Merchants were glad that they were free of British rule, however economic problems were now occuring. The middle and lower classes had shortages in housing and goods. Prices were also beginning to increase as well as unemployment and rent. Between the years of 1785 and 1787 a depression was occuring. Everyone was stressed out and problems deepend. ( Chudacoff page 33). Due to the revolution metals were extremly scarce and that was basically there form of currency. So to resolve matters paper money was introduced. However what they forgot to do was come up with a legit system so that people could recognize how much represented what. Conflicts than developed due to this confusion. The conflicts were divided among georgraphic divisions, commercial and urban regions.
Original paper money
As a result Shays Rebellion occured. This rebellion helped citizens recognize that the Articles of Confederation needed a reform. They needed to replace it with a strong central government. They wanted the to government to enforce trade and production that would be under certain regulations. This than led to the formation of the Constitution. Congress now had the power to tax, borrow, coin money and regulate trade and production of goods. States could no longer give out there own currency. So everything worked out for the better, all the events were like a chain that went from one good thing to another.
I agree that the development of paper money was extremely important.. At first, when the states had individual currencies, I wonder if there was no general national currency, how money was valued for national transactions?