Changes

===Financial Problems under the Articles of Confederation===

===Financial Problems under the Articles of Confederation===

From the beginning, the Confederation also had financial troubles, and its attempts to correct its deficiencies only made its problems worse. Its attempts to gain money were uniformly unsound.  Congress borrowed money from foreign countries, printed paper currency, and sold undeveloped western lands.  None of these tactics was effective in improving the economy.

From the beginning, the young United States also had financial troubles. Congress borrowed money from foreign countries, printed paper currency, and sold undeveloped western lands.  None of these tactics was effective in improving the economy.

After the [[Revolutionary War]], America was more than 35 million dollars in debt, and that number only 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 only 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 turned to paper money, and began to issue it in large amounts.  Sudden inflation gave a brief image of prosperity, but the inflation continued to the point where the paper money became worthless.  The paper money was then avoided.  People used 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, 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.  The paper money was then avoided.  People used 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, causing a depression.

Some states tried similar tactics, and Rhode Island tried to force citizens to use its paper money.

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.

None of the paper money worked in the long run, but initially it seemed like a success.  Massachusetts was the only state that did not follow the trend for printed money.  This 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.

Keep in mind that conflicts over money were as important throughout history as it is today in families.  Whether or not money is the root of all evil, it is the root of many conflicts in history and shapes the course of human events.  For example, there has always been constant conflict between people who owe money (debtors) and people who save or lend money (creditors).  Farmers are often debtors and they have always had conflicts with banks, which lend them money.  In colonial America, people who could not pay their debts went to jail, and this was known as "debtor's prison."  The entire colony of Georgia was founded by people who had been in debtor's prison in England.  The [[Founding Father]] who paid for [[George Washington]]'s troops in the American Revolution, [[Robert Morris]], ended up in debtor's prison for four years and died a few years after his release.  Debtor's prison was not abolished in federal law until 1833 and by most of the states soon afterwards.<ref>http://myvesta.org/history/history_debtorprison.html</ref>  But even today one can be imprisoned for failure to make a payment that is ordered by a court.

Keep in mind that conflicts over money were as important throughout history as it is today in families.  Whether or not money is the root of all evil, it is the root of many conflicts in history and shapes the course of human events.  For example, there has always been constant conflict between people who owe money (debtors) and people who save or lend money (creditors).  Farmers are often debtors and they have always had conflicts with banks, which lend them money.   

 

In colonial America, people who could not pay their debts went to jail, and this was known as "debtor's prison."  The entire colony of Georgia was founded by people who had been in debtor's prison in England.  The [[Founding Father]] who paid for [[George Washington]]'s troops in the American Revolution, [[Robert Morris]], ended up in debtor's prison for four years and died a few years after his release.  Debtor's prison was not abolished in federal law until 1833 and by most of the states soon afterwards.<ref>http://myvesta.org/history/history_debtorprison.html</ref>  But even today one can be imprisoned for failure to make a payment that is ordered by a court.

'''Debate:  Is Debtor's Prison Wrong?'''

'''Debate:  Is Debtor's Prison Wrong?'''