the political situation 1781 - 1787 Flashcards
foreign policy
1784 - spain seized natchez and closed the mississippi to american navigators, depriving western settlers an outlet for their goods. some american leaders feared that settlers in tennessee and kentucky might transfer their allegiance to spain
spain opposed american westward expansion, they forged links with native americans and developed a scheme to create a buffer zone to protect their possessions
the mississippi was in control by the spanish, which gave them great leverage over the americans
1785 - john adams demanded that the british leave the great lakes, but they refused
1786 - foreign secretary john jay initiated the treaty with spain in return for limited access to spanish markets the usa refused to give up the right to use the mississippi for 25 years. however, the 5 southern states opposed the treaty , couldn’t be ratified as they saw that he was willing to sacrifice their interests
britain clung onto frontier posts south of the great lakes to safeguard the fur trade and maintain contact with native americans
land
the british stayed in the great lake area on the pretext that the americans had not restored loyalist property or paid war debts
the 1780s witnessed a flood of pioneers into the trans appalachain region. by 1790, the population of kentucky had risen to 73,677 and tennessee reached 35,691. a coherent policy of land distribution in the west was essential
1785 - land ordinance outlined a surveying system for the sale of northwest land. each town was divided into sections and some sections were set aside for ex soldiers (4 sections). divided into 6 square mile townships. each township was divided into sections of 1 square mile. reduced potential for disputes among land purchasers
there was a fear that new territories in the west would declare independence from the us. as early as 1779 congress had resolved that the west would eventually be organised into new states to be admitted into the union as equals
politics
most decisions affecting the lives of americans were made at state level, not by congress
once independent, the states attached less important to unity and became absorbed in their own affairs
congress lost even more power when the states preferred to assume responsibility for the debts held by their citizens rather than on a national basis. this was a blow as it meant there was little justification for congress seeking large financial powers
1787 - northwest ordinance prescribed a set of procedures for organising and admitting statehood for the new western territories, only when they reached 60,000 could they apply to congress to be a state. when it had 5000 adult male inhabitants, it could elect a legislature with limited powers and non voting representatives in congress.
the main problem was that the confederation government has no coercive power over the states
during the 8 years the confederation was in operation, the usa had only the semblance of a national government and at times not even that- charles thomas, secretary of congress, complained that ‘a government without a visible head must appear a strange phenomenon to european politicians’
economy
robert morris was a superintendent of finance in 1781. he used some of his own money to meet expenses an found the bank of north america, and wanted to develop a sound financial programme . he recognised the need for a strong national government to set up a national bank and control public debt . the government severed connection with the bank in 1784
the issue of state division weakened the american’s bargaining power in relation to trade as industrial interests of new england wanted tariffs against british competition and southern states wanted free trade as they were exporters of agricultural products
between 1784 and 1786, the usa imported from britain goods worth over 7.5 million selling less than 1/3 of that in return
america was in debt due to a slow trade and the impact of the war, to may the situation was bleak as prices were depressed and trade regulation chaotic
the government was unable to pay its soldiers, and in the winter of 1782 army officers met in new york and pressed for back pay and pensions . the possibility of a coup was defused by george washington’s use of authority
1783 - the national debt stood at $41 million and foreign debt compromised nearly $8 million. the interest on this was $2.4 million a year
the situation by 1787
by 1786 congress had levied over $15 million in requisitions from states but only $2.5 million had been paid
only major source of independent income for the national government was from the ale of western lands, yielding only $760,000 before 1788
creditors vs debtors
in an effort to reduce heavy war debts, states imposed heavy taxes
by 1783, the continental paper currency had ceased to circulate and some states stopped issuing paper currency
lacking the specie to pay taxes and meet debts,, debtors demanded an increase in paper money - creditors opposed this, arguing that paper money would lead to inflation and economic instability
1787 - 7 states were issuing paper money. rhode island not only made paper money legal tender but compelled creditors to accept it. value of money deprecated sharply and creditors fled the state to avoid having to accept it
shay’s rebellion
the massachusetts state legislature rejected the demand for paper money and insisted that taxes be paid in scare specie
many farmers were unable to pay taxers and lost land - some were imprisoned
riotous mobs roamed from place to place , preventing courts from hearing debt cases
january 1787 - daniel shays led 600 men toward the federal arsenal at springfield. the rebels were easily dispersed by 1000 militiamen led by benjamin lincoln
the rebellion alarmed conservatives throughout the country - gave crucial impetus to the movement to strengthen the national governments power
