The articles of confederation were decided upon because of the significant achievement of the Northwest Ordinance which established a system for setting up governments in Western territories in the western states so they could eventually join the union on an equal footing with the original 13 states. The Articles of confederation was rejected because states held the most power and congress lacked the power to regulate coinage, power to tax, or control coinage. The articles of confederation were revised as the U.S. constitution at constitutional convention in 1787.