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Political Situation 1781 - 7 (Economic Problems (Positives? (Growing…
Political Situation 1781 - 7
Weak national government
No fixed abode
Light attendance
Three executive departments
Varying degree of success
No coercive power
Less importance to unity
State level governance
The West
1785 Land Ordinance
Sale of Northwest land
Land for ex soldiers and schools
Quick and certain
Reducing the potential for disputes
1787 Northwest Ordinance
Organising and admitting new territories
Governor appointed by Congress
5000 inhabitants
Limited legislature
Non - voting representatives
60,000 inhabitants
Constitutional convention
Equal to existing states
Foreign Policy
Britain
Frontier posts
Fur
Native Americans
American failure of repaying war debts and loyalist property
Weak Congress
John Adams rebuffed 1785
Unable to compel to implement treaties
Spain
Opposed American westward expansion
Control of the Mississippi
1784 Natchez
Deprived American's of goods
Jay Treaty
Return for limited access to Spanish markets
Give up Mississippi for 25 years
5 states opposed
Economic Problems
Exported 1/3 of British imports
American debt and flow of specie
Depress trade
Slow economic recovery
Depressed prices
Private and public indebtness
Chaotic trade
Retained by individual states
Weakened bargaining position
Massachusetts v New Hampshire
1784
Demands to allow Congress to regulate trade
North
Protective tariff
South
Free trade
Positives?
Growing population
4 million in 1790
Western expansion
New markets
Evaded British trading restrictions
Financial problems
Worthless currency
1783 National Debt
$41 million
$2.4 million interest
Unable to pay soldiers
Pennsylvania State House
Abandon Philadelphia
Robert Morris
1781
Philadelphia merchant
Used his own money
Strong national government
National bank
Failed in 1784
Secure control of public debt
States preferred responsibility
1786 incorporated national to state debt
Blow status of Congress
Levy import duties
Unattainable unanimity
1787
States could not be compelled
Sale of western land
$760,000 by 1788
Immense overseas debt
Creditors vs debtors
States imposed heavy taxes
1783
Currency ceased
Debtors demanded increase
Creditors opposed this
Paper money would lead to inflation
1780s
Debtors were winning
7 states issued paper money
Rhode Island
Creditors fled
Republican government led to anarchy
Social tensions
Shay's Rebellions
Massachusetts
Farmers lost land
Demanded paper money
Prevented courts from hearing cases
Shay
Bankrupt farmer
Led several hundred armed men
Dispersed by 1000 militiamen
Alarmed Conservatives