Civil War Cost

The economies of the North and South were vastly different leading up to the Civil War. Money was equivalent to power in both regions. For the North, the economy was based on industry as they were more modern and self-aware. They realized that industrialization was progress and it could help rid the country of slave labor as it was wrong. The North’s population had a class system but citizens could move within the system, provided they made the money that would allow them to move up in class. The class system was not as rigid as it was in the South. By comparison, the South wanted to hold on to its economic policy. In doing so, the practice of slavery kept the social order firmly in place. The economic factors, social issues and a growing

As the war continued on the industrial capabilities of the North would prove to become one of the greatest contributing factors to their ability to sustain military operations. Tied directly into the industrial capabilities of the North is the economical superiority that they held over the South. "The economy was the greatest Southern weakness; it was the North's greatest strength. The North was not only a huge farm but a sprawling factory as well" (Kennedy, Cohen, and Bailey pg. 439). Wars are expensive, and in order to sustain military operations especially one that would drag on for four years money would become of great importance. The North was comprised of approximately 75% of the nation's wealth, and they were able to maintain their trade with Europe which kept the money, and weapons pouring in. The South's inability to raise money took its toll on the pocket books of the Southern States, and in turn would be one of the major contributing factors to their defeat. A lengthy war on the other hand favored the wealthier and

     When the Civil War finally concluded, thousands of American soldiers died fighting for what they believed in. The Confederate army lost a total of 258,000 soldiers and the Union army lost 360,000 soldiers. The loss of so many people immensely harmed the nation mentally and economically. Almost everybody had a family, relative, or friend that died in the Civil War. Half of the lives lost were farmers in the South, which devastated the South’s economy because these farmers were also consumers for their

The causes of most wars are often very complex, but in the America civil war it came down to two major issues, slavery and the protection of the Union. In the North, they were growing richer all the time as industry developed fast. The workers were mostly immigrants with low wages. The South didn’t have these resources, and the slaves were essential for them. The Northern politicians insisted that the Slavery should be abolished and that this was an evil system that should be stamped out. Only the rich wool farmers and other wealthy

Financing the war was also a problem. Americans had been unaccustomed to paying taxes to the national government, but both sides had to end the tradition of hard money and minimal government by raising taxes, issuing war bonds, and printing paper money. Inflation was serious in the North and devastating in the South by 1865.

The war destroyed much of the wealth that had existed in the South. All accumulated investment Confederate bonds was forfeit; most banks and railroads were bankrupt. Income per person in the South dropped to less than 40% of that of the North, a condition that lasted until well into the 20th century. Southern influence in the

The South fought this war as the Second American Revolution. The cause of the South was equated to that of their forefathers who had fought and won their freedom from Great Britain less than 100 years earlier. If it was a war to set men free, it was the Southern farm boy that wanted his freedoms guaranteed under the original constitution. The Northern states' politicians were aggressively attempting to implement a monarchial form of government, which was precisely what the early colonists had fought against in the American Revolution. The Northern states were taking advantage of their superior numbers in the federal government and were using their advantage to implement unfair tariffs against the South. Enormous amounts of money were taken from the South and funneled into the Northern states. Most of the revenue taken from the Southern states was used to run government programs. This brought about the argument of "State's Rights" and a weaker central government by the South.

The American civil war began in 1861 and ended in 1865. It was a War in which people were probably suffering the most. With a total death people close to 620,000 and million more injured. This event was a decisive one, according to the United States history. Through the North to the South, and the East to the West, that period of battle and civil War let engraved marks in population minds, which turn out is a watershed for Slaves and Freeman. One of the important turning points of the civil War was the importance to finance it. It cost a lot to both part of the United States to entertain war and battle during approximately four years. For example, the national debt rose from $65 million in 1860 to $2.6 billion in 1866. Nevertheless civil

The main economic hurdle the country faced was centered in the south. After the war many Southerners were dependant on federal aid subsistence and the emancipation proclamation cost the South $2 billion of it’s capital (Farmer). Furthermore, agriculture had been what maintained southern economy but post-war most farms and plantations were desolate and many of the few railroad tracks that were there before had been destroyed. Historian Charles Beard looks at the war as, “the triumph of the forces of industrialism over plantation agriculture.” However this is not entirely true. While there was some movement towards industry, the south was still primarily agriculturally based and had adopted a system of sharecropping to do so. It took until 1867 for

