hem to
Congress for approval.

Thus were created two more American institutions, the territory and the
state formed out of the public domain. The ordinance was but a few
months old when South Carolina ceded (1787) her little strip of country
west of the mountains (see map on p. 157) with the express condition
that it _should_ be slave soil. In 1789 North Carolina ceded what is
now Tennessee on the same condition. Congress accepted both and out of
them made the "Territory southwest of the Ohio River." In that slavery
was allowed.[1]

[Footnote 1: The only remaining land-holding state, Georgia, ceded her
claim in 1802 (p. 246).]

%169. Defects of the Articles of Confederation.%--While Congress at
New York was framing the Ordinance of 1787, a convention of delegates
from the states was framing the Constitution at Philadelphia. A very
little experience under the Articles of Confederation showed them to
have serious defects.

_No Taxing Power_.--In the first place, Congress could not lay a tax of
any kind, and as it could not tax it could not get money with which to
pay its expenses and the debt incurred during the Revolution. Each of
the states was in duty bound to pay its share. But this duty was so
disregarded that although Congress between 1782 and 1786 called on the
states for $6,000,000, only $1,000.000 was paid.

_No Power to regulate Trade_.--In the second place, Congress had no
power to regulate trade with foreign nations, or between the states.
This proved a most serious evil. The people of the United States at that
time had few manufactures, because in colonial days Parliament would not
allow them. All the china, glass, hardware, cutlery, woolen goods,
linen, muslin, and a thousand other things were imported from Great
Britain. Before the war the Americans had paid for these goods with
dried fish, lumber, whale oil, flour, tobacco, rice, and indigo, and
with money made by trading in the West Indies. Now Great Britain forbade
Americans to trade with her West Indies. Spain would not make a trade
treaty with us, so we had no trade with her islands, and what was worse,
Great Britain taxed everything that came to her from the United States
unless it came in British ships. As a consequence, very little lumber,
fish, rice, and other of our products went abroad to pay for the immense
quantity of foreign-made goods that came to us. These goods therefore
had to be paid for in money, which about 1785 began to be boxed