Paying+for+the+War

__ 5. PAYING FOR THE WAR __ // The Economic Stresses of War, p. 476-7 // Briefly, what methods did the northern and southern governments use to pay for the war? How successful were these methods?

N: excise taxes (tobacco/alcohol) income tax custom receipts- raised revenue Morrill Tariff Act- Congress passes to increase revenue/taxes- superseding tariff of 1857 Republican protective tariff greenbacked paper money- nearly $450,000,000 for the Union-- value= determined by the Union's actual credit. National Banking System- authorized by Congress in 1863-- established standard bank note currency

S: bonds sold at home/abroad- $400,000,000 Richmond regime- increased taxes/ 10% levy on farm produce print bluebacked paper money-- runaway inflation= more than $1 billion

Success of methods: overall the war inflicted 9,000% inflation on the Confederacy and only 80% on the Union. 