<P> The Massachusetts legislature was one of the five against paper money . It imposed a tightly limited currency and high taxes . Without paper money veterans without cash lost their farms for back taxes . This triggered Shays Rebellion to stop tax collectors and close the courts . Troops quickly suppressed the rebellion, but nationalists like George Washington warned, "There are combustibles in every state which a spark might set fire to ." </P> <P> An important milestone in interstate cooperation outside the framework of the Articles of Confederation occurred in March 1785, when delegates representing Maryland and Virginia met in Virginia, to address navigational rights in the states's common waterways . On March 28, 1785, the group drew up a thirteen - point proposal to govern the two states' rights on the Potomac River, Pocomoke River, and Chesapeake Bay . Known as the Mount Vernon Compact (formally titled the "Compact of 1785"), this agreement not only covered tidewater navigation but also extended to issues such as toll duties, commerce regulations, fishing rights, and debt collection . Ratified by the legislatures of both states, the compact, which is still in force, helped set a precedent for later meetings between states for discussions into areas of mutual concern . </P> <P> The conference's success encouraged James Madison to introduce a proposal in the Virginia General Assembly for further debate of interstate issues . With Maryland's agreement, on January 21, 1786, Virginia invited all the states to attend another interstate meeting later that year in Annapolis, Maryland, to discuss the trade barriers between the various states . </P> <P> The Articles Congress received a report on August 7, 1786 from a twelve - member "Grand Committee", appointed to develop and present "such amendments to the Confederation, and such resolutions as it may be necessary to recommend to the several states, for the purpose of obtaining from them such powers as will render the federal government adequate to" its declared purposes . Seven amendments to the Articles of Confederation were proposed . Under these reforms, Congress would gain "sole and exclusive" power to regulate trade . States could not favor foreigners over citizens . Tax bills would require 70% vote, public debt 85%, not 100% . Congress could charge states a late payment penalty fee . A state withholding troops would be charged for them, plus a penalty . If a state did not pay, Congress could collect directly from its cities and counties . A state payment on another's requisition would earn annual 6% . There would have been a national court of seven . No - shows at Congress would have been banned from any U.S. or state office . These proposals were, however, sent back to committee without a vote and were not taken up again . </P>

Where did the nationalists meet in 1786 to discuss the issues regarding the united states government