At the local level, farmers were struggling. They could not pay off their taxes or support their families. The economic hardship was exacerbated by the lack of commercial banks in the state, so people borrowed from each other in a pyramid of debt and credit.

In 1785, English banking houses heavily involved with American trade began to call in debts as prices went down. American merchants then called in their debts -- a chain reaction that went all the way to the bottom: farmers. The government that collected the farmers taxes was controlled by creditor and commercial interests and would not grant reprieve to the struggling farmers. The farmers petitioned the state government for an extension on their payments and issuing of new paper money to pay debts and taxes. However, the state government was not sympathetic to the farmers.

Frustrated with the inability to pay their taxes and debts, much less support their families, Massachusetts farmers stepped outside the law to solve their problems. Like most rebellions, meetings stressed non-violence, but soon the angry mobs took action. The farmers prevented the county courts from sitting, which were responsible for writs of property foreclosure.

Farmers gathered around an old Revolutionary War veteran, Daniel Shays. He too had fallen on hard times following the war and felt cheated that he wasn't compensated for his time in the Continental Army. Shays led 1,200 men to the federal arsenal at Springfield, attempting a full uprising on January 26, 1787. The state militia, financed by Eastern merchants fearing property damage, swept in and forced the "Shaysites" to retreat.

Though Shays' Rebellion failed, it paved the way for massive changes in US government. By then, it was understood that the Articles of Confederation had to be revised. After the American Revolution, there was a period of "Republican Extremism" that minimized government control, symbolized by the loose Articles of Confederation. But with Shays' Rebellion, a group (eventually the Federalists) formed calling for more governmental control and a new national Constitution.
Shays '​ Rebellion was an armed uprising which took place in Massachusetts during 1786 and 1787. Some historians believe "fundamentally altered the course of the United States' history.
Shay's rebellion was an armed uprising in central and western Massachusetts, led by Daniel Shays. It was in protest of high taxes and farm mortgages.

During the Confederation period, the young American nation was in economic and political chaos. The new nation had to rebuild its economy without the benefit of belonging to the British mercantile system. America was desperately short on hard cash. This was due to the sudden renewal of British trade. Hard currency was leaving faster than it was coming into the country.

This combined with the war debt both on the national and state level helped to increase public anxiety over the nation's economy. States like Massachusetts attempted to pay off their creditors by raising taxes and implementing import duties on all incoming goods. These taxes would be a cause of contention because Americans hated taxes, particularly direct taxes. In fact, taxation was one of the leading causes of the American Revolution.

The framers of the Articles of Confederation deliberately forbade the Congress the power to collect direct taxes on income and property. The major obstacle in the Articles of Confederation was the States were 'asked' to pay to the Federal government the monies needed to pay the 'war debt' and for the running of the federal government. But the issue was that the federal had no 'power' to force the 'States' to pay. The Federal could enforce impost's, duties and excise taxes, (indirect taxes), but no direct taxes to the people.

The states maintained the power of direct taxes. Which they still hold the only power to enforce today. Thus, when the states like Massachusetts, needed to raise money to pay off their war debts, they levied direct taxes on property and attempted to collect them by methods and practices that were an anathema to their poorer citizens. This affected the farmers and small landowners the most. In Massachusetts, this problem came to a boiling point in August of 1786, with the outbreak of Shays' Rebellion. This rebellion would last until February 1787 with the capture of Shays and his followers by loyal State militiamen.

Shay's Rebellion, led by Daniel Shays, was a protest over these overburdening direct taxes which caused other economic problems faced by farmers of Western Massachusetts. Being unable to pay their debt, because the paper currency then in circulation was worthless, and because of the political power wheeled by the states. The State could take 'all' your property if you owed any taxes, even those taxes far less then the worth of your land. Thus, they lost their land to foreclosures and confiscation by the state government.

When the news of the insurrection spread, it had caused conservatives everywhere to shudder. They saw this rebellion as one step closer to tyranny and outright anarchy. The rebellion more than anything emphasized the weakness of the Articles of Confederation and that the states were too democratic in nature. This Rebellion is one of the main reason's that then farmer George Washington decided to return to the service of his countrymen, Shay and others being former officers and close friends under his command during the Revolution, accepted the request to Chair the Constitutional Convention to be held in Philadelphia.

The shown weaknesses of the national government to collect monies to pay the debt of the whole, helped the nationalist to call for a strong central government, capable of solving the economical and political problems of the nation. The Philadelphia convention would take place in the spring of 1787. The Constitution of the United States was outlined at this convention. As it went around the States for ratification the important first ten Amendments, known as the 'Bill of Rights' were added. The Bill of Rights are the only Amendments that cannot be, or have been, changed. One of these Rights again guaranteed that the federal government could not 'direct tax' the people of the United States, but this time they could by Apportionment (the actual count of each person in each state) enforce each state to pay their portion of the debt of the United States as a whole. The States could gather, by direct tax if necessary, and would 'have' to pay the tax to the federal government.

