Several laws were passed during this time period, including the prohibiting of debased coins from being considered legal tender.
This furthered the decline in copper prices, forcing many minters to shut down, leaving only counterfeiters who produced extremely low quality coins.
[2][1] By 1789 the market was completely flooded with debased coppers that were officially illegal and thus caused the citizens to lose all confidence in them.
At the height of the debasement, there was a 430% inflation rate for copper and commerce ceased, forcing several businesses and manufacturers to close down.
State governments sought to cooperate with the plan and thus established the small fiat currency as an active medium of trade.