Weakness of the AOC

Limits/Weaknesses

• Maintained little power compared to state govts

• Purposely made weak, why?
  States considered mini-republics

• No administrative head

• No mechanism to enforce resolutions

• No courts

• Amendments (changes) to AOC needed unanimous ratification by the states

• Inability to tax /raise fuds to pay for expenditures

• Financial Problems
Weak Economy
Dinicult to regulate interstate trade

Foreign trade had fallen

Depreciated currency

• War Debt To pay for the Revolutionary War
Foreign Loans (France/Netherlands)

bones

Debt Certificates

THE ARTICLES OF CONFEDERATION

Immediate Problems

Loyalist

Boundary Issues (Spain & Britain)

• Indian Resistance
  Land Disputes (B/w the states)

• Continental Army Demobilization
  Newburgh Conspiracy (1783)

Solutions

5% Import Duty • Rejected

• New (stable) Currency O "Morris Notes"

• Back by French bullion and Robert Morris's personal wealth

• Bank of North America
  Investors I Dividends
  AOC Congress largest shareholder (65%)
  Investment borrowed from the French Dividends could fund govt operations
  Controversial as lower-class Americans unable to obtain loans Irom banks _ poor credit

• Good ideas, but never fully implemented