Governing a New Nation

Settling Western Lands

• Articles of Confederation had to be approved by all 13 states

• Some states wouldn’t give approval until other states dropped their claims of the land west of the Appalachian Mountains

• The western lands were turned over to the national government• Could be sold off piece by piece

Land ordinance of 1785

• Congress had to devise a system for land sales and settlement

• Surveyors were to divide public lands into townships• 6 miles on each side resulting in grid of squares• 36 sections would be sold for no less than $1 an

acre• Within each township, one section was set aside

for schools

Northwest Ordinance of 1787

• Investors were eager to buy land in the Northwest Territory

• Pressed Congress to determine how it would be governed

• Congress passed Northwest Ordinance of 1787• Guaranteed basic rights for settlers• Banned slavery

Northwest ordinance of 1787

• Three step process for admitting new states• When a territory was just starting to be settled

Congress would appoint a governor, secretary, three judges

• Once it had 5,000 free adult male settlers, it could elect a legislature

• When the free population reached 60,000, the territory could ask to become a state

• In time 5 states would be carved out of this territory:• Ohio, Indiana, Illinois, Michigan, and Wisconsin

Growing Problems

• Economic Problems• Each state had own trade policy• Each state printed own money

• Making trade between states difficult

• Central government did not have power to tax• Little money to run government

• Foreign Affairs• Powerful nations didn’t take American seriously• Britain was still in Northwest Territory even though peace

treaty required forts be turned over to the Americans• Spanish who controlled New Orleans, refused to let

Americans ship on Mississippi River

Shays’ Rebellion

• Mid 1780’s severe economic depression hit the United States

• Economic Depression: a period when business activity slows, prices and wages drop, and unemployment rises

• Creates widespread despair and anger

• Hit farmers in Massachusetts especially hard• Crop prices declined and many were unable to

pay their taxes• Farms were seized to pay back taxes

Shays’ rebellion

• August 1786 Daniel Shays led an uprising of 1,000 Massachusetts farmers

• Tried to seize arms from a state warehouse

• State called out the militia

• Shays and other leaders were arrested

What’s to come?

• Shays rebellion frightened some leading Americans

• Believed a stronger central government would protect against unrest amongst people

• Congress asked states to send delegates to a convention in Philadelphia with the task of revising the Articles of Confederation