Constitutional Convention in Philadelphia, 1787
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1 N U M U N X V Y O U H A V E T H E F L O O R A P R I L , Constitutional Convention in Philadelphia, 1787 TAXATION, COMMERCE, AND GOVERNMENT STRUCTURE
2 Introduction In 1783, the Thirteen Colonies defeated the British army in the battle for independence from England. While the colonists were elated by their underdog victory, the rebels now had a country to govern. Two years prior, the members of the Continental Congress ratified the Articles of Confederation, a written document that stressed decentralized authority and served as the first constitution of the United States. The Articles, adopted by all 13 of the new states, were built on the foundational principles of representation and sovereignty that fueled the revolution. Six years have past, however, and the Articles are proving a seriously flawed first attempt at a government. The decentralized design crafted by the revolutionaries has only led to conflicts between the states and a penniless national government incapable of defending these new United States. Some are beginning to question the need for a Union of States at all, while others are questioning whether the King in London might be willing to take the rebellious colonies back under his protection. The convention in Philadelphia is, publicly at least, a forum to suggest potential changes to the Articles of Confederation to make them more functional. However, when the doors close to public eyes there are whispers: this convention is not meant to simply amend the articles, and that multiple factions are plotting to do away with them entirely and propose a new document to govern the nation. As a delegate attending the Constitutional Convention, the main goal for the duration of this conference is to work on addressing the problems that the nation is facing under the Articles of Confederation. Though we could take the time to amend the Articles, the Dais strongly encourages a new, more comprehensive document that emulates a unified nation ruled by the people, free from the discord of the Articles. Delegates attending this conference will represent each state s perspective on the current challenges facing our new nation, but also their own personal 2
3 philosophies, so it is up to the brightest minds of these United States to truly work collectively to evaluate the best course of action to remedy the current situation. This first topic will address a pressing issues around the Articles of Confederation: the central government s inability to regulate commerce and taxation. This challenge requires complex solutions, and each delegate is meant to argue the position he believes his state would take while also keeping in mind how it affects the nation overall. Understanding where each state lies on these topics will be a crucial first step for drafting a document that our country can abide by for years to come. Less than a year ago, some of the delegates in attendance had the foresight to realize that the Articles of Confederation are simply inadequate for our nation and met in Annapolis, Maryland. It is in part because of that meeting that we are all assembled here today. Clearly, active citizens have known for some time that there is a need for change, and with recent events such as Shays Rebellion in Massachusetts, the time is now or never for political action. Rarely do nations have an opportunity to right the ship, and the resulting document from this conference will determine whether our nation will survive intact. Ultimately, it is up to you and your fellow delegates to determine the political structure of this country. Background The thirteen United States were originally colonies under English rule starting in The British monarchy had authority over their North American colonists from across the Atlantic Ocean, but the colonists tended to mind their own affairs, and the two parties had a primarily amiable relationship until the middle of the 18th century. Tensions began to surface as a result of the French and Indian War, in which the British were fighting the French over North American land, primarily the rich land of the Ohio Valley. After the War, colonists assumed the spoils of Ohio 3
4 would be theirs to take, but King George III imposed the Proclamation Line of 1763, preventing the colonists from settling west of the Appalachian Mountains. 1 Due to the massive war debts that the British had accumulated throughout the duration of the War, the British Parliament also began taxing the colonists in order to increase revenue, despite over a century of the North American colonies not having any comprehensive royal tax system. 