The Great Compromise of 1787, also known as the Sherman Compromise, was an agreement reached at the 1787 Constitutional Convention between delegates from states of large and small population, which defined the structure of Congress and the number of representatives each state would have in Congress in accordance with the Constitution of the United States. Under the agreement proposed by Connecticut Congressman Roger Sherman, Congress would be a “bicameral chamber” or a bicameral body, with each state receiving a certain number of representatives in the lower house (the House of Representatives) in proportion to its population and two representatives in the upper chamber (the Senate). After six weeks of turmoil, North Carolina changed its vote to equal representation by state, Massachusetts abstained and a compromise called “Great Compromise” was found. In the “Great Compromise,” each state formerly known as New Jersey was represented in one House of Congress and proportional representation, formerly known as Plan Virginia, in the other. As it was considered more responsive to the majority mood, the House of Representatives was given the power to enact all federal budget and revenue/tax laws, in accordance with the original clause. However, the issue of representation threatened to destroy the seven-week-old Convention. Delegates from the major states felt that because they contributed proportionately more to the country`s financial and defensive resources, their states should have proportional representation in both the Senate and the House of Representatives. Delegates from small states called, with comparable intensity, for all states to be represented in the same way in both houses. When Sherman proposed the compromise, Benjamin Franklin agreed that each state should have the same vote in the Senate on all matters except those related to money. The problem was referred to a commission made up of a delegate from each state in order to reach a compromise.
On 5 July, the Committee presented its report, which became the basis for the “great compromise” of the Convention. The report recommended that each state have the same voice in the House of Lords, and in the House of Commons, each state should have one representative for every 40,000 inhabitants,  slaves should be counted as three-fifths of one inhabitant and that the money bills should come from the House of Commons (not subject to a change by the upper chamber). The most important effect of the Great Compromise was the change in the American government structure.