Financial Problems After the American Revolution

What was one of the most pressing issues facing the new nation as the American Revolution ended?

• The establishment of a new government

• Financial problems

• The drafting of the Constitution

• Territorial disputes

What did the Continental Congress and the states issue to pay for expenses during the war?

• Gold coins

• Stocks and bonds

• Bills of credit

• Bank loans

Why were the bills of credit issued by Congress often not honored?

• They were lost in circulation

• There was nothing backing the value of these bills

• They were only valid during the war

• They were replaced by a new currency

What did Robert Morris estimate the debt of the United States to be in 1783?

• $30 million

• $50 million

• $20 million

• $40 million

What was the main source of gold and silver for the new nation after the war?

• Domestic mining

• Foreign trade

• Printing of currency

• Land sales

What financial crisis of the 1780s was mentioned in the text?

• The Great Depression

• The Panic of 1792

• The financial crisis of the 1780s

• The stock market crash of 1929

What did some Continental Army veterans receive for their service?

• Cash payments

• Educational benefits

• Western land grants

• Government positions

Who made the most serious efforts to reform the country's finances while serving as superintendent of finance from 1781 to 1784?

• Alexander Hamilton

• George Washington

• Thomas Jefferson

• Robert Morris

What did Robert Morris try to stabilize by making it redeemable in specie?

• The national debt

• The stock market

• Paper currency

• Import duties

What was the purpose of providing for the steady payment of interest on the national debt according to Robert Morris?

• To inspire confidence in the new government

• To increase personal wealth

• To impose new import taxes

• To decrease economic growth