Under the Articles of Confederation each state was given the power to regulate their own currency. Each state issued it’s own money. As a result nobody knew exactly how much a New York dollar was worth compared to a one from New Jersey or Virginia. The more money there was in circulation, the less a dollar was worth. Finally, there was just a financial collapse and a paper money was considered worthless. For five long years the colonies experienced the worst business depression. This inefficiency to deal with the regulation of currency not only caused one of the worst depressions the colonists had ever seen but also set the groundwork for a major rebellion called Shay’s Rebellion. People were so angry that their paper money had become worthless because of the initial problem of each state creating it’s own currency, that a rebellion was... [continues]
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