Quilling illustration for Federalist Nos. 21-22
Federalist Nos. 21-22

Further Defects of the Current Articles of Confederation

Generated summaryHamilton catalogs the Confederation's structural failures: no way to enforce federal law or shield states from internal revolt, an unfair tax formula, no power over trade, deadlock-prone voting rules, no shared court, and a founding that never won direct popular consent.

Federalist 21

Generated summaryThe Confederation cannot punish states that break its rules and does not promise to protect state governments from internal uprisings, and it divides tax burdens by land value or population, a measure with no real link to a state's actual wealth or ability to pay.
Key points
  • The Confederation’s chief defect is the want of a sanction: it can neither punish nor coerce a delinquent state.
  • The second article, which the opposition praises, reserves every power not expressly delegated, leaving the Union no shadow of authority to enforce its laws.
  • A further capital defect is the lack of any mutual guaranty: should usurpation seize a state, as it nearly did in Massachusetts, the Union could only look on.
  • State pride calls such a guaranty officious meddling, but it would bar only violent change, never lawful, peaceable reform.
  • Apportioning each state’s contribution by quota is a fundamental error, for neither land nor population measures a state’s real wealth.
  • That inequality would in time dissolve the Union; the true cure is to let the government raise its own revenue by taxes on consumption.
  • Consumption taxes carry their own check: set too high, they curb consumption and yield less, a natural barrier against oppression.

In the last few papers we reviewed the genius and fate of other confederate governments. I shall now describe the most important of their defects. To understand the fix we must understand the problem.

The current system of government among the United States is not effective because it lacks the ability to enforce its own laws. It has no power to punish disobedient states, and no express authority to use force against them. Any such right would have to be inferred against the second article, which declares that each state keeps every power not expressly delegated to the United States in Congress. The opponents of the new Constitution have lately praised that very clause; yet if we honor it, we must admit that the United States has no shadow of constitutional power to enforce its own laws. In this respect our confederacy stands apart from every other institution of its kind, a new and unmatched spectacle in the political world.

There is also a problem with the current system because it does not offer mutual protection for the state governments. This means that if one state’s government is in danger, the national government cannot legally help. While this may endanger the union, it is not so immediately harmful as the union’s inability to enforce its own laws.

An uprising could take control of a state and harm the freedoms of the people living there, and the national government would have no legal recourse but to watch regretfully. This has already nearly happened in Massachusetts and shows that these dangers are real. Had those malcontents been led by a Caesar or a Cromwell, who could say how their recent uprising would have ended? And who can predict what a despotism in Massachusetts would mean for the liberties of New Hampshire, Rhode Island, Connecticut, or New York?

Some people object to federal protection due to their state pride. This type of objection would deprive us of one of the main benefits of a union in the first place, and must be due to misunderstanding. It would not impede the legal and peaceful reforms of the state constitutions, that right would remain. The protection could only operate against reforms instigated by violence, and against dangers of this kind too many protections can never be provided. The peace of society depends on it. In a government where the power is in the hands of the people, it is usually enough to just change the leaders if the government is not being run well. Federal protection would also protect the people against these leaders taking too much power.

The current system of dividing the states’ contributions to the national treasury based on quotas is another fundamental problem. It does not fill the national demand nor accurately reflect the wealth of each state. No standard has been determined to guide proportions either; factors like the value of land or the number of people do not give an accurate picture of a state’s wealth. Compare the United Netherlands with Russia, Germany, or even France: neither its land nor its population bears any real relation to the relative wealth of those nations. The same holds between American states: contrast Virginia with North Carolina, Pennsylvania with Connecticut, or Maryland with New Jersey, and it is plain that their abilities to raise revenue bear little relation to their land or their population. The same holds within a state’s counties: the active wealth of King’s County in New York is far greater in proportion to that of Montgomery County than the value of its land or the number of its people would suggest.

The wealth of nations depends on many different factors such as geography, climate, resources, government, education, economy, arts, industry, and more. Because of this, it is not possible to have a general rule for determining the wealth of a nation or state. Using such a rule to divide the states’ contributions to the national government would lead to inequality and unfairness.

Such inequality would eventually cause the breakdown of the union, as states would not want to be part of a system that is unfair and burdensome to some while barely affecting others. This problem is inherent in the current system of using quotas to divide contributions.