Farmers:

Farmers were unable to pay the debts and taxes on their farms and they were being taken away by the congress. Daniel Shays reasoned that his farm could not be taken away by the court if there was no court. He raised a militia and led an uprising. They started burning down the courts in Western Massachusetts. The idea quickly spread and others began to do the same. At the time the states had very little federal backing and were unable to deal with crisis such as this on their own. The federal government had no authority to step in and help them under the Articles of the Confederation. This event was a major factor in the creation of the Constitution.

Soldiers:

Shay's Rebellion was a product of the American Revolution. Many soldiers were not paid adequately in service during the struggle, as the colonies were revolting. These soldiers were farmers who had to leave their homes to fight. When the colonies were freed from Britain, the government was unstable, as there was no strong economy nor domestic manufacturing abilities. Many veterans of the war were angry that the government could not support them. Many vets were so far into debt that they were put into debtors jails. 1000 or so men marched to Springfield and burned most of the town and freed the debtors. Washington sent troops to suppress the rebellion and most participants were pardoned. This rebellion drew attention to a key problem in the government. It received the attention from prominent citizens like George Washington and raised the feeling of Nationalism in the states.

This event occurred in Massachusetts, in the Springfield area.

Farmers in western Massachusetts resented the fact that the state's tax laws favored trade at the expense of farming. The state legislature was composed mostly of merchants from Boston and other shipping towns and cities. In 1786, farmers assembled in conventions and demanded that their property tax be lowered. To make up for the loss of revenue, they called for the abolition of aristocratic branches of the government in Boston. A Revolutionary War veteran named Daniel Shays led about 2,000 armed men against the Springfield arsenal. The rebellion collapsed but the problems continued. Shays and his followers believed they were simply carrying on the sprit of the Revolution.
The rebellion started on August 29, 1786 it occured in central and western Massachusetts from 1786 to 1787.

At the conclusion of the Revolutionary War times were very hard for soldiers and their impoverished families. The problem affected soldiers in every state. The script the soldiers had received for pay was almost worthless. There was no strong central government to deal with the debts of the war, the individual states were not contributing enough and there were foreign loans to pay.

The Massachusetts state legislature was composed mostly of merchants from Boston and other shipping towns and cities. The farmers of Western Massachusetts were suffering and their taxes were unreasonably high. Many were deeply in debt and were facing serious legal penalties that included prison. The farmers resented the fact that the state's tax laws favored trade at the expense of farming. Debtors were sold into servitude and their farms were taken. Many soldier/farmers joined a revolt led by Daniel Shays a former Army captain from Pelham. They demanded paper money to pay their debts.

There were several skirmishes and the insurgents took possession of the courthouses including those in in Springfield and Northampton. In late January, 1787, Shays' men faced an army funded by Boston merchants when they tried to seize control of the Springfield Arsenal, a military supply depot that was scouted and approved by George Washington in 1777. Several insurgents were killed. After several months the rebellion lost its momentum and the insurgents were eventually captured and tried for treason. Fourteen were convicted and sentenced to death but were subsequently pardoned or served short prison sentences. A newly elected legislature eased the situation by allowing soldiers to pay taxes using their soldiers' notes. The times gradually became more prosperous and some of the bitterness subsided.

Shays and his followers believed they were simply carrying on the spirit of the Revolution. Thomas Jefferson, then minister to France, agreed with them. "A little rebellion now and then is a good thing," he wrote to a friend. "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." Washington did not agree with Jefferson. He welcomed the failure of Shays's Rebellion and he compared it to his having to use force to prevent a military coup by a group of army officers under his command. He believed citizens could not take up arms whenever they felt something was not done correctly or they had a grievance.

The significance of Shays' Rebellion has been viewed differently by historians of different time periods. However it has come to be recognized today as one of the factors that forced a young nation to think carefully about its form of government. It created public support for a central government and a federal constitution.

Shays' rebellion showed that the government under the Articles of Confederation was too weak to repel the insurgency and was unable to enforce laws reasonably (unlike the oppressive taxation and seizure of farms) and effectively. The governor of Massachusetts asked for help from the national government but the government under the Articles was unable to act. Although the rebellion eventually collapsed the problems continued. A convention was eventually called to strengthen the Articles.

Springfield Technical Community College in Springfield, Massachusetts hosted a symposium entitled "Shays Rebellion and the Making of a Nation" in 2010. STCC and the Springfield Armory Museum, a National Historic Site, share the same address in Springfield, Massachusetts.