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Post-Revolutionary War Depression

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Post-Revolutionary War, the newly independent America faced a monetary debt crisis and economic hardship. The post war depression lasted from 1784-1787. The country was governed by Congress—which was governed by the Articles of Confederation, which provided a weak central government without very much power. Thousands of soldiers were killed in the war, homes and farms had been destroyed, commerce was failing, and personal debt was on the rise. The states had no higher federal authority to turn to for help in resolving these issues. The Articles had helped stop tyranny, but the country could not govern itself. America was in disaster. A militia of over 4.000 men lead by Daniel Shays tried to take control of the federal arsenal in Springfield, …show more content…
They were compensated very little and were barely given any back pay that was due to them. The payment they did receive was typically made in Continental notes, which were of such little value that the phrase "not worth a Continental" entered popular speech. The states that had approved the issuance of the notes began to refuse to accept them for tax payment. In rustic Massachusetts, the veterans were struggling remarkably. They had not been compensated, their crops brought grim prices in a postwar depressed economy, and they were heavily taxed which was authorized by state governor, James Bowdoin. The situation was most critical in western Massachusetts, where many citizens felt they had been cheated out of fair representation by the provisions of the state constitution of 1780 (Art. IX and X). Finding no relief from the state government, the westerners began forming a paramilitary lobby called "the Regulation." Regulators aka Shaysites were groups of 500 to 2,000 men (new England farmers) who, armed with clubs and muskets, marched on circuit court sessions intending to intimidate the magistrates and postponing pending property seizures until the next gubernatorial election, which they hoped, would see Bowdoin replaced by a more liberal …show more content…
Shays was born in Hopkinton Massachusetts, he grew up as a farmer before he fought for his country in the War for Independence from Britain. During the War, he fought in such key battles like Lexington, Bunker Hill and Saratoga. For his success in battle he was promoted to the rank of Captain, after the War Shays’ returned to being a farmer. After the War he held a political office in Pelham, Massachusetts but during the early stages of the rebellion his sympathies were with the farmers, which is what brought him into the fight. Knox, whom supported not only a strong central government but also a strong standing army, portrayed Shays' Rebellion as the work of militants and rebels, who wanted to eliminate private property, erase all debts and provoke a civil war. Knox knew that neither Massachusetts nor the federal government was in a position to finance an army to oppose the Shaysites, so he worked together with Governor Bowdoin in appealing to Boston merchants to fund a militia of 4,400 volunteers under Revolutionary War veteran General Benjamin

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