government and Paris bankers lent large sums to the American war effort. The Americans struggled to pay off the loans; they ceased making interest payments to France in 1785 and defaulted on installments due in 1787. In 1790, however, they resumed regular payments on their debts to the French, and settled their accounts with the French government in 1795 when James Swan, an American banker, assumed responsibility for the balance of the debt in exchange for the right to refinance it at a profit. Concluding the Revolution Creating a "more perfect union" and guaranteeing rights The war ended in 1783 and was followed by a period of prosperity. The national government was still operating under the Articles of Confederation and settled the issue of the western territories, which the states ceded to Congress. American settlers moved rapidly into those areas, with Vermont, Kentucky, and Tennessee becoming states in the 1790s. However, the national government had no money either to pay the war debts owed to European nations and the private banks, or to pay Americans who had been given millions of dollars of promissory notes for supplies during the war. Nationalists led by Washington, Alexander Hamilton, and other veterans feared that the new nation was too fragile to withstand an international war, or even the repetition of internal revolts such as the Shays' Rebellion of 1786 in Massachusetts. They convinced Congress to call the Philadelphia Convention in 1787. The Convention adopted a new Constitution which provided for a republic with a much stronger national government in a federal framework, including an effective executive in a check-and-balance system with the judiciary and legislature. The Constitution was ratified in 1788, after a fierce debate in the states over the proposed new government. The new administration under President George Washington took office in New York in March 1789. James Madison spearheaded Congressional amendments to the Constitution as assurances to those cautious about federal power, guaranteeing many of the inalienable rights that formed a foundation for the revolution. Rhode Island was the final state to ratify the Constitution in 1790, the first ten amendments were ratified in 1791 and became known as the United States Bill of Rights. National debt The national debt fell into three categories after the American Revolution. The first was the $12 million owed to foreigners, mostly money borrowed from France. There was general agreement to pay the foreign debts