The New Nation Part 2

Creating the United States: The New Nation (Part 2)

This section of the study guide provides detailed notes on the topics discussed concerning the formation of the United States and the challenges faced under the Articles of Confederation.

Introduction

  • Continuing from Part 1, which covered the national government under the Articles of Confederation and politics within the sovereign states.
  • Focus today on the final two sections:
    • The Confederation in Crisis
    • The Transition to the New Constitution

Confederation in Crisis

  • The Articles of Confederation established a limited national government, favoring state sovereignty.
  • Problems in the 1780s reveal significant issues linked to this structure.

Financial Challenges

  • In 1781, Congress faced severe financial difficulties stemming from Revolutionary War debts.
  • The Continental Dollar, created during the conflict, had dramatically depreciated:
    • Trading at approximately $ rac{1}{50}$ of its printed value (less than one penny on a dollar in effective purchasing power).
  • Efforts to stabilize finances included appointing Robert Morris as Superintendent of Finance.
  • Unlike the current three-branch structure, Congress functioned as both legislative and executive bodies under the Articles.

Proposals by Robert Morris

Import Tax Proposal
  • Morris proposed a 5% national import tax on all items imported into the U.S.
  • Aimed to raise revenue.
  • Problem: The Articles of Confederation did not grant Congress the authority to impose such taxes.
    • Required a unanimous amendment from Congress and state governments, making it nearly impossible.
    • States opposed sharing revenue due to existing state taxes.
Bank of North America
  • Morris's second proposal involved creating a private bank to lend to the national government and stabilize currency.
  • Features:
    • It would hold government deposits and strengthen the economy.
  • Issues:
    • Individual states still printed their own currencies, flooding the market.
    • The national government lacked the power to regulate or stop this, leading to confusion between good and bad currency.

Territorial Claims

  • Post-Revolution (1783) the U.S. inherited substantial Western territory, leading to overlapping and conflicting state claims.
    • Example: Virginia claimed all land up to the Northwest Territory, including parts of Michigan and Wisconsin.
  • Under the Articles, there was no judicial branch to resolve disputes among states.
  • Extended negotiations required states to cede some claims to the national government.

Land Ordinances

  • Following the failure of revenue solutions, Congress focused on managing Western territories.
Land Ordinance of 1784
  • Authored by Thomas Jefferson.
  • Vision: Establish a nation of small independent farmers.
  • Proposals included:
    • Free land for settlers.
    • Prohibition of slavery in the new territories.
  • Only prohibitions on slavery were adopted later in the Northwest Ordinance.
Land Ordinance of 1785
  • Established procedures for selling land.
  • Minimum purchase of 640 acres priced at $1 per acre.
    • This favored land speculators rather than small farmers.
  • Revenue from land sales aimed at paying off debt from the Revolutionary War.
Northwest Ordinance of 1787
  • Set foundational processes for territorial development into states.
    • New states would have equal standing with original states (e.g., Ohio would not be subordinate to Virginia).
  • Prohibited slavery in the Northwest territory—significant for future slavery discussions.
  • The Northwest Territory included states like Wisconsin, Michigan, Illinois, Indiana, and Ohio.

Shays' Rebellion

  • A vital uprising in 1787 demonstrated weaknesses in the national government.
  • Background:
    • Farmers in Western Massachusetts struggled to pay hard currency taxes imposed by the state legislature.
    • Farmers faced legal evictions and tax evasion charges due to lack of liquid assets.
  • Daniel Shays led a group of farmers against the state government, targeting courthouses to disrupt tax enforcement.
  • The rebellion challenged both the Massachusetts and national governments.
    • The national government lacked a credible military response (only managed to gather fewer than 100 volunteers).
    • Wealthy Bostonians hired mercenaries to suppress the rebellion.
  • After Shays' Rebellion, confidence in the Articles of Confederation further eroded.

Annapolis Convention and Philadelphia Convention

  • Following Shays' Rebellion, concerned leaders pushed for a revision of the Articles of Confederation.
  • Annapolis Convention (1786):
    • Intended to discuss amendments to the Articles; however, only five states sent delegates.
  • Philadelphia Convention (1787):
    • Follow-up meeting attracted 55 delegates from 12 states for constitutional reform.
    • Operated in secrecy.
    • The goal was to create a stronger federal structure, emphasizing federal supremacy over states.

The Virginia and New Jersey Plans

Virginia Plan

  • Proposed a strong national government with three branches:
    • Legislative (bicameral), executive (president), and judicial.
  • Representation based on state population—larger states would have more influence.

New Jersey Plan

  • Counterproposal advocating for:
    • A unicameral legislature with equal representation from each state.
    • A multi-person executive council rather than a single president.

The Great Compromise

  • Resulted from debates between the Virginia and New Jersey Plans.
  • Key features included:
    • Federal supremacy in law.
    • Third branch structure with an executive, legislature, and judiciary.
    • A bicameral legislature balancing population representation (House of Representatives) with equal state representation (Senate).

Ratification of the Constitution

  • The draft required ratification by nine of the thirteen states to take effect, proceeding without full unanimous approval.
  • Initial states included Delaware, Pennsylvania, New Jersey, etc., ratifying by May 1788.
    • New Hampshire's ratification in June 1788 confirmed the necessary numbers, but New York and Virginia remained critical.
  • Alexander Hamilton, James Madison, and John Jay authored the Federalist Papers to advocate for ratification.
  • Addition of a Bill of Rights was a key factor in appeasing Anti-Federalist concerns about individual liberties.
    • A Bill of Rights was agreed upon to help secure the ratification of New York and Virginia.

Conclusion

  • The new Constitution established a stronger federal government better equipped to manage the challenges faced by the nation, setting the stage for the development of the new republic in later outlines.