The Economic Cost of the War of Independence

The American War of Independence is of far-reaching significance to the just cause of North American colonies opposing Britain and pursuing independence. However, like other wars, the price paid is heavy. In addition to the huge losses caused by casualties, the supply of military supplies disrupted the economic order of the colonies. In addition, the British trade blockade caused a shortage of materials, and the domestic fiscal deficit triggered hyperinflation. Despite the hardship of life, the colonial people were passionate and worked hard to produce, which made the American manufacturing industry prosperous.

From 19, 1 April, 775, the revolutionary war (1) dragged on for more than six years. This is a struggle for a just cause by the colonists, whose just cause is to gain freedom from Britain's intolerable interference in American affairs.

Maritime trade has always been an important factor in the war, and trade links are crucial to the supply of weapons and ammunition. When the British and colonists imposed legal restrictions in 1775, almost all American overseas trade suddenly stopped. By the middle of 1775, the colony was facing a serious shortage of military necessities such as gunpowder, flint, muskets and knives. Even salt, shoes, woolen goods and linen are in short supply. At the end of 1775, the Congress approved the limited trade with the West Indies, mainly to buy weapons and ammunition. By the spring of 1776, the trade with other non-British areas was unrestricted.

However, Britain maintained a fairly effective sea blockade against American ports, especially in the first two years of the war. However, despite the blockade, the colonies still engaged in international trade. 1778 The formal commercial treaties with France and the Netherlands and Spain soon after stimulated the flow of overseas trade. (5) From1778 to 1782, American wartime commerce was in its heyday. In those years, France, Holland, Spain and their territories actively traded with the colonies. Even so, the flow of goods in and out of the colonies is still far below the pre-war level. Smuggling, privateering and legal trade with overseas partners can only partially offset the sharp decline in trade with Britain. Even coastal trade has been reduced by ship shortage, blockade and wartime freight. British-occupied ports, such as new york, produced some import activities, but little or no export.

With the decline of import and export, a large number of imported substitutes appeared, and the colonial economy became more self-sufficient. For example, in Philadelphia, nearly 4,000 women are employed at home to spin raw materials for newly-built textile mills. The sharp increase in the number of art workshops has also stimulated the production of beer, whisky and other domestic alcoholic beverages. The transfer of American resources to import competitive industries is particularly obvious in coastal and major port cities. Only the rural areas with the lowest degree of commercialization are hardly affected by the tortuous road of war and sporadic commercial flows in wartime.

Generally speaking, the war has brought obvious economic difficulties to this newly established country. Most go ods prices have gone up, making it more difficult to obtain. High prices and serious business difficulties have prompted some investors to turn from business to manufacturing. Then, with the advent of peace, trade routes were reopened, and even those who benefited from the war were stung by the import tide that poured into American ports and drastically reduced prices. Although many Americans escaped the direct consequences of the war, few Americans were not affected by it-at least indirectly.

At home, the most pressing problem is the financial problem. Between 1775 and 178 1, the war funds came from the issuance of paper money, which was large enough to cause rapid inflation (7)-the only inflation experienced by the United States except the Southern Confederacy. Nearly $400 million (face value) of mainland currency, the central government's military supplies and commissary vouchers, and state paper money were used to pay for wartime expenses. In fact, these various problems were denied in the middle of 1783, which had an ax(8) effect on those who held devalued currencies. There are only relatively small foreign debts and domestic debts (10) of less than 40 million dollars, but the problem of debt repayment responsibility remains a thorny issue, because political leaders believe that the States that repay debts will eventually maintain political balance. More importantly, Congress has no independent source of income and has to rely on the membership fees paid by the states in proportion to the population to raise funds. States are not without their own financial problems. By 1786, at least seven states are issuing their own bills, and debtor groups in six other states (12) are clamoring for similar problems. Although the states that issue paper money (except Rhode Island) have taken responsible actions, perhaps nothing is more disturbing to conservatives than the control of the money supply by the states. In fact, the sequela of hyperinflation has led to a general distrust of government monetary management.

1The American War of Independence, which officially started on April 9, 775, experienced more than six years of hardships. This is a struggle for the just cause of independence and for the intolerable British interference in North American affairs.

Maritime commercial activities have always been an important link in the war, and maintaining trade ties is very important for the supply of weapons and ammunition. Due to the legal restrictions of Britain and colonies in 1775, almost all overseas trade of North American colonies suddenly stopped. By the middle of 1775, the North American colonies were facing a serious shortage of basic munitions such as gunpowder, grenades, guns and knives, and even salt, shoes, woolen goods and linen fabrics were in short supply. At the end of 1775, the continental congress allowed certain trade with the west Indies to obtain weapons and ammunition. By the spring of 1776, trade with other non-British regions had been liberalized.

However, Britain imposed quite effective sea blockade on American ports, especially in the first two years of the War of Independence. Despite the strict blockade, the colony still conducted foreign trade. 1778, the United States signed a formal commercial treaty with France, and soon after, it also signed formal commercial treaties with the Netherlands and Spain, thus promoting overseas trade. From 1778 to 1782, American wartime trade reached its peak. During this period, France, the Netherlands, Spain and their territories all actively carried out trade with the United States. Despite this, the trade flow of American colonies has been far below the pre-war level. Smuggling, robbery, cruising and legal trade with overseas partners are not enough to make up for the sharp decline in imports and exports to Britain. Even the trade in coastal areas was reduced because of the lack of ships, sea blockade and high freight rates in wartime. British-occupied ports, such as new york, have little import activity and almost zero export volume.

