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In the early years, most of the disputes over the boundaries of national versus state power involved: the ability of the national government to control interstate trade and commerce.

State legislatures started passing legislation to cancel debts owed by the many debtors, undermining the rights of the few creditors and the credit market. States also built a variety of trade barriers to safeguard their own companies against rival enterprises in adjacent states. Additionally, as state legislatures were in charge of their own commerce, the federal Congress was unable to sign trust-worthy trade agreements with other countries in order to expand markets for American goods, even by threatening to impose restrictions on foreign access to the American market.

All of this led to a national economic collapse that, properly or wrongly, was attributed on disastrous laws passed by democratically elected legislators. A conference was called in Philadelphia to address this predicament in 1787 as a result of political unhappiness with the economy. The Contracts Clause of Article I, Section 10, which forbade governments from "impairing the obligation of contracts," was the section of the proposed new Constitution that addressed debtor relief legislation.

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