What was the disagreement, and who were the parties-in-conflict?
Out of the economic crisis of the 1780s came two developments that highlighted the weakness of the fledgling government under the Articles of Confederacy. The first, was the use of state legislatures to force lenders to accept worthless (devalued) paper currency to pay off loans of indebted farmers and extend terms of payment. The second was Daniel Shay's Rebellion, which was intended to stop courthouses from issuing tax and foreclosure notices to those same indebted farmers. As farmers were the most numerous portion of any given state, they were effectively able to control the state legislature.
On the other side was the economic elite. The paper currency issue was not a matter of indifference to them as they were being forced to accept it as legal payment from indebted farmers. The state-based democratic system was
On the other side was the economic elite. The paper currency issue was not a matter of indifference to them as they were being forced to accept it as legal payment from indebted farmers. The state-based democratic system was
What caused the economic crisis?
The Debate and the defense of both sides.
Below are the actual Federalist and AntiFederalist Papers which serve as the written defense of both sides of this debate. Consider the magnitude of the argument as there are 85 Federalist Papers and an equal number of AntiFederalist Papers. The button in the middle explains the debate in broad terms and should be read before endeavoring to interact with the Papers themselves.
The two most important Federalist Papers are No. 10 which describes how the government under the new Constitution deals with the problem of faction, and No. 51 which describes how the system of divided government prevents tyranny (separation of powers doctrine). Both documents are a staple in every Freshman Political Science class across the nation. As your read Federalist No. 10, consider it in light of the problem of paper money as noted in the section above. How were America's indebted farmers considered a faction with the potential to destroy individual liberty?
The two most important Federalist Papers are No. 10 which describes how the government under the new Constitution deals with the problem of faction, and No. 51 which describes how the system of divided government prevents tyranny (separation of powers doctrine). Both documents are a staple in every Freshman Political Science class across the nation. As your read Federalist No. 10, consider it in light of the problem of paper money as noted in the section above. How were America's indebted farmers considered a faction with the potential to destroy individual liberty?