Final answer:
The paper money printed by Congress under the Articles of Confederation was worthless due to fiscal problems and the lack of trust in the issued currency. Numerous state banks also issued their own banknotes, further contributing to the devaluation of the currency.
Step-by-step explanation:
The paper money printed by Congress under the Articles of Confederation was worthless due to several factors. Firstly, the central government faced fiscal problems, causing the currency it issued, called the Continental, to be largely worthless. Additionally, the states were not prohibited from printing their own banknotes, resulting in numerous state banks issuing currency with the same problems as the Continental. This widespread issuance of paper money led to a lack of trust in the currency and people refusing to accept it as valid.