Louis B. Vega
8th Grade Social Studies
Chapter 6 Section 3: Peacetime Troubles
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HARD TIMES
end of war
no bloodshed
free shipping
open markets China
league of friendships only, states tended to go off in
different directions
rivalries between states started up again
time of depression: war disrupted farming and trade
states hesitated in supplying money for governments
frontier states feared Indian and Spanish invasion
contributed for the national defense
THE TRADE PROBLEM
trade was affected after war by British regulation -barred
American fish from English ports
American goods had to be on board British ships
local manufacturing had begun to supply the needs after the
war
after war, British sold products at lower prices to win
back customers -called dumping
dumping was checked by tariffs - taxes on imports
government did not have power to tax foreign goods -due to
fear of colonial experiences
when individual states taxed, went to other ports
THE MONEY PROBLEMS
government was dependent on money from states
Congress printed more and more money called Continental
dollars
value fell because people had no confidence
they preferred hard money - as metal were worth the
value stamped on them
individual states did have the power to tax and print money
increase in printing caused inflation - prices rise
due to the amount of money increases without the increase of amount of goods
available
some increased taxes to offset inflation
inflation helped pay personal debt
e.g. of Rhode Island: property owners to borrow money from
the government at low interest rates
lenders refused to accept this paper payment
Trevett vs. Weeden case of a fine for not accepting it
unconstitutional -violated constitution
SHAY'S REBELLION
Massachusetts avoided this by taxes
farmers in the west could not pay, farms were seized
Shay, veteran of the Revolutionary War led the charge of
1,200 men
collapsed and fled to Vermont