The World Economy: An Early Problem for Young America

Although the Treaty of Paris formally ended the American Revolution on September 3, 1783, tensions between the former warring nations remained. The leaders of the former colonies faced the tasks of creating a new government and, at the same time, establishing a presence in the world. Their relations with old antagonists like the British caused special problems.

The British felt no need to cooperate with their former colonies; on the contrary, they pressured the insolvent new government to honor its treaty obligations, which included compensating Loyalists who had suffered financial losses. Pending satisfaction of those debts, British garrisons remained encamped on the western frontier. To add insult to injury, British merchants viewed the new nation as an ideal market for their goods. After the interruption of trade by the Revolution, British merchants flooded U.S. seaports with inexpensive and much-desired goods.

U.S. merchants reacted to this British competition with anger, echoing cries of earlier years. The threat to the healthy markets they had enjoyed during the military hostilities added to their ire. They petitioned their state legislators and the Congress to regulate trade between the new states and international commerce. As before the Revolution, the Massachusetts merchants voiced their concern with great force. By June 1785, under pressure from the merchants, the Massachusetts legislature formally acted to assume responsibility for regulating trade between the state and other nations. The Massachusetts act admonished the Congress to take up the matter and to provide leadership in controlling international commerce for all the states.

The four years between the Treaty of Paris and the Constitutional Convention exposed several weaknesses of the government as established by the Articles of Confederation. In addition to the problem of maintaining a simple quorum at meetings, the Congress balanced precariously between lack of leadership and the ever-in-creasing demands of the states. The regulation of commerce languished as one of the issues awaiting action.

A meeting in Annapolis, Md., in 1786, was initially called to resolve differences between Maryland and Virginia over control of the Potomac River. It evolved to include representatives from five states. The experienced politicians in Annapolis quickly recognized that the problems of trade, both internal and international, were clear evidence of the inadequacies of the confederation. The Annapolis Convention adjourned without resolving the trade issues, but with a call for a convention to reform the governing system established by the Articles of Confederation. Within a year, the meeting called for in Annapolis convened in Philadelphia to revise the Articles of Confederation. Article 1, section 8, of the new U.S. Constitution created by the convention placed control of commerce squarely in the hands of the federal government. The demands of the Massachusetts merchants, as illustrated here, were finally resolved.

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The document is from the Papers of the Continental Congress, 1774-1789, item 42, volume 1, page 350, Record Group 360. Thanks go to James Schweiger, Dover High School, Dover, Del., for identifying this document as one of interest to students and of use to teachers.

Teaching Activities

Some 18th Century language and printing styles may confuse students. We suggest that you review this document with students before making any assignment. Be sure to point out the archaic use of "f" as "s" in the text.

1. The word puzzle on the previous page is designed to encourage students to read the document carefully. You may want to use the puzzle as a homework assignment before you discuss the document.

2. To help students understand the document, ask them to answer each of the following questions. Who developed the broadside? Where? When? In a sentence, state the main idea of the document. List the seven actions agreed to by the group. What does the broadside tell you about trade in Massachusetts after the Revolution?

3. One of the actions voted by the Boston merchants outlines a boycott of English goods. Discuss with students the concept of a boycott and direct them to develop a list of international boycotts initiated by the United States in recent years. Consider with students whether or not an international boycott is an effective diplomatic tool.

4. "Isolationism," "interdependence," "free trade," "multinational corporations," "imperialism," "post-industrial," and "monetarism" all describe aspects of the world economy today. Direct students to define these terms and to explain whether or not they can be applied to the world economic situation of the 18th Century.

5. The actions proposed by the Boston merchants directly relate to several events described in most textbooks—the navigation acts, Shay’s rebellion, and the Annapolis Convention. Assign students to read about one of these events and to explain how the document relates to it.

6. Broadsides such as this served to inform and to persuade citizens in the United States before the widespread use of newspapers. Direct students to develop a broadside of their own design to alert others to an injustice or an issue of special interest. Be sure to encourage students to think about the elements that make up a broadside (e.g., patriotic slogans, visuals, and logical arguments).

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