Due to the decrease of trade activities, the production of imported substitutes flourished, and the colonial economy became more self-sufficient in Philadelphia. For example, the newly-built textile factory employed nearly 4,000 women to spin fabrics at home. Artisans' workshops have also sprung up in large numbers, which has stimulated the brewing of domestic wines such as beer and whisky. American production resources flow to industries that compete with imported goods, and this trend is particularly strong in coastal areas and port cities. Only those rural areas far away from commercial activities are protected from the influence of war gunfire and wartime trade blockade.

Generally speaking, the war has brought obvious economic difficulties to this emerging country. The prices of most commodities are rising and the supply is tight. High prices and extreme difficulties in trade have prompted some investors to turn from business to manufacturing. Later, with the end of the war, the trade routes were reopened. Even those who made a fortune in the war were saddened by the massive influx of imported goods into American ports, which led to the market crash. Although many Americans escaped the direct misfortune of the war, no one escaped the indirect influence of the war.

At home, the most pressing problem is finance. From 1775 to 178 1, the war expenditure was supported by issuing paper money, which was large enough to cause extreme inflation, which was the only time in the United States (except for the Southern Alliance). Issue mainland currency, the central government's military food stamps, and nearly 400 million US dollars (face value) of national currency to pay for the war. Due to various practical reasons, by the middle of 1783, all kinds of currencies issued were rejected, so that the decline in the value of banknotes was a trouble for those who held devalued banknotes. The government's foreign debt and domestic debt total less than 40 million dollars, but who will pay this debt is a thorny issue, because political leaders consider that the country that pays the debt will eventually hinder the balance of political power. More importantly, Congress has no revenue of its own, and can only rely on the states to collect as much as possible in proportion to the population. States are not without their own financial difficulties. By 1786, at least seven states had issued their own banknotes, and debtor groups in six other states also strongly demanded the issuance of banknotes. Although all states that issue paper money (except Rhode Island) are reliable, the fact that each state controls the issuance of money may scare conservatives the most. In fact, the effect of hyperinflation is that people generally lose trust in the government's financial management.

1. Revolutionary War: American Revolutionary War (1775- 1783), also known as American Revolution/American Revolutionary War /The Revolution. Its task is to end the British empire's rule over the colonies, make the colonies become independent countries, and open the way for the development of capitalism.

2. The United States was called a North American colony before independence, and it was a typical "immigrant society". Its meaning includes four aspects: 1) has nothing to do with indigenous people; 2) Composed of immigrants; 3) Influenced by immigration history and social background; 4) Different from the primitive society of immigrants. Colonists in North America often call themselves "Americans" or "Americans". After the founding of America, they became Americans. Therefore, "American affairs" should be translated into "American affairs" or "North American colonial affairs".

3. The well-known "Boston Tea Party Incident" prompted the British Parliament to pass five "compulsory acts/intolerable acts" in 1774: British officials accused by colonists can only be tried in Britain; British soldiers can forcibly enter colonial houses; Cancel the autonomous status of Massachusetts; Close Boston harbor in North America; Transfer the land in northern Ohio to Quebec. The colonial response was the Suffolk Resolution: refusing to abide by British laws, not paying taxes to Britain, and terminating trade with Britain.

4. Congress: 1774 The first continental congress was the embryonic form of the American legislature and the carrier of the "joint colony". 1777165438+1October 15 The Continental Congress passed the Regulations on Confederacy and Permanent Alliance, formally adopted "the United States of America", established a central administrative organ, that is, a "state committee" composed of state representatives, and put the Continental Congress.

5. One of the characteristics of American War of Independence is the effective cooperation between diplomacy and revolution. 1775, the continental congress established the "secret communication Committee" to take charge of foreign affairs. Thanks to Benjamin Franklin's efforts, not only the Franco-American alliance was established, but also Spain and the Netherlands successively entered the war.

6. Import substitution: import substitution (measures). It means that a country takes various measures to restrict the import of some foreign industrial products, promote the production of its own industrial products, and gradually replace imported products with domestic products in the domestic market, thus creating conditions for its own industrialization.

7. hyperinflation: hyperinflation refers to the unrestricted and uncontrolled rapid rise of prices, which leads to the sharp depreciation of the currency and even the collapse of the entire monetary system. Also known as hyperinflation

8. tax: heavy burden.

9. With the increase in the circulation of paper money and the inability of the mainland conference to levy taxes, the promise that paper money can be converted into gold and silver coins has become an empty talk. With the devaluation of mainland banknotes, people think that only mainland banknotes are "hot". By 178 1 year, the value of mainland paper money was less than 1% of the issue face value, so the idiom "worthless" came into being.

10. The devaluation of mainland paper money has reduced the government's debt burden (it must be repaid with gold and silver coins).

1 1. Catch as much as possible: Catch as much as possible anyway.

12. debtor group: debtor group (they are trapped by debts and need money to pay their debts urgently. )

13. Conservative: conservative, supporting traditional views and social norms, here refers to the federal government.