The Articles of Confederation - Finding Finances - Extra History - Part 3

Summary

The script details the financial struggles of the Confederation Congress during the American Revolutionary War, highlighting the appointment of Robert Morris as Superintendent of Finance. Despite his efforts to stabilize the economy with a national bank and proposed tax on imports, Morris faced opposition, particularly from Rhode Island and Virginia, leading to his resignation. The narrative also touches on the discontent within the Continental Army over unpaid wages and the potential for a coup, emphasizing the challenges of a weak central government in the early United States.

Takeaways

• 🏛️ The Confederation Congress struggled financially during the American Revolutionary War, lacking the power to levy taxes and facing a destitute situation.
• 🎵 The Articles of Confederation established a weak central government with a figurehead President of Congress who had limited powers.
• 💼 Robert Morris, known as 'The Financier,' was appointed as the Superintendent of Finance to address the financial crisis, despite his initial reluctance.
• 🏦 Morris established the First National Bank to stabilize the currency and attempted to collect state debts, emphasizing their obligations under the Articles of Confederation.
• 🛃 He proposed a national tax on imported goods to fund the Congress, which was a controversial move considering the war's origins.
• 🗳️ Achieving unanimous consent for the tax from all 13 states was challenging, and ultimately failed due to Rhode Island's refusal and Virginia's withdrawal.
• 💡 Despite setbacks, Morris's National Bank thrived, but accusations arose that he used it for personal and investor enrichment.
• 💔 The Continental Army faced financial hardships, leading to a halt in payments and a promise of future compensation, which strained relations with the troops.
• 🗣️ Some officers, including Alexander Hamilton, sought political office, advocating for a stronger central government to unite the newly formed nation.
• 🛡️ The threat of an army insurrection due to unpaid wages highlighted the urgent need for financial stability and a functional government.
• 🕊️ George Washington's emotional appeal to the troops during a potential coup quelled the unrest and reaffirmed his leadership and loyalty to the Republic.

Q & A

Why did the Confederation Congress struggle to fund the national army during the American Revolutionary War?

The Confederation Congress struggled due to the lack of real leadership and power under the Articles of Confederation, which made it difficult to impose taxes and generate sufficient revenue for the war effort.

What was the role of the President of Congress under the Articles of Confederation?

The President of Congress could only supervise meetings, had no voting power, and could not suggest new laws, which was seen as a demotion by many.

Why was Robert Morris nominated as the Superintendent of Finance?

Robert Morris was nominated due to his success in business, his wealth, and his reputation as 'The Financier.' His experience in converting his merchant fleet into privateer ships and his connections made him an obvious choice to address the financial crisis.

What was Robert Morris's initial reaction to being nominated as the Superintendent of Finance?

Robert Morris was reluctant to accept the position because he knew it would involve implementing unpopular measures such as raising taxes, which was a sensitive issue for Americans.

How did Benjamin Franklin persuade Robert Morris to accept the position of Superintendent of Finance?

Benjamin Franklin appealed to Morris's sense of honor and duty, writing to him and emphasizing the importance of the role in the context of the ongoing war and their shared history of working together.

What significant financial institution did Robert Morris establish after becoming the Superintendent of Finance?

Robert Morris established the First National Bank, which helped create a new stable currency backed by gold and silver.

What was the purpose of the national tax on imported goods proposed by Robert Morris?

The national tax on imported goods was intended to generate revenue to fund the Confederation Congress and help alleviate the financial crisis.

Why did Rhode Island reject the proposed national tax on imported goods?

Rhode Island, being a small state reliant on foreign trade, feared that the tax would disproportionately affect them and harm their economy.

How did the failure of the tax proposal impact Robert Morris's influence and the financial situation of the Continental Army?

The failure of the tax proposal weakened Morris's influence and led to a worsening financial situation for the Continental Army, as they were left without a reliable source of income.

What was the Newburgh Conspiracy, and how did George Washington respond to it?

The Newburgh Conspiracy was a rumored insurrection within the Continental Army, with soldiers demanding immediate payment for their service. George Washington intervened by condemning the conspiracy and reminding the soldiers of their duty and loyalty to the Republic.

What was the outcome of the efforts to pass the tax amendment again, and how did it affect Robert Morris?

The tax amendment failed again, leading to Robert Morris's resignation as he could no longer effectively manage the financial crisis without the necessary support from the states.