Question

What light do the Newburgh conspiracy and Shays' Rebellion shed on the economic challenges facing the new nation at the conclusion of the Revolutionary War? What do they suggest about the connection between economic problems and political divisions during the period?

Answer 1

The economy during the War of Independence of the United States was largely subsistence agriculture in rural New England, particularly in the mountainous cities of central and western Massachusetts. Some residents in these areas had few assets beyond their land, and goods and services were exchanged. In times of scarcity, farmers could obtain products on credit from suppliers in local market cities that would be paid when times were better. On the contrary, there was a market economy in the more economically developed coastal areas of Massachusetts Bay and in the fertile valley of the Connecticut River, driven by the activities of wholesalers dealing with Europe and the West Indies. The state government was dominated by this mercantile class.

When the Revolutionary War ended in 1783, the European commercial partners of the Massachusetts merchants refused to grant them credit lines and insisted that they pay for the goods with hard currency, despite the shortages throughout the continent of that currency. The merchants began to demand the same from their local business partners, including those who operated in the market towns within the state. Many of these merchants passed this demand on to their clients, although Governor John Hancock did not impose a strong demand for foreign exchange on the poorest borrowers and refused to actively prosecute the collection of delinquent taxes. The rural agricultural population generally could not meet the demands of merchants and civil authorities, and some began to lose their lands and other possessions when they could not meet their tax and debt obligations. This led to strong resentments against tax collectors and courts, where creditors obtained judgments against debtors, and where tax collectors obtained rulings authorizing property seizures. A farmer identified as "Arado Jogger" summed up the situation at a meeting convened by aggrieved plebeians.