The Union blockade did not take full effect for many months, allowing the Southerners time to export their cotton harvest, and reap the financial benefits. Alexander Stephens had a plan at the start of the war that he estimated would net around $800M for the Confederacy, providing a sound financial base for the war effort. Although somewhat optimistic, and affected by practical difficulties, it is fair to say that the cotton crop would have been far better exported than stockpiled or burnt. Secondly, the Confederate government displayed an unwillingness to tax her citizens, preferring instead to print money, and suffer the rampant inflation that resulted. The Union financed its war effort mainly from taxation and bonds, while 60% of Southern funds came from unbacked paper money. The problems associated with this are clear to see: prices rose 100-fold over the four years of war, wiping out southerners' savings, and devastating the economy. The government's reaction to this, the third mistake, was to impress public goods for military use. However, rather than curbing inflation, this merely acted as a disincentive to supply, making essential items increasingly scarce. This, coupled with the poor infrastructure and parochialism of some State governors, meant that the army went hungry in a nation with the capacity to produce plenty of food. Finally, it is argued that the Confederate government should have done more to improve infrastructure and

With no navy to mount a defense, the Southern government was forced to control production of cotton and raise taxes, which only furthered the disillusionment of its population (Perman, 224). Poor Southerners in particular began to see the war as benefiting a section of society that did not include them, as they were not slave owners. They were the very people forced to make the most sacrifices for the war and the government's control of their ability to produce led to bread riots (Perman, 219). Moreover, as enlistment numbers in the Confederate army dwindled, the government had no option but to turn to forced conscription and impressments of slaves, which Southerners viewed as the impounding of personal property (Perman, 221). The realities of war created a conflict that Southerners did not foresee when they had created an aloof central government.

The second effect of the North’s victory over the South is a new financial system. The American Civil War destroyed the

In 1861, the American Civil War commenced after many years of tension building between the Northern and Southern states. The main reason of the tension was said to be the debate of slavery between the North and South, and although some documents support this claim, it is false. The war had been brewing since 1607, before slavery was even introduced to the colonies that would become the United States of America. The debate of slavery did play a major part in the civil war; however it did so in supporting the true cause of the civil war. The main cause of the American Civil War was not the debate of slavery, but rather Europe’s role in the American economy.

By all estimation, the American Civil War was considered to be the bloodiest and most gruesome war in American history. There are more US casualties involved in the American Civil War than US casualties in World War I & II, Korean, and Vietnam War combined. Historians have discussed possible causes that led to the greatest separation among the American people. It is important to recognize the true causes behind this separation so that history does not repeat itself. It is important to recognize the true cause behind this separation so that history of a civil war does not repeat itself. It is best to examine and understand one fundamental cause so that appropriate measures can be taken to prevent another repeat of the past. Current research as well as old documents demonstrate that the conflict over the legality of African American slaves is the main cause to such separation. However, many tend to overlook the economic reason that benefited both the northern and southern states. While it is clear that the Southern states benefited more from slavery due to the vastness of uninhabited land, both southern and northern states benefited in one way or another. Therefore, it makes one wonder: To what extent economic motive between the southern and northern states spurred the American civil war? Although causes like slavery, greed, and fear factor into the causes of the American Civil War, the economic motive between the southern and northern states spurred

At the end of an economic depression, the year 1898 proved to show that better times were coming. The money supply of the country was showing an increase once again. During 1898, the money supply of the United States has been increased by at least $500,000,000 (“Abundant Money” 1). Gold production and gold importation have added at least $200,000,000 to the stock. The net balance in the foreign trade account accounted for another $300,000,000 (“Abundant Money” 1). This increase in the money supply makes money cheap and easy. Its abundance was verified by the large holdings of the New York banks and of the National Treasury. Investment activity was very active and the purchase of bonds resulted in a steady rise in the prices of all first-class