Throughout the union, the contest between these parties was periodically revived; and the public mind was perpetually agitated with hopes and fears on subjects which essentially affected the fortunes of a considerable proportion of the society.
These contests were the more animated, because, in the state governments generally, no principle had been introduced which could resist the wild projects of the moment, give the people an opportunity to reflect, and allow the good sense of the nation time for exertion.
This uncertainty with respect to measures of great importance to every member of the community, this instability in principles which ought, if possible, to be rendered immutable, produced a long train of ills; and is seriously believed to have been among the operating causes of those pecuniary embarrassments, which, at that time, were so general as to influence the legislation of almost every state in the union.
Its direct consequence was the loss of confidence in the government, and in individuals.

This, so far as respected the government, was peculiarly discernible in the value of state debts.
The war having been conducted by nations in many respects independent of each other, the debts contracted in its prosecution were due, in part from the United States, and in part from the individual states who became immediately responsible to the creditors, retaining their claim against the government of the union for any balances which might appear to be due on a general settlement of accounts.
That the debt of the United States should have greatly depreciated will excite no surprise, when it is recollected that the government of the union possessed no funds, and, without the assent of jealous and independent sovereigns, could acquire none, to pay the accruing interest: but the depreciation of the debt due from those states which made an annual and adequate provision for the interest, can be ascribed only to a want of confidence in governments which were controlled by no fixed principles; and it is therefore not entirely unworthy of attention.

In many of those states which had repelled every attempt to introduce into circulation a depreciated medium of commerce, or to defeat the annual provision of funds for the payment of the interest, the debt sunk in value to ten, five, and even less than four shillings in the pound.

However unexceptionable might be the conduct of the existing legislature, the hazard from those which were to follow was too great to be encountered without an immense premium.
In private transactions, an astonishing degree of distrust also prevailed.

The bonds of men whose ability to pay their debts was unquestionable, could not be negotiated but at a discount of thirty, forty, and fifty _per centum_: real property was scarcely vendible; and sales of any article for ready money could be made only at a ruinous loss.