The "problem of consistency" is the topic of Section II of Nagel and Newman's book. This section defines "consistency" and explains when and why it became an important property of axiomatic systems.
The oldest and most famous axiomatic system is that of Euclid, in which he systematized all of the knowledge of geometry (and more) available to him over two thousand years ago. Based on five axioms, Euclid was able to rigorously prove a very large number of known and new theorems (called "propositions" in his Elements). His axioms were supposed to be intuitively true. The first four axioms dealt with line segments, lines, circles and angles (see this Wikipedia entry) and have been viewed as self-evident. In contrast, the fifth axiom, which was equivalent to the following statement: "Through a point outside a given line, only one parallel to the line can be drawn" (page 9), was not intuitively true (apparently because the two lines involved extend to infinity in two directions, similarly to asymptotes).
Since this proposed axiom was not obviously true, many mathematicians tried to prove that it logically follows from the first four axioms. Only in the nineteenth century was it demonstrated that it is NOT possible to prove the parallel axiom from the first four axioms.
This proof that it is impossible to prove a given statement is a great precursor of Gödel's incompleteness theorems.