The Financial Costs of the War
There was a large financial cost arising from the American Revolution, which fell on several countries. The four main countries who sustained the highest losses during the American revolutionary war were: Spain, France, Great Britain and U.S.A.
Great Britain
The American revolutionary war came at a high cost for the British. The War led to a debt of £250 million. This debt added on to the amount already acquired from the Seven Years war. Therefore the British started charging Tax to their population of 4 shilling a pound. After the War U.S.A stopped trading with the British which caused the Tobacco businessmen's industries to suffer. It also caused the export market to dry up and woolen and metal products to decrease. The Royal Navy did manage to make up some of these losses through privateering (licensed pirates) by hijacking Spanish and French Merchant ships.
France
France had a very similar effect as the British, with debt from the American Revolution adding onto the already existing debt from the Seven Year war. The total sum spent by the French was 1.3 billion livres leading to a total debt of 3.35 million livres, which was a lot of money at the time. The debt caused major economic and political problems, which eventually led to the French revolution.
Spain
Spain's losses were similar to those of the British and the French. The difference was that the Spanish charged tax to their colonies in South America and did so successfully. In 1782 the First Spanish Bank was created to help stabilize their economic situation.
U.S.A
At the beginning of the War America's economy flourished because they could trade freely with the West Indies. But by The end of the War the Americans had managed to spend $114 million. America resolved its debt problems in the 1790's when they made the first bank of America.
Great Britain
The American revolutionary war came at a high cost for the British. The War led to a debt of £250 million. This debt added on to the amount already acquired from the Seven Years war. Therefore the British started charging Tax to their population of 4 shilling a pound. After the War U.S.A stopped trading with the British which caused the Tobacco businessmen's industries to suffer. It also caused the export market to dry up and woolen and metal products to decrease. The Royal Navy did manage to make up some of these losses through privateering (licensed pirates) by hijacking Spanish and French Merchant ships.
France
France had a very similar effect as the British, with debt from the American Revolution adding onto the already existing debt from the Seven Year war. The total sum spent by the French was 1.3 billion livres leading to a total debt of 3.35 million livres, which was a lot of money at the time. The debt caused major economic and political problems, which eventually led to the French revolution.
Spain
Spain's losses were similar to those of the British and the French. The difference was that the Spanish charged tax to their colonies in South America and did so successfully. In 1782 the First Spanish Bank was created to help stabilize their economic situation.
U.S.A
At the beginning of the War America's economy flourished because they could trade freely with the West Indies. But by The end of the War the Americans had managed to spend $114 million. America resolved its debt problems in the 1790's when they made the first bank of America.