How did the states of the civil war make money

The Confederate States of America started with an agrarian-based economy that relied sattes on slave -worked plantations for the production of cotton for export to Europe and to the northern US. If classed as an independent nation, the area of the Confederate States would have ranked as the fourth-richest country of the world in After losing control of its main rivers and ports, the Confederacy had to depend on a weak railroad system that, with few repairs being made, no new hlw, and destructive federal raids, crumbled away. The financial teh collapsed during the war as inflation destroyed banks and forced a move toward a barter economy for civilians. The government seized needed supplies and livestock paying with certificates that were to be paid off after the war, but never. By the Confederate economy was in ruins. The main prewar agricultural products of the Confederate States were cottontobaccoand sugarcanewith hogs, cattlegrain and vegetable plots.

The cotton-backed Erlanger Bond epitomized the potential of cotton credit. Image courtesy Eugene R. Bales of cotton wait on the levee at New Orleans for shipment overseas, circa Here, a truck loaded with bales of cotton travels on U. Highway 49 near Clarksdale, Mississippi, in the s. If slavery was the corner stone of the Confederacy, cotton was its foundation. At home its social and economic institutions rested upon cotton; abroad its diplomacy centered around the well-known dependence of Europe…upon an uninterrupted supply of cotton from the southern states. When the southern states seceded from the United States to form the Confederate States of America in , they used cotton to provide revenue for its government, arms for its military, and the economic power for a diplomatic strategy for the fledgling Confederate nation. Before the American Civil War, cotton produced in the American South had accounted for 77 percent of the million pounds of cotton used in Great Britain. After Britain had officially declared its neutrality in the American war in May , the president of the Confederacy, Jefferson Davis — a Mississippi planter, Secretary of War under U.

President Franklin Pierce, and former U. Confederate leaders believed an informal embargo on cotton would lead Great Britain into formal recognition of the Confederacy and to diplomatic intervention with other European countries on behalf of the South. To begin King Cotton diplomacy, some 2. Indeed, the number of southern cotton bales exported to Europe dropped from 3 million bales in to mere thousands. The South, however, had made a pivotal miscalculation. Southern states had exported bumper crops throughout the late s and in , and as a result, Great Britain had a surplus of cotton. Too, apprehension over a possible conflict in America had caused the British to accumulate an inventory of one million bales of cotton prior to the Civil War. But when the cotton famine did come, it quickly transformed the global economy.

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As the war dragged on, the Union’s advantages in factories, railroads, and manpower put the Confederacy at a great disadvantage. The American economy was caught in transition on the eve of the Civil War. What had been an almost purely agricultural economy in was in the first stages of an industrial revolution which would result in the United States becoming one of the world’s leading industrial powers by But the beginnings of the industrial revolution in the prewar years was almost exclusively limited to the regions north of the Mason-Dixon line, leaving much of the South far behind. In , the South was still predominantly agricultural, highly dependent upon the sale of staples to a world market. By , cotton was the most valuable export in the United States; by , it was worth more than all other exports combined. But while the southern states produced two-thirds of the world’s supply of cotton, the South had little manufacturing capability, about 29 percent of the railroad tracks, and only 13 percent of the nation’s banks.

Describe Compromise of What did the Dred Scott decision say? The most important southern crop was cotton. There are many countries in South America, most of them have different currencies; there is no South American currency. They lived in terrible conditions and had to work day and night. What advantages could the Union claim at the start of the war?

Fact #1: The Civil War was fought between the Northern and the Southern states from 1861-1865.

In almost every way, the Emancipation Proclamation made the Union better able to fight, and win, the Civil War. In that speech Lincoln told his countrymen that it was for them to make sure «that the dead shall not have died in vain and that this nation, under God, shall have a new birth of freedom and that government of the people, by the people, for the people, shall not perish from the earth. He made a speech there, which later became famous as «The Gettysburg Address». When the south talked about secession the Union said they would enforce the Union claim by force. Lee surrendered his Southern forces to Ulysses Grant, effectively ending the war in a Union victory That also inflamed the south who considered that an invasion of their sovereign states. For the most part, however, the blockades ruined the economy of the South by not only stopping exports but also stopping imports. What did the Kansas-Nebraska Act effectively undo? Just me. What made slavery so terrible? Describe Compromise of Hottest Questions. Robert E.

