MAKING OF A NEW NATION 1776 1800
SHAYS REBELLION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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they were not in debt
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they had loans to pay off that had been taken to pay for the cost of war
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trade increased with other nations to increase the nations economy
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crops from local farmers were destroyed in a flood which devastated the economy
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Detailed explanation-1: -As cash flow declined, the United States of America had to rely on European loans to maintain the war effort; France, Spain and the Netherlands lent the United States over $10 million during the war, causing major debt problems for the fledgling nation. Coin circulation had also begun to wane.
Detailed explanation-2: -Paying for the American Revolutionary War (1775-1783) was the start of the country’s debt. Some of the founding fathers formed a group and borrowed money from France and the Netherlands to pay for the war. To manage the new country’s money, the Department of Finance was created in 1781.
Detailed explanation-3: -Because of the inefficiency of state tax-collecting systems, Congress often lacked the money it needed to service its sizable war debts, to maintain the military, and to pay other costs of government.
Detailed explanation-4: -Shortly after the American Revolutionary War (1775-1783), public debt grew to more than $75 million and continued to swell considerably over the next four decades to nearly $120 million. However, President Andrew Jackson shrank that debt to zero in 1835.
Detailed explanation-5: -Let’s look at the total picture of how the War for Independence was paid for – 100 percent of which was paid for by Americans themselves through taxes, bonds, IOUs, and by paying off all foreign loans.