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But in their efforts to keep their independence, the states created a weak central government that was unable to improve an insolvent economy and poor foreign relations.
Although the confederation gained some substantial powers, the crucial powers to tax and regulate commerce remained with the individual states. Each state passed their own currency, and therefore created inflation and made "Continentals" in circulation worthless. Compounded with restrictions on trade to Great Britain and down the Mississippi River, the states became mired in a heavy depression. John Fiske, of the conservative view, realized the precarious situation when he stated "the Nation was under the verge of collapse and near-anarchy and that the five year period after 1783 was the most critical time in American History...
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