Between 1781 and 1789, the Articles of Confederation provided the United States with an ineffective government. When drafting the document, the thirteen states were cautious about creating an overly powerful central government because they feared the denial of their individual and state rights. The document was purposely established to bestow greater power in the hands of the states rather than centralization. They formed a committee of delegates compiled of representatives from each of the states. This committee established the national legislature and was referred to as Congress. Under the Articles, Congress was responsible for negotiating foreign policy, declaring war and sustaining an army and navy. Reasons for the ineffectiveness of the Articles of Confederation were Congress' inability to collect taxes, regulate international commerce and negotiation and implement domestic laws.
             During this time, the United States lacked an adequate taxation system. Congress was not granted the power, under the Articles of Confederation, to tax each of the thirteen states. The government held a dependency for state donations in place of taxes. The states intended to maintain their sovereignty and therefore opposed any form of federal taxation. The states felt that allowing Congress to collect money from their trade and commerce would shift freedom and power from the state to national government (Document A). Because the states would not conform to the idea of a national taxation, the United States was soon overwhelmed by inflation. This is the first example of the ineffectiveness of the Articles of Confederation as system of government.
             Secondly, the Articles of Confederation hampered foreign trade and policy. At the conclusion of the American Revolution, after granting freedom to the United States, Great Britain halted all trading in between the two nations. Congress was also unable to control international commerce. The combination of ...