The First Government: How it Worked

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1 IQ S 1. Describe the role of government in securing freedom, opportunity, prosperity, and security (FOP S) for the people. 2. Without FOP S, can a government of the people be successful? 3. Is there a difference between a national/federal/central government? 4. If we declared our independence in 1776, adopted the Articles of Confederation in 1777, and signed the Treaty of Paris in 1783, then why did our 1 st president not take office until February 1789?

2 Unit 5

3 Unit 5, Notes 1

4 The First Government: How it Worked Articles of Confederation Plan for the loose union of the states under the authority of the Congress Adopted by Congress in November 1777 Established a weak central government by reserving state powers Each state sent a delegation once a year to serve in the Confederation Congress

5 Strengths State government Make own laws Retain sovereignty (chief power; supreme or independent power) National government Army and navy could be raised Treaties and alliances can be made Money can be coined and borrowed Weights and measures can be regulated Indian affairs can be regulated Weaknesses Lack of national unity Fed. Govt. can t levy direct taxes raise a large army regulate trade Settle interstate disputes Collect state debts Enforce powers One vote in congress for each state No executive or judicial power Amendments require unanimous votes from states

6 Debt Problem: Confederation Congress can t pay off war debts or finance govt. operations because it lacks the power to tax or regulate trade Solution: Federal govt. began to sell land west of the Appalachian Mountains to private citizens Land Ordinance of 1785: provided conditions for developing the land area from the Ohio River to the Mississippi River into future states Kentucky (1792) and Tennessee (1796) became states as a result Northwest Ordinance (1787): allowed for the creation of 3 to 5 states in the Northwest Territory which included all lands west of the Ohio River and east of the Mississippi River Ohio (1803), Indiana (1816), Illinois (1818), Michigan (1837), and Wisconsin (1846) became states as a result Trade Problem: After losing the war, Great Britain imposed restrictions on American access to British markets Solution: Congress negotiated trade treaties between the U.S. and France, Holland, Prussia, and Sweden

7 Duties (taxes on imported goods) Problem: British goods flooded American markets and put American artisans out of business Solution: American states began imposing duties on British goods Additional Problem: Different states imposed different duties, thus Britain landed their product in cheapest states and transported them overland to reach additional markets trying to block British imports Continental Congress with no power to regulate commerce Solution: State began setting up customs posts along their borders Backlash: States began levying taxes on each another s goods to raise state revenue Result: Lack of national unity each state resembles an independent country more than a state within a union Diplomacy (Foreign Policy) Problems: British troops remain stationed in western territory because Americans refuse to honor prewar debts and return property to Loyalists Spain closes the mouth of the Mississippi to American ships and disputes Georgia-Spanish Florida border No Solution: Again, Congress can t tax to cover prewar debts or impose economic/trade sanctions to pressure Britain or Spain into submission

8 Currency Problem: Inflation (too much money = decline in value of money = higher prices) existed because state governments printed more paper money to counter economic recession, debt, and high taxes Solution: Some state governments (Massachusetts) stopped printing paper money and began raising taxes to generate revenue to pay off debts Backlash: Shays s Rebellion Massachusetts farmers lose their farms because they are unable to pay higher taxes and farm mortgages Daniel Shays (war veteran) led rebellion of farmers Rebel farmers shut down county courthouses and tried to seize a state military arsenal before their defeat

9 What is to afford our security against the violence of lawless men? Our government must be braced, changed, or altered to secure our lives and property. --General Henry Knox Artisans, merchants, creditors, and some members of the Confederation Congress called on the states to fix the inadequacies of central government

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