<P> Britain relinquished its claim to Vermont in the Treaty of Paris, but the state did not join the United States . Though most in Vermont wanted to become the fourteenth state, New York and New Hampshire, which both claimed parts of Vermont, blocked this ambition . Throughout the 1780s, Vermont acted as an independent state, known as the Vermont Republic . </P> <P> Under the Articles, only states had the power to levy taxes or regulate commerce . The United States acquired huge debts during the Revolutionary War, in part due to Congress's lack of taxation powers . In 1779, Congress had relinquished most of it economic power to the states, as it stopped printing currency and requested that the states directly pay the soldiers, but the states also suffered from fiscal instability . Robert Morris, the Superintendent of Finance, sought major centralizing reforms, including the partial assumption of state debt, the suspension of payments to military personnel, and the creation of the Bank of North America . As Congress approved of these measures, Morris emerged as perhaps the most powerful individual in the national government, with some referring to him as "The Financier," or even "The Dictator ." In 1783, Morris, with the support of Congressmen such as Madison and Alexander Hamilton, finally won Congressional approval of a 5% levy on imports, which would grant the national government a consistent and independent source of revenue . However, with the signing of the Treaty of Paris, the states became more resistant to granting power to Congress . Though all but two states approved the levy, it never won the unanimous backing of the states and thus Congress struggled to find revenue throughout the 1780s . </P> <P> As the war came to an end, the officers and enlisted men of the Continental Army became increasingly disgruntled over their lack of pay, as Congress had suspended payment due to the poor financial state of the national government . Congress had promised the officers a lifetime pension in 1780, but few of the officers believed that they would receive this benefit . In December 1782, several officers, led by Alexander McDougall, petitioned Congress for their benefits . The officers hoped to use their influence to force the states to allow the federal government to levy a tariff, which in turn would provide revenue to pay the soldiers . Historians such as Robert Middlekauff have argued that some members of the national government, including Congressman Alexander Hamilton and Superintendent of Finance Robert Morris, attempted to use this growing dissatisfaction to increase the power of Congress . An anonymous letter circulated among the officers; the document called for the payment of soldiers and threatened mutiny against General Washington and Congress . In a gathering of army officers in March 1783, Washington denounced the letter, but promised to lobby Congress for payment . Washington's speech defused the brewing Newburgh Conspiracy, named for the New York town in which the army was encamped, but dissatisfaction among the soldiers remained high . In May 1783, fearing a mutiny, Washington furloughed most of his army . </P> <P> On Washington's request, Congress attempted to pass an amendment granting the national government the power to levy an impost on imports, but the amendment was defeated by the states . Morris finally paid the army with certificates that the soldiers labeled "Morris notes ." The notes promised to pay the soldiers in six months, but few of the soldiers believed that they would ever actually receive payment . Most of the Morris notes were sold to speculators . Many of the impoverished enlisted men were forced to beg for help on their journeys home . In June, the Pennsylvania Mutiny of 1783 broke out among angry soldiers who demanded payment, causing Congress to relocate the capital to Princeton . Upon re-convening, Congress reduced the size of the army from 11,000 to 2,000 . In December 1783, Washington resigned from the army, earning the admiration of many for his willingness to relinquish power . Following Washington's resignation, the army shrank to a mere 625 soldiers, while Congress effectively disbanded the Continental Navy in 1785 with the sale of the USS Alliance . The small, poorly equipped army would prove powerless to prevent squatters from moving onto Native American lands, further inflaming a tense situation on the American frontier . </P>

What contributed to the depression after the revolutionary war