Independence from Britain made necessary the establishment of new state and national governments. The states drew up The Articles of Confederation which provided for a loose union of near sovereign states. The Articles of Confederation achieved most of its success in the handling of western lands, but its ineffectiveness in economic matters proved the need to increase the power of the national government.
The Articles of Confederation were effective in the organization in the expansion of western lands. The AOC passed the Land Ordinance pf 1785 and the Northwest Ordinance of 1787. The Land ordinance provided that the Old Northwest was to be surveyed and sold to help pay the national debt. The Northwest Ordinance provided a government for the territory. I population allowed, states could enter the union on an equal basis as the original thirteen. It also stated that slavery was abolished in this territory; this helped with the equality of slaves. By abolishing slavery, the AOC helped lead towards control of the new nation.
The structure of government under the Articles of Confederation proved to be defective and inadequate. Congress could request funds and borrow money but not levy taxes to pay for the debt cause by the revolution. This triggered European governments to stop trade with the American colonies. Financial problems also distressed the government. Congress and its states had printed paper currency during the war which no longer was of value. Shays's Rebellion exaggerated the government's inability to maintain domestic peace. Farmers demanded more paper currency, and postponement of debt and tax payments. Daniel Shays's Rebellion was easily crushed, but feelings of anarchy were still present.
Congress also had a problem with its lack of a central government. There was no executive with power.Each state was allowed to coin it own currency, there was no control of trade betw