THE ARTICLES OF CONFEDERATION

In the fall of 1777, the Continental Congress send a proposed constitution out to the individual states for ratification. This document, called the Articles of Confederation, intentionally created a very weak national government.

The main organ of government was a unicameral legislature, in which each state would have one vote. Executive authority was given to a Committee of Thirteen, with one representative from each state. For both amendment and ratification, the unanimous consent of all 13 state legislatures was required.

The national government was given the power to conduct foreign relations, mediate disputes between states, and borrow money. The weakness of the national government was shown by the fact that it could not levy taxes, regulate commerce, or raise an army. Because of disputes over land claims in the West, all 13 states didn’t ratify the Articles of Confederation until 1781.

Economic Distress

Financial problems plagued the new nation in the years immediately after the war. Many merchants had overextended themselves by importing foreign goods after the war. Large numbers of Revolutionary War veterans had never been paid for their service. The national government had large war debts. By the terms of the Articles of Confederation, the national government could not tax, so the national government began to print a large amount of paper money. These bills, called "Continentals," were soon made worthless by inflation. Proposals for the national government to impose import tariffs came three times, and all three times they were defeated. Loans from foreign countries, especially France, propped up the national government during this period.