The Articles of Confederation were adopted in 1781. Under the Articles of Confederation, each state made its own laws, collected its own taxes, and printed its own money. This left the central government weak and caused many problems. In 1786 Daniel Shays, a farmer in Massachusetts, organized thousands of farmers to protest against taxes. Many of the farmers were veterans of the Revolution, who were owed money from Congress and could not pay their taxes. A bloody battle, known as Shay's Rebellion, ensued. Troops were called out to put down the rebellion and eight men died.

In 1787, the Northwest Ordinance was passed and gave the settlers in the Northwest Territory, which included what is today the states of Indiana, Ohio, Wisconsin, Michigan, and Illinois, the same rights as citizens of the 13 states. The ordinance prohibited slavery and required land be set aside for public schools. A former slave, Richard Allen, started the Free African Society in 1787.