Download Funding the Civil War - pthsapushcivilwarproject

Funding the Civil War
North vs. South
Myles vs. Louis
Early South Funding

No Direct Taxes

Buy Weapons, not make them

Issued War Bonds

Backed by Cotton

Redeemed 2 years after Confederate
Victory
Early South Funding

Cotton Embargo

Acted too late, left with much cheap
cotton



Confederate currency loses value
Inflation takes over
Union Blockade stops trade

No Indirect tax revenue
Meanwhile in the USA
Union Funding

Salmon Chase (Sec. of Treasury) and
Philadelphia banker Jay Cooke


War bonds
Taxes

Income Tax




First in US History
Pay large part of war debt
Stamp Tax
Increased over time as war went on
Union Funding

National Banking Act of 1863


Moved towards recreating national banks
National Currency Act

Allows US to print money


Greenbacks
Postage Currency


Replaced by Fractional Currency
Catches on with public
Meanwhile in the CSA
Late South Funding

Deep into debt, inflation rising greatly

Start Taxing


Most evaded or paid in Confederate
notes
Allow South-North Smuggling


Issue Licenses
Blocked by North


Only allowed payment in Treasury
Notes
Need more faith in Confederacy
Summary


Union Economy relatively stable
compared to Confederacy
Rich Man's War, Poor Man's Fight

$300 Could hire a substitute in
Southern Draft


$300 Could void one's Union draft roll


Subs outlawed after increase in
AWOL's
Rolled again, if called again, another
$300
Plantation owners automatically
exempt from Draft
Summary

Northern Inflation: 80%

Southern Inflation:
%