Financing the War (apr 12, 1861 – apr 9, 1865)

Description:

Union:
Paper money: greenbacks instead of specie circular
Government bonds: people lend & to gvt., get paid back w/ interest (#1 way they made money)
Samuel Chase (head of treasury): first income tax (only during the war)
High excise taxes & tariffs
Better economically than South
North has always been better at banking (BUS)
James K Polk had created an independent treasury

South:
Print “Confederate Dollars”
Paper money
MAJOR inflation– $750 for 4 pounds of coffee in modern money

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