2 Parliament argued that they represented the interests of all of Britain, but the colonists rejected the idea that they were properly represented by the far off body, and attempted to assert their claim to the rights of Englishmen to govern their own taxation, established in the Magna Carta in As the Crown moved to consolidate its power, violence between the colonists and the British army officially began in 1775 with the Battle of Lexington and Concord; the war continued on until the British surrendered in 1783 with the Treaty of Paris, in which the British recognized the United States as independent. The new United States took root in the Articles of Confederation, written by the Continental Congress in The founders who wrote the Articles of Confederation had one, primary goal in mind: to prevent against future tyranny. The primary issue for the colonists had been the strong, central authority that governed Britain, not just the King, but the aristocratic and unrepresentative Parliament as well. Thus, most power in the United States was left to the states themselves, with no established national executive office and a weak, ineffective national legislature. However, the flaws of the Articles of Confederation were quickly brought to light. Less than a year ago in the summer of 1786, former revolutionary soldier Daniel Shays led a rebellion to overthrow the US government, complaining of harsh tax collection and the failure of Congress to pay wages owed to former members of the military. 4 Eventually, state troops were able to put down 1 Proclamation of Encyclopedia Britannica. Accessed Jan 3, Danver, Steven Laurence. Revolts, Protests, Demonstrations, and Rebellions in American History: An Encyclopedia, Volume 1. ABC-Clio, Pp Ibid. 4 History.com Staff, Shay s Rebellion,A+E Networks, 2009, 4
5 Shays Rebellion, but the event incited political conversations across the United States regarding the need to revise the Articles of Confederation. The Rebellion not only demonstrated how little power the central government had under the Articles, but also the drawbacks of having a weak, central authority. In response to these revelations, the nation s leaders called for an assembly of the States in 1787 in order to reconsider the structures, powers, and purposes of the government of these United States. The first weakness of the Articles of Confederation is that its restrictions on how the national government can tax the states, regulate trade between states, and produce currency severely limit the powers of the central government, to the point of impotency. 5 Because the national government cannot effectively tax the states, the states possess more power than the national government in policies relating to commerce. 6 Tax policies and revenue creation are left to the jurisdiction of the states, and even though the Articles of Confederation allow the national government to request funds from the states, state legislatures have often chosen to not raise the funds requested by the government. 7 The result we are facing now is a national government with no funds, and no ability to pay off the debt accumulated during the war, including the overdue wages Daniel Shays rebelled for. The States we expected to provide for the union s stability apparently need encouragement to fund the national government, which the Articles of Confederation has left essentially powerless. 8 5 Ted Brackemyre, America s First Failure at Government, US History Scene, April , 6 The Constitutional Convention of 1787,UMKC Law, 7 Ted Brackemyre America s First Failure at Government (US History Scene, April ) 8 The Constitutional Convention of 1787,UMKC Law, 5
6 The national government also has little to no commerce regulation power under the Articles of Confederation. 9 States have the right to regulate trade within their territorial boundaries, and as a result, the American economy is fractured at state lines. The result has been chaos regarding what is supposed to be our unified national economy, with States adopting conflicting regulations on the goods that could be imported and exported within each state. 10 Moreover, the Articles of Confederation do not permit Congress to create trade agreements with foreign countries, leaving foreign merchants to negotiate directly with states or simply not trade with the nation at all. 11 While those who support state sovereignty approve of this reality, it is becoming increasingly clear that our nation cannot exist without a national economy, and that would necessitate the creation of a government that could regulate commerce nationwide, and speak for these United States abroad. Because Article IX of the Articles of Confederation only grants the states the power to create their own currencies, the central government does not have the power to create a uniform currency throughout the country. 12 The Colonies have never had a unified currency, oftentimes simply using foreign coins and precious metals to conduct business, with only minor intervention from the colonial government. 13 However, the recent innovations of central banking and paper money are tantalizing prospects to produce economic growth, and calls for a uniform national currency are increasing. Without a uniform currency, trading across state lines means dealing with exchanges and other hassles, since each state has the right to create and regulate its own currency. 9 Ted Brackemyre, America s First Failure at Government,US History Scene, April, , 10 Roger A Burns, A More Perfect Union: The Creation of the United States Constitution, National Archives and Records Administration, 1986, 11Ted Brackemyre, America s First Failure at Government, US History Scene, April, Ibid. 13 A Quick History of Paper Money. Chicago State University, accessed Jan 3,
