History of The United States Constitution - Articles of Confederation

Articles of Confederation

The Articles of Confederation was unanimously adopted in 1781 once Maryland agreed. Over the previous four years, it had been used by Congress as a “working document” to administer the early United States government, win the Revolutionary War and secure the Treaty of Paris (1783) with Great Britain. Lasting successes during its life prior to the Constitutional Convention included the Land Ordinance of 1785 where Congress promised settlers west of the Appalachian Mountains full citizenship and eventual statehood. Some historians characterize this period from 1781 to 1789 as weakness, dissension, and turmoil. Other scholars view the evidence as reflecting an underlying stability and prosperity. But signs of returning prosperity in some areas did not slow growing domestic and foreign problems. Nationalists saw that the confederation's central government was not strong enough to establish a sound financial system, regulate trade, enforce treaties, or go to war when needed.

The Congress was the sole organ of the national government, without a national court to interpret law nor an executive branch to enforce them, in the states or on individuals. Governmental functions, including declarations of war and calls for an army, were supported in some degree for some time, by each state voluntarily, or not . These newly independent states separated from Britain no longer received favored treatment at British ports. The British refused to negotiate a commercial treaty in 1785 because the individual American states would not be bound by it. Congress could not act directly upon the States nor upon individuals. It had no authority to regulate foreign or interstate commerce. Every act of government was left to the individual States. Each state levied taxes and tariffs on other states at will, which invited retaliation. Congress could vote itself mediator and judge in state disputes, but states did not have to accept its decisions.

The weak central government could not back its policies with military strength, embarrassing it in foreign affairs. The British refused to withdraw their troops from the forts and trading posts in the new nation's Northwest Territory, as they had agreed to do in the Treaty of Paris of 1783. British officers on the northern boundaries and Spanish officers to the south supplied arms to various Native American tribes, allowing them to attack American settlers. The Spanish refused to allow western American farmers to use their port of New Orleans to ship produce.

Revenues were requisitioned by Congressional petition to each state. None paid what they were asked. Some funded only enough to pay interest to their own citizens. Connecticut declared it would not pay at all, not just for one year, but two. Congress appealed to the thirteen states for an amendment to the Articles to tax enough to pay the public debt as principle came due. Twelve states agreed, Rhode Island did not, so it failed. The Articles required super majorities. Amendment proposals to states required ratification by all thirteen states, all important legislation needed 70% approval, at least nine states. Repeatedly, one or two states defeated legislative proposals of major importance.

Without taxes the government could not pay its debt. Seven of the thirteen states printed large quantities of its own paper money, backed by gold, land, or nothing, so there was no fair exchange rate among them. State courts required state creditors to accept payments at face value with a fraction of real purchase power. The same legislation that these states used to wipe out the Revolutionary debt to patriots was used to pay off promised veteran pensions. The measures were popular because they helped both small farmers and plantation owners pay off their debts.

The Massachusetts legislature was one of the five against paper money. It imposed a tightly limited currency and high taxes. Without paper money veterans without cash lost their farms at sheriff’s auction for back taxes. This triggered Shays Rebellion to stop tax collectors and close the courts until the unfair proceedings were dropped. Troops quickly suppressed the rebellion, but nationalists like George Washington warned, "There are combustibles in every state which a spark might set fire to."