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[1781] IN EXTERNAL AND INTERNAL AFFAIRS.

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of invasion by Indians; of sending and receiving embassadors; of entering into treaties and alliances, under the limitation that no treaty of commerce could be made, which would . . . . restrain the legislature of any state from imposing such imposts and duties on foreigners as their own people were subjected to, or which would operate to prohibit the exportation or importation of any commodity whatever"; of dealing "with all captures and prizes made by the land or naval forces of the U. S."; of granting letters of marque and reprisal in times of peace; "and of establishing courts for the trial of piracies and felonies committed on the high seas, and for determining appeals in cases of capture."

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(b) INTERNAL AFFAIRS.

Congress was invested with power to decide, in the last resort, on appeal, all disputes between two or more states. . . . with the sole and exclusive right and power of regulating the alloy and value of coin struck by their authority, or by any of the United States; of fixing the standard of weights and measures; . . . . of regulating the trade and managing all affairs with the Indians, who were not members of any state, provided the legislative authority of any state, within its own limits, should not be infringed or violated; of establishing and regulating post-offices. . . . and exacting postage; of appointing all officers of the land forces in the service of the U. S., and of making rules for the government and regulation of the land and naval forces, and directing their operations." Congress had power also to appoint "a Committee of the States," consisting of one delegate from each state, to sit in the recess of Congress, and other committees. and civil officers, to manage the general affairs under their direction; to appoint one of their number to preside (but no one could serve as president more than one year

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RESTRICTIONS ON POWERS.

[1781]

in a term of three years); to ascertain and appropriate the necessary sums for the public service; to borrow money and emit bills on the credit of the U. S.; to build and equip a navy; and to agree upon the number of land forces and make requisitions upon each state for its quota, in proportion to the numbers of white inhabitants in such state. The legislature of each state was to appoint the regimental officers, enlist the men, and clothe, arm, and equip them, at the expense of the U.S." The restrictions upon these powers rendered almost nugatory the greater part of them.

1. "Congress should never engage in a war; nor grant letters of marque and reprisal in time of peace; nor enter into any treaties or alliances; nor coin money or regulate its value; nor ascertain the sums of money necessary for the public purposes; nor emit bills; nor borrow money on the credit of the U. S.; nor appropriate money; nor agree upon the number of vessels for the navy, or the number of land or sea forces to be raised; nor appoint a commander-in-chief of the army or navy ;-unless nine states should assent to the same." Hence the "Committee of the States" could do none of these things.

2. The revenues of the country were left wholly in the control of the separate states. Congress, in order to supply the treasury of the U. S., had to vote what sum was wanted, and to call upon the legislature of each state to pay in its proportion within a given time; for the U. S. had no power of taxation, direct or indirect.

3. The commerce of the country was left entirely in control of the state legislatures; hence it became the commerce of thirteen different states.

4. Congress had no power to enforce its measures. It was declared that every state should abide by the determinations of Congress on all questions in the control

[1781-7]

DEFECTS DEVELoped.

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of that body; that the articles should be inviolably observed by every state; that the union should be perpetual; and that no alteration should be made in any of the Articles, unless agreed to by Congress, and confirmed by the legislature of every state. Congress could not enforce its recommendations, and, consequently, any party to the instrument could infringe any or all of its provisions, without any other consequence than a resort to arms by the general confederacy, which would have been civil war." There were also other restrictions upon the powers of states in regard to the making of treaties, engaging in war, sending embassadors, etc.

But how did this gov't work? "It did not (says Curtis, I. 150), indeed, answer all the purposes or accomplish. all the objects, which had been designed or hoped from it it was defective as a means, but it taught the existence of an end . . . by showing that in some form and for some purposes, a union of the states was both possible and necessary."

Experience now developed the following DEFECTS:

1. There was an utter want of all coercive authority. "A gov't authorized to declare war, but relying on independent states for the means of prosecuting it; capable of contracting debts, and of pledging the public faith for their payment; but depending on thirteen distinct sovereignties for the preservation of that faith; could only be rescued from ignominy and contempt by finding those sovereignties administered by men exempt from the passions incident to human nature." (Marshall, Life of Washington, V. 31.) "Even during the Revolution, while all hearts and hands were engaged in the common cause, many of the measures of Congress were defeated by the inactivity of the states; and in some instances the exercise of its powers was resisted. But after the peace

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1783 Nov. 3

DEFECTS DEVELOPED.

[1781-7]

of 1783, such opposition became common, . . . until ..the confederation became a shadow without the substance.'" (Story, I. § 249.) Congress could pass no law extending to the individual, and its resolutions were, therefore, disregarded, not only by states, but by individuals. Interest centered in the states, and, from 1783 to 1787, Madison was the only able man in Congress. The congress, which was to ratify the treaty of peace and to accept Washington's resignation, was attended at first by only fifteen members, from seven states; and not until Jan. 14 could the treaty be ratified by the constitutional number of nine states, only twenty-three members being present. 2. A more striking defect was the total lack of power to lay and levy taxes, or to raise revenue. Congress could merely ascertain the sums necessary to be raised for the service of the United States," and apportion the quota of each state. Hence the time and mode of payment of taxes was extremely uncertain. "An attempt was made by Congress, during the war, to procure from the states an authority to levy an impost of five per cent upon imported and prize goods; but the assent of all the states could not be procured. . . . the public burdens were increasing; and the public faith was prostrate." (Story, I. § 254.) At the close of the Revolution, the public debt was over forty-two millions of dollars; eight millions of which were due for loans obtained in France or Holland, and the remainder to our own citizens-especially soldiers. "Congress, conscious of its inability to discharge even the interest of this debt," passed a 1783 resolution "recommending to the states to vest Apr. 18 Congress with power to levy certain specified duties on spirits, wines, teas, pepper, sugar, molasses, cocoa, and coffee, and a duty of five per cent

[1781-7]

DEFECTS DEVELOPED.

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ad valorem on all other imported goods. These duties were to continue for twenty-five years, and were to be applied solely to the payment of the principal and interest of the public debt; and were to be collected by officers chosen by the states, but removable by Congress. The states were further required to establish, for the same time and object, other revenues exclusive of the duties on imports, according to the proportion settled by the confederation; and the system was to take effect only when the consent of all the states was obtained. (Ibid. § 255.) The adoption of this system was urged upon the states in an address of Congress and a circular letter of Washington, but, through jealousy between the states and the general gov't, the measure was never ratified. The requisitions for the payment of the interest upon the domestic debt, from 1782 to 1786, amounted to more than six millions of dollars; and of this sum up to Mar. 1787, about a million only was paid. Feb. 1786 Congress made a still more urgent appeal. As a result, three more states adopted the proposed system. But N. Y., in spite of Hamilton's exertions in favor of the measure, refusing to comply with it, it was lost.

3. Congress could not regulate foreign or domestic commerce. "Each state would legislate according to its estimate of its own interests, the importance of its own products, and the local advantages or disadvantages of its position in a political or commercial view. . . . thus state animosities and local prejudices were fostered to a high degree. . . . These evils were aggravated by the situation of our foreign commerce. During the war, our commerce was nearly annihilated by the superior naval power of the enemy; and the return of peace enabled foreign nations. to monopolize all the benefits of our home trade. While, for instance, British ships

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