Lord George Germain's scheme for tiring out the Americans could not seem altogether hopeless. Though from a military point of view the honours of the war thus far remained with them, yet the losses and suffering had been very great. The disturbance of trade was felt even more severely in America than in England, and it was further exacerbated by the evils of a depreciated currency. The country had entered into the war heavily handicapped by the voluntary stoppage of importation which had prevailed for several years. The war had cut off New England from the Newfoundland fisheries and the trade with the West Indies, and the coasting trade had been nearly annihilated by British cruisers. The problem of managing the expenses of a great war was something quite new to the Americans, and the consequent waste and extravagance were complicated and enhanced by the curse of paper money. Congress, as a mere advisory body, could only recommend to the various states the measures of taxation which were deemed necessary for the support of the army. It had no authority to raise taxes in any state, nor had it any power to constrain the government of a state to raise taxes. The states were accordingly all delinquent, and there was no resource left for Congress but to issue its promissory notes. Congress already owed more than forty million dollars, and during the first half of the year 1778 the issues of paper money amounted to twenty-three millions. The depreciation had already become alarming, and the most zealous law-making was of course powerless to stop it. [Sidenote: Lack of organization]