USA HISTORY

Detailed explanation-1: -The war left Congress in debt. Congress had paid soldiers in full for military service in the war. Congress lacked the power to tax and couldn’t pay its debts.] Robert Morris proposed a 10 percent tax on imported goods to help pay the national debt.

Detailed explanation-2: -The United States takes full financial responsibility for all the debts accrued and money borrowed under the authority of the Second Continental Congress during the American Revolution. The United States solemnly pledges to repay all these debts.

Detailed explanation-3: -Under the Articles, the states, not Congress, had the power to tax. Congress could raise money only by asking the states for funds, borrowing from foreign governments, and selling western lands. In addition, Congress could not draft soldiers or regulate trade.

Detailed explanation-4: -In order to pay for its significant expenditures during the Revolution, Congress had two options: print more money or obtain loans to meet the budget deficit. In practice it did both, but relied more on the printing of money, which led to hyperinflation.