Formation of the Union, 1750-1829

by Albert Bushnell Hart

[Sidenote: Loyalists.]
[Sidenote: British debts.]
[Sidenote: Posts.]

There were other reasons why the British continued to subject American ships in English ports to discriminations and duties from which the vessels of most other powers were exempt. The treaty of 1783 had provided that Congress would recommend to the States just treatment of the loyalists; the recommendation was made. Most of the States declined to comply; men who had been eminent before the Revolution returned to find themselves distrusted, and sometimes were mobbed; their estates, which in most cases had been confiscated, were withheld, and they could obtain no consideration. This was unfriendly, but not a violation of any promise. The action of the States in placing obstacles in the way of collecting debts due to British merchants before the Revolution was a vexatious infraction of the treaty. Five States had passed laws for the partial or complete confiscation of such debts, and even after the treaty Pennsylvania and Massachusetts passed similar Acts. As an offset, the British minister in 1786 declared that the frontier posts would not be surrendered so long as the obstacles to the collection of British debts were left standing.

[Sidenote: The Spanish treaty.]

The only other power with which the United States desired commercial relations without possessing them was Spain. The Eastern States were very anxious to obtain privileges of trade. The Spanish were willing to grant them, but made it a condition that the Americans should not have the right of free navigation of the lower Mississippi. Jay, acting under the instruction of Congress, in 1786 negotiated a treaty in which he agreed to the Spanish conditions. Instantly the West was aroused, and violent threats were made by the people of Kentucky and the adjacent region that if that treaty went into effect they would withdraw from the Union. "The tendency of the States," said Madison, a few months later, "to violations of the laws of nations and treaties … has been manifest…. The files of Congress contain complaints already from almost every nation with which treaties have been formed."

57. DISINTEGRATION OF THE UNION (1786, 1787).

[Sidenote: The Confederation violated.]
[Sidenote: Danger of anarchy.]

The year 1786 marks a crisis in the development of the Union. The inefficiency of Congress was reflected in the neglect of constitutional duties by the States: Rhode Island recalled her delegates, and refused to appoint new members; New Jersey felt so much injured by a New York tariff that an act was passed taxing the lighthouse established by New York on Sandy Hook; Massachusetts, Pennsylvania, North Carolina, and Georgia already had raised troops on their own account and for their own purposes, in violation of the Articles of Confederation. Davie, of North Carolina, a little later declared that the "encroachments of some States on the rights of others, and of all on those of the Confederation, are incontestable proofs of the weakness and imperfections of that system." Of the requisition of that year for $2,000,000 in specie, only about $400,000 was paid. Some States offered their own depreciated notes, and New Jersey refused to make any contribution until the offensive New York Acts were withdrawn. In May, 1786, Charles Pinckney on the floor of Congress declared that "Congress must be invested with more powers, or the federal government must fall."

58. REORGANIZATION ATTEMPTED (1781-1787).

[Sidenote: Five percent scheme.]
[Sidenote: Revenue scheme.]

Before the Articles of Confederation had gone into effect, Congress had already proposed a radical amendment; and within three years it suggested two others. The first proposition, made February 3, 1781, was that the States allow Congress to levy an import duty of five per cent, the proceeds to be applied "to the discharge of the principal and interest of the debts already contracted … on the faith of the United States for supporting the present war." In the course of about a year twelve States had complied with this reasonable request. Rhode Island alone stood out, and the plan failed. Forthwith Congress presented another financial scheme, which was called a "general revenue plan." April 12, 1783, it asked the States to allow Congress to lay low specific import duties for twenty-five years, to be collected by officers appointed by the States. The States were further recommended to lay some effective taxes, the proceeds to be set aside for government requisitions. The effect was precisely the same as before. Twelve States agreed; but the opposition of New York prevented the first part of the plan from being carried out. Not a single State had condescended to pay attention to the second request.