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Out of Many AP Edition Chapter 8 Class Notes

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Chapter 8: The New Nation The Crisis of the 1780s Economic Crisis Origins in the Revolution: ? shortage of goods resulting from the British Blockade ? demand for supplies by the army and the militias ? flood of paper currency resulting in inflation U.S. dollar compared to the Spanish dollar Most of the money ended up in the hands of merchants U.S. continued to be a supplier of raw materials and an importer of manufactured products especially from Great Britain British merchants began a major trade with Americans ??? Resulting in ??? exportable goods reduced by fighting ??? trade deficit rose ?????? Left the country with little sliver coin (currency) in circulation ???????????? Banks insisted on repayment of old loans 1784- country in deep economic depression

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