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Article: British Debts

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BRITISH DEBTS

BRITISH DEBTS. At the time of the American Revolution (1775 – 1783), merchants and planters in the thirteen colonies owed British creditors some £ 5 million. Virginia planters held the greatest portion, owing £ 2.3 million. Overall, retail credit constituted the bulk of the debt. As a result, the matter involved many small claims in amounts of less than £ 500, and hundreds of creditors and debtors. During the revolution, payment on these debts all but ceased. From the creditors' point of view, interest on the debts nevertheless continued to accumulate. Resolution of the principal and interest on these debts was a key issue in the 1782 negotiations that ...

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