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The Allied States of America was founded when the United States fell from the depression in 1929. With the US Government in near-shambles, there was a call for a constitutional convention.
There was a convention in 1930, in Phoenix, Arizona, with all states and territories attending, and provinces of Canada (with the permission of Britain). It was agreed that the United States shall cease to exist, and a new republic shall be formed.
There were a couple of names proposed; (like Federated States of America or bring back the Confederate States of America), however, the agreement would be that the Allied States of America as the name of the new American Republic.
After some negotitations, it was agreed that:
1. The Capital of the Allied States of America will be in Washington D.C.
2. All treaties that was signed under the United States shall be honored by the Allied States of America.
3. The Constitution and the Amendments shall be the same with one minor exception. The President shall serve only one six year term.
At first, some states did not see the need to ratify the new Constitution, but eventually they agreed to.
The first election for the Allied States of America would be held in 1934.