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rolina　to　a　patient　bleeding　at　both　Arms。〃*　*　〃Records　of　the　Federal　Convention；〃　vol。　III；　p。　542。

The　business　depression　which　very　naturally　followed　the　short　revival　of　trade　was　so　serious　in　its　financial　consequences　that　it　has　even　been　referred　to　as　the　〃Panic　of　1785。〃　The　United　States　afforded　a　good　market　for　imported　articles　in　1788　and　1784；　all　the　better　because　of　the　supply　of　gold　and　silver　which　had　been　sent　into　the　country　by　England　and　France　to　maintain　their　armies　and　fleets　and　which　had　remained　in　the　United　States。　But　this　influx　of　imported　goods　was　one　of　the　chief　factors　in　causing　the　depression　of　1785；　as　it　brought　ruin　to　many　of　those　domestic　industries　which　had　sprung　up　in　the　days　of　nonintercourse　or　which　had　been　stimulated　by　the　artificial　protection　of　the　war。　To　make　matters　worse；　the　currency　was　in　a　confused　condition。　〃In　1784　the　entire　coin　of　the　land；　except　coppers；　was　the　product　of　foreign　mints。　English　guineas；　crowns；　shillings　and　pence　were　still　paid　over　the　counters　of　shops　and　taverns；　and　with　them　were　mingled　many　French　and　Spanish　and　some　German　coins　。　。　。　。　The　value　of　the　gold　pieces　expressed　in　dollars　was　pretty　much　the　same　the　country　over。　But　the　dollar　and　the　silver　pieces　regarded　as　fractions　of　a　dollar　had　no　less　than　five　different　values。〃*　The　importation　of　foreign　goods　was　fast　draining　the　hard　money　out　of　the　country。　In　an　effort　to　relieve　the　situation　but　with　the　result　of　making　it　much　worse；　several　of　the　States　began　to　issue　paper　money；　and　this　was　in　addition　to　the　enormous　quantities　of　paper　which　had　been　printed　during　the　Revolution　and　which　was　now　worth　but　a　small　fraction　of　its　face　value。　*　McMaster；　〃History　of　the　People　of　the　United　States〃；　vol。　I；　pp。　190…191。

The　expanding　currency　and　consequent　depreciation　in　the　value　of　money　had　immediately　resulted　in　a　corresponding　rise　of　prices；　which　for　a　while　the　States　attempted　to　control。　But　in　1778　Congress　threw　up　its　hands　in　despair　and　voted　that　〃all　limitations　of　prices　of　gold　and　silver　be　taken　off；〃　although　the　States　for　some　time　longer　continued　to　endeavor　to　regulate　prices　by　legislation。*　The　fluctuating　value　of　the　currency　increased　the　opportunities　for　speculation　which　war　conditions　invariably　offer；　and　〃immense　fortunes　were　suddenly　accumulated。〃　A　new　financial　group　rose　into　prominence　composed　largely　of　those　who　were　not　accustomed　to　the　use　of　money　and　who　were　consequently　inclined　to　spend　it　recklessly　and　extravagantly。　*　W。　E。　H。　Lecky；　〃The　American　Revolution；〃　New　York；　1898；　pp。　288…294。

Many　contemporaries　comment　upon　these　things；　of　whom　Brissot　de　Warville　may　be　taken　as　an　example；　although　he　did　not　visit　the　United　States　until　1788：　〃The　inhabitants　。　。　。　prefer　the　splendor　of　wealth　and　the　show　of　enjoyment　to　the　simplicity　of　manners　and　the　pure　pleasures　which　result　from　it。　If　there　is　a　town　on　the　American　continent　where　the　English　luxury　displays　its　follies；　it　is　New　York。　You　will　find　here　the　English　fashions：　in　the　dress　of　the　women　you　will　see　the　most　brilliant　silks；　gauzes；　hats；　and　borrowed　hair；　equipages　are　rare；　but　they　are　elegant；　the　men　have　more　simplicity　in　their　dress；　they　disdain　gewgaws；　but　they　take　their　revenge　in　the　luxury　of　the　table；　luxury　forms　already　a　class　of　men　very　dangerous　to　society；　I　mean　bachelors；　the　expense　of　women　causes　matrimony　to　be　dreaded　by　men。　Tea　forms；　as　in　England；　the　basis　of　parties　of　pleasure；　many　things　are　dearer　here　than　in　France；　a　hairdresser　asks　twenty　shilling　a　month；　washing　costs　four　shillings　a　dozen。〃*　*　Quoted　by　Henry　Tuckerman；　〃America　and　her　Commentators；〃　1886。

