1. Continental Congress had very limited powers

a. Could not levy taxes

b. Had to count on the good will of the states to help with costs

c. Individual states had the power to make deals with forgeign nations if they so desired

d. The individual state became responsible for the well being of the soliders that they had sent to help the cause.

2. In response to this Conrgress began to issue paper money called Continentals

a. They were promisary notes to be paid in the future, when (if) the Americans won the war.

b. Through exchange they began to lose thier value.

c. Soon they became worthless-"not worth a continental"

d. People began to demand hard money or other resources for goods and services

e. Made commerce amongst the states difficult because no one wanted to provide services without guarentee of payment.