During the postwar years, relations between the United States and the individual states centered largely around two related financial issues. The first was that of the domestic Revolutionary debt contracted by the United States. The national domestic debt issue, in turn, consisted of two facets: the matter of the unliquidated debt, that is, the debt in the hands of individuals or owed to individuals; and the matter of settling the wartime accounts between the United States and the respective states for expenses incurred and services performed on each other's behalf. The second great financial issue consisted of the efforts to secure revenue for Congress, both through the requisition system established under the Articles of Confederation and through the establishment of independent revenue sources for the national government.1. These financial issues had great political implications, for advocates of a stronger central government believed it essential to their purposes that Congress assume the unliquidated national debt, complete the settlement of accounts with the states, and acquire its own taxing powers.2.
During the confederation period the national debt, with which Federalists hoped to bind its holders to the central____________________