Financing the War: Confederacy THE SITUATION Confederacy had few gold reserves Union blockade was making it hard to sell cotton and raise money from tariffs Taxes of income/profit/property were unpopular Most state governments were reluctant to send money to Richmond The Union was struggling to feed the Confederate troops WHAT THE CONFEDERACY DID IMPACT

Financing the War: Union THE SITUATION The Union had an established Treasury, gold reserve and source of revenue from tariffs However, the northern financial structure was not ready for war Over the winter of 1861-2, the northern banking system was near to collapse WHAT THE UNION DID IMPACT