Right after the end of the American Revolution, our nation was organized under the Articles of Confederation. This created a loose coalition of states that were essentially independent nations that came together with a weak central government that handled the few affairs that affected every state. Otherwise, states operated pretty much independently.
States could issue their own currency, conduct their own foreign affairs, and could choose to not even send a representative to the national Congress if they chose. It was almost impossible to collect a debt from someone if they lived in a different state, and escaping to another state meant an easy way to start over for
fugitives...