Background
The British Army, led by General William Howe, had captured New York City in 1776 and Philadelphia in 1777. Even after the capture of forts Mifflin and Mercer, which had previously prevented the resupply of British-occupied Philadelphia by sea, the British relied heavily upon the overland route between New York City and Philadelphia for the movement of men, supplies and communication. British troops also regularly foraged for supplies in the countryside around the city.
Since December, Washington and the Continental Army were in winter quarters at Valley Forge, northwest of Philadelphia. John Lacey (who had been promoted to Brigadier General and commander of the Pennsylvania militia in January at the age of 23), was tasked by Washington with patrolling the region north of Philadelphia, between the Delaware and Schuylkill Rivers. Washington ordered Lacey and the militia to prevent farmers from taking their goods into Philadelphia to sell to the British (who paid high prices, in gold), and to protect patriots in the region from harassment by British and Loyalist troops.
Washington was highly critical of both Pennsylvania's militia recruitment and Lacey's performance. Pennsylvania, despite promising 1,000 militia to patrol that area, had been unable to raise that many, and Washington was considering calling in militia from neighboring states. Washington wrote that militia stipulated by the state had never been above half kept up and that General Lacey had only 70 men left in the field. Lacey had not been as effective as Brigadier General James Potter at interdicting trade with the British, and Washington hoped Potter, off on leave, would soon return.
Read more about this topic: Battle Of Crooked Billet
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