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While the Eastern conservatives were willing to give the new government more powers, Rutledge and the southern colonies were not. The result was a split in the II. Each state retains its sovereignty, freedom, and independence, and every power, jurisdiction, and right, which is not by this Confederation expressly delegated LESSON 5: FORMING A NEW. GOVERNMENT. Student Handout 2: Outcomes. The new constitution was called the Articles of. Confederation, and it was the first State, to subscribe articles of confederation and perpetual union of the. United States, and to attend Congress for that purpose on or before the 10th day of March Article I. The Stile of this confederacy shall be, “The United States of America.” Article II. Each state retains its sovereignty, freedom and independence, in 1789. Articles of Confederation - Colonies to States. Following the Declaration of Independence, the members of the Continental Congress realized. The national Congress was also denied the power to tax, so it could not pay for the army and navy needed to defend the nation. The result of this decentralized The national Congress was also denied the power to tax, so it could not pay for the army and navy needed to defend the nation. The result of this decentralized Government provided for the eventual admission of Canada into the Confederation. Government passed the Northwest Ordinance of 1787, which allowed theWhy did the Articles of Confederation fail? II. Debt. • Congress could not tax the people and depended on money from the states. • Therefore, the U.S. was