linguistic:translation, linguistic:paraphrasing
Congress of the Confederation

After Yorktown, Hamilton returned to New York City and resigned his commission in March 1782. He passed the bar in July after six months of self-directed education and, in October, was licensed to argue cases before the Supreme Court of New York. He also accepted an offer from Robert Morris to become receiver of continental taxes for the New York state. Hamilton was appointed in July 1782 to the Congress of the Confederation as a New York representative for the term beginning in November 1782. Before his appointment to Congress in 1782, Hamilton was already sharing his criticisms of Congress. He expressed these criticisms in his letter to James Duane dated September 3, 1780: "The fundamental defect is a want of power in Congress... the confederation itself is defective and requires to be altered; it is neither fit for war, nor peace."

While on Washington's staff, Hamilton had become frustrated with the decentralized nature of the wartime Continental Congress, particularly its dependence upon the states for voluntary financial support that was not often forthcoming. Under the Articles of Confederation, Congress had no power to collect taxes or to demand money from the states. This lack of a stable source of funding had made it difficult for the Continental Army both to obtain its necessary provisions and to pay its soldiers. During the war, and for some time after, Congress obtained what funds it could from subsidies from the King of France, European loans, and aid requested from the several states, which were often unable or unwilling to contribute.

An amendment to the Articles had been proposed by Thomas Burke, in February 1781, to give Congress the power to collect a five percent impost, or duty on all imports, but this required ratification by all states; securing its passage as law proved impossible after it was rejected by Rhode Island in November 1782. James Madison joined Hamilton in influencing Congress to send a delegation to persuade Rhode Island to change its mind. Their report recommending the delegation argued the national government needed not just some level of financial autonomy, but also the ability to make laws that superseded those of the individual states. Hamilton transmitted a letter arguing that Congress already had the power to tax, since it had the power to fix the sums due from the several states; but Virginia's rescission of its own ratification of this amendment ended the Rhode Island negotiations.