Under the arrival of the confederation, each state and the national government created money.
Since the authority of the Congress is limited, it was able to only ask the states for the tax, it couldn't collect directly. There existed two ways to collect money either borrow money from other governments or sell the western lands. due to lack of funds, Congress was not able to build an efficient army and failed in regulating trade.
The Confederation relying on the willing struggles of the states to give tax funds to the federal administration. Supremacy of courts did not exist. And later on, the constitution gives authority to federal government and authorized courts to work.
