Changes

After the [[Revolutionary War]], the United States was more than 35 million dollars in debt, and that number continued to grow.  The money from the sale of western land was paltry.  It could have paid only one-fourth of the government's expenses.  There were no national taxes, and requests for money from the states were ignored.  The state governments were having financial difficulties of their own.   

After the [[Revolutionary War]], the United States was more than 35 million dollars in debt, and that number continued to grow.  The money from the sale of western land was paltry.  It could have paid only one-fourth of the government's expenses.  There were no national taxes, and requests for money from the states were ignored.  The state governments were having financial difficulties of their own.   

So Congress began to print paper money, and began to issue it in large amounts.  Predictably, [[inflation]] increased to the point where the paper money became worthless.  (Inflation is when prices keep going up and up as the dollar loses its value.)  The paper money was then avoided.  People began to prefer European coins, made of gold or silver, as currency.  Since there was much less of this money than there had been of the printed money, rapid deflation occurred next, causing a depression.

So Congress began to print paper money, and began to issue it in large amounts.  Predictably, [[inflation]] increased to the point where the paper money became worthless.  (Inflation is when prices keep going up and up as the dollar loses its real value, because from month-to-month and year-to-year it takes more and more dollars to buy the same thing.)  Paper money was then avoided by the people, who wanted only to accept European coins, made of gold or silver, as currency.  Because there was much less of this money than there had been of the printed money, rapid deflation occurred next, causing a depression.

Some states tried similar tactics, and Rhode Island even tried to force citizens to use its paper money, which people avoided because it was losing its value over time.

Rhode Island even tried to force citizens to use its paper money (as mentioned above), which people avoided because it was losing its value over time.

Massachusetts was the only state that did not follow the trend for printed money, which makes sense because Puritans tended to take their principles seriously.  But the hardship sparked Shays' Rebellion, which is discussed further below.

Massachusetts was the only state that did not follow the trend for printed money, which makes sense because Puritans tended to take their principles seriously.  But the hardship sparked Shays' Rebellion, which is discussed further below.