<P> By 1780, the United States Congress had issued over $400 million in paper money to troops . Eventually, Congress tried to stop the inflation by imposing economic reforms . These failed, and only further devalued the American currency . There is, however, some disagreement over the amount of currency issued . Between 1775 and 1783 the colonies experienced an average annual inflation rate of approximately 4.3% . The rate of inflation peaked at 29.78% in 1778 . Numerous food riots were recorded as discontent grew over rapidly rising prices . The destruction of property and the continued issuing of Continentals by the Congress was another cause of currency devaluation . In addition, counterfeiting of American dollars was carried out by the British Government as an intentional means of sabotaging the war effort . </P> <P> Late in the war, Congress asked individual colonies to equip their own troops, and pay upkeep for their own soldiers in the Continental Army . When the war ended, the United States had spent $37 million at the national level and $114 million at the state level . The United States finally solved its debt problems in the 1790s when Alexander Hamilton founded the First Bank of the United States in order to pay off war debts and establish good national credit . </P>

Financing the revolution was difficult for the american side