The people then clamored for "tender laws." These were laws which would make it lawful for them to tender, or offer, paper money in exchange for flour or other things. In some cases it was made lawful to tender paper money in payments of debts which had been made when gold and silver were still in use. The merchants now shut up their shops, and business almost ceased. The lawyers only were busy. For those to whom money was owed tried to get it paid before the paper money became utterly worthless. The courts were crowded, and the prisons were filled with poor debtors.

Now the cry was for "stay laws." These were laws to prevent those to whom money was due from enforcing their rights. These laws promptly put an end to whatever business was left. The only way that any business could be carried on was by barter. For example, a man who had a bushel of wheat that he did not want for his family would exchange it for three or four bushels of potatoes, or for four or five days of labor. In some states the legislatures passed very severe laws to compel people to receive paper money. In one state, indeed, no one could vote who would not receive paper money.

In Massachusetts, especially, the discontent was very great. The people were angry with the judges for sending men to prison who did not pay their debts. Crowds of armed men visited the judges and compelled them to close the courts. The leader in this movement was Daniel Shays. He even threatened to seize the United States Arsenal at Springfield. By this time Governor Bowdoin and General Lincoln also had gathered a small force of soldiers. In the midst of winter, through snowstorms and over terrible roads, Lincoln marched with his men. He drove Shays from place to place, captured his followers, and put down the rebellion. There were risings in other states, especially in North Carolina. But Shays's Rebellion in Massachusetts was the most important of them all, because it convinced the New Englanders that a stronger national government was necessary.