To make matters worse, the Confederation, for want of power to levy taxes, was facing bankruptcy, and Congress was unable to devise ways and means to avert a crisis.
The Second Continental Congress had come into existence in 1775.

It was made up of delegations from the various colonies, appointed in more or less irregular ways, and had no more authority than it might assume and the various colonies were willing to concede; yet it was the central body under which the Revolution had been inaugurated and carried through to a successful conclusion.

Had this Congress grappled firmly with the financial problem and forced through a system of direct taxation, the subsequent woes of the Confederation might have been mitigated and perhaps averted.

In their enthusiasm over the Declaration of Independence the people--by whom is meant the articulate class consisting largely of the governing and commercial elements--would probably have accepted such a usurpation of authority.

But with their lack of experience it is not surprising that the delegates to Congress did not appreciate the necessity of such radical action and so were unwilling to take the responsibility for it.