CHAPTER 9

Section 2 Notes

Settling the West

After the REVOLUTIONARY WAR, colonists began settling the NORTHWEST TERRITORY---lands north of the OHIO RIVER. Some claimed land just by settling on it. As a result, land disputes arose.

Congress responded by passing the LAND ORDINANCE OF 1785. Under the law, land was divided according to an established system. This provided a more orderly method for settling the West.

Northwest Territory Map

Northwest Territory Map

Land Division

Settling the West (cont.)

In 1787, Congress passed the NORTHWEST ORDINANCE as a way of organizing the settlement of the NORTHWEST TERRITORY.

The ordinance stated that no less than three and no more than five territories could be carved out of the NORTHWEST TERRITORY. When the population of a territory reached 60,000, the residents could write a CONSTITUTION and apply for STATEHOOD. These territories eventually became the five states of OHIO, INDIANA, ILLINOIS, MICHIGAN, and WISCONSIN.

States Formed from the Northwest Territory

A Failing Economy

During its first years as a new nation, the UNITED STATES struggled ECONOMICALLY. The country owed millions of dollars to FOREIGN COUNTRIES and PRIVATE CITIZENS who loaned money for the war effort. Because the Congress had no power to collect taxes, it had no way to pay off its debt.

The nation’s businesses also struggled. Many still stocked BRITISH good that they could not sell. In addition, TRADE DISPUTES among states made buying and selling goods more difficult. The nation soon entered an ECONOMIC DEPRESSION.

A Failing Economy (cont.)

During this economic downturn, COLONIAL FARMERS suffered greatly. During the war, demand for food had increased. As a result, farmers borrowed money from banks to buy LAND AND MORE EQUIPMENT. After the war, demand for farm products decreased. Farmers now sold less, and thus had trouble paying off THE MONEY THEY HAD BORROWED. The banks responded by taking away the farmers’ LAND.

In Massachusetts, tensions between farmers and authorities sparked a REBELLION. In September 1786, former CONTINENTAL ARMY captain DANIEL SHAYS led farmers in an attack against the local government. The militia put down SHAY’S REBELLION. However, the rebellion alarmed many people. They feared that the nation, under the ARTICLES OF CONFEDERATION, lacked ORDER AND SECURITY.

Daniel Shays

Shays’ Rebellion