The Creation of a New Nation

Although the Treaty of Paris recognized the independence of the United States of America in 1783，the 13 former colonies were far from being one united nation as the central government established by the Articles of Confederation had no power to govern them.They were essentially 13 independent states in a loose confederation，each jealously guarding its own interests.They levied high tariffs against each other and soon，the country faced serious economic problems.The American market was flooded with foreign goods，which hurt the domestic economy badly.The government did not have money to pay the debt incurred during the war or pay the soldiers who served in the war.The paper currency issued during the war became almost worthless.The central government established by the Articles of Confederation in 1781 could do little about the situation because its powers were very limited.It had a single house congress in which each state had one vote.It did not have a separate executive branch，or a judicial branch.It could not levy tax and had no power to regulate trade or to form unified foreign or domestic policies.

Soon，the country faced chaos.In order to solve financial crises，the state governments levied heavy taxes which were to be paid in hard currency.This caused great turmoil because large numbers of people simply did not have the money to pay the tax.As a result，many of them lost their business or farms and some were thrown into prison，leading to protests and uprisings across the country.The most famous was Shays’Rebellion in western Massachusetts during the winter of 1786 and 1787.Under the leadership of Daniel Shays，who had served as a captain in the War of Independence，Massachusetts farmers attacked the courts and set debtors free from prison.Although the rebellion was put down eventually，it roused fear in many people，especially the propertied class.More and more people came to realize that they needed a stronger central government if they wanted to become a successful nation.A call for a conference to revise the Articles of Confederation was issued in September 1786 by a group of nationalists led by Alexander Hamilton.