Chapter 17

The Confederation, 1783-1787

[Sidenote:  Disunion and jealousy. Source-Book, 161-163.]

167.  Problems of Peace.—­The war was over.  But the future of the American nation was still uncertain.  Indeed, one can hardly say that there was an American nation in 1783.  While the war lasted, a sense of danger bound together the people of the different states.  But as soon as this peril ceased, their old jealousies and self-seekings came back.  There was no national government to smooth over these differences and to compel the states to act justly toward one another.  There was, indeed, the Congress of the Confederation, but it is absurd to speak of it as a national government.

[Sidenote:  Formation of the Articles of Confederation.]

[Sidenote:  Weakness of the Confederation. McMaster, 163.]

168.  The Articles of Confederation, 1781.—­The Continental Congress began drawing up the Articles of Confederation in June, 1776.  But there were long delays, and each month’s delay made it more impossible to form a strong government.  It fell out in this way that the Congress of the Confederation had no real power.  It could not make a state or an individual pay money or do anything at all.  In the course of a few years Congress asked the states to give it over six million dollars to pay the debts and expenses of the United States.  It received about a million dollars and was fortunate to get that.

[Sidenote:  Distress among the people.]

169.  A Time of Distress.—­It is not right to speak too harshly of the refusal of the state governments to give Congress the money it asked for, as the people of the states were in great distress and had no money to give.  As soon as peace was declared British merchants sent over great quantities of goods.  People bought these goods, for every one thought that good times were coming now that the war was over.  But the British government did everything it could do to prevent the coming of good times.  The prosperity of the northern states was largely based on a profitable trade with the West Indies.  The British government put an end to that trade.  No gold and silver came to the United States from the West Indies while gold and silver constantly went out of the country to pay debts due to British merchants.  Soon gold and silver grew scarce, and those who had any promptly hid it.  The real reason of all this trouble was the lack of a strong national government which could have compelled the British government to open its ports to American commerce.  But the people only saw that money was scarce and called upon the state legislatures to give them paper money.

[Sidenote:  Paper money.]

170.  Paper Money.—­Most of the state legislatures did what they were asked to do.  They printed quantities of paper money.  They paid the public expenses with it, and sometimes lent it to individuals without much security for its repayment.  Before long this paper money began to grow less valuable.  For instance, on a certain day a man could buy a bag of flour for five dollars.  In three months’ time a bag of flour might cost him ten dollars.  Soon it became difficult to buy flour for any number of paper dollars.