7 Furthermore, the central government does not have a uniform currency that could be traded with foreign countries, which is hindering international trade. 14 The Continental Congress issued the call for a meeting on reform in February 1787 to solve these urgent issues by any means necessary. It is feared that without swift action, these United States will soon cease to exist. 15 Current Situation Among others, taxation without representation is one of the key factors that galvanized the colonists to rebel. Because taxation was such a controversial topic following the Revolutionary War, the Articles of Confederation did not grant the central government the power to tax citizens, but rather delegated this power to state governments. Though this decision provided some sense of accountability to citizens who are more closely connected with their state governments, it prevented the central government from being able to adequately raise funds. The central government s inability to acquire tax revenue is particularly problematic now, as the nation still has war debts to pay to the French. The Continental Congress believed that states would simply understand their responsibility to the Union and contribute funds to the central government, but states have rarely done this. 16 A new taxation policy must be addressed by the Constitutional Convention and included in the new document. As of now, the only ways that the national government can raise funds is to sell claims to land out West. Ideally, our nation would like to preserve these lands for future expansion and economic growth, but because of our financial situation, this method seems to be the only 14Brackemeyer. 15 History.com Staff, Constitutional Convention Begins,A+E Networks, 2010, 16 Articles of Confederation,Digital History, 2016, 7
8 dependable way to raise revenue. There is a finite amount of land on the continent, however, and nobody can be certain how much land the nation could claim without provoking conflict with Britain and Spain. Land sales are not a long-term solution to funding the national government, although they could provide revenue in the short-term. Moreover, a lack of domestic funds has led the nation to continue borrowing from foreign countries in dire situations, and this is a more pressing situation than simply creating a national debt. A century of British trade policy designed to create demand for finished goods manufactured in Britain means our new country does not possess much domestic industry. 17 This means the nation is reliant on imported goods, especially gunpowder, which no domestic manufacturer produces but is necessary to supply the military. The resulting trade imbalance means the national government is often borrowing money from the same places it buys finished goods, and without a way to pay down this debt, the country will no longer be able to import these much-needed products. Beyond the nation s inability to levy taxes, the nation also cannot regulate interstate commerce. As a result, states do not coordinate to make trade as efficient as possible and can maintain their own import and export policies, stifling businesses seeking to expand across state lines. 18 This may seem positive as it prevents a strong central government from having too much control as to how a nation would go about trade, but this much freedom for each state has shown to be detrimental. States now have their own agendas that are making it more challenging to facilitate trade at all, let alone efficient, positive trade. For example, New York just implemented an additional tariff for all vessels heading from or to Connecticut and New Jersey. 19 In retaliation, New Jersey levied another tax on vessels exclusively from New York. If this does not stop, it is likely that each 17 Rabushka, Alvin. The Colonial Roots of American Taxation, Policy Review, Aug/Sep Ted Brackemyre, America s First Failure at Government, US History Scene, April, , 19 Jared Walczak, How Failed Tax Policy Led to the Constitutional Convention, The Tax Foundation, 2016, 8
