Civil War Statistics

This of course was impossible. The Confederacy first resorted to loans guaranteed by cotton, and for a time their loans sold well; but when cotton was no longer allowed to leave the country except as captured by the Federals, there was difficulty in making loans on any good basis.

The Confederate expenses were enormous, because of the great risk in getting in supplies from abroad.

There were few good mechanics in the South, and few foundries; the Tredegar Iron Works, at Richmond, was the only first-class establishment of its kind in the Confederacy. When loans from the States and bond sales failed to raise money, resort was had to paper currency, which was issued in large amounts.

Just how much was current will never be known. The workmanship on the notes was poor, and counterfeits in the North were easily made, so that the South was swamped with paper money.

It declined steadily with the fortunes of the Confederate arms, and after the war it became, along with the bonds, entirely worthless. Many of these bonds were held abroad. In fairness it can be said that the finances of the Confederacy were never well handled, even considering all the difficulties involved.

The Federal Government was more fortunate. After a short period of gloom and despair the Northern people resolved to stick together. A meeting of the leading bankers was held and money was furnished for a time almost as called for.

The Treasury also issued interest-bearing notes for small denominations, but even these were not sufficient for the strain. When it was found that there was to be a long and bloody war, entirely original measures were taken.

The National Banking system, substantially as it now is, was established. This had the two-fold effect of marketing bonds and providing currency for the needs of the people. Income and internal revenue taxes were laid on many articles.

Specie payments were suspended, but no great disaster came. Finally, non-interest-bearing Treasury notes to the amount of nearly $450,000,000 were issued to pay war expenses.

They were never on a par with gold, falling to about 40 per cent at one time, but fluctuating according to the success of the Federal arms. After the war they rose in value rapidly, but did not reach par until 1878.

During the most trying part of the war Mr. Chase was at the head of the Treasury, but, on the death of Chief Justice Taney, succeeded him and Hugh McCullough became Secretary.

During the war most of the bonds were sold through the agency of Jay Cooke, of Philadelphia -- the fourth man from that city to finance our Government in a war.

By August, 1865, the National debt, which was only about $80,000,000 in 1860, had reached $2,845,000,000. About $800,000,000 was raised during the war by customs duties, internal revenue, and direct taxes.

The contents of this web site are Copyright © 2009 Philadelphia Website Design. All Rights Reserved.

Please review our Privacy Policy.

Help us make this site better - and have fun! Take our quick survey. Click here!