The Articles of Confederation

1. The Articles of Confederation Idealistic Dreams

2. Focus Question What is the best way to prevent the government from violating the rights of citizens?

3. The Articles of Confederation The U.S. was governed under the Articles of Confederation from 1781 through 1789

4. What could the government do? • 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

5. What the government could not do • Levy taxes • Recruit or draft soldiers • Enforce its mediation on the states • Operate a court system

6. As a result, the nation suffered • Foreign relations were hampered • Trade was held back • States squabbled • Economy sank into recession • The National debt rose

7. 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

8. System Collapsed Nation divided into Creditors and Debtors Small farmers could not repay loans Creditors began to seize property

9. Shay’s Rebellion • Small farmers and debtors in Western Massachusetts rose in revolt • Protest coalesced around Daniel Shays • Called for debt relief • Put down by the state militia

10. 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

11. Why did all of this happen?