HISTORY 5 Chapter Notes - Chapter 1: Monopoly Money
Document Summary
War crippled american shipping; british navy cut down exports of tobacco and wheat. After the war, the u. s. is barred from trading with the caribbean. American artisans are put out of business by british merchants. States and national government went into debt to fund the war. States don"t have to pay debts back, however they will suffer consequences. Economy tanked during the war (massive inflation, naval blockades destructed trade) and the congress was a huge failure until the aoc went into effect legislature is made of middle class people. More paper money is issued, which angers people because paper money is not worth as much as gold or silver. Elites controlled massachusetts legislature and owned most war debts. Mass. legislature increases taxes 5 times (500% tax increase) Said that they ones in debt must pay back in hard currency (gold/silver) Property was sold and foreclosed for those who could not repay their debts.
