Reconstruction Economic

Issues The North wanted to reconstruct the South in its own image- railways, industry etc. whilst the South wanted to maintain its agrarian economy. During the Civil War new cotton producers, notably India had massively upped production to meet the demand in Britain and elsewhere that America had not been supplying. America as a federal system, tends to lead to states wanting to look after themselves, there was a limited will in North to help the states they blamed for the war.

Issues The ending of slavery wiped out $4billion that had been invested in slaves. The slaves were in most cases the most valuable asset owned by southerners. Property value plummeted in the South. The Morill Tarrif introduced by the North doubled import duties. The National Banking Act had centralised control of the money supply. The Homesteaders Act of 1862 and building of the Transcontinental Rail Road further stimulated the economy in the North

Issues The Depression of 1873 hit the South very hard as the economy was weak and their was a world wide glut of cotton forcing prices down very low. The Southern economy was plagued with corruption. The economy was damaged by the on going dispute over greenbacks (soft money) and gold (hard money). This political argument made the economy more vulnerable and increased the impact of the depression of 1873.

Devastation in the South The majority of the fighting had been in the South, areas such as Georgia had been devastated by the invading Northern Army.

Life Changed: Impact on Planter class

Lives changed but not a lot

Sharecropping

Achievement and Corruption

Government Debt

Economic Depression 1873

More arguments over gold and greenbacks