AP Syllabus focus:
‘Problems with international trade, finances, interstate commerce, foreign relations, and internal unrest under the Articles led many to demand a stronger central government.’
Economic instability, interstate disputes, and political unrest under the Articles of Confederation exposed deep structural weaknesses, prompting widespread calls for reform and ultimately laying the groundwork for America’s constitutional transformation.
Economic Weaknesses Under the Articles of Confederation
The peace following the American Revolution revealed serious economic vulnerabilities in the newly independent states. The Articles of Confederation, designed to prevent centralized tyranny, severely limited federal authority in ways that hindered national recovery.
This image shows the engrossed copy of the Articles of Confederation, the first constitutional framework of the United States. Its formal appearance contrasts with the government’s limited authority to tax or regulate commerce, which contributed to the severe economic instability described in the notes. The visual includes only the document itself and no depiction of the specific structural weaknesses it created. Source.
Structural Financial Problems
The federal government’s inability to raise revenue remained one of its most debilitating flaws. Without taxation authority, Congress depended on state contributions known as requisitions, voluntary payments that states frequently ignored. This made it nearly impossible to fund government operations or pay off the sizeable Revolutionary War debt, weakening foreign confidence and domestic credit.
Requisitions: Mandatory financial contributions requested from states by the Confederation Congress, which states often failed to provide due to weak federal enforcement.
States, meanwhile, pursued conflicting financial policies. Some issued large quantities of paper currency, while others adopted hard-money approaches. These inconsistent financial strategies contributed to inflation, creditor–debtor tensions, and widespread economic uncertainty. Foreign nations viewed the United States as financially unreliable, complicating diplomatic negotiations and efforts to secure trade agreements.
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The lack of a national currency further intensified instability. While Congress technically had the authority to coin money, states did as well, leading to a confusing mix of currencies with fluctuating value.
International Trade Challenges
America’s weak bargaining position under the Articles made securing trade access difficult. Britain restricted American ships from entering imperial ports, and the U.S. lacked the unified authority needed to retaliate or negotiate from strength. Meanwhile, European powers exploited American disunity by striking separate commercial arrangements with individual states.
The Confederation Congress also struggled to protect American merchants from discriminatory tariffs. Without national regulation, states imposed their own duties on imports and even on goods from neighboring states.
Interstate Conflicts and Commercial Tensions
Domestic trade conflicts further revealed the inadequacy of decentralized governance. States enacted tariffs and trade barriers against one another, competing for revenue in ways that fragmented the national economy. This contributed to recurring disputes over boundaries, navigation rights, and commercial privileges.
Barriers to Interstate Commerce
Because Congress could not regulate interstate commerce, states often behaved like independent nations. Key examples include:
Imposing duties on goods passing through their borders.
Favoring in-state merchants through preferential laws.
Quarreling over river access and port authority.
Seeking individual agreements with foreign traders.
These tensions contributed to broader recognition that the Articles of Confederation could not provide coherent economic policy. Local interests repeatedly obstructed national priorities, leaving the country vulnerable to foreign economic pressures.
Unrest and Social Tensions in the 1780s
Economic hardship fell heavily on farmers, laborers, and small property holders. Declining agricultural prices, limited access to credit, and aggressive loan collection practices created widespread anxiety. Many farmers faced foreclosures and imprisonment for debt, while state governments—especially those favoring hard-money policies—sided with creditors.
Shays’ Rebellion and Its Impact
The most dramatic expression of unrest occurred in western Massachusetts in 1786–1787. Led by Daniel Shays, a veteran of the Revolution, farmers launched an armed uprising to protest high taxes, debt enforcement, and economic distress. Although the rebellion was eventually suppressed by a privately funded militia, it had a profound national impact.
This illustration depicts Shays’ troops being repulsed at the Springfield armory in early 1787, highlighting how economic distress escalated into armed resistance. The confrontation underscores the Articles-era government’s inability to maintain order or respond effectively to internal crises. The visual is a later artistic interpretation and includes dramatic details not present in contemporary accounts. Source.
The uprising frightened political leaders across the states, convincing many that the Confederation government lacked the power to preserve domestic order. The event became a powerful symbol of the Articles’ weakness and a rallying point for advocates of stronger federal authority.