An　American　writer　of　a　later　date；　looking　back　upon　his　earlier　years；　was　impressed　by　this　same　extravagance；　and　his　testimony　may　well　be　used　to　strengthen　the　impression　which　it　is　the　purpose　of　the　present　narrative　to　convey：　〃The　French　and　British　armies　circulated　immense　sums　of　money　in　gold　and　silver　coin；　which　had　the　effect　of　driving　out　of　circulation　the　wretched　paper　currency　which　had　till　then　prevailed。　Immense　quantities　of　British　and　French　goods　were　soon　imported：　our　people　imbibed　a　taste　for　foreign　fashions　and　luxury；　and　in　the　course　of　two　or　three　years；　from　the　close　of　the　war；　such　an　entire　change　had　taken　place　in　the　habits　and　manners　of　our　inhabitants；　that　it　almost　appeared　as　if　we　had　suddenly　become　a　different　nation。　The　staid　and　sober　habits　of　our　ancestors；　with　their　plain　home…manufactured　clothing；　were　suddenly　laid　aside；　and　European　goods　of　fine　quality　adopted　in　their　stead。　Fine　rues；　powdered　heads；　silks　and　scarlets；　decorated　the　men；　while　the　most　costly　silks；　satins；　chintzes；　calicoes；　muslins；　etc。；　etc。；　decorated　our　females。　Nor　was　their　diet　less　expensive；　for　superb　plate；　foreign　spirits；　wines；　etc。；　etc。；　sparkled　on　the　sideboards　of　many　farmers。　The　natural　result　of　this　change　of　the　habits　and　customs　of　the　peoplethis　aping　of　European　manners　and　morals；　was　to　suddenly　drain　our　country　of　its　circulating　specie；　and　as　a　necessary　consequence；　the　people　ran　in　debt；　times　became　difficult；　and　money　hard　to　raise。*　*　Samuel　Kercheval；　〃History　of　the　Valley　of　Virginia；〃　1833；　pp。　199…200。

The　situation　was　serious；　and　yet　it　was　not　as　dangerous　or　even　as　critical　as　it　has　generally　been　represented；　because　the　fundamental　bases　of　American　prosperity　were　untouched。　The　way　by　which　Americans　could　meet　the　emergency　and　recover　from　the　hard　times　was　fairly　evident　first　to　economize；　and　then　to　find　new　outlets　for　their　industrial　energies。　But　the　process　of　adjustment　was　slow　and　painful。　There　were　not　a　few　persons　in　the　United　States　who　were　even　disposed　to　regret　that　Americans　were　not　safely　under　British　protection　and　prospering　with　Great　Britain；　instead　of　suffering　in　political　isolation。

CHAPTER　III。　THE　CONFEDERATION　When　peace　came　in　1783　there　were　in　the　United　States　approximately　three　million　people；　who　were　spread　over　the　whole　Atlantic　coast　from　Maine　to　Georgia　and　back　into　the　interior　as　far　as　the　Alleghany　Mountains；　and　a　relatively　small　number　of　settlers　had　crossed　the　mountain　barrier。　About　twenty　per　cent　of　the　population；　or　some　six　hundred　thousand；　were　negro　slaves。　There　was　also　a　large　alien　element　of　foreign　birth　or　descent；　poor　when　they　arrived　in　America；　and；　although　they　had　been　able　to　raise　themselves　to　a　position　of　comparative　comfort；　life　among　them　was　still　crude　and　rough。　Many　of　the　people　were　poorly　educated　and　lacking　in　cultivation　and　refinement　and　in　a　knowledge　of　the　usages　of　good　society。　Not　only　were　they　looked　down　upon　by　other　nations　of　the　world；　there　was　within　the　United　States　itself　a　relatively　small　upper　class　inclined　to　regard　the　mass　of　the　people　as　of　an　inferior　order。　Thus；　while　forces　were　at　work　favorable　to　democracy；　the　gentry　remained　in　control　of　affairs　after　the　Revolution；　although　their　numbers　were　reduced　by　the　emigration　of　the　Loyalists　and　their　power　was　lessened。　The　explanation　of　this　aristocratic　control　may　be　found　in　the　fact　that　the　generation　of　the　Revolution　had　been　accustomed　to　monarchy　and　to　an　upper　class　and　that　the　people　were　wont　to　take　their　ideas　and　to　accept　suggestions　from　their　betters　without　question　or　murmur。　This　deferential　attitude　is　attested　by　the　indifference　of　citizens　to　the　right　of　voting。　In　our　own　day；　before　the　great　extension　of　woman　suffrage；　the　number　of　persons　voting　approximated　twenty　per　cent　of　the　population；　but　after　the　Revolution　less　than　five　per　cent　of　the　white　population　voted。　There　were　many　limitations　upon　the　exercise　of　the　suffrage；　but　the　small　number　of　voters　was　only　partially　due　to　these　restrictions；　for　in　later　years；　without　any　radical　change　in　suffrage　qualifications；　the　proportion　of　citizens　who　voted　steadily　increased。　The　fact　is　that　many　of　the　people　did　not　care　to　vote。　Why　should　they；　when　they　were　only　registering　the　will　or　the　wishes　of　their　superiors？　But　among　the　relatively　small　number　who　constituted　the　governing　class　there　was　a　high　standard　of　intelligence。　Popular　magazines　were　unheard　of　and　newspapers　were　infrequent；　so　that　men　depended　largely　upon　correspondence　and　personal　intercourse　for　the　interchange　of　ideas。　There　was　time；　however；　for　careful　reading　of　the　few　available　books；　there　was　time　for　thought；　for　writing；　for　discussion；　and　for　social　intercourse。　It　hardly　seems　too　much　to　say；　therefore；　that　there　was　seldom；　if　ever；　a　people…certainly　never　a　people　scattered　over　so　wide　a　territory…who　knew　so　much　about　government　as　did　this　controlling　element　of　the　people　of　the　United　States。　The　practical　character；　as　well　as　the　political　genius；　of　the　Americans　was　never　shown　to　better　advantage　than　at　the　outbreak　of　the　Revolution；　when　the　quarrel　with　the　mother　country　was　manifesting　itself　in　the　conflict　between　the　Governors；　and　other　appointed　agents　of　the　Crown；　and