1. Funding the Civil War North vs. South Myles vs. Louis

2. Early South Funding No Direct Taxes Buy Weapons, not make them Issued War Bonds  Backed by Cotton  Redeemed 2 years after Confederate Victory

3. Early South Funding Cotton Embargo  Acted too late, left with much cheap cotton Confederate currency loses value Inflation takes over Union Blockade stops trade  No Indirect tax revenue

4. Meanwhile in the USA

5. Union Funding Salmon Chase (Sec. of Treasury) and Philadelphia banker Jay Cooke  War bonds Taxes  Income Tax First in US History Pay large part of war debt  Stamp Tax  Increased over time as war went on

6. Union Funding National Banking Act of 1863  Moved towards recreating national banks National Currency Act  Allows US to print money Greenbacks Postage Currency  Replaced by Fractional Currency  Catches on with public

7. Meanwhile in the CSA

8. Late South Funding Deep into debt, inflation rising greatly  Start Taxing Most evaded or paid in Confederate notes  Allow South-North Smuggling Issue Licenses Blocked by North  Only allowed payment in Treasury Notes  Need more faith in Confederacy

9. Summary Union Economy relatively stable compared to Confederacy Rich Man's War, Poor Man's Fight  $300 Could hire a substitute in Southern Draft Subs outlawed after increase in AWOL's  $300 Could void one's Union draft roll Rolled again, if called again, another $300  Plantation owners automatically exempt from Draft

10. Summary Northern Inflation: 80% Southern Inflation: %