How could mighty Britain, victorious in the Great War for Empire, lose to a motley rebel army? The British ministry pointed to a series of blunders by the military leadership. Why had Howe not ruthlessly pursued Washington’s army in 1776? Why had Howe and Burgoyne failed to coordinate their attacks in 1777? Why had Cornwallis marched deep into the Patriot-dominated state of Virginia in 1781?

Historians acknowledge British mistakes, but they also attribute the rebels’ victory to French aid and the inspired leadership of George Washington. Astutely deferring to elected officials, Washington won the support of the Continental Congress and the state governments. Confident of his military abilities, he pursued a defensive strategy that minimized casualties and maintained the morale of his officers and soldiers through five difficult years of war. Moreover, the Patriots’ control of local governments gave Washington a greater margin for error than the British generals had. Local militiamen provided the edge in the 1777 victory at Saratoga and forced Cornwallis from the Carolinas in 1781.

In the end, it was the American people who decided the outcome, especially the one-third of the white colonists who were zealous Patriots. Tens of thousands of these farmers and artisans accepted Continental bills in payment for supplies, and thousands of soldiers took them as pay, even as the currency literally depreciated in their pockets. Rampant inflation meant that every paper dollar held for a week lost value, imposing a hidden “currency tax” on those who accepted the paper currency. Each individual tax was small — a few pennies on each dollar. But as millions of dollars changed hands multiple times, the currency taxes paid by ordinary citizens financed the American military victory.