rose in revolt • Led by Daniel Shays, a Continental Army veteran • Called for debt relief • Put down by the state militia
New Legislature Elected • Brought about debt relief • Postponed debt repayments • Printed paper currency • Drove down value of money • Stripped property from creditors • System close to collapse