Challenges to the Confederation

The Congress had lost a lot of power due to its incapability to tax. The Confederation was weakened due to this, mainly in economics and in the military. There was a lack of a mobilized army. Congress promised the soldiers generous pensions and rewards persuading them to join the army, since they were not able to pay the soldiers properly. Congress was also faced with the problem in whether or not to establish a peacetime army. Washington suggested that 2,600 Continentals in one artillery and four infantry regiments were to be prepared against enemies, and for a militia to stay in training. However, Congress rejected the plan, only stationing 80 men at two forts in New York and Pennsylvania. Protection of the United States borders against Spain, Great Britain, and the Native Americans was a problem. Another problem was the currency problem. Inflation was a major problem occurring due to the war. The whole issue between paper money and species (gold and silver) had been a problem. It caused unrest between merchants and the farmers in the colonies. Merchants who bought British goods expected to pay that off through trade with the West Indies. So they passed the credit on to farmers. Merchants reasoned that paper currency issued as loans on property was wrong since the paper money would lose value, allowing debtors to infringe contracts by paying back less than they had borrowed. Creditors believed that their rights pertaining to their property were at risk also. This led to Shays' Rebellion.

The major achievement of the national government under the articles of Confederation was the Northwest Ordinances. In the Land Ordinance, Congress founded a policy for surveying and selling western lands. Furthermore, the policy allotted a section of land in each township for public education and for distribution to Revolutionary War veterans. In the Northwest Ordinance, the territory between the Great Lakes and the Ohio River, Congress passed a law that set the rules for creating new states. This ordinance granted limited self-government to the developing territory, prohibited slavery, protected private contracts, religious liberty, and trial by jury.

The Confederation was faced with many problems during this period. However, there was an important achievement of the national government.