Article IX dealt with the congressional powers. Congress was given the exclusive power (1) of determining peace or war except in the cases mentioned in Article VI, (2) of sending and receiving ambassadors, (3) of entering into treaties and alliances, provided such agreements did not interfere with the rights of the states to lay such imposts and duties on foreign goods as they were subjected to by foreigners, or prohibit exportation or importation, (4) of establishing rules for deciding prize cases, (5) of granting letters of marque and reprisal in time of peace, (6) of establishing admiralty courts, and (7) of settling disputes between two or more states, an elaborate procedure in such cases being prescribed.
Congress was also given the exclusive power (8) of regulating the alloy and value of coin struck by its authority or by that of a state, (9) of fixing the standard of weights and measures, (10) of regulating affairs with Indians not members of states provided state rights were not infringed, (11) of establishing and regulating post offices and postage, (12) of appointing military officers except regimental officers, (13) of appointing naval officers, and (14) of making rules and regulations for the army and navy.
Other powers of Congress were (15) "to appoint a committee, to sit in the recess of Congress, to be denominated 'a Committee of the States,' and to consist of one delegate from each State; and to appoint such other committees and civil officers as may be necessary for managing the general affairs of the United States under direction..., (16) to ascertain the necessary sums of money to be raised for the service of the United States, and to appropriate and apply the same for defraying the public expenses, (17) to borrow money or emit bills on the credit of the United States, (18) to build and equip a navy, and (19) "to agree upon the number of land forces, and to make requisition from each state for its quota, in proportion to the number of white inhabitants in each state." With the exception of a vote upon adjournment, all measures required the assent of nine states. No period of adjournment was to be longer than six months.
Article X provided that the committee of the states should be authorized to execute the delegated powers of Congress during recesses. Article XII stated that bills of credit, loans, and debts should be considered as a charge against the United States and for whose payment the United States and the public faith were pledged. Article XIII provided that every state should abide by the acts of Congress, that the union should be perpetual, and that no alteration should be made in the articles by Congress unless afterwards confirmed by the legislatures of every state.
Fundamental weaknesses of the articles.—Admirable as this document was in many respects, it contained weaknesses which were certain to make the union temporary rather than perpetual. It failed to give the central government sufficient power. The articles were distinctly the instrument of a confederation of sovereign states, and not the constitution of a federal state. Congress was not given the power to raise money or to regulate commerce. It could not compel the states to pay the national debts, to live up to treaties, or to raise armies. The articles provided for no distinct executive department, but this was remedied in part by congressional acts. With the exception of the fourth, fifth, and seventh provisions of Article IX, judicial matters were left to the states. The required vote of nine state to pass measures necessarily hindered the passage of needed regulations. The requirement that every state legislature must give its consent before an amendment could be passed made it well-nigh impossible to change the instrument.
GOVERNMENTAL REORGANIZATION
Organization of executive departments.—The failure of the congressional committee system to perform executive functions had grown more apparent as the war progressed, and in the closing days of the Second Continental Congress measures were taken to concentrate the executive departmental work under individual heads. During January and February, 1781, the Continental Congress created four new offices: superintendent of finance, secretary at war, secretary of marine, and secretary of foreign affairs, a foreshadowing of the later cabinet. The policy thus inaugurated was continued under the new Congress which held its first sitting on March 2, 1781.
The work of Robert Morris.—The failure of the bills of credit, the insufficiency of state support, and the weakness of foreign credit had made it evident that the financial system must be reorganized; accordingly the treasury commission was abolished and finances were placed in the hands of Robert Morris, a successful merchant of Philadelphia who had rendered valuable assistance as a member of the Pennsylvania assembly and of Congress. Morris realized that retrenchment and economy must be his watchwords. In the words of Dewey, he endeavored "to collect the requisitions from the States, to create a national revenue and impost, and place the revenue on a specie basis...." He also sought to establish foreign credit and to found a United States bank. At every turn he was handicapped by local prejudice, petty bickerings over taxation, and the lack of power of the central government.
Foreign loans and requisitions upon states.—The adoption of the Articles of Confederation immediately strengthened foreign credit, for during 1781-1783 loans of $4,719,000 were obtained from France, $174,017 from Spain, and $1,304,000 from the bankers of Holland. The loans from Spain and Holland, however, probably would not have been obtained had it not been for the entry of those powers into the war. Requisitions upon states during the same period yielded $3,058,000 in specie value, but the proposals of Morris to institute a land tax, poll tax, excise, and tariff came to naught.
The Bank of North America.—In 1780 Congress had tried to establish a financial institution called the Bank of Pennsylvania, but it had been of little service. Morris planned a sounder institution to be known as the Bank of North America with a capitalization of not over $10,000,000. Only $70,000 was raised by private subscription and the government set aside $200,000 in specie which had recently arrived from France. From this bank during 1782-1783 the government borrowed on short term loans $1,272,842. As Congress repaid the bank before other creditors, a small working balance was maintained on which the government could draw for immediate needs.