Engage: The Crisis of the 1780s
By 1786, George Washington wrote that America was “fast verging to anarchy and confusion.” The hero who led the nation to independence now feared it would collapse into chaos. What went so wrong, so quickly?
Explore: A Government That Couldn’t Govern
The problems started immediately after independence. Fighting a war had unified the states; peace revealed how little they had in common. The weak government created by the Articles couldn’t handle the challenges of nationhood. By the mid-1780s, America faced multiple crises that threatened its survival as an independent nation.
Explain: Economic Disaster
The Money Problem: Congress had borrowed millions to fight the Revolution but couldn’t tax to repay debts. When it asked states for money, most ignored the requests. By 1786, the federal government had received only $2.5 million of the $10 million requested. Congress couldn’t even pay interest on its debts.
Worthless Currency: Each state printed its own money, plus Congress issued Continental dollars. With no backing and rampant printing, money became worthless. The phrase “not worth a Continental” became slang for worthless. Rhode Island printed so much paper money that creditors fled the state to avoid being paid in worthless currency.
Trade Wars Between States: States acted like hostile nations:
- New York taxed firewood from Connecticut and vegetables from New Jersey
- New Jersey retaliated by taxing New York’s lighthouse
- States with ports taxed goods headed to inland states
- Some states banned other states’ currencies
Foreign Trade Humiliation: Britain closed West Indies ports to American ships. Spain closed the Mississippi River. Congress couldn’t retaliate because it couldn’t regulate commerce. Each state made separate trade deals, undermining the others.
Elaborate: Security Failures
Shays’ Rebellion (1786-1787): The crisis peaked when Massachusetts farmers, led by Daniel Shays, rebelled against foreclosures and debt collection. The federal government had no army to restore order. Massachusetts had to raise a private militia funded by Boston merchants. The rebellion exposed that Congress couldn’t maintain domestic peace.
As Thomas Jefferson noted from France: “A little rebellion now and then is a good thing”—but most American leaders were terrified.
Foreign Disrespect: Britain kept forts in American territory (violating the peace treaty) because Congress couldn’t make states comply with treaty obligations. Spain negotiated with states separately, trying to split the union. Pirates seized American ships because there was no navy. Foreign diplomats mocked American ambassadors who couldn’t speak for their “nation.”
No National Defense: When Native American conflicts erupted on the frontier, Congress could only request state militias. States often refused or sent untrained, poorly equipped men. The nation that had defeated the British Empire couldn’t defend its own borders.
Evaluate: The Breaking Point
The Annapolis Convention (1786): Delegates from five states met to discuss trade problems. They realized the issues went beyond commerce—the entire government structure was failing. They called for a convention in Philadelphia to revise the Articles.
Why Change Seemed Impossible: Remember, amending the Articles required unanimous consent. Rhode Island consistently refused any changes (it benefited from the chaos). Even getting nine states to agree on routine matters proved nearly impossible. The government was trapped in dysfunction.
The Elite Panic: Property owners, merchants, and creditors—the people with the most to lose—led the push for change. When farmers rebelled and states printed worthless money, elites feared social revolution. James Madison wrote that the “turbulence and follies” of democracy threatened property rights.
The Lessons Learned
Americans discovered that weak government could be as dangerous as strong government:
- Without taxation power, government couldn’t function
- Without enforcement power, laws were meaningless
- Without unified commercial policy, economic chaos resulted
- Without national defense, independence was precarious
The question became: Could they create a government strong enough to govern but limited enough to preserve liberty?
Key Vocabulary
- Requisition System: Congress requesting (not demanding) money from states
- Foreclosure: Seizing property when debts aren’t paid
- Hard Money: Gold and silver coins, as opposed to paper currency
- Interstate Commerce: Trade between states
Think About It
Shays’ Rebellion terrified elites but excited some radicals who saw it as democracy in action—people resisting unjust laws. Was the rebellion a dangerous mob or desperate citizens? Does it matter who writes the history?
Additional Resources
Primary Source: Henry Knox’s letter to George Washington about Shays’ Rebellion (October 23, 1786): https://founders.archives.gov/documents/Washington/04-04-02-0274
Knox’s detailed report on the rebellion alarmed Washington and helped convince him to attend the Constitutional Convention. His presence would prove crucial to its success.
Tomorrow: We’ll see how the crisis under the Articles led to the Constitutional Convention—where delegates would attempt the impossible: creating a government powerful enough to work but limited enough to trust.