Evolution Of American Political Economy And The Economy Itself From Approximately 1780 Through 1840 - Essay Example

The constitution was like a treaty agreement. It was called a league of friendship. There was a continental congress that was composed of one chamber for ever state. The congress never had any right to create and enforce laws. This in turn caused many issues to come up between the years 1780 through 1840. For example the state of New York started to consider herself very weak since she was getting the supplies that her population used from New Jersey. After the transaction took place, the people of New Jersey took away the money of New Yorkers and built their state, New Jersey.

The people of Connecticut also were giving the people in Manhattan a run for their money. They produced goods like fuel which they in turn hawked from door to another door. They made lots of money from the New Yorkers who were busy wondering where they had failed and went wrong. The Connecticut people in turn used the money from Manhattan to build their state of Connecticut. This was because the leaders of New York were tied and they could not be able to protect their citizens. New York had resources but they were not able to trade the products even in their own state because of the constitution regulations.

After a while taxes were imposed in New York such that any product that was entering the state had to be taxed. This made the people of New Jersey and Connecticut to impose even higher taxes in their states for foreign products. The two states even moved on to impose taxes for land. In the drafted constitution it was stated that there was no state that was to have its own military forces. That was to be the work of the central government. But since the work of the congress were tied, and their finances were limited; they could never afford to have any military group that would guarantee the security of the United States.

The congress was limited to performing several tasks that could help it run the operations of the United States. They could not afford to collect taxes from the citizens as it was not their mandate to do so. In 1781 the central government estimated that they would need 9million dollars to run the government in the next year. The government raised 5million through contracting, they said that they would borrow 4million in order to run the government fully. But unluckily by the end of the year they had managed to pay on 400,000 dollars to the treasury.

In the same year, the congress was nearly giving up for the process of consolidating the funds to help them in running their governing activities. A five percent duty was imposed on all states. And this was done by all the states except New York which refused to contribute the amount. This was then followed by New Jersey which in turn refused to pay more money claiming that she was being treated poorly. She refused to contribute until the New York government decreased the amount of taxes it had imposed on the products that were coming into the state from New Jersey.

The first United States president had to raise up a country and among the first thing to do was to eliminate the warring states. The central government had to look for a way to remove the militia in all the states. This was to be done without causing any trouble and in very silent way. The central government had to have a new capital city for the nation. This is where the central government was to be run from. The only cities that were popular were Philadelphia, New York