Chapter II. Direct Relief of Debtors

The debtors’ plight was the most visible face of the depression, and the most politically explosive. Rothbard traces two distinct battles: the federal question of the $23 million owed on public land purchases, where Congress and President Monroe moved to forgive interest and permit relinquishment; and the state-level fight over stay laws and minimum appraisal laws, which spread through eight and four states respectively. Relief advocates argued that the rising purchasing power of the dollar had made repayment unjust. Their opponents answered that shielding debtors would destroy creditor confidence and prolong the very depression it aimed to cure.