Financial, Frontier, and Foreign Problems

The United States faced serious financial instability in its formative years. The situation was so desperate that Continental Army officers threatened to march on the confederation congress if they did not receive their pay. Other issues also threatened the emerging nation. Conflicts between settlers and Indians in western areas forced the confederation government to attend more closely to its frontier territories. Meanwhile Spain closed the port of New Orleans to U.S. trade as individual states struggled to regulate domestic and foreign commerce. Off the coast of North Africa, Barbary pirates attacked U.S. merchant ships. Clearly, diplomatic relations with European powers were crucial but difficult, given America’s outstanding war debts and the relative weakness of the confederation government.