The best way to avoid the problems caused by quotas is to allow the national government to raise its own money through taxes on consumption, such as import and excise taxes. The amount contributed will depend on each citizen regulating their own consumption. The rich may be extravagant and the poor frugal, and private oppression can always be avoided by choosing carefully which goods to tax. If there are inequalities between states due to these taxes, they will likely be balanced out by inequalities in other states. In time, an equilibrium will be reached, or at least the inequalities will not be as extreme as they would be under the current system of quotas.

A major advantage of taxes on consumption is that they carry, in their own nature, a security against excess.

Such taxes set their own limit, which cannot be crossed without defeating the very purpose of raising more revenue. The saying here is as true as it is witty: “in political arithmetic, two and two do not always make four.” If duties are set too high, people buy less, the collection is evaded, and the treasury takes in less than it would at moderate rates. This forms a complete barrier against any serious oppression of citizens by taxes of this kind, and is itself a natural limit on the government’s power to impose them.

Indirect taxes, such as those on consumption, will probably be the main source of revenue for a long time. Direct taxes, which are based on things like land and buildings, can be divided using a standard like the value of land or the number of people. It is difficult to accurately value land, especially in a country that is not fully settled and improving. It is also expensive. It may be easier to use a simple rule, like the number of people, rather than leaving it up to the government’s discretion.

Federalist 22

Generated summaryThe Confederation cannot regulate foreign or interstate trade, its quota system for money and troops breeds unfairness, and its equal-state votes and supermajority rules let a small minority block the whole government. It also lacks any national court to keep the laws uniform, and it rests on approval by state legislatures rather than by the people directly.
Key points
  • Still graver defects remain, and together they show the Confederation cannot be repaired, only replaced.
  • It cannot regulate commerce: no nation will bargain with a Union whose engagements any member may break, and which already grants every advantage for nothing.
  • Raising armies by requisition set the states bidding against each other for men, yielding a costly, fluctuating force and an unequal burden.
  • Equal voting among the states defies the republican maxim of the majority, for a majority of states may be a small minority of the people.
  • Requiring a supermajority poisons the government: like a Polish diet, a fraction the size of Delaware or Rhode Island can halt everything.
  • Unanimity, meant for safety, saps all energy and invites the foreign corruption and domestic faction to which republics are already prone.
  • The Confederation has no judiciary: without courts to expound them, laws are a dead letter, and treaties lie at the mercy of thirteen courts.
  • The system was never ratified by the people but only by the legislatures; national power must instead flow directly from the people themselves.

There are other problems with the current system of government besides those already mentioned.

One major issue is the lack of power to regulate commerce, which makes it difficult to make beneficial trade agreements with other countries. No nation will grant the United States real privileges while the Union’s promises can be broken at any moment by any member, and while it already enjoys every advantage it wants in our markets without giving us anything in return. Mr. Jenkinson, introducing such a bill in the House of Commons, said plainly that these terms had answered every purpose of British commerce, and that Britain should keep to them until the American government showed more consistency.

Some states have tried to influence trade with other countries through their own separate laws and regulations, but this has not been successful because there is no national authority to ensure that all the states are working together.

Some state laws have interfered with trade of other states, and there is a fear that these problems will continue and even increase if there is no national control. The numerous and repeated duties that different states can place on merchandise passing through their territories can make trade difficult, like in the German empire. While this may not specifically mirror itself in our country, if similar conflicts between states continue, the citizens of each state may eventually be treated like foreigners by the others.

The current system for raising armies in the United States, which relies on states providing a certain number of troops, has caused problems in the past. It led to competition between states, which caused them to offer large bonuses to attract soldiers. This resulted in short-term enlistments and a constantly changing army, which was harmful to discipline and put the country at risk.

The system has high cost, yields a poor army, and does not manage the equal distribution of the burden between states well. The states near the seat of war made much greater efforts to provide troops than those farther away. This unfair burden cannot be settled among the states, unlike balancing a debt with money. The system of quotas and requisitions, whether applied to men or to money, is in every respect a source of weakness in the Union and of inequality and injustice among its members.

The current system of equal voting power among states is unfair because it doesn’t reflect the number of people in each state. This means that smaller states have the same influence as larger ones, even though they have fewer people. This goes against the fundamental idea of a republican government. Some may reply that sovereigns are equal, but this twisted logic contradicts justice and common sense. It also means that the larger states may eventually revolt against the smaller states because they don’t want to be controlled by them. The smaller states should give up this unfair advantage in order to keep the union together.

