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[jdavid]

The major problem was lots of debt, no funds and not an adequate power to collect monies to pay of the immense debt the new country was facing. Potential anarchy threatened to take root while uprisings in western parts of the new country were shaking the confidence of citizens (5). On the up swing the British naval opposition was no longer a restraint that colonies had to contend with as they looked forward to trading directly with foreign nations (12). Though the colonies were no long with under the oppression of British rule, they too lost many of the advantages that came with being under an establish sovereign. Merchants were no longer guaranteed the protection, and the credit that come with being connect to the empire. Along with debt to foreign nations, citizens were in debt to other merchants within the colonies, southern farmers had lost slaves and northern landowners were having trouble making mortgage payments (13-14). American ambassadors to Spain were having trouble persuading Spain to reopen ports with the lack of power they had under the Confederation. Britain refused to evacuate the Ohio Valley (20). “In Paris, London, Madrid, and Amsterdam, American diplomats found it impossible to negotiate new loans, for no one was willing to lend money to a nation that could not honor its existing loans.” (22)