The Sugar Act of 1764 and the Stamp Act of 1765 limited trade in the colonies. Because of the Stamp Act, Arnold joined groups of people who did not like those taxes. He also joined the Sons of Liberty, a secret organization. The Sons of Liberty sometimes used violence. At first, Arnold did not go to protests in public. Like many merchants, Arnold opposed the Stamp Act by continuing his trading business without paying the tax. This meant he was a smuggler. Arnold also lost much of his money. He owed £16,000 and some creditors told people that he was bankrupt. He sued them. 