Growing Calls for Change
By the mid-1780s, it became increasingly clear that economic recovery and national security required structural reform. Political leaders such as George Washington, James Madison, and Alexander Hamilton argued that the nation needed a more vigorous central government capable of regulating commerce, raising revenue, and enforcing laws. Efforts to amend the Articles repeatedly failed because unanimous consent from all thirteen states was required.
Steps Toward Constitutional Reform
Mounting frustrations led to:
The Annapolis Convention of 1786, where delegates called for a broader meeting to revise the political system.
Growing interstate support for addressing economic instability.
Recognition that national unity required stronger federal mechanisms.
The decision to convene the Constitutional Convention in 1787.
These developments reflected a broad shift in political thinking: economic troubles, interstate rivalries, foreign challenges, and episodes of unrest demonstrated that limited central authority could not safeguard national prosperity or stability. The demands for change during this period ultimately propelled the United States toward the creation of a new constitutional framework.
FAQ
The post-war depression sharply reduced agricultural prices, leaving many farmers unable to repay loans. This intensified conflicts between debtors and creditors, particularly in rural areas.
Because the Confederation government lacked tools to stabilise the economy, states attempted their own solutions. Some issued large amounts of paper money, while others enforced strict hard-currency repayment, deepening economic fragmentation.
These divergent responses made it harder to form consistent national policies and increased calls for a central authority capable of coordinating economic recovery.
With no national regulation of commerce, states attempted to raise revenue independently, often by taxing goods passing through their borders.
This created barriers resembling those between sovereign nations. For example, states with major ports imposed duties on goods destined for inland states, provoking retaliatory measures.
Such competitive behaviour revealed that economic self-interest often overrode national unity, strengthening the argument that only a stronger federal government could prevent destructive trade rivalries.
Foreign creditors, especially in Britain and the Netherlands, were sceptical of the United States’ ability to repay its war debts because Congress lacked taxation power.
This led to higher interest rates and reduced access to international loans. States struggled to meet financial obligations, worsening domestic economic conditions.
American leaders grew concerned that the nation’s international reputation was declining, reinforcing demands for a more authoritative central government capable of restoring financial credibility.
Massachusetts’ heavy taxation and strict debt enforcement policies revealed how state-level decisions could inflame economic unrest.
The state struggled to raise a militia to defend its own institutions, relying instead on privately funded forces. This highlighted not only federal weakness but also the fragility of state authority under economic strain.
The crisis demonstrated that political instability could arise from conflicting state policies, prompting broader interest in national structures that could mitigate such uneven outcomes.
Amendments required unanimous consent from all thirteen states, making significant reform nearly impossible.
States with strong commercial interests feared national interference, while others worried that a stronger central authority would threaten their autonomy.
This combination of local priorities and structural rigidity prevented meaningful change, ultimately convincing many leaders that a complete overhaul—not simple amendment—was necessary to address economic troubles and unrest.
Practice Questions
Question 1 (1–3 marks)
Explain one way in which economic weaknesses under the Articles of Confederation contributed to calls for a stronger central government in the mid-1780s.
Mark Scheme
• 1 mark: Identifies a relevant economic weakness (e.g., inability to tax, unstable currency, interstate trade barriers).
• 1 mark: Provides accurate explanation of how this weakness caused instability or hindered national recovery.
• 1 mark: Clearly connects this economic problem to growing demands for constitutional reform or a stronger federal authority.
Question 2 (4–6 marks)
Analyse how unrest such as Shays’ Rebellion strengthened arguments for replacing the Articles of Confederation.
Mark Scheme
• 1 mark: Identifies Shays’ Rebellion or similar unrest as a symptom of Articles-era economic problems.
• 1 mark: Describes specific economic grievances that fuelled the unrest (e.g., debt enforcement, tax burdens, limited credit).
• 1 mark: Explains the Confederation government's weakness in responding effectively to the crisis.
• 1 mark: Analyses how political leaders interpreted the rebellion as evidence that the national government could not maintain order.
• 1 mark: Demonstrates how the event contributed to support for reform, such as the Annapolis Convention or Constitutional Convention.
• 1 mark: Presents a coherent, analytical argument with clear links between unrest and the push for structural change.
