1 7 8 6 , ▁the ▁United ▁States ▁would ▁default ▁on ▁out standing ▁deb ts ▁as ▁their ▁dates ▁came ▁due . ▁ ▁Intern ation ally , ▁the ▁United ▁States ▁had ▁little ▁ability ▁to ▁defend ▁its ▁so vere ig nt y . ▁ ▁Most ▁of ▁the ▁troops ▁in ▁the ▁ 6 2 5 - man ▁United ▁States ▁Army ▁were ▁deployed ▁facing   – ▁but ▁not ▁threaten ing   – ▁British ▁for ts ▁on ▁American ▁soil . ▁ ▁They ▁had ▁not ▁been ▁paid ; ▁some ▁were ▁desert ing ▁and ▁others ▁threaten ing ▁mut iny . ▁ ▁Spain ▁closed ▁New ▁Orleans ▁to ▁American ▁commerce ; ▁U . S . ▁officials ▁protest ed , ▁but ▁to ▁no ▁effect . ▁ ▁Barb ary ▁pir ates ▁began ▁se izing ▁American ▁ships ▁of ▁commerce ; ▁the ▁Tre as ury ▁had ▁no ▁funds ▁to ▁pay ▁their ▁r ans om . ▁ ▁If ▁any ▁military ▁crisis ▁required ▁action , ▁the ▁Congress ▁had ▁no ▁credit ▁or ▁tax ing ▁power ▁to ▁fin ance ▁a ▁response . ▁ ▁Dom est ically , ▁the ▁Articles ▁of ▁Confeder ation ▁was ▁failing ▁to ▁bring ▁unity ▁to ▁the ▁diverse ▁sent iments ▁and ▁interests ▁of ▁the ▁various ▁states . ▁ ▁Although ▁the ▁Tre aty ▁of ▁Paris ▁( 1 7 8 3 ) ▁was ▁signed ▁between ▁Great ▁Britain ▁and ▁the ▁U . S ., ▁and ▁named ▁each ▁of ▁the ▁American ▁states , ▁various ▁states ▁proceeded ▁bl ith ely ▁to ▁viol ate ▁it . ▁ ▁New ▁York ▁and ▁South ▁Carolina ▁repeatedly ▁pro sec uted ▁Lo yal ists ▁for ▁w art ime ▁activity