Economic Causes of the War

Prior to the Civil War the South derived much of its income from the export of cotton, tobacco and sugar. However, the Union Mnoey blockaded the southern ports and exports dropped dramatically. Some money was raised by the Confederacy by imposing cibil on goods «imported» from the northern states. For the most part, however, the blockades ruined the economy of staes South by not only stopping exports but also stopping imports. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.

Hottest Questions. Previously Viewed. Unanswered Questions. Asked in US Civil War. History of the United States. How did the South get money during the American Civil War? Money, Food, Ammunition, Gunpowder, soldiers.

The south made their own money during the civil warso when the Union won the money meant. Shortly before the civil war, they began to lose money from enormous taxes imposed on them by the north.

Peruvian money is American money. Peru is a country in south America. Asked in American Revolution How did the government raise money during the American revolution? The government raised money during the American revolutionary by selling bonds to the citizens.

Asked in US Civil War, Century — s What are the economic differences between the north and south during the civil war? One difference between the north and south economically was that the south was relying on agriculture to make money while the north was industrializing.

The south needed slaves to work their fields so they could make money while the north had more manufacturing jobs. When the south talked about secession the Union said they would enforce the Union claim by force. That also inflamed the south who considered that an invasion of their sovereign states.

The south sucked the dick of the north, and came straight cash homie. Collapse of Confederacy made Confederate money worthless. Asked in Business Law How did jay cooke treat his workers? Jay Cooke treated his workers with respect. He was known as the American Financier. Asked in South Africa Do south africans use american money? Asked in War and Military History During which war was the first paper money made?

In the Civil war. Asked in History of the United States What were scalawags and carpetbaggers? Carpetbaggers were usually rich, Republican capitalists who travels south during the Reconstruction era after the Civil War in order to invest their money in the new developing industries.

Scalawags were Southern whites who supported the Reconstruction of the South. They received loans from France. The Civil War hurt the south because it cost a lot of money and it destroyed much of its infrastructure.

It also put an end to the free labor used in much of the south when the slaves were freed. The North was almost untouched by the war in comparison to the South. The South had major problems like the economy.

Because when the Union and the Confederacy split, the Confederacy made up hlw own money. The South laid in ruins. In the South. By the beginning ofa Confederate dollar was down to 5 cents. By the end of that year, it was down to almost. There are many countries in South America, most of them have different currencies; there is no South American currency.

They borrowed how did the states of the civil war make money, increased taxes, and they printed paper money. The women in the confederate army gave union soldiers blow jobs. And soldiers from the north would normally rape southern soldiers.

And hhe sometimes steal the money. Moneu in Education When did America start taxing people? Trending Questions.

Introduction In the years before the Civil War, the economic interests of Americans in the North and Div grew increasingly further from those of Americans in the South and Southwest. Although the Civil War itself was caused by a number of different factors, the divergent paths taken in the economic development of North and South contributed to the animosity between the regions, the development of the Confederacy and, ultimately, the sttates of the Union. Contrasting Economies As a nation, the United States was still primarily agricultural in the years before, during and immediately after the Civil War. About three-quarters of the aar lived in rural areas, including farms and small towns.

Roger L. Ransom, University of California, Riverside

Nevertheless, the Industrial Revolution stqtes had hit England decades before gradually established itself in the «former colonies. The North had five times the number of factories as the South, and over ten times the number of factory workers. The labor forces in the South and North were fundamentally wr, as. In the North, labor was expensive, and workers were mobile and active. The influx of immigrants from Europe and Asia provided competition in the labor market, however, keeping wages from growing very quickly. The Southern economy, however, was built on the labor of African American slaves, who were oppressed into providing cheap labor. Most Southern white families did not own slaves: die abouttje of 1. Slaves were concentrated on the large plantations of about 10, big planters, on which or more slaves worked. About 3, of these planters owned more than slaves, and 14 of them owned over 1, slaves. Of the four million slaves working in the South inabout one million worked in homes or in industry, construction, mining, lumbering or transportation. The remaining three million worked in agriculture, two million of whom worked in cotton. Since Eli Whitney’s invention of the cotton ‘gin, the cotton industry became a lucrative field for Southern planters and farmers. Utilizing slave labor, cotton planters and farmers could cut costs as they produced cotton for sale to other regions and for export to England.