9 state will impose border controls and its own customs operation, making the nation thirteen competing entities rather than one, cohesive unit. Delegates at the convention will need to discuss whether this is a problem, and if so, what new rules should be imposed to stop this uncooperative behavior. While the Articles of Confederation do not authorize the central government to create a uniform currency in an attempt to direct power to the states, the lack of a uniform currency has caused more disputes than anticipated. Not having a central currency makes life more challenging for everyday citizens who make purchases in other states and overly-complicates the coordination of trade deals, both amongst states or between states and foreign countries. 20 The British have shown that strong central banking can give the government tools to create economic growth or ease economic downturns, but having many currencies complicates any form of monetary policy that may be needed to fight economic decline in the future. The Constitutional Convention must address the issue of not having a national currency or any instruments of national economic policy, as it is a contributing factor as to why the national economy is currently so inefficient. Only 5 years ago, in 1782, the national vaults were completely empty which is especially problematic for a newly-founded nation still trying to pay off debts. In response, Congress attempted to reform the Articles to remedy the situation. In 1783, a proposal to institute a national tariff failed because adding a new article required unanimous approval from the states. Following this proposal, four more articles were proposed in the next several years that all attempted to raise more revenue. These articles ranged from assessing late fees to states who failed to remit their incomes, authorizing congress to step in and collect state taxes, as well as creating a 15-year budget and enforcing interest payments. 21 Ultimately, these proposals failed because they would give the 20 An Outline of American Government,U.S. Information Agency, 21 Jared Walczak, How Failed Tax Policy Led to the Constitutional Convention, The Tax Foundation, 2016, 9
10 central government too much power than the public was comfortable with. However, the continued resistance is largely because amendments to the Articles must be unanimous, and opposition to these defeated amendments came from a minority of States. Moreover, these smaller changes were not enough to instigate real change, and the push for more radical solutions is now the favored option. While the Constitutional Convention in Philadelphia does not actually have explicit authority to draft a new Constitution, strong agreement among the delegates will likely make that a moot point. Whatever is best for the structure of a new government, that is for the Convention to figure out. Bloc Positions Federalists Federalists support a strong national government, especially after seeing the failure of the Articles of Confederation. To combat the Anti-Federalists argument that a centralized, federal government could become too powerful, they highlight limited government through powers enumerated in a constitution, separation of powers into three branches, and checks and balances amongst these three branches. Federalists include: Oliver Ellsworth (CT), William S. Johnson (CT), Roger Sherman (CT), Richard Bassett (DE), Gunning Bedford, Jr. (DE), Jacob Broom (DE), John Dickinson (DE), George Read (DE), William Few (GA), Daniel Carroll (MD), Daniel of St. Thomas Jenifer (MD), James McHenry (MD), Nathaniel Gorham (MA), Rufus King (MA), Caleb Strong (MA), Nicholas Gilman (NH), John Langdon (NH), David 10
11 Brearly (NJ), Jonathan Dayton (NJ), William Livingston (NJ), William Paterson (NJ), Alexander Hamilton (NY), William Blount (NC), William R. Davie, Richard Spaight (NC), George Clymer (PA), Thomas Fitzsimons (PA), Jared Ingersoll (PA), Thomas Mifflin (PA), Gouverneur Morris (PA), Robert Morris (PA), James Wilson (PA), Pierce Butler (SC) [often crossed party lines], Charles Pinckney (SC), Charles Cotesworth Pinckney (SC), John Rutledge (SC)m John Blair (VA), James Madison (VA), Edmund Randolph (VA) Anti-Federalists Anti-Federalists fear that a strong national government would take power away from state and local governments. They also believe that a strong, central government will be too far removed from the public, thus the citizens will not be able to hold it accountable. Due to the vastness and diversity of the United States, the Anti- Federalists advocate for more power vested in the state and local governments, which are most likely to hear the concerns of individuals in their constituencies. Anti- Federalists include: Abraham Baldwin (GA), Luther Martin (MD), John F. Mercer (MD), Elbridge Gerry (MA), John Lansing (NY), Robert Yates (NY), Alexander Martin (NC), Hugh Williamson (NC), George Mason (VA), George Wythe (VA), William Houstoun (GA), William Pierce (GA) 11
12 Independents Benjamin Franklin (PA), George Washington (VA) [leaned Federalist], James McClurg (VA) Questions to Consider 1. Why do you support one specific position/identify with a particular party, and who else supports that alongside you? 2. What previous legislations have you previously been a part of and/or voted on? 3. What was your individual state s legislation/laws preceding the convention? What particular role did you play in that installment? 4. How do we effectively apply your particular checks and balances model at the national level to the state/local levels? 5. What are the philosophical foundations of your particular beliefs? How do those contribute to the strength of your arguments? 12
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