Some may say that nine, or two-thirds of the states, must consent to the most important resolutions and thus that those two-thirds would always have a majority of the union's population. But this does not solve the problem of votes not well-representing their constituents. Additionally, it is just factually incorrect, as we can list nine states that contain less than a majority of the people. There are some very important matters determinable by a bare majority. It is also possible that the number of states may increase in the future, but there will be no change in the voting ratio to reflect this.

What at first may seem a solution to this problem is actually itself a poison. Congress has often been in the position of a Polish diet, where a single vote has been enough to stop all its movements. A sixtieth part of the Union, about the proportion of Delaware and Rhode Island, has several times been able to block everything the rest of the government tried to do. It is assumed that unanimity in government leads to security. But in reality, it saps the energy of government and substitutes the chaos of a small, corrupt group for the respectable majority. We are lucky if compromises can be made, as sometimes the productive administration of government is defeated. It’s so hard to get the necessary votes that the government is left in a state of inaction that borders on anarchy.

It’s not surprising to learn that this kind of government gives greater power to foreign corruption and domestic faction than majority rule, although some have assumed the opposite. This mistake proceeds from not recognizing the harm that comes with obstructing the process of government at critical times. When it takes a large concurrence to do a national act, we will feel safe because it’s unlikely something improper will be enacted, but we forget how much good will be prevented by inaction.

Imagine we are in a war with another country and we are working with another foreign nation to fight against them. If we need to make peace, but our ally wants to continue the war for their own interests, it would be easier for them to stop us from making peace if they only have to sway a minority of votes rather than a majority. This is because they would have to bribe or manipulate fewer people. The same idea applies to foreign countries trying to mess with our decisions or to a nation trying to stop us from trading with their competitor, even if it would be good for us.

This should not be considered a hypothetical. One weakness of republics is that they are more vulnerable to foreign corruption than other forms of government. In a monarchy, the ruler has a personal interest in the country and its reputation, so it is difficult for a foreign power to bribe them to betray their own nation. There are few examples of monarchical prostitution of this kind.

In republics, politicians may find that the payment for betraying the people’s trust outweighs their sense of duty. This is why history gives us so many humiliating examples of foreign corruption in republican governments. How much it ruined the ancient commonwealths has already been described. It is well known that the deputies of the United Provinces have often been bought by agents of neighboring kingdoms. The Earl of Chesterfield, if I remember correctly, wrote to his court that his success in an important negotiation depended on securing a major’s commission for one of those deputies. And in Sweden the parties were bought by turns by France and England, so openly that it disgusted the whole nation, and was a chief reason that the most limited monarch in Europe became, in a single day and without violence, one of the most absolute.

Another defect remains to be mentioned: the United States lacks a proper judicial system. Without the courts to decide their meaning and use, laws are just words on a page. Without a national court system, there can be different interpretations of the same laws in different states. All nations have found it necessary to establish a Supreme Court to be a judge-of-last-resort.

This is even more necessary with the possibility of local laws conflicting with national laws. Where lower courts are the current arbiters, there will be much to fear from the bias of local views and prejudices. Whenever this happens, there may be reason to prefer the local laws to the national ones and ignore proper authority. The current treaties of the United States are liable to the infractions of thirteen different legislatures and as many courts. The faith, reputation, and peace of the union are thus continually at the mercy of local passions. How can a foreign nation respect such a government? Will the people of America trust their lives on so precarious a foundation?

In this review of the confederation, I have shown its most important problems. It should now be clear to all thoughtful people who are not biased that the system is so flawed that it cannot be fixed without major changes.

The current system for governing the United States is flawed and cannot be fixed. It is not set up to handle the powers that need to be given to the federal government. If the new constitution is not adopted, there is a risk that we will try to give more power to the current congress, which will likely lead to the government collapsing or becoming a tyranny.

The current federal system was never ratified by the people. Resting only on the consent of the state legislatures, it has faced frequent questions about the validity of its powers, and has even given rise to the doctrine that a legislature may repeal its own act of ratification. However gross a heresy it is to hold that a party to a compact may revoke that compact, the doctrine itself has had respectable supporters. This proves the need to lay the foundations of our national government deeper than in the mere sanction of delegated authority. The power of government should rest directly on the consent of the people, and the streams of national power ought to flow immediately from that original fountain of all legitimate authority.