up and
shipped to London. When the people found that specie was being carried
out of the country, they began to hoard it, so that by 1786 none was in
circulation.

%170. Paper Money issued.%--This left the people without any money
with which to pay wages, or buy food and clothing, and led at once to a
demand that the states should print paper money and loan it to their
citizens. Rhode Island, New York, New Jersey, Pennsylvania, North and
South Carolina, and Georgia did so. But the money was no sooner issued
than the merchants and others who had goods to sell refused to take it,
whereupon in some of the states laws called "tender acts" were passed to
compel people to use the paper. This merely put an end to business, for
nobody would sell. In Massachusetts, when the legislature refused to
issue paper money, many of the persons who owed debts assembled, and,
during 1786-87, under the lead of Daniel Shays, a Revolutionary soldier,
prevented the courts from trying suits for the recovery of money owed or
loaned.[1]

[Footnote 1: Read McMaster's _History of the People of the United
States_, Vol. I., pp. 281-295, 304-329, 331-340; Fiske's _Critical
Period of American History_, pp. 168-186.]

%171. Congress proposes Amendments.%--Of the many defects in the
Articles, the Continental Congress was fully aware, and it had many a
time asked the states to make amendments. One proposed that Congress
should have power for twenty-five years to lay a tax of five per cent on
all goods imported, and use the money to pay the Continental debts.
Another was to require each state to raise by special tax a sum
sufficient to pay its yearly share of the current expenses of Congress.
A third was to bestow on Congress for fifteen years the sole power to
regulate trade and commerce. A fourth provided that in future the share
each state was to bear of the current expenses should be in proportion
to its population.

But the Articles of Confederation could not be amended unless all
thirteen states consented, and, as all thirteen never did consent, none
of these amendments were ever made.

%172. The States attempt to regulate Trade and fail.%--In the
meantime the states attempted to regulate trade for themselves. New York
laid double duties on English ships. Pennsylvania taxed a long list of
foreign goods. Massachusetts, New Hampshire, and Rhode Island passed
acts imposing heavy duties on articles unless they came in American
vessels. But these l