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After the Treaty of Paris signed in 1783, which demand Britain acknowledges the United States’ existence as free sovereign and independent states. The treaty led to the end of the American Revolution that lasted for eight bloody years. But right after thirteen states that once was the colonies of Great Britain formed United States, the new nation almost collapsed. Between 1783 to 1789, United States facing many of problems either the government or economic crisis, we called this period of the New nation “Critical Period.” In my perspective, all the major problems and issues are cause by the one and only, the first constitution of United States AOC (Articles of Confederation). It drafted in 1787 in Pennsylvania State House and finally ratified in 1788. The Articles of Confederation was unsuccessful, National Government (Congress) have no power opposite from States that are overpower; cause the Nation facing to almost the deadened.
Debt, during American Revolution United States, Americans (Colonists) to gain more advantage above the most power army in the world (Great Britain) required, weapons to fight against, lots of money to maintain military, and man powers to gain advantage. From the situation United States came up with things that will make the country capable to gain independence.
Certificates, both Congress and the 13 States issue their own Debt Certificates. For the States it called “bills of credit,” works like war bond that we have during World War II but instead of giving the States cash, they put up something else more valuable for collateral land. The buyers strongly thinks that if the country won, which the land that they risk for will flow back into their wallet twice more. For the Congress it called “involuntary credit extensions,” there is no interest or profit. Mostly use when the armies want to buy supplies and material to the sellers; also, soldiers were also paid in these pieces of papers either.
Loan and alliance, three years after colonists started to fight back for their own independence on February 6, 1778, one of the Founding Fathers, Benjamin Franklin signing the game changing treaty “the Treaty of Alliance” with French. The treaty creating a military alliance between the United States and France against Great Britain. Which providing aid in the form of supplies, weapons, and soldiers. United States also gain support from other Europe country. But not only support United States also make loans from countries in Europe. As the result United States become officially independence from Great Britain, but the New nation end up with a ton of debt to paid off to their own people and Foreign countries.
Taxes, first crisis begun the cause from the Article of Confederation. On article VII of the Article of Confederation said, “The taxes for paying that proportion shall be laid and levied by the authority and direction of the legislatures of the several states within the time agreed upon by the united states in congress assembled,” simplify that the Federal government have no power to taxes the states, but they could raise money only by asking the states for funds. However, the money barely raised by states to Federal government. Which mean United States Federal government had no money or barely had. Led the new nation unable to paid off the debts that they owe foreign countries and their peoples who have the debt certificated. So mostly, when those peoples try sell those certificates to investor it ends up worth less than it does.
Trade, under the Articles of Confederation, Congress had limited power to regulate trade, and no ability to negotiate trade agreements with foreign countries. Also, from Article IX, “The United States in Congress assembled shall also have the sole and exclusive right and power of regulating the alloy and value of coin struck by their own authority, or by that of the respective State.” All the States are kind of independent from others, they could do their own things. Congress had the right to regulate the American currency as well as State, they also had the right to regulate their own currency as well. This led to the different of the currency in each state; each state also capable to prints it out without congress authorizes as well. As the result, United States facing the trade difficulties, since every state had a different unit of money, Congress most likely useless no power to negotiate, and some currency from one states might not be able to use in other states. This cause the trade between United States and global struggle and less efficient either between the states. First example, European countries would like to export the tobacco from United States instead they most likely having a trade with Virginia instead. Other example, Virginian peoples would like to buy luxury items from New York which is out of state, they required to exchange their money first from Virginia dollar to New York dollar to be able to buy the items. From this cause the economics of United States in crisis.
After all the situation the country been through, in 1789 “the Articles of Confederation” now replaced with the whole new platform “Constitution of the United States of America.” This new constitution will never be existed if it not the guy named James Madison one of the Founding Fathers of United States and “Father of the Constitution.” He is the person who wrote the document that formed the model for the Constitution. This new constitution solved and eliminated all the problems that the country facing for the past six years and evaluated the new nation into the new level. It created a federal system which give more power to National Government; also, in case the Nation Government have too much power, they divide the powers into three branches “Separation of Powers,” which include Legislative, Executive, and Judicial Powers. The Three Branches also have a system called “Checks and Balances,” that give each branch the power to limit the power of the other two branches.
For taxes, Article 1, Section 8, clause 1, “The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;” which Congress do not required to begging states for money anymore; instead give the Congress power to taxes all states and result they be able to paid off the debts to Europeans and citizens.
For trade, Article I, Section 8, Clause 3, which gives Congress the power “Congress shall have power to regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes,” which Congress now have power to regulate trade, and ability to negotiate trade agreements with foreign countries that totally changed from Article of Confederation. And Article I, section 8, Clause 5, “Congress shall have power to coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures.” Congress have a power to control the amount of money they print out and set the value of it. But the many currency problem remains until April 2, 1792, the United States Congress created the United States dollar as the country’s standard unit of money which solves the trade conflict permanently.
In Conclusion, every country will not have survived if their economic systems are not stable or imbalance. Article of Confederation put United States into the economic crisis. Debts are on hold and unable to paid off since Federal Government (Congress) have no right and power to taxes. Trade that end up become no efficiency since there are dozen different type of currency in United States and Congress have no power to regulate trade. The result New nation economic negative growth. However, after roughly six-year United States of Constitution ratified and solved all the problems they been facing for long time since the country formed.

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