Is the paper money event supposed to deplete units drastically, occur every turn and hit the same region repeatedly (within a turn)?
I just threw the towel in my current game as I've had my main army (nicely trained) dwindle away in the winter of 76/77 from over 1200 strength to maybe 400 strength (some but not much of that due to regiments disbanding). At first I though this could have been caused by weather or supply, but neither seems to be the case (army never moved from supplied NYC). Almost all my continentals in that army are now deeply in the red and probably wouldn't last another turn...
One or two other forces are in a similar state, again almost exclusively continentals...