Congress unable to fulfil the treaty.

There was a double provision of the treaty which could not be carried out because of the weakness of Congress. It had been agreed that Congress should request the state governments to repeal various laws which they had made from time to time confiscating the property of Tories and hindering the collection of private debts due from American to British merchants. Congress did make such a request, but it was not heeded. The laws hindering the payment of debts were not repealed; and as for the Tories, they were so badly treated that between 1783 and 1785 more than 100,000 left the country. Those from the southern states went mostly to Florida and the Bahamas; those from the north made the beginnings of the Canadian states of Ontario and New Brunswick. A good many of them were reimbursed for their losses by Parliament.

Great Britain retaliates, presuming upon the weakness of the feeling of union among the states.

When the British government saw that these provisions of the treaty were not fulfilled, it retaliated by refusing to withdraw its troops from the northern and western frontier posts. The British army sailed from Charleston on the 14th of December, 1782, and from New York on the 25th of November, 1783, but in contravention of the treaty small garrisons remained at Ogdensburgh, Oswego, Niagara, Erie, Sandusky, Detroit, and Mackinaw until the 1st of June, 1796. Besides this, laws were passed which bore very severely upon American commerce, and the Americans found it impossible to retaliate because the different states would not agree upon any commercial policy in common. On the other hand, the states began making commercial war upon each other, with navigation laws and high tariffs. Such laws were passed by New York to interfere with the trade of Connecticut, and the merchants of the latter state began to hold meetings and pass resolutions forbidding all trade whatever with New York.

The old quarrels about territory were kept up, and in 1784 the troubles in Wyoming and in the Green Mountains came to the very verge of civil war. People in Europe, hearing of such things, believed that the Union would soon fall to pieces and become the prey of foreign powers. It was disorder and calamity of this sort that such men as Hutchinson had feared, in case the control of Great Britain over the colonies should cease. George III. looked upon it all with satisfaction, and believed that before long the states would one after another become repentant and beg to be taken back into the British empire.

The craze for paper money and the Shays rebellion, 1786.

The troubles reached their climax in 1786. Because there seemed to be no other way of getting money, the different states began to issue their promissory notes, and then tried to compel people by law to receive such notes as money. There was a strong "paper money" party in all the states except Connecticut and Delaware. The most serious trouble was in Rhode Island and Massachusetts. In both states the farmers had been much impoverished by the war. Many farms were mortgaged, and now and then one was sold to satisfy creditors. The farmers accordingly clamoured for paper money, but the merchants in towns like Boston or Providence, understanding more about commerce, were opposed to any such miserable makeshifts. In Rhode Island the farmers prevailed. Paper money was issued, and harsh laws were passed against all who should refuse to take it at its face value. The merchants refused, and in the towns nearly all business was stopped during the summer of 1786.

In the Massachusetts legislature the paper money party was defeated. There was a great outcry among the farmers against merchants and lawyers, and some were heard to maintain that the time had come for wiping out all debts. In August, 1786, the malcontents rose in rebellion, headed by one Daniel Shays, who had been a captain in the Continental army. They began by trying to prevent the courts from sitting, and went on to burn barns, plunder houses, and attack the arsenal at Springfield. The state troops were called out, under General Lincoln, two or three skirmishes were fought, in which a few lives were lost, and at length in February, 1787, the insurrection was suppressed.

The Mississippi question, 1786.

At that time the mouth of the Mississippi river and the country on its western bank belonged to Spain. Kentucky and Tennessee were rapidly becoming settled by people from Virginia and North Carolina, and these settlers wished to trade with New Orleans. The Spanish government was unfriendly and wished to prevent such traffic. The people of New England felt little interest in the southwestern country or the Mississippi river, but were very anxious to make a commercial treaty with Spain. The government of Spain refused to make such a treaty except on condition that American vessels should not be allowed to descend the Mississippi river below the mouth of the Yazoo. When Congress seemed on the point of yielding to this demand, the southern states were very angry. The New England states were equally angry at what they called the obstinacy of the South, and threats of secession were heard on both sides.