A Short History of the United States for School UseChanning, Edward
History
A Short History of the United States for School Use
Channing, Edward
United States -- History
168. The Articles of Confederation, 1781.--The Continental Congress
began drawing up the Articles of Confederation in June, 1776. But there
were long delays, and each month's delay made it more impossible to form
a strong government. It fell out in this way that the Congress of the
Confederation had no real power. It could not make a state or an
individual pay money or do anything at all. In the course of a few years
Congress asked the states to give it over six million dollars to pay the
debts and expenses of the United States. It received about a million
dollars and was fortunate to get that.
[Sidenote: Distress among the people.]
169. A Time of Distress.--It is not right to speak too harshly of
the refusal of the state governments to give Congress the money it asked
for, as the people of the states were in great distress and had no money
to give. As soon as peace was declared British merchants sent over great
quantities of goods. People bought these goods, for every one thought
that good times were coming now that the war was over. But the British
government did everything it could do to prevent the coming of good
times. The prosperity of the northern states was largely based on a
profitable trade with the West Indies. The British government put an end
to that trade. No gold and silver came to the United States from the
West Indies while gold and silver constantly went out of the country to
pay debts due to British merchants. Soon gold and silver grew scarce,
and those who had any promptly hid it. The real reason of all this
trouble was the lack of a strong national government which could have
compelled the British government to open its ports to American commerce.
But the people only saw that money was scarce and called upon the state
legislatures to give them paper money.
[Sidenote: Paper money.]
170. Paper Money.--Most of the state legislatures did what they
were asked to do. They printed quantities of paper money. They paid the
public expenses with it, and sometimes lent it to individuals without
much security for its repayment. Before long this paper money began to
grow less valuable. For instance, on a certain day a man could buy a bag
of flour for five dollars. In three months' time a bag of flour might
cost him ten dollars. Soon it became difficult to buy flour for any
number of paper dollars.
[Sidenote: Tender laws.]
171 Tender Laws.--The people then clamored for "tender laws." These
were laws which would make it lawful for them to tender, or offer, paper
money in exchange for flour or other things. In some cases it was made
lawful to tender paper money in payments of debts which had been made
when gold and silver were still in use. The merchants now shut up their
shops, and business almost ceased. The lawyers only were busy. For those
to whom money was owed tried to get it paid before the paper money
became utterly worthless. The courts were crowded, and the prisons were
filled with poor debtors.
[Sidenote: Stay laws.]
Public-domain text, read in full here on John Shaqi.
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