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In addition to international trade issues, other challenges soon appeared. Trade prob- lems among the states, war debts, and a weak economy plagued the states. Because the Confederation Congress had no power to regulate interstate commerce trade between two or more statesstates fol- lowed their own trade interests.
Upon the defeat of the British at Yorktown and the signing of the Peace of Paris in 1783, the young United States had its freedom, but also the massive task of creating one nation from thirteen disparate, former colonies.
Internal problems, especially with taxes and the economy, led to protests and rebellion. The government also had trouble with foreign trade and treaties. Under the Articles of Confederation, Congress could not force states to provide soldiers for an army.
Congress possessed only enumerated powers under the Articles of Confederation. It had no real power to tax, regulate commerce, or raise an army. The inability to tax created major obstacles for the new nation.
The new nation also faced economic and foreign policy problems. A huge debt remained from the Revolutionary War and paper money issued during the conflict was virtually worthless. In violation of the peace treaty of 1783 ending the Revolutionary War, Britain continued to occupy forts in the Old Northwest.
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