Organization of Congress and conduct of business.—When Peyton Randolph found it necessary to leave Congress, the delegates chose John Hancock president and Charles Thomson secretary, the latter serving until 1781. Most of the work was carried on by committees. When a vote was taken in Congress, the members did not cast their ballots as individuals, but each state delegation cast a solid affirmative or negative vote. Usually committees met in the morning from 7 to 10, Congress from 10 A.M. to 4 or 5 P.M., and committees from 6 to 10 P.M. The president's duties were manifold, for in addition to acting as presiding officer, he carried on correspondence with the commander-in-chief, with state governors, and with, local committees.
Early acts of Congress.—In spite of the conservatives who at first were in the majority and who desired to hold in check the revolutionary forces, circumstances forced Congress to exercise executive authority long before the Declaration of Independence. In June, 1775, Congress ordered the raising and organizing of an army, authorized a loan for the purchase of gunpowder, and issued $2,000,000 in bills of credit. In September provision was made for the fitting out of a navy, and steps were taken to open relations with foreign powers, to supervise the frontiers, and to establish a post-office. In the chaos which resulted from the overthrow of the chartered governments, several of the state revolutionary bodies appealed to Congress for advice. In answer to the Massachusetts appeal, Congress advised that, as no obedience was due to parliament and as the crown officials were absent, the provincial congress was to summon the representatives to an assembly which was to choose a council, and together the two bodies were to govern until difficulties were adjusted with the crown. Similar advice was given to New Hampshire, South Carolina, and Virginia. The various colonies were also advised to erect prize courts. In March, 1776, it advised the colonies to disarm the Loyalists, and soon afterward authorized the fitting out of privateers and opened the ports to all countries not subject to Great Britain. In May it urged all colonies which had not yet formed state governments to do so and declared that British authority should be suppressed. On July 4, 1776, it adopted the Declaration of Independence.
Judicial functions.—With the increase of privateering, prize courts became necessary, and in November, 1775, Congress advised the colonies to erect courts in which cases of capture might be tried by jury and appeals made to Congress. During 1776 the custom was followed of appointing a congressional committee to hear each appeal, but in January, 1777, a standing committee of five was appointed to hear all appeals. The increasing business and the need of legally trained men made it apparent that the committee system could not long handle the prize cases, and in January, 1780, a permanent court of appeals was established, which may be looked upon as a forerunner of the supreme court.
Military affairs.—When hostilities began, Congress acted on the theory that the colonies were loyal to the king, but were opposing Gage's ministerial army. Events soon forced it to take measures of defence, committees being appointed in May, 1775, to consider how military stores might be procured. On June 15 Washington was chosen commander-in-chief and on the following day a committee was appointed to draw up his commission and instructions. Congress also selected four major-generals, eight brigadier-generals, a quartermaster-general and commissary-general. Later a clothier-general was appointed.
At first military affairs were handled by congressional committees, but in January, 1776, a committee was appointed to consider the establishment of a war office. Five months later Congress adopted the committee's plan which provided for a Board of War and Ordnance to consist of five members of Congress and a secretary. In 1777 this congressional board was done away with and a new board, consisting of persons who were not members of Congress, was created, Gates being placed at its head. Congress also appointed an inspector-general, Thomas Conway being the first incumbent, being followed by Steuben. The system of supplying the army was found to be deficient and to rectify matters the commissary department was reorganized in 1777 and again in 1778. Congress continued to keep in touch with the army by sending special committees to examine actual conditions.
Naval affairs.—To handle maritime affairs a naval committee was appointed whose "active life lasted from October, 1775, until January, 1776, during which time it laid the foundation of the navy." On December 14, 1775, a marine committee, composed of one member from each colony, was chosen to take charge of the building and fitting out of vessels, and this committee soon assumed direction of naval affairs. Agents to superintend the work of construction were employed, and on the recommendation of the committee, Congress appointed prize agents. In November, 1776, a board of three naval experts was created to execute business under the direction of the maritime committee and a similar board was appointed in April, 1777, to handle affairs in New England alone. The marine committee continued until October, 1779. By that time it became evident that a more efficient system was needed and Congress appointed a Board of Admiralty consisting of three commissioners and two members of Congress. The board remained in charge of naval affairs until the governmental reorganization of 1781.
Foreign affairs.—To direct diplomacy was one of the difficult functions of a Congress whose members were but little versed in the intricacies of foreign courts. In the fall of 1775 a "secret committee on foreign correspondence" was chosen. In March, 1776, Silas Deane was sent to France, and in September of the same year a commission to handle American interests in Europe, composed of Franklin, Jefferson, and Deane, was appointed. Jefferson, however, remained in America and Arthur Lee was substituted. To obtain financial aid had been the chief object up to the Declaration of Independence, but after that Congress and its agents directed their energies not only to the securing of funds, but to obtain recognition by France and Spain, and to make military and commercial alliances. In 1777 the secret committee was changed to the "committee on foreign affairs," an organization which conducted the foreign policy up to 1781.
FINANCIAL AFFAIRS
Fiscal machinery.—The most difficult problem which Congress had to solve was the raising of sufficient funds to carry on the Revolution. To handle the public moneys and devise means for raising revenue, fiscal machinery gradually came into existence. In 1775 two treasurers were appointed to receive and disburse public funds. Soon a committee of claims of thirteen members was appointed, and in February, 1776, a standing committee of five known as the Treasury Board, which supervised financial officials and attended to the emission of instruments of credit. This board, under which was an auditor-general at the head of the office of accounts, was the germ of the later treasury. In 1778 the book-keeping system was remodeled and a comptroller, auditor, treasurer, and two chambers of accounts were provided. In 1779 the old treasury board was set aside and in its place a commission of five was appointed, of which three were not congressional delegates.
Bills of credit.—Congress had three principal means of raising money: by issuance of bills of credit, by requisitions upon the states, and by domestic and foreign loans. In addition there was a considerable income from prizes and captures. The need of raising money drove Congress to the doubtful expedient of issuing large quantities of paper money unbacked by bullion or specie but based upon the credit of the states. Between June, 1775, and November, 1779, Congress authorized the issuance of $241,552,780 in denominations varying from one-sixth of a dollar to sixty-five dollars. In addition the states issued over $200,000,000 in paper money. Such large amounts of unbacked paper could lead to but one result, a steadily increasing depreciation. At first the people took the continental money with little protest, but as issue followed issue in rapid succession, depreciation set in, and by January, 1779, the ratio of currency to specie was eight to one, by June twenty to one, and by the end of that year forty to one. In May, 1781, it ceased to pass as currency. Financiers have found it difficult to estimate the specie value of the various issues, but a careful economist has calculated that it was worth between $37,000,000 and $41,000,000.