The era 1781–1789 is called the Confederation period and it took its name from the Articles of Confederation, the first constitution of the new United States, ratified by the Second Continental Congress on 1 March 1781. This era is considered as the most critical period in US history because US was facing financial crisis as well as states were not coming to a single point of harmony. Each state was having some reservations but after the ratification of the constitution everything came to stability.