Article of Confederation

Second Continental Congress- After the war, it was time to get organized.
-In 1777, colonial leaders wrote the Articles of Confederation (finally ratified by 1781-Maryland was last)
-America's first constitution, it provided a framework for this new nation to being doing "nation things".

First, the good stuff the A of C accomplished

-Actually "name" the country ("The United States of America")

-Established diplomacy, especially with European nation. 

-Set up trade with other nations

-Set up cooperation between states (free travel between states, but allowing for extradition)

Also, some controversial issues 

-Each state retains its sovereignty, freedom, and independence

-States thought of themselves as separate countries - they resisted the idea of a strong national government

-One vote for each state in the "Congress of the Confederation", regardless of the size of the state

-US expenditures shall be paid for by the individual states, as determined by property value (bigger, richer states pay more)

-Canada (Quebec) didn't join in the club.

Some problems that the Articles of Confederation could not handle

-Debts could not be paid because Congress could not collect taxes

-Each state operated independently, printing their own money (which was worthless in other states)

-There were no courts to settle disputes between states

-Great Britain had cut off trade, so the U.S. has to find new trading partners.

The argument: Strong Federal Government vs. State's Rights

-Secretary of Treasury Alexander Hamilton says established a national bank, collect and consolidate taxes from everyone, get our economic act together

-Secretary of State Thomas Jefferson says let states handle their own affairs, Virginia should not have to bail out New York or Massachusetts