USA HISTORY

Detailed explanation-1: -Moreover, the Continental Congress had no power of taxation over individuals, and it lacked the direct authority to raise armies. In contrast, it could “requisition” finances and troops for the needs of the nation from individual states.

Detailed explanation-2: -Raising money to finance the war was a major problem because the Continental Congress had no power to raise money through taxes. To pay for the war, the Congress and the states printed hundreds of millions of dollars worth of paper money.

Detailed explanation-3: -By the spring of 1775, colonial leaders, concerned by British martial law in Boston and increasing constraints on trade, had led their forces in battle against the crown. But, the American revolutionaries encountered a small problem on their way to the front: they lacked the funds necessary to wage a prolonged war.

Detailed explanation-4: -Critical shortages of arms and ammunition, clothing, shelter, and camp equipment persisted in spite of repeated appeals to political authorities and the local population; food rations for both man and beast were unpredictable. The Continental Congress’s efforts to equip and feed its army were inadequate from the start.

Detailed explanation-5: -How did Congress finance the war effort and what problems did this cause? Congress borrowed money by selling bonds to American Investors and foreign governments, especially France. They also printed paper money called Continentals. This caused inflation.