March 24

March 24 - -National Banking Act 1863 o National bank notes...

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March 24, 2008 The Economic Side of the War Confederates - Command economy, much more controlled by central authorities. - From 1863 on - Force fed industrialization - Decisions were made in Richmond - No rational tax structure - Seized private goods for military used, Impressment - Direct tax, April ’63 said one tenth of production belonged to Rebel Government - Unable to develop currency o Either cotton as collateral o Paper money - Simply opened up printing presses without backing up the money o 9,000% inflation Union Economy - Restructured during the war - Republican congress - Federal government between 1861-65 spent more than from ’75-‘61 - They were running out of gold and thus could not pay for the war - Legal Tender Act 1862, created paper money that was defined as legal tender o Questioned whether or not it was constitutional o Greenbacks were relatively stable in value - State bank notes or bonds were the thing at the beginning of the war. - Federal Bonds used to raise money o One in four northern family purchased a bond
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Unformatted text preview: -National Banking Act 1863 o National bank notes could be written if backed up by federal bonds-Taxes o Starting in ’61 congress passed the most extensive system of taxes in US history until much later in the 20 th century o Therefore inflation was containable at around 80% o Tariffs were raised from 19% to 46% of good’s value o Homestead Act gave northern poor a chance to start fresh in the west o Moral Land Grant Act- subsidized building of colleges Confederate citizens were not pleased-impressment-taxes-draft-inability to decide military involvement-raids from both sides-poverty set in-letters from home were not positive-AWOL soldiers returned home to help out o Went from 20% to 53% from ’61 to ‘64 o Union AWOLs peaked at 30%-Built in demand in Union o Agricultural output almost triples o Union soldier wears out his shoes in two months and his uniform in four o Typical northern citizens could sympathize and relate to the war....
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March 24 - -National Banking Act 1863 o National bank notes...

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