WORLD HISTORY

Detailed explanation-1: -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-2: -Exacerbating the problem, Congress had no mechanism to collect taxes to pay for the war; instead, it relied on contributions from the states, which generally directed whatever revenue they raised toward their own needs. As a result, the paper money issued by Congress quickly came to be regarded as worthless.

Detailed explanation-3: -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-4: -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.