In the aftermath of American victory in the Revolutionary War, times were tough in the new nation. In Massachusetts farmers faced financial ruin as merchants, concerned with the inflation, were demanding repayment of debts in hard currency which was in short supply. Governor John Hancock attempted to set an example by not demanding that his debtors pay him in hard currency, and he refused to authorize prosecution of those who failed to pay their taxes to the State. This was to no avail as more farmers began to lose their farms through foreclosure. That most of these farmers had fought in the Revolution made their plight more poignant, and also suggested that they would not stand idle as they were reduced to poverty.
Violence broke out after James Bowdoin, champion of the merchants, was elected Governor of the Bay State. On August 29, 1786 a rebellion broke out when a well organized force prevented the court from sitting in Northampton. Daniel Shays who had served in the Continental Army as a Captain, and who had receive a sword of honor from Lafayette that he had to sell to help pay his debts, participated in the Northampton action. His name became attached to the Rebellion, but he staunchly denied that he was one of the leaders of the movement.
The Massachusetts government now confronted the quandary of attempting to assert its authority when the only armed force at its disposal were militia levies and much of the militia sympathized with the rebels. The Federal government of the Articles of Confederation was deaf to appeals for aid, having no armed forces in any case to aid Massachusetts in putting down the Rebellion.
The solution was a 3000 man militia force under former Continental Major General Benjamin Lincoln. The force was paid for by 125 merchants who contributed 6000 pounds. With this force, Lincoln crushed the Rebellion in February 1787. Casualties were minor, five killed, a few dozen wounded, but the impact of the Rebellion was profound in convincing many of the leaders in the United States of the necessity of revising the weak Articles of Confederation and forming a stronger Federal government. Shays Rebellion had given rise to outbursts throughout New England, and although they had been quickly quashed, the alarm they raised reached Mount Vernon.
On October 31, 1786 in a letter to Henry Lee, George Washington demonstrated how deeply Shays’ Rebellion disturbed him: