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.
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.
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.
Stay laws.
172. Stay Laws.--Now the cry was for "stay laws." These were laws to prevent those to whom money was due from enforcing their rights. These laws promptly put an end to whatever business was left. The only way that any business could be carried on was by barter. For example, a man who had a bushel of wheat that he did not want for his family would exchange it for three or four bushels of potatoes, or for four or five days of labor. In some states the legislatures passed very severe laws to compel people to receive paper money. In one state, indeed, no one could vote who would not receive paper money.
[Illustration: STATE STREET, BOSTON, ABOUT 1790. The Boston Massacre occurred near where the two-horse wagon stands.]
Disorder in Massachusetts.
173. Shays's Rebellion, 1786-87.--In Massachusetts, especially, the discontent was very great. The people were angry with the judges for sending men to prison who did not pay their debts. Crowds of armed men visited the judges and compelled them to close the courts. The leader in this movement was Daniel Shays. He even threatened to seize the United States Arsenal at Springfield. By this time Governor Bowdoin and General Lincoln also had gathered a small force of soldiers. In the midst of winter, through snowstorms and over terrible roads, Lincoln marched with his men. He drove Shays from place to place, captured his followers, and put down the rebellion. There were risings in other states, especially in North Carolina. But Shays's Rebellion in Massachusetts was the most important of them all, because it convinced the New Englanders that a stronger national government was necessary.