Transcript Ch. 5 Section 2 Guided Notes ppt (binder pages 7-8)

Chapter 5 Section 2:
The New Nation Faces Challenges
textbook pages 158-162
The Big Idea
Problems faced by the young nation made it
clear that a new constitution was needed.
Holt McDougal,
Main Idea 1: The United States had difficulties
with other nations.
Relations with Other Countries- Britain, Spain
1. The Continental Army had been disbanded after the
American Revolution. Without an army, the national
government found it difficult to protect its citizens against
foreign threats.
2. Britain refused to turn over its forts in U.S. territory (the
Great Lakes) to American control. These protected valuable
land and fur-trade routes.
Holt McDougal,
Main Idea 1: The United States had difficulties
with other nations.
3. Britain closed off trade with the British West Indies and
imposed high tariffs (taxes on imports and exports ) on
American merchants. These covered American made items
like rice, tobacco, tar and oil.
4. Spain closed the lower Mississippi River to American
shipping. Congress couldn’t agree on a plan with Spain for
access to the river and the port of New Orleans. Farmers in KY
and TN were furious because they needed the port.
5. “Our federal government is but a name; a mere shadow
without substance (power).”
Holt McDougal,
Interpreting Maps Questions p159
1. Movement: Along what river did trade goods reach the port
of New Orleans?
The Mississippi River
2. Location: Along what three routes did U.S. trade face
foreign barriers?
Route to New Orleans
Export Route to Great Britain
Export Route to West Indies
Holt McDougal,
Impact of Closed Markets
1. Closing markets in the British West Indies caused American
exports to drop. Farmers could no longer export their goods
and had to hire British ships .
2. Cheap British manufactured products flowed into the
United States. Our producers couldn’t compete with the
British prices. This hurt our economy.
Holt McDougal,
Impact of Closed Markets
3. The Confederation Congress had no authority to pass
tariffs, or order states to pass tariffs, to help correct unequal
trade with Britain.
4. States worked independently to increase their own trade,
so if one state imposed a tariff, the British just sold to the
neighboring state.
5. American merchants were forced to look for new markets in
other countries like China, France, and the Netherlands.
Holt McDougal,
Main Idea 2: Internal economic problems plagued
the new nation.
Economic Problems
1. The Confederation Congress had no power to regulate
interstate commerce (trade between two or more states),
making trade difficult across state boundaries/lines.
2. Inflation was a problem in many states, which struggled to
pay off war debts by printing money.
3. Define Inflation: increased prices for goods and services
combined with the reduced value of money.
4. Money was not backed by gold or silver, so it was worthless
if you printed too much.
Holt McDougal,
Main Idea 2: Internal economic problems plagued
the new nation.
5. Loss of trade with Britain combined with inflation caused an
economic depression.
6. Definition: Depression is a period of low economic activity
combined with a rise in unemployment.
Holt McDougal,
Main Idea 3:Shays’s Rebellion pointed out
weaknesses in the Articles of Confederation.
1. Daniel Shays led Massachusetts farmers in a revolt over
high land taxes and heavy debt in August 1786.
2. Farmers who couldn’t pay the new land taxes had to sell
their farms to pay off the debt or go to jail.
3. Shays temporarily forced the shutdown of the Supreme
Court in Massachusetts.
4. No one’s property could be taken to pay off debts if the
court was closed.
Holt McDougal,
Main Idea 3:Shays’s Rebellion pointed out
weaknesses in the Articles of Confederation.
5. Shays’ Rebellion was put down by state troops in January
1787.
6. Many citizens agreed with the rebels and their cause.
7. State officials freed most of the rebels.
Holt McDougal,
Main Idea 4: Many Americans called for changes
in the national government.
Calls for Change:
1. Shays’ Rebellion showed the weaknesses of the
Confederation government, which could not respond to
Massachusetts’ call for help.
2. People saw that the ideals of liberty set forth in the
Declaration of Independence were not protected.
3. People called for a stronger central government that could
protect the nation in times of crisis.
Holt McDougal,
Main Idea 4: Many Americans called for changes
in the national government.
4. The Virginia legislature called for a national conference to
change the Articles of Confederation.
5. Nine states sent delegates to the Annapolis Convention
held in September 1786 but without result because of poor
attendance.
6. The Constitutional Convention was called in May 1787 in the
city of Philadelphia to revise the Articles of Confederation.
Holt McDougal,
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Holt McDougal,