The first suggestion in the Continental Congress for the formation of the federal government was made by Franklin in 1775; the first official draft of a plan for the confederation was submitted by that Congress to the thirteen states for ratification in 1777, under the title, "Articles of Confederation and Perpetual Union." The plan was to go into effect when the articles were adopted by the legislatures of each of the thirteen states, but this was not accomplished until March, 1781. The federal government provided for by these articles consisted only of a legislative department; there was no provision for a permanent executive nor permanent federal courts. It was expressly provided that " each state retains its sovereignty, freedom, and independence, and every power, jurisdiction, and right which is not by this Confederation expressly delegated to the United States in Congress assembled." The government thus provided for was a league or confederation for common defence, and the Congress was to consist of delegates without limit as to number, chosen and paid by the legislatures of the different states, those from each state acting as a unit. It was provided, however, that the states should not individually enter into relations with foreign nations, nor with each other, by way of common treaty or compact, nor engage in any war, without the consent of the Congress of the confederation, which should have the exclusive right and power of determining on peace and war and carrying on foreign relations. Congress was authorized to borrow money and support an army and navy, and for the purpose of raising the necessary funds was to receive contributions from the several states in proportion to the value of land. But no means was provided for collecting taxes directly from the people, nor for enforcing payment of the contributions asked from the different states.

The government thus provided for had not sufficient authority to secure respect abroad nor to discharge at home the duties essential to the maintenance of peace and the public credit; and it was found impossible to enforce even those limited regulations which Congress was authorized to make. The most serious difficulty, however, and the one appealing most strongly to the people, was the lack of any uniform regulations with reference to commerce among the states or with foreign nations. Each state imposed its own restrictions on the bringing of goods from other states or from abroad, and upon the shipment of goods out of the state. Of scarcely less importance was the want of any common and stable currency with which business among the people of the different states might be carried on; for while, under the provisions of the Articles, Congress had "the sole and exclusive right and power of regulating the alloy and value of coin struck by their own authority or by that of the respective states," no uniform system of currency was actually adopted and put into operation.

The weakness of this government, and its defects, which became more and more evident as it attempted to exercise the limited powers entrusted to it, led to agitation for amendments of the Articles; and in 1787 a call was issued by Congress, recommending the different states to-send delegates to a convention for the purpose of revising the Articles of Confederation and reporting such alterations as they should deem necessary "to the exigencies of government and the preservation of the nation." But the convention of delegates which sat in Philadelphia in pursuance of this call from May to September, 1787, found it to be impracticable to propose amendments to the Articles which should remedy the defects and give to the federal government sufficient power; and the convention therefore proceeded to formulate an entirely new federal constitution, providing for a central government radically different from that contemplated in the Articles. This new constitution was to go into effect when ratified by nine states (Const. Art. VII). It was submitted to the people of the states in 1787, and was ratified by eleven of them before any definite action was taken under it. The constitution which was thus proposed and ratified, and which is the present constitution of the United States, went into actual effect as an instrument of government in 1789. In April of that year the Congress, chosen in accordance with the new constitution, met and counted the electoral votes for president, and on April 30th George Washington was inaugurated as the first President of the United States; and a few months later the remaining two states ratified the constitution.