However, the weaknesses became rapidly apparent. Congress could not levy taxes and so could not effectively support any war effort. The central government did not have the ability to negotiate trade agreements with foreign governments. It could not settle quarrels between states. The country could not protect its ships which were being robbed at by pirates. The states themselves were in a near disastrous condition economically. The widespread use of paper money was causing inflation. So much so that in some places a pound of tea could cost $100. Farmers were being thrown in jail because they could not pay their debts. Many farms were being sold off for the unpaid taxes that were owed. 