In the southern block of States the territorial settlement proceeded more slowly, and was in every way less satisfactory. Virginia retained both jurisdiction and land in Kentucky. North Carolina in 1790 granted the jurisdiction in what is now Tennessee, but every acre of the land had already been granted by the State. South Carolina had almost nothing to cede, and yielded it in 1787. Georgia stood out on the claim to the whole territory between her present boundary and the Mississippi, and would not yield until 1802. Slavery was not prohibited. 53. FINANCES (1781-1788). [Sidenote: Financial status.] [Sidenote: Requisitions.] The financial condition of the Confederation was throughout deplorable (§ 43). The Revolution imposed upon the country a heavy debt. The accounts of the government were so badly kept that to this day it is impossible to state the amount; but it was probably about thirty millions, with an annual interest charge of about two millions. The necessary expenditure for the support of Congress, of the army on a peace-footing, and of the executive and judicial boards and departments, called for about half a million more. The continental currency had practically been repudiated, and no more could be floated; Congress had no power to lay either direct or indirect taxes; the post-office had an income of about $25,000 a year, all of which was expended upon the service. Hence Congress fell back on requisitions apportioned on the States: one of its principal functions was each year to calculate the amount necessary for the public service, and to call upon the State legislatures for their quota. The total sum required from 1781 to 1788 was about $16,000,000. Of this there had actually been paid during the seven years $3,500,000 in specie, and $2,500,000 in certificates of national indebtedness. The annual cash income of the government was therefore about half a million, which was entirely absorbed by the necessary running expenses of the government, leaving nothing for the payment of interest. [Sidenote: Morris's administration.] This condition of virtual bankruptcy might have been avoided had Robert Morris been able to carry out the reforms which he proposed when he became superintendent of finance in 1781. He found the financial administration complicated and corrupt. He attempted to substitute business methods and punctuality of payment. While the war lasted, however, the only financial system possible was to squeeze every source of revenue, and to pay only what could not be avoided. When peace returned, the States would provide no better system. To keep up the credit of the government the first necessity was the prompt payment of interest: the payment of interest required money; money must come from taxes, and the State declined to levy the taxes. In 1784 Morris resigned in despair, and thenceforward a Treasury Board mismanaged the finances of the nation. [Sidenote: Bank of North America.]