The rapid depreciation of the continental currency, had long been viewed with apprehensive anxiety by the enlightened friends of the revolution, and various unsuccessful expedients had been essayed for the purpose of checking its progress.  All perceived that the great quantity in circulation was the principal cause of the diminution of its value; and congress had resolved not to exceed two hundred millions of dollars in their emissions.  In the mean time, the utmost endeavours were used to defer an evil so justly dreaded, and among the expedients employed, was that of withholding from the public agents, the money which was necessary for public purposes.  This unwise experiment, while it defeated its own object, threatened the dissolution of the American army.

The difference between the value of the article at the times of contract and of payment was soon perceived, and, of course, influenced its price.  But this was the least mischievous consequence of this mistaken policy.  The public agents contracted enormous debts which they were unable to discharge.  Repeated disappointments destroyed their credit; and, towards the close of the year 1779, they found it impracticable to obtain supplies for the subsistence of the army.

From these causes, the contracts entered into could not be co-extensive with the public wants; and many of those which were made were not complied with.

In this critical state of things, an entire revolution was made in the commissary department.  Such was the prejudice against the system adopted by Great Britain, for supplying by contract, that it had been usual to allow, as a compensation to the commissary, a stipulated commission on all the monies expended on public account.  After some time, this allowance was supposed to be an inducement to purchase at high prices; and an arrangement was made on the first of January, by which the commissary general was to receive a fixed nominal salary in the paper currency, and was permitted to appoint assistants whose compensations were also fixed, and who were to defray, out of those compensations, all the expenses attending the transactions of the business.  The practice of allowing them rations and forage was discontinued.

This new system was unfortunately so modified as to increase the embarrassments of the department.  It was found difficult to obtain assistants and agents for the compensation allowed; and those who were willing to be employed, were unequal to the duties assigned them.

For several days, the soldiers were reduced to half allowance, and sometimes to less.  At length, affairs came to the crisis which had long been threatened; and, early in January, a letter was received from Colonel Wadsworth, informing the general that it was absolutely out of his power to supply the army longer with meat, as he was without money, and had totally exhausted his credit.  About the same time, the assistant commissary, residing in camp, gave notice that his stock of provisions was on the point of being expended, and that he had no immediate prospect of a farther supply.