WORLD HISTORY

Detailed explanation-1: -Because it did not possess the power to tax the colonists, the Continental Congress printed money at a rapid rate to fund the army’s expenses and pay off its loans from foreign nations. As a result, the colonies experienced severe inflation and depreciation of the Continental dollar.

Detailed explanation-2: -Continentals refers to paper currency issued by the Continental Congress in 1775 to help fund the American Revolutionary War. Continentals quickly lost value, partly because they were not backed by a physical asset like gold or silver, but also due to the fact that too many bills were printed.

Detailed explanation-3: -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.

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: -The years immediately following the end of the Revolutionary War in 1783 presented the young American nation with a series of difficulties that Congress could not adequately remedy: dire financial straits, interstate rivalries and domestic insurrection.