“ The consequences of . . . [an] inefficient government are too obvious to be dwelt upon. Thirteen sovereignties pulling against each other, and all tugging at the federal head will soon bring ruin on the whole. . . .

Let us have [government] by which our lives, liberty, and property will be secured or let us know the worst at once.”

~George Washington

Case #1: Settling the National Debt1) Revolutionary War

– Gov’t owed France > 10 million dollars

– Gov’t owed U.S. citizens > 34 million dollars

– Struggled to raise revenue

2) Congress could not tax (states had that power)

– Congress had to rely on borrowing

– Could not pass amendment to change the law because they needed 13 out of 13 vote to amend laws – not every state voted yes

3) Not successful

– Failed to develop a workable plan

– Bad credit rating

U.S. NATIONAL DEBT CLOCK The Outstanding Public Debt as of 25 Sep 2007

at 03:16:10 PM GMT is:

The estimated population of the United States is 303,081,873

so each citizen's share of this debt is $29,682.97.

The National Debt has continued to increase an average of

$1.36 billion per day since September 29, 2006!Concerned? Then tell Congress and the White House!

http://www.brillig.com/debt_clock/

Case #2: The Pirates of North Africa1) Pirates harassing U.S. merchants

• U.S. no longer had the protection of the British navy

2) No mechanism to fight the pirates• British cut the yearly 4 million in

trade• U.S. forced to pay tribute/bribe• U.S. did not have the power to

fight the pirates (strong navy), nor the money to continue to pay them off

3) Effectiveness– Not effective– Just caused more economic

problems– Tribute of 1 million dollars to let

the captured Americans go

Case #3: Soldiers In A Time Of Peace1) Concern over a standing army

• Fear of army being used for imposing a tyrannical government

2) Inability to raise funds to support an army• Congress could not raise enough

revenue• Some states withheld money they

promised Congress

3) Effectiveness• Not effective • Potential mutiny for unpaid

veterans• Inability to provide for the

common defense of the nation

Case #4: Treaty of Paris1) Enforcement of treaty provisions

• Some states opposed the treaty

• Conflict over treatment of loyalists (get their land back?)

• Colonial debt to British merchants (paper money O.K.?)

• British presence in the Northwest (Ohio region)

2) Weak Congress

• Could not force states to obey the treaty

• Could not force the British out of the Northwest (Ohio region)

3) Effectiveness

• Not effective

• More credit issues

• Inability to provide for the common defense of the nation

Case #5: Debtors, Creditors, & Paper Money1) Money supply dried up

• Huge war debt for the states• States raised taxes• Falling prices for crops hurt farmers >

creditors seized farms• Farmers reacted with violence

2) Congress could not control the paper money supply• States printed their own money• Inflation led to paper money being

nearly worthless

3) Effectiveness• Not effective• Unstable currency and therefore a

weak economy• Conflict and violence between creditors

and debtors

Daniel Shays

Land Claims of the States After The Treaty of Paris 1783

Strengths – Case #6: Western LandsStrengths – Case #6: Western Lands• Western Lands

– The greatest accomplishment of the Articles

– Established a policy for settlement & creating a government in new lands

– Cessation of Western Land Claims

• All states gave up their claims to territories gained by the U.S. in the Treaty of Paris (1783)

WESTERN LAND CLAIMS & THE ORDINANCES OF 1785 & 1787

Land Ordinance of 1785Land Ordinance of 1785• Established a policy for division & settlement of land north of the Ohio River

• Townships of 6 miles square divided into 36 subdivisions of 640 acres each

• Sale of sections used to pay off national debt (at least $1 an acre)

• Sale of 1 section used to support public education

• Native Americans were totally disregarded until the Treaty of Greenville (1795)

–Some negotiating with Indians over land

Land Ordinance of 1785Land Ordinance of 1785

Northwest Ordinance of 1787Northwest Ordinance of 1787• 2-Stage plan for territories becoming states:

– When an area had a population of more than 5,000 adult males > it could establish a government [governor, legislature, judges]

– At 60,000 people > write a constitution & apply for statehood

• Statehood – When Congress approved their constitution

• Northwest Territory became Ohio, Indiana, Illinois, Michigan, & Wisconsin