Articles of Confederation
In 1781, the Articles of Confederation were ratified, becoming the new nation's first constitution. In the beginning, the government under the Articles seems promising, however, time would soon show that a more effective federal government was needed. Although the Articles of Confederation Congress was able to negotiate a successful peace treaty ending the American Revolution, pass federal land policies, and establish a federal beauracracy, the restrictions placed on the federal government mad
This created an unfavorable balance of trade for the United States, and made it increasingly difficult to pay war debts owed to foreign nations and private individuals. This led the founding fathers to meet in Philadelphia to not only revise to Articles, but to create a completely new form of government, our Constitution. e it ineffective as the nation became more complex. The economy continued to fail, and Congress could do little to improve the situation. The Articles of Confederation were also not able to deal with the declining economy. Some states began to issue large amounts of paper money, and inflation was out of control. Jails were filled with debtors crying out for reforms. Congress was not able to issue a single currency, so money values differed from state to state. Since the Articles of Confederation prevented Congress from placing a tariff on imports, nothing could be done to collect the money needed. The new American nation was eager to resume trade with Great Britain after the Revolutionary War. Other states dealt with the depression by restricting new issues of paper money and imposing heavy taxes. Although many Americans were fearful of creating a strong central government, it was becoming increasingly clear that the Articles of Confederation must be revised. Many people were disturbed by the fact that the central government could not control commerce, and more and more started leaning towards centralization. However, Britain's main goal was to fit the colonies into their mercantilistic system by building up exports to America while keeping imports to a minimum.
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