o give the troops one month's pay in cash and three in certificates. That incomplete payment mollified the armed forces for the moment.
By 1786, the new nation faced bankruptcy. Three years after passage of the last tax, such leading states as New York were continuing to refuse to pay levies for purposes that they could not control. Tax revenues barely sufficed to meet current expenses, and debt service payments exceeding a million dollars annually loomed on the horizon. The Confederation faced equally daunting challenges on the diplomatic and military fronts. Several states ignored their obligations under the Treaty of Paris to respect British claims against American debtors and property. Some, notably New York, also passed discriminatory laws against former Tories. Faced with the new nation's apparent inability to comply with the Treaty, England refused to surrender its military outposts in the Northwest Territory. In addition, the British government continued to impose restrictions upon American navigation. The Continen
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