Paper Money Riot facts for kids
Quick facts for kids Paper Money Riot |
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| Part of Shays' Rebellion | |||
Example of the Continental Dollar, paper money issued by Congress as currency. This dollar was weak, and caused economic depression immediately after the Revolutionary War.
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| Date | September 20, 1786 | ||
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| Caused by | Economic depression Lack of currency in the state |
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| Goals | To force the state government to print paper currency in an attempt to stimulate the economy. | ||
| Methods | Conventions were held to draft petitions to the legislature. When that failed, they surrounded the legislature with armed men in an attempt to force change. | ||
| Resulted in | Rebellion crushed, conventions outlawed, and Governor was granted the power to call upon the militia in times of civil unrest. | ||
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The Paper Money Riot, also called the Exeter Rebellion, was an armed uprising in Exeter, New Hampshire. It happened on September 20, 1786. After the American Revolution, many people, states, and the new country were deep in debt. There was not enough real money (like gold or silver coins) or paper money. This made it very hard for farmers to pay what they owed.
A group called the Regulators wanted the government to print more paper money. They believed this new money would help the state's economy grow. Many towns held meetings to ask the government to print this money. But their requests were not heard. The Regulators became very frustrated. Sometimes, their protests turned violent.
This event happened around the same time as Shays' Rebellion in Massachusetts. The government of New Hampshire was able to stop the riot quickly. No one was killed. This event, and others like it, helped lead to the Constitutional Convention a year later. At this meeting, leaders decided to create a stronger national government.
Contents
Why the Riot Started: Money Problems
After the Revolutionary War, the country faced huge debts. The Continental Dollar, which was paper money, had lost most of its value. It was almost useless. Also, there was very little "hard currency" like gold and silver coins.
The national government asked states to help pay off the war debt. About 30% of this debt had to be paid in hard currency. This meant there wasn't much money flowing around in the states. Many farmers could not pay their personal debts. Their farms or property were often taken away to pay what they owed. This made many people very angry and desperate.
Farmers' Voices Not Heard
Farmers felt their government was not listening to them. They held many town meetings to ask for changes. They wanted the state to print paper money. But the state legislature in Exeter did not agree. This made the farmers feel ignored and powerless. They believed that printing paper money would help them pay their debts. They thought it would also make the economy better.
John Sullivan's Earlier Action in Keene
Years before the Paper Money Riot, in 1782, armed people in Keene tried to close the courthouse. They wanted to stop cases about debts from being heard. John Sullivan was the state's top lawyer then. He heard about the mob while traveling to Keene.
Sullivan put on his old army uniform. He went to the courthouse and listened to the crowd. Many of these people had been soldiers under him in the war. He used his respect as a former general to calm them down. He told them to leave, and they did. The court stopped for the day.
The next morning, the courthouse was full. People wanted to know if their requests for change would be heard. Sullivan decided to delay any debt cases if either side was not ready. The rioters felt they had won a small victory. They left the court and cheered General Sullivan.
But this did not solve New Hampshire's money problems. People still struggled with debt. They had to sell their property or even go to prison. Their requests to the government kept being ignored. Some people even spread false rumors that a new money bill had passed. This made the farmers even more upset when they learned the truth. They decided to take stronger action.
The Exeter Riot Begins
On September 20, 1786, about 200 men from Rockingham County gathered in Kingston. Three men led them: Joseph French, James Cochran, and John McKean.
From Kingston, the group marched like soldiers to Exeter. Their plan was to surround the building where the state government met. They wanted to force the government to print paper money. But on that day, the government was meeting in the First Church of Exeter. The state's main court was in the meeting house.
When the rioters surrounded the court building, the judge told everyone inside to ignore them. He kept doing court business. The rebels soon realized their mistake. They tried to move to the church. A crowd of Exeter citizens had gathered to watch. It was hard for the rebels to get through the crowd to the church doors. Once there, they put guards to stop anyone from entering or leaving.
Sullivan Calms the Crowd
Again, John Sullivan, who was now the President (Governor) of New Hampshire, faced the mob. He talked with the angry people. He promised to do his best to help them. He did not make them leave right away. He thought they would calm down if they could gather freely.
Many people in Exeter were upset that armed men had invaded their town. A man named Nathaniel Gilman came up with a clever trick to end the siege. He gathered some townspeople. They marched like soldiers toward the rebels. They pretended to be a famous artillery company from Portsmouth. The trick worked! The Regulators believed them and finally left. They crossed the river and set up camp on the other side.
Now that the government leaders were free, they gave President Sullivan the power to call for the militia. By the next morning, about 2,000 men had gathered in Exeter. They marched toward the rebels' camp. A group of cavalry, led by Joseph Cilley, crossed the river and blocked the rebels' escape. The rebels were surrounded. They fired only a few shots before running into the woods.
What Happened Next
Several people from the uprising were caught, including the leaders. The next day, French, Cochrane, and McKean were brought before the government. They were accused of treason. The men said that other people had encouraged them, but those people denied it. The leaders were later pardoned, meaning they were forgiven and not punished. Any rebels who were also militia members were removed from the militia.
The government did create a plan to print paper money. They sent it to the towns to vote on. Most towns voted against it. President Sullivan then made it illegal to hold meetings to ask the government for things. He said these meetings weakened the state's power. The government also made sure the governor could call on the militia during times of trouble.
The Paper Money Riot showed the problems with the Articles of Confederation, the first set of rules for the United States. It happened at the same time as Shays' Rebellion. But New Hampshire's riot was stopped quickly and without anyone getting hurt. Like other farmer uprisings, it helped show the need for a stronger national government. This led to the Constitutional Convention and later, the Coinage Act of 1792, which set up the U.S. money system.
Images for kids
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Example of the Continental Dollar, paper money issued by Congress as currency. This dollar was weak, and caused economic depression immediately after the Revolutionary War.
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General John Sullivan